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September 3, 2021

Delek to sell entire stake in Israeli field to Mubadala for $1.02bn

Delek is obliged to exit from the Tamar field by the end of 2021 according to the government’s framework to increase competition.

By Archana Rani

Delek Drilling has agreed to sell a 22% stake in the Tamar gas field offshore Israel to Mubadala Petroleum in a deal worth $1.02bn.

Located approximately 90km west of Haifa, the Tamar gas field was discovered in 2009 and entered the production phase in 2013.

Delek is required to divest its stake in the Tamar field by the end of this year according to the government’s Gas Framework, which seeks to increase competition in the sector.

Upon completion of the transaction, Delek will continue to own a 45.3% stake in the Leviathan gas field offshore Israel.

Delek Drilling CEO Yossi Abu said: ‏”This transaction marks a milestone in the alignment between Israel and the UAE, following the Abraham Accords Peace Agreement signed between the two countries in 2020.

“Our focus right now in Delek Drilling is on the expansion of our mega Leviathan reservoir and on creating new markets in the region and beyond for our produced natural gas.”

Mubadala signed a memorandum of understanding with Delek to acquire a stake in the Tamar field in April 2021.

Gas from the Tamar field is transported via two 140km-long pipelines that connect to the offshore Tamar platform for most of the processing work.

The gas is subsequently sent from the platform via a pipeline to the onshore terminal in Ashdod, and then into the Israeli market via the INGL national gas pipeline. Some volumes of the gas are exported to Jordan and Egypt.

The Israeli field is operated by Chevron with a 25% stake. Other current partners include Delek Drilling (22%), Isramco (28.75%), Tamar Petroleum (16.75%), Dor Gas (4%), and Everest (3.5%).

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