Delek Group subsidiary DKL Investments has signed an agreement to invest $66m in North Sea oil producer Ithaca Energy (IAE).
The investment will be done through equity investment via a non-brokered private placement, and the Israel-based company Delek will receive a private allocation of about 20% of the company’s share capital for its overall investment.
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Ithacah is a partner in 11 producing oil and gas fields, and acts as the operator in three of them, and including Greater Stella Area.
Ithaca Energy chief executive officer Les Thomas said: "The investment provides a solid vote of confidence in the long-term value of Ithaca by a successful oil and gas investor and provides additional flexibility to execute the financial and strategic priorities of the business."
In 2014, Delek announced its intention to focus on the international energy sector by identifying investment opportunities.
The company plans to finance the investment in Ithaca from the group’s own resources.
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By GlobalDataDelek Group CEO Asi Bartfeld said: "This deal is a direct continuation of the strategy the group has announced, with its focus on the energy sector in Israel while creating a strong and stable arm in the international energy market.
"This is a major step towards expanding our operations in the international market and widening the group’s operations into oil and gas exploration and production, while opening up new opportunities for the Delek Group."
Image: Stella North Drill Centre. Photo: Ithaca Energy Inc.
