Under the deal, Noble will receive around $560m in cash and 38.5 million shares of Tamar Petroleum.
The proposed sale comes after the company previously divested 3.5% of the Tamar field in mid-2016.
The total value of both transactions stands at around $1.25bn, with nearly $1bn of this in the form of cash.
Noble Energy chairman, president and CEO David Stover said: “This transaction supports our commitment to sell down our Tamar interest in accordance with the government of Israel’s natural gas regulatory framework.
“It highlights the strong value of our world-class Levant Basin assets, while providing additional upside exposure from our equity interest in Tamar Petroleum.
“These assets are some of the world’s most attractive energy investment opportunities, with margins competitive to the best US onshore oil plays and a stable, long-term cash-flow profile.”
The company will use cash proceeds from the sale to support the capital investment in its Leviathan development, which is scheduled to deliver first gas sales by the end of next year.
Furthermore, the company noted that it is planning to sell shares held in Tamar Petroleum over the next several years.
Subject to Tamar Petroleum’s debt financing and customary approvals, terms, and conditions, the transaction is expected to be completed by the end of the first quarter of this year.
Once the transaction is closed, Noble will retain a 25% working interest, as well as operatorship of the field.