Delek completes $1.75b Chevron North Sea assets acquisition

Yitzhak Tshuva

Delek said the deal will quadruple Ithaca’s production to 80,000 barrels of oil equivalent per day and raise the company's proven reserves by 150% to 225 million barrels.

Delek Group Ltd. (TASE: DLEKG) today notified the Tel Aviv Stock Exchange (TASE) that its Ithaca unit has completed the acquisition of most of Chevron's British North Sea oil fields for $1.75 billion. Delek said that on Friday, Ithaca paid Chevron $1.5 billion in addition to the $250,000 it has already paid as a deposit and other capital payments for a total of $1.75 billion in full payment

Ithaca has taken a credit line of $1.1 billion to complete the deal and also plans an IPO on the London Stock Exchange.

Delek, controlled by Yitzhak Tshuva, said the deal will quadruple Ithaca’s production to 80,000 barrels of oil equivalent per day and raise the company's proven reserves by 150% to 225 million barrels.

Delek said Ithaca has signed a five-year marketing and distribution agreement for the Chevron fields with energy major BP.

Delek CEO Asaf bartfeld said, "The closing of the Chevron transaction, concurrently with the closing of the Phoenix sale, are two significant steps in the group’s strategy for turning from a local company to a leading international energy company."

Last week, Delek sold a 32.5% stake in Israeli insurance company The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) for 1.57 billion shekels ($450 million) to private equity funds Centerbridge and Gallatin Point Capital investment funds.

Published by Globes, Israel business news - en.globes.co.il - on November 10, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Yitzhak Tshuva
Yitzhak Tshuva
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