Chevron to buy Leviathan, Tamar operator Noble for $5b

Leviathan gas rig  / Photo: Albatross

Chevron: Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron’s position in the Eastern Mediterranean.

Chevron Corporation (NYSE: CVX) announced today that it has entered into a definitive agreement to acquire all outstanding Noble Energy (Nasdaq: NBL) shares in an all-stock transaction valued at $5 billion, or $10.38 per share. The total enterprise value, including debt, of the transaction is $13 billion.

The acquisition will make Chevron a major player in the Israeli energy market. Noble Energy has pioneered offshore gas exploration in Israel over the past two decades in partnership with Delek Group Ltd. (TASE: DLEKG) and operates both the Tamar and Leviathan fields with 25% and 39.66% stakes respectively.

In its press release announcing the acquisition, Chevron said, "Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron’s position in the Eastern Mediterranean."

In the past oil majors like Chevron have avoided any involvement with Israel due to fears it might prejudice their position in the Arab world. Chevron's acquisition of Noble and its Israeli assets may indicate a softening of the stance of countries like the UAE and Saudi Arabia towards Israel.

"The combination with Chevron is a compelling opportunity to join an admired global, diversified energy leader with a top-tier balance sheet and strong shareholder returns," said David Stover, Noble Energy’s chairman and CEO.

Published by Globes, Israel business news - en.globes.co.il - on July 20, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Leviathan gas rig  / Photo: Albatross
Leviathan gas rig / Photo: Albatross
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