Delek Drilling in talks to sell Tamar stake for $1.1b

Tamar field Photo: Albatross

Delek Drilling is obligated to sell its 22% stake in the Israeli offshore gas field by the end of the year.

Two groups are examining the acquisition of the stake held by Delek Drilling LP (TASE: DEDR.L) in the Tamar offshore gas field. Information received by "Globes," and which was also published in "Calcalist" this morning, reveals that the price tag in the talks with at least one of the groups is $1.1 billion.

Delek Drilling, which is controlled by Yitzhak Tshuva's Delek Group Ltd. (TASE: DLEKG), holds a 22% stake in the Tamar gas field. However, one source who is knowledgeable on the matter speculated that the information circulating over the past few days on the possible acquisition has been put out, "To renew interest in the market on the deal and there is no indication that there are any advanced talks." Delek Drilling has not notified the Tel Aviv Stock Exchange (TASE) about any talks.

The other partners in the Tamar field are Isramco (28.75%), Chevron, which bought Noble Energy last year (25%), Tamar Petroleum (TASE: TMRP) (16.75%), Alon Natural Gas Exploration Ltd. (TASE: ALGS) (4%), and Everest (3.5%). Delek has a 54% stake in Delek Drilling, which has a market cap of NIS 5.85 billion.

According to the natural gas sector agreement signed with the Israeli government several years ago, Delek Drilling is obligated to selling all its holdings in the Tamar gas field by December 2021 because it also holds a 45.34% stake in the Leviathan gas field. It has already sold part of its holdings to Tamar Petroleum and Everest.

Published by Globes, Israel business news - en.globes.co.il - on April 5, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Tamar field Photo: Albatross
Tamar field Photo: Albatross
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