BlackRock will own 60% of Ithaca's North Sea assets while the Delek unit will continue to serve as the operator of the oil and gas fields.
Delek Group Ltd. (TASE: DLEKG) North Sea assets unit Ithaca has announced that it has signed a letter of intent with an international investment company to set up a new infrastructures company. Although Delek declined to confirm with whom the agreement has been signed, it is believed to be US asset manager BlackRock.
According to the letter of intent, the new infrastructure company, will acquire from Ithaca, as part of a sales and lease agreement, part of Ithaca's gas an oil exploration operations in the North Sea, based on a valuation of between $875 million and $1.05 billion. The final valuation will be set according to the amounts of oil and gas produced and the tax structure of the new company. The new infrastructure company will be held by Ithaca (40%) and BlackRock (60%), while Ithaca will continue to act as the operator for the new infrastructure company.
Last November, Ithaca acquired Chevron's North Sea assets for $2 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 9, 2020
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Guy Ben Simon and Kobi Yeshayahou