Delek Drilling Limited Partnership (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L), which currently own 31% of the Tamar gas reservoir in equal shares, are continuing their measures to reduce their stake in the reservoir in compliance with the government's decision.
Each of the partnerships will transfer 5% of its holdings in the reservoir to a special purpose vehicle (SPV), which will raise debt and offer shares on the Tel Aviv Stock Exchange (TASE). Delek Drilling and Avner will use the proceeds from the sale of the Tamar stake to issue a dividend to their investors.
Delek Drilling and Avner CEO Yossi Abu said, "After considering a number of alternatives, and in view of the interest expressed by foreign and Israeli investors, we have decided to set up a corporation that will allow investors optimal direct exposure to the Tamar reservoir through a marketable, liquid, and sound asset."
The measure by Delek Drilling and Avner originated in the August 2015 government decision about what is referred to as the gas plan, in which the partnerships undertook to sell their share in Tamar in order to expedite development of the larger Leviathan reservoir.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 25, 2017
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