Energy Ministry approves sale of Tamar stake to Mubadala

Tamar rig Photo: Albatross

The Abu Dhabi company is buying a 22% stake in the Israeli gas field from Delek Drilling for $1 billion.

The Ministry of National Infrastructures, Energy and Water Resources Petroleum Commissioner has approved the sale of a 22% stake in Israel's Tamar offshore gas field to the Abu Dhabi government's Mubadala Petroleum by Delek Drilling Limited Partnership (TASE:DEDR.L). Following receipt of the approval, Delek Drilling reported that all the preconditions for the deal have been met and the deal will be completed as per the agreement. The deal is expected to close on December 7.

In September, Mubadala signed an agreement to buy the 22% stake in the Tamar gas field for $1 billion. Mubadala will buy the shares through two separate companies set up especially for the deal.

Last week Tamar Petroleum (TASE: TMRP), which has a 16.75% stake in the Tamar gas field, reported that Mubadala had given Israeli businessman Aaron Frenkel an option to buy an 11% stake in the Tamar gas field for $500 million, to be exercised within six months of the closing of the deal between Delek Drilling and Mubadala.

Frenkel had bid in the tender managed by Delek Drilling to sell its full rights (22%) in the Tamar and Dalit fields. But Frenkel's bid was much lower than that of Mubadala's bid.

Published by Globes, Israel business news - en.globes.co.il - on November 25, 2021.

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

Tamar rig Photo: Albatross
Tamar rig Photo: Albatross
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