Noy Fund buys Delek's Karish, Tanin royalties

Yitzhak Tshuva  / Photo: Gidon Levin

Delek has signed an agreement to sell all its rights to royalties from the Karish and Tanin offshore gas fields to the Noy Fund for NIS 318 million.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, today reported that it has signed an agreement to sell all its rights to royalties from the Karish and Tanin offshore gas fields to the Noy Fund for NIS 318 million.

Delek has sold the Karish and Tanin offshore gas fields to Energean plc (LSE: ENOG; TASE: ENOG) but retained 26.4705% of the rights to royalties for gas, oil and other valuable substances that will be produced. Completion of the deal requires approval by the Ministry of Energy's Commissioner for Petroleum Affairs. The Noy Fund has deposited NIS 50 million with trustees until the deal is approved.

Delek CEO Idan Wallace said, "Selling the rights to royalties to the Karish-Tanin field is another important milestone in realizing the agreement formed together with the representatives of the Group's bondholders as part of the exit strategy for the energy market crisis. We will continue pushing ahead with similar business activities to strengthen the liquidity and equity of the Group."

Delek Group has debts of NIS 6 billion to bondholders and NIS 1.7 billion to banks.

Published by Globes, Israel business news - en.globes.co.il - on May 25, 2020

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

Yitzhak Tshuva  / Photo: Gidon Levin
Yitzhak Tshuva / Photo: Gidon Levin
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