Israel's Delek Drilling LP is looking to spin off its remaining 22% stake in the offshore Tamar gas field in 2019, the company's CEO said Nov. 19.
Last year Delek spun off an initial 9.25% of Tamar into a new company in Tel Aviv called Tamar Petroleum. It said at the time it expected to get $980 million for the sale.
CEO Yossi Abu said Delek Drilling is now focusing abroad, including the Euronext market, since the local market is already saturated for Tamar.
"We are looking to duplicate what we did with Tamar Petroleum but in the international market. It's a process that is gaining momentum and we hope to finish it in 2019," Abu said at the Israel Energy & Business Convention.
Delek and its partners discovered Tamar in 2009 and began producing gas from the field in 2013. It is Israel's second-biggest gas reserve behind Leviathan, in which Delek also has a major stake.
In an effort to open the energy market to competition, the Israeli government is forcing Delek, which is a unit of conglomerate Delek Group, to sell its share in Tamar.
Tamar is Israel's leading gas supplier and its owners have signed a multi-billion dollar export deal with an Egyptian buyer.
Abu said he hopes they will start exporting gas to Egypt in the first half of 2019.
RELATED: Noble Cashes Out Of Tamar Petroleum After Egypt Gas Deal, Report Says
Tamar Petroleum has since expanded its stake in the field to 16.75%. Other shareholders are Texas-based Noble Energy Inc. (NYSE: NBL) with a 25% stake, Isramco with 28.75%, Dor Gas with 4%, and Everest Infrastructures holds the remaining 3.5%.
Recommended Reading
Enbridge Advances Expansion of Permian’s Gray Oak Pipeline
2024-02-13 - In its fourth-quarter earnings call, Enbridge also said the Mainline pipeline system tolling agreement is awaiting regulatory approval from a Canadian regulatory agency.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
Matador Stock Offering to Pay for New Permian A&D—Analyst
2024-03-26 - Matador Resources is offering more than 5 million shares of stock for proceeds of $347 million to pay for newly disclosed transactions in Texas and New Mexico.
NGL Growth Leads Enterprise Product Partners to Strong Fourth Quarter
2024-02-02 - Enterprise Product Partners executives are still waiting to receive final federal approval to go ahead with the company’s Sea Port Terminal Project.
After Megamerger, Canadian Pacific Kansas City Rail Ends 2023 on High
2024-02-02 - After the historic merger of two railways in April, revenues reached CA$3.8B for fourth-quarter 2023.