Noble Energy Inc. (NYSE: NBL) will sell a 7.5% stake in the Tamar natural gas field offshore Israel to Tamar Petroleum Ltd. for about $800 million in cash and shares, the Houston-based oil and gas producer said Jan. 29.

Noble will receive $560 million in cash and 38.5 million shares of Tamar Petroleum.

The deal allows Noble to cut its holdings in Israel's only commercial gas field to 25% from 32.5%, complying with government plans to open the market to competition.

The assets being sold produced about 62 million cubic feet equivalent per day of natural gas in 2017, Noble said.

The deal follows an initial sale by Noble of 3.5% of the Tamar field in mid-2016. Combined proceeds from both deals amount to nearly $1.25 billion, of which almost $1 billion will be in cash.