Delek signs MoU to sell Tamar gas field stake to Mubadala for $1.1bn
The parties aim to finalise a definitive agreement by the end of May 2021
The Tamar gas field began production in 2013. (Credit: QR9iudjz0 from Freeimages)
Delek Drilling has signed a memorandum of understanding (MoU) with Mubadala Petroleum to sell its stake of 22% in the Tamar gas field offshore Israel for up to $1.1bn.
As per the non-binding MoU, the consideration is made up of an unconditional payment of $1bn and a contingent payment of up to $100m, based on the meeting of certain terms and goals.
The companies will work towards signing a definitive agreement by the end of May 2021.
The Tamar offshore natural gas platform. (Delek Drilling)
Israeli energy giant Delek Drilling announced Monday that it had signed a memorandum of understanding to sell its entire stake in Israel’s Tamar offshore gas field to the Abu Dhabi government-owned Mubadala Petroleum, potentially handing the United Arab Emirates a major share in one of the Jewish state’s key strategic and economic assets less than a year after the countries established diplomatic ties.
The deal for the 22 percent stake is worth $1 billion, with an additional $100 million conditioned on certain terms and goals being met, according to a notification about the agreement sent by Delek Drilling to the Tel Aviv Stock Exchange and the Israel Securities Authority. The companies said they aim to finalize the deal by May 31.
Mubadala eyes Delek’s Tamar stake for $1.1bn
Delek Drilling has signed a non-binding memorandum of understanding (MoU) with Abu Dhabi’s Mubadala Petroleum on the sale of a gas field offshore Israel.
Updated: 26/04/2021, 9:47 am
The installation of the Tamar Platform was completed in December 2012 with the placement of several packages, the living accommodations and the vent boom.
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Delek Drilling has signed a non-binding memorandum of understanding (MoU) with Abu Dhabi’s Mubadala Petroleum on the sale of a gas field offshore Israel.
An aeriel view of the Israeli gas rig Tamar, situated off the Israeli northern coast. Photo: Albatross Aerial photography / Nobel Energy / Flash90.
i24 News – Israeli energy company Delek Drilling announced on Monday that a Memorandum of Understanding (MOU) has been signed with Abu Dhabi’s Mubadala Petroleum to sell Delek’s 22% stake in the eastern Mediterranean natural gas field Tamar for $1.1 billion.
If finalized, it would mark the biggest deal between Israel and the United Arab Emirates since the Abraham Accords normalized relations between the two countries last September.
“We are proud to have signed this MoU following the Abraham Accords Peace Agreement between Israel and the UAE,” Yossi Abu, CEO of Delek Drilling, said in a statement. “The development is not only a significant endorsement of the quality of the Tamar reservoir and the Levant basin but also a major support for the East Mediterranean Natural Gas sector.”
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