Report: Noble Energy sells entire holding in Tamar Petroleum

Shares in Tamar Petroleum rose by 3.36% in the Tel Aviv Stock Exchange on Wednesday.

OCTOBER 3, 2018 16:05

Updated: OCTOBER 4, 2018 17:17

An Israeli gas platform is seen in the Mediterranean sea, some 15 miles west of Ashdod. (photo credit: AMIR COHEN/REUTERS) — An Israeli gas platform is seen in the Mediterranean sea, some 15 miles west of Ashdod.

(photo credit: AMIR COHEN/REUTERS)

Houston-based Noble Energy has sold its entire 43.5% stake in Israel-based energy company Tamar Petroleum, TheMarker reported Wednesday, less than one week after securing an agreement to support the delivery of natural gas from the Leviathan and Tamar gas fields to Egypt.

According to the unsourced report, Noble Energy sold approximately half of its interest in Tamar Petroleum on Tuesday to institutional investors, with the distribution of shares led by Leader Underwriters and Barak Capital.

Last week, Noble Energy sold 40 million shares at NIS 15.50 ($4.26) each, or NIS 620m. ($171m.) in total. Shares in Tamar Petroleum rose by 3.36% in the Tel Aviv Stock Exchange on Wednesday following the report.

Tamar Petroleum is a publicly traded offshore company founded in 2017 which holds 16.75% of the rights in the Tamar and Dalit leases, whose area covers the Tamar natural gas field. The company purchased 7.5% of the lease rights, worth $800m., from Noble Energy in a cash and equity transaction announced in January.

Last Thursday, Noble Energy, together with Israeli gas operator Delek Drilling and Egyptian partner East Gas, reached agreements worth approximately $518 million to support the delivery of natural gas from the Leviathan and Tamar gas fields to Egypt.

The companies will acquire a 39% stake in East Mediterranean Gas S.A.E., owners of the dormant 90 km.-long EMG gas pipeline connecting the Israeli gas network from Ashkelon to the Egyptian network near El-Arish.

The agreements represent a significant step toward fulfilling a $15 billion decade-long deal signed in February which will see Noble Energy and Delek Drilling supply 64 billion cubic meters of natural gas to Egypt from the Tamar and Leviathan gas fields, located off Israel.

Tamar is located approximately 80 km. off the shore of Haifa and supplies Israel with 65% of its energy needs. The company began pumping gas in 2013, and the field holds approximately 200 billion cubic meters of natural gas.

Once the Leviathan field, situated 130 km. from Haifa, becomes operational by the end of 2019, Noble Energy says it expects to sell at least 9.91 million cubic meters of natural gas per day to contracted customers in Egypt through the EMG pipeline.