Noble Energy begins Tamar sell-down

Noble Energy Inc., Houston, has signed a definitive agreement to sell 7.5% working interest in Tamar field offshore Israel to Tamar Petroleum Ltd. in a cash-and-stock transaction worth a total $800 million.

Noble Energy Inc., Houston, has signed a definitive agreement to sell 7.5% working interest in Tamar field offshore Israel to Tamar Petroleum Ltd. in a cash-and-stock transaction worth a total $800 million.

The deal, comprised of $560 million cash and 38.5 million shares of Tamar Petroleum, follows Noble Energy’s initial divestment of 3.5% of Tamar field in mid-2016. Combined proceeds from both transactions total nearly $1.25 billion, including almost $1 billion in cash.

Noble Energy is selling down its Tamar interest “in accordance with the government of Israel’s natural gas regulatory framework,” said Noble Energy Chairman, Pres., and Chief Executive Officer David L. Stover.

Following the sale, Noble will hold 25% working interest in Tamar field and will remain the operator. Pro forma for the transaction, Tamar Petroleum will hold 16.75% working interest in the field.

The divested working interest represents 62 MMcfd of gas equivalent of 2017 production and proved reserves of 500 bcfe as of yearend 2017.

Noble will use cash proceeds from the sale to support investment in the Leviathan development, which is expected to deliver first gas sales by yearend 2019, Stover said.

The deal is expected to close by the end of this year’s first quarter with an effective date of Jan. 1.

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