Noble Energy has agreed to divest a 3% stake in the Tamar field, offshore Israel, to infrastructure private equity fund Israel Infrastructure Fund (IIF) and Harel Group for $369m.
The Tamar field is estimated to hold recoverable gross mean natural gas resources of 10 trillion cubic feet (Tcf).
As per the agreement, Harel and IIF also have the option to purchase an additional 1% stake in the project from Noble Energy for $123m, prior to closing.
Noble Energy Operations executive vice-president Gary Willingham said: "This transaction reflects the inherent value of our producing Tamar asset, which reliably fuels more than half of Israel’s electricity generation today.
"It also highlights the potential of our other undeveloped Levant Basin discoveries, which share similar reservoir and well deliverability characteristics and are poised to bring needed energy to a region which is fundamentally short natural gas."
Scheduled to be completed in the third quarter of 2016, the deal is subject to customary terms and conditions.
Proceeds from the sale will be used by Noble Energy for capital investments in Israel projects including initial investment in the Leviathan project, in which it holds 39.66% interest.
In order to meet the increasing natural gas demand, Noble Energy and partners plan to drill and complete an additional development well at the Tamar field.
Noble Energy expects the additional producing well to further enhance redundancy. Drilling is planned to begin in the fourth quarter of 2016.
The sale is a part of Noble Energy’s effort to sell a total of 11% stake in Tamar field in accordance with Israel’s approved Natural Gas Regulatory Framework.
The remaining 7 to 8% interest is planned to be divested over the next 36 months.
Upon completion, Noble Energy will have 25% interest and operatorship in the Tamar field while Isramco Negev 2 owns 28.75%.
Delek Group’s subsidiaries including Delek Drilling and Avner Oil Exploration owns 15.625% interest each while the remaining 4% stake is owned by Dor Gas Exploration.
Image: The Tamar field is estimated to hold recoverable gross mean natural gas resources of 10 trillion cubic feet. Photo: courtesy of suwatpo/ FreeDigitalPhotos.net.