A fuel company controlled by Yitzhak Tshuva is selling its share in a partnership that owns the Tamar natural gas reservoir. Delek Drilling is thus fulfilling its commitment under the gas outline to sell its share in the reservoir by the end of 2021.
This is the largest commercial agreement ever reached between the Emirates and Israel. Delek Drilling yesterday signed a binding agreement to sell its 22% stake in the Tamar reservoir to Mubadella Petroleum in Abu Dhabi for $ 1.025 billion.
For the sale of the rights in the reservoir, Delek Drilling will receive a cash payment of $ 1.025 billion, as well as all the cash flow from the reservoir from the beginning of this year until the determining date for the transfer of rights - last August 1. This is an estimated amount of an additional $ 75 million.
The agreement was signed yesterday morning in a virtual meeting by the CEOs of the companies: Yossi Abu, CEO of Delek Drilling, and Mansour Muhammad al-Hemed, CEO of Mobadela Petroleum.
Yossi Abu, CEO of Delek Drilling, said: “We have fully complied with the gas outline and also taken another huge step in deepening our regional operations. A huge deal with a company from the Emirates, along with gas exports to Egypt and Jordan - this is exactly how, in actions on the ground, a new Middle East is being built. The deal with Mubadella meets all the principles we have set for ourselves, and it will allow us to reduce the level of leverage and improve the financial resilience of Delek Drilling. "Now that we have completed our part in the gas layout, we will focus on the development and expansion of Levitan, providing the growing demands for gas exports and developing additional channels of activity that will correspond with the spirit of the times."