Israel Buys Into Offshore North Sea Oil & Gas

Published at 10:10AM - 10/10/15

UK based Ithaca Energy, have announced that an investment group from Israel have bought into the company, securing shares of its oil and gas rights.

Ithaca own and operate 8 offshore oil and gas assets in the UK North Sea, including the Cook and Athena FPSOs.

Greater Stella Area

The firm is currently developing the North Sea’s Greater Stella Area, including the Stella and Harrier offshore platforms, expected to produce first oil in the second quarter of 2016.

The offshore energy firm confirmed that DKL Investments had paid GB£43 million (US$66m) for 19.9% of Ithaca.

Ithaca Chief Executive Officer, Les Thomas,said: “We are pleased to have secured Delek’s investment in the Company at a significant premium to the prevailing share price at this time of uncertain oil prices.”

“The investment provides a solid vote of confidence in the long term value of Ithaca by a successful oil and gas investor and provides additional flexibility to execute the financial and strategic priorities of the business.”

Delek Group

DKL Investments is a wholly owned subsidiary of Israel’s dominant energy company- Delek Group.

Delek Group has come under fire in recent months from its own government, when it was put before the Israeli  Antitrust Authority.

The move came as part of investigations into the running of two of Israel’s largest offshore gas fields, the Tamar Field and the Leviathan Field.

As part of the outcome, Israel’s Antitrust Authority forced Delek to sell a share of its stake in the Tamar Field, in order to keep its hand in the giant Leviathan field.

The outcome of the investigations also saw a similar ruling handed down to Delek’s co-venturer Noble Energy, a move which ended Noble being the Field’s major stake holder.

Last updated on 05:12PM - 12/10/15