Noble Sells US$369m Stake In Offshore Field

Published at 05:24PM - 05/07/16

Noble Energy announced the sale of a 3% working interest in the Tamar gas field, located offshore Israel.

The company will sell the participation to the Harel Group, a leading insurance provider and pension manager in Israel, in partnership with Israel Infrastructure Fund (IIF), Israel’s largest infrastructure private equity fund.

“This transaction reflects the inherent value of our producing Tamar asset, which reliably fuels more than half of Israel’s electricity generation today,” Noble Energy’s Executive Vice President of Operations, Gary W. Willingham, said.

Noble Sells US$369m Stake In Offshore Field

The transaction was valued at US$369 million (£282.4 million) based upon a gross-pre-tax Tamar valuation of approximately US$12 billion (£9.18 billion), the company informed in a statement.

The deal is expected to be closed in the third quarter of the year, with after-tax proceeds received expected to be of approximately US$275 million (£210.48 million).

Noble Energy Eastern Med Map
Noble Energy Eastern Med Map

Under the agreement, Harel and IIF also have the option to purchase an additional 1% interest from Noble at the same valuation, the company explained.

 “[This transaction] 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,” Willingham added.

According to the executive, the partnership with Harel and IIF will also enable Noble to continue investing in its Israeli projects, namely the Leviathan development.

Noble Energy To Divest 11% In Tamar

Noble and partners plan to drill and complete an additional development well at the Tamar field in the fourth quarter of the year, in response to rising demand in Israel.

Before the announced sale, Noble operated the Tamar field with a 36% working interest.

According to Israel’s approved Natural Gas Regulatory Framework, the company is carrying out a 11% sell-down in the field, and the sale of the remaining 7-8% is expected to occur within the next 36 months.

After the process is concluded, the company should retain a 25% interest and operatorship in the field.