Noble Energy Inc. has announced that it signed a definitive agreement to divest a 3% working interest in the Tamar field, offshore Israel, to the Harel Group. The transaction value of US$369 million is based upon a gross pre-tax Tamar valuation of approximately US$12 billion and is subject to purchase price adjustments. Closing for the transaction is anticipated in 3Q16, subject to customary terms and conditions, with after-tax proceeds received expected to be approximately US$275 million.
Gary W. Willingham, the Company's Executive Vice President of Operations, commented: "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. We are excited about partnering with Harel and IIF, which bring additional leading Israeli investors into the project. These proceeds further bolster our balance sheet in the near-term and will contribute to our upcoming capital investments in Israel, including our initial investment in the Leviathan project."
Noble Energy and partners are planning to drill and complete an additional development well at the Tamar field in response to the continued increasing demand and outlook for natural gas usage within Israel, as Israel displaces coal for clean-burning natural gas. Drilling is anticipated to commence in 4Q16.
The Tamar field sold 252 million ft3/d, net, of natural gas and generated net pre-tax income of US$318 million for Noble Energy in 2015.
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/06072016/noble-energy-sells-3-interest-in-tamar-field-2738/