Noble Sells Tamar Stake
Tuesday 5 July 2016
US independent Noble Energy has signed a deal to sell a 3% stake in its prolific Tamar field off Israel.
Noble said on Tuesday that, under the agreement, it will divest a stake to a partnership between Harel Group – an insurance provider and pension manager in Israel - and private equity fund Israel Infrastructure Fund (IIF).
The sale value is $369 million, based on a gross pre-tax Tamar valuation of approximately $12 billion, Noble said. Under the deal, Harel and IIF have the option to purchase an additional 1% interest from Noble at the same valuation, the company said.
“This transaction highlights the potential of our other undeveloped Levant basin discoveries, which share similar reservoir and well deliverability characteristics,” Noble’s executive vice president of operations Gary Willingham said.
“We are excited about partnering with Harel and IIF, which bring additional leading Israeli investors into the project,” Willingham said.
“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,” he added.
Closing for the transaction is anticipated in the third quarter of the year, Noble said.
Following the sale, Noble will continue to operate Tamar with a 33% or 34% interest. The company said it will then sell another 7% or 8% of the field over the next three years, as required under Israel’s approved natural gas regulatory framework.
After completing its planned 11% sell-down, Noble will retain a final 25% interest in Tamar, which has recoverable gross mean natural gas resources of 10 trillion cubic feet.
Noble and its Tamar partners are planning to drill and complete an additional development well at the field, with work anticipated to start in the fourth quarter.
The company also operates the neighbouring Leviathan field, off Israel, with a 39.66% interest and the Aphrodite field, off Cyprus, with a 35% share.
Leviathan has an estimated 22 Tcf of recoverable gross natural gas resources, while Aphrodite holds an estimated 4 Tcf of recoverable gross natural gas resources.