Noble Energy signed a definitive agreement to divest 7.5% stake in the Tamar Field to Tamar Petroleum for cash proceeds of approximately $560 million and 38.5 million shares of Tamar Petroleum. transaction is approximately $800 million. This follows an initial divestment of 3.5 percent of the Tamar field in mid-2016. Combined proceeds from both transactions total nearly $1.25 billion, including almost $1 billion in cash.
Noble Energy operates the Tamar field with a 32.5 percent working interest. Following closing of the transaction, the Company will retain a 25 percent working interest and will remain the operator.
David L. Stover, Noble Energy’s Chairman, President and CEO, commented, “This transaction supports our commitment to sell down our Tamar interest in accordance with the government of Israel’s Natural Gas Regulatory Framework. It highlights the strong value of our world-class Levant Basin assets, while providing additional upside exposure from our equity interest in Tamar Petroleum. These assets are some of the world’s most attractive energy investment opportunities, with margins competitive to the best U.S. onshore oil plays and a stable, long-term cash flow profile. Our team is doing an excellent job operating Tamar reliably at capacity while developing Leviathan which is on track to deliver first gas sales by the end of 2019.”
Image Source: Noble Energy