Delek Looks To Raise $1.2bn With Tamar Sell-Off

Israeli firm Delek has begun the process of selling off its 31.25% stake in the country’s 10 tcf Tamar offshore gas field, as required by 2016’s Gas Outline.

Delek Group last week set up a special purpose vehicle, Tamar Petroleum, to market an initial 9.25% via a bond issue and an IPO.

Delek says it expects to raise a combined $1-1.2bn through this week’s bond issue of 5% of Tamar, with a further 4.25% floated via an IPO next week. The upper $1.2bn valuation implies $650mn from the bond issue, $550mn from the IPO and a $12.97bn valuation for Tamar as a whole.

Tamar is Israel’s sole producing gas field with output of 1bn cfd, sold to local power generators and industrial firms under long-term contracts. Following the most recent Tamar-8 well, completed in April, operator US firm Noble Energy says revisions could be made later this year to both the gas in place and recoverable resource estimates. (CONTINUED - 498 WORDS)