Delek Group Ltd., announced this morning that it was negotiating with UK-based oil and gas development and production company EnQuest PLC to buy 20% of the latter’s rights in exploration and production licenses in the Kraken field in the UK sector of the North Sea, for $612 million.
Under the terms of the deal being negotiated, Delek Group, controlled by Yitzhak Tshuva, will buy 20% of the rights in blocks 9/2b and 9/2c within the P1575 license, about 350 miles north-east of Aberdeen. The field, which stretches over 42 square kilometers at a depth of 1, 300 meters below sea level, reportedly contains about 147 million barrels of heavy oil. Delek Group will also lend EnQuest $20 million for five years at an annual interest rate of 2%.
According to report from EnQuest, production should start in the first half of 2017.