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Delek Drilling Sells Tamar Stake for $1.025 Billion to Abu Dhabi Firm

Delek Drilling

(from right to left) Delek drilling CEO Yossi Abu and Dr. Bakheet Al Katheeri, Executive Director – UAE Industries, Mubadala Investment Company and Mansoor Mohamed Al Hamed, CEO, Mubadala Petroleum. Photo credit: Refi Daloya.

Israel’s Delek Drilling has sold its 22% non-operated stake in the Tamar offshore gas field to Mubadala Petroleum of Abu Dhabi, UAE. Mubadala Petroleum will pay Delek Drilling $1.025 billion for the field, subject to certain adjustments.

The benefits from last year’s Abraham Peace Accords signed between Israel with both the United Arab Emirates and Bahrain just keep coming and coming. Just one example came in July when Dubai based SJM Group and INMED, an Israeli medtech startup which offers an end-to-end digital health platform, teamed up to create a digital health platform for remote patient management in Dubai.

Then there is the new oil pipeline being constructed from Eilat to The Mediterranean which will transfer oil from the Gulf States.

Delek Tamar

Tamar Rig

Back in April, JBN reported on how Delek Drilling, which is controlled by Yitzhak Tshuva’s Delek Group Ltd, was looking to unload the field. The company is required to sell out its share by the end of 2021 as part of an agreement made with Israeli authorities since the company also holds a 45.34% stake in the Leviathan gas field. The Tamar Gas Field is a natural gas pocket located in the Mediterranean and is one of Israel’s natural gas fields in that sea. It is situated just east of the Leviathan gas field.

Discovered in 2009, the field is located in Israel’s exclusive economic zone, roughly 80 kilometres (50 mi) west of Haifa in waters 1,700 metres (5,600 ft) deep. The gas flows through two c.140 km pipelines to the primary and main processing facility on the Tamar Platform where most of the gas processing takes place. The natural gas is then transmitted from the platform through a pipeline to the onshore terminal in Ashdod, and into the Israeli market through the INGL national gas pipeline with a proportion being exported on to Jordan and Egypt.

Mubadala Petroleum is a leading international, upstream oil and gas exploration and production company with a primary geographic focus on the Middle East and North Africa, Russia and Southeast Asia, with assets in 10 countries. Mubadala Petroleum was established in 2012 and is a wholly-owned subsidiary of Mubadala Investment Company, which is owned by the Government of Abu Dhabi. When finalized, the transaction will complement Mubadala Petroleum’s gas-biased portfolio strategy in line with its energy transition goals.

Delek Tamar Field

Tamar Field Map

Yossi Abu, CEO of Delek Drilling said, ‏”This transaction marks a milestone in the alignment between Israel and the UAE following the Abraham Accords Peace Agreement signed between the two countries in 2020. ‏On completion, the deal will represent one of the largest transactions between an Israeli entity and an Arab entity, which shows how Israel’s Natural Gas resources can be a source of collaboration between nations. This is yet another pivotal brick to the wall of friendship and collaboration Delek Drilling has been building in the region.”

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