Signature of a sale and purchase agreement for the sale of Delek Drilling’s stake in the Tamar gas field off Israel

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The current partners of the Tamar project are Delek Drilling (22%), Chevron (operator, 25%), Isramco (28.75%), Tamar Petroleum (16.75%), Dor Gas (4%) and Everest (3, 5%). Tamar’s lease 2P reserves, after production of over 69.3 BCM, are approx. 300 GCM of Natural Gas and 14 million barrels of condensate (Source: NSAI, January 2020). As part of the Gas Framework, described by the government of Israel, Delek Drilling is obliged to sell all of its stakes in Tamar by the end of 2021.

The Tamar field was discovered in 2009 and is located c. 90 km west of Haifa, off the coast Israel, to an overall depth of c. 5,000 meters below sea level and in waters 1,700 meters deep. Production began in 2013, where Tamar’s natural gas is extracted through five production wells. The gas flows through two pipelines of approximately 140 km to the primary and main processing facility on the Tamar platform, where most of the gas processing takes place. The natural gas is then transported from the platform via a pipeline to the Ashdod land terminal, then to the Israeli market via the national INGL pipeline, with some exported to Jordan and Egypt.

Delek is proud to have participated in the discovery and development of the Tamar field, which plays a vital role in the decarbonization of the region, as electricity produced by gas is rapidly replacing electricity derived from coal. Gas from the Tamar field was also the first gas to be exported from Israel when Jordan started receiving gas from the field in 2017, followed by Egypt in 2020, signifying the importance of Tamar as a unifying asset between neighboring States.

Mubadala Petroleum is one of the leading international upstream oil and gas exploration and production companies, which mainly focuses on the Middle East and North Africa, Russia and South East Asia, with assets in 10 countries. Mubadala Petroleum was established in 2012 and is a 100% subsidiary of Mubadala Investment Company, which is owned by the government of Abu Dhabi. Once finalized, the transaction will complement Mubadala Petroleum’s gas-focused portfolio strategy in line with its energy transition objectives.

After Tamar divestment, Delek Drilling will own 45.3% stake in giant offshore gas field Leviathan Israel which has 2P reserves of 22.8 tcf (649 bcm) of gas and 41m mmbbl of condensate, production capacity of 1.2 Gcf / d and life of the reserve of several decades; and a 30% stake in the offshore Aphrodite field Cyprus with 2C resources of 3.5tcf. The Company has a low risk growth strategy to increase its reserves and production from its existing asset base. The Company will also expand its exploration portfolio in the Mediterranean region to increase resources and invest in energy transition technologies.

JP Morgan acted as principal financial advisor with Value Base for Delek Drilling and Agmon & Co. Rosenberg Hacohen & Co is the legal advisor to Delek Drilling.

Yossi Abu, CEO of Delek Drilling said:

??“This transaction marks an important step in the alignment between Israel and the United Arab Emirates following the Abrahamic Accord peace accord signed between the two countries in 2020.

??Once concluded, the deal will represent one of the most significant transactions between an Israeli entity and an Arab entity, which shows just how that of Israel Natural gas resources can be a source of collaboration between nations. It is yet another cornerstone of the wall of friendship and collaboration that Delek Drilling has built in the region.

Our current focus at Delek Drilling is the expansion of our mega Leviathan reservoir and the creation of new markets in the region and beyond for our produced natural gas. “

For more information, please see the Investors section of the Delek Drilling website: https://www.delekdrilling.com/investor-relations/immediate-reports

Notes to Editors:

For more information, please contact:

Nadav perry, Drilling Delek
+972 9-9712424

Li-or Avnon, Together
+972 50 2111008

Adar Hershkovitz, Ensemble
+ 972-547917156

Billy Clegg / Owen roberts / Violet Wilson, Camarco
+44 (0) 203 757 4983

About Delek Drilling

Delek Drilling is Israel’s leading energy partnership in the exploration, development, production and sale of natural gas and condensate.

Delek Drilling, in collaboration with Noble Energy, Inc., led the natural gas revolution in Israel. After decades of huge and unsuccessful investments in the financing of oil and gas exploration by successive Israeli governments, a decision by the government has been made to abandon its involvement in oil and natural gas exploration and to transfer this activity to the private sector, a decision that led to important discoveries offshore Israel.

Today, Delek Drilling is a partner of several major gas discoveries in the Eastern Mediterranean, including Tamar (306 billion cubic meters – BCM), Leviathan – the largest deepwater discovery in the world at the time (621 BCM), Aphrodite in Cyprus (129 BCM), and others.

https://www.delekdrilling.com/

Photo – https://mma.prnewswire.com/media/1607431/Tamar_Field_Map.jpg
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SOURCE Delek Drilling


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