Noble Energy to Sell 3% Interest in Tamar Field
July 05 2016 - 09:22AM
Dow Jones News
By Anne Steele
Noble Energy Inc. on Monday said it agreed to sell a 3% interest
in the offshore Israel Tamar field it operates to Israeli insurance
provider and pension manager Harel Group and infrastructure private
equity fund Israel Infrastructure Fund for $369 million.
Noble is in the process of selling down 11% of its 36% interest
in the field in line with Israel's natural gas regulations and
anticipates the sale of the remaining 7% to 8% working interest
over the next 36 months. Noble will retain a 25% working interest
and continue to operate the Tamar field, which fuels more than half
of Israel's electricity generation.
Harel and IIF have the option to purchase another 1% interest
before closing, expected in the third quarter.
Noble sees the deal bolstering its balance sheet and aiding
upcoming capital investments in Israel, including investment in the
Leviathan field.
The company also said it plans to drill another development well
at the Tamar field in response to the continued increasing demand
and outlook for natural gas usage within Israel as the nation
displaces coal. Drilling is anticipated to start in the fourth
quarter.
Shares in the company, inactive premarket, have risen 20% over
the past three months.
Write to Anne Steele at anne.steele@wsj.com.
(END) Dow Jones Newswires
July 05, 2016 09:07 ET (13:07 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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