The overall consideration is £42.77 million ($52.35 million). On completion of the deal Delek will be Faroe’s largest single shareholder.
Faroe has interests in roughly 60 drilling, evaluation, development, and production licenses for oil and gas offshore Norway and the UK, some as operator.
Following completion of a transaction withDONG Energy last month, the company expects to increase its proven resources by 20 MMboe, and anticipates production growing to 17,000-18,000 boe/d.
Asaf Bartfeld, Delek’s president and CEO, said: “This is another important step in the implementation of Delek Group’s strategy to become an international energy company, with significant activity in the fields of oil and gas exploration and production.
“Acquisition of the Faroe shares is synergistic with and complements the purchase of 20% of the shares ofIthaca, which we did about a year ago.
“Delek Group’s financial strength allows us to identify strategic expansion opportunities, by which we are working to increase the value we provide to Delek Group’s investors.”