HOUSTON – Noble Energy has agreed to sell a 7.5% interest in the Tamar field offshore Israel to Tamar Petroleum.
This equates to around 62 MMcf/d of production. The estimated value of the combined shares/cash transaction is around $800 million. Noble previously divested 3.5% of Tamar in mid-2016.
David L. Stover, Noble’s chairman, president and CEO, said: “This transaction supports our commitment to sell down our Tamar interest in accordance with the government of Israel’s Natural Gas Regulatory Framework. It highlights the strong value of our world-class Levant basin assets . . . these assets are some of the world's most attractive energy investment opportunities, with margins competitive to the best US onshore oil plays and a stable, long-term cash flow profile.”
Noble plans to use the proceeds to support its investment in the offshore Leviathan development in the same region: this is due to produce first gas by the end of 2019.
Following closure of the transaction, the company will retain a 25% operated interest in Tamar.