Noble Energy To Grant Rights of Tanin, Karish fields Sale to Delek Group for $67 m

Noble Energy will grant the rights for the sale of its part in two small natural gas fields offshore Israel, Tanin and Karish (49.1%), to Delek Drilling and Avner, two entities which are controlled by Delek Group. Delek Group will pay $67 million for the rights. Noble Energy will not be entitled to any further payment following the expected sale, no matter what price and what terms the two gas fields sell to a third party for. The proceeds Noble will receive is about the same it has invested in both fields. The two gas fields will have to be sold off within 14 months pending the regulatory framework approval.

The agreement is contingent upon the final approval of the regulatory framework that is expected during the next few weeks.

The aim of the rights transfer is to simplify the marketing and selling process and concentrate it within one company.

Among the candidates to buy the two fields are Edison of Italy. Last month Israel Energy Minister Yuval Steinitz also met with officials from some American energy companies and offered them a change to buy both assets.