Tamar Partners Get $902 Million in Loans From Bank Group

Partners in the the offshore Tamar gas field signed agreements with a consortium of 11 banks led by Barclays Plc (BARC) and HSBC Holdings Plc (HSBA) for a total of $902 million in loans to develop the site.

Avner Oil Exploration LLP (AVNRL) and Delek Drilling LP (DEDRL) each signed separate deals for a limited-recourse loan of $400 million for up to eight years, the companies reported in a statement to the Tel Aviv Stock Exchange. Dor Alon Energy (DRAL) in Israel (1988) will receive a $102 million loan under the same terms.

The partners developing the Tamar field are boosting their financing needs as they are due to start production next year of a field large enough to supply the country with gas for two decades. The larger Leviathan field is estimated to hold as much as 20 trillion cubic feet of gas, more than the U.K.’s remaining reserves.

To contact the reporter on this story: Sharon Wrobel in Tel Aviv at swrobel4@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net