Delek Sells Gas Fields to Greece’s Energean for $148.5 Million

  • Delek, Noble to recieve 7.5% of future pre-tax revenue
  • Companies have to sell fields to develop Leviathan reserve

Israel’s Delek Group Ltd. removed another regulatory hurdle to developing its prized Leviathan natural gas field after agreeing to sell two smaller reserves to Greece’s Energean Oil & Gas SA.

The Greek explorer will pay $148.5 million and 7.5 percent of future pretax revenue for the offshore Karish and Tanin fields, according to a Tel Aviv Stock Exchange filing late Tuesday. They hold approximately 85 billion cubic meters of natural gas, according to Delek Drilling, or about one-seventh the size of Leviathan, Israel’s largest gas find.

Delek and partners led by U.S.-based Noble Energy Inc. had to divest the smaller reserves as part of an agreement reached with the Israeli government last year to resolve monopoly concerns and allow the multibillion-dollar development of Leviathan. Delek paid $34 million for the rights to sell Noble Energy’s 47 percent stake in the fields in November.

Energean will submit a development plan for the reservoirs to Israel’s government within six months, with the aim of advancing an energy hub formed by Cyprus, Greece and Israel, CEO Mathias Rigas said in an e-mailed statement.

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