Delek Drilling has finalized a deal to sell its 22% stake in the east Mediterranean Tamar gas field to Abu Dhabi’s Mubadala Petroleum for about $1 billion, Israel Hayom reported.
The Tamar field is one of Israel’s primary energy sources and can produce 11 billion cubic meters of gas a year – enough to cover much of the Israeli market as well as exports to Egypt and Jordan.
Delek said it is the biggest commercial deal to be signed between Israeli and Emirati groups since Israel and the United Arab Emirates normalized ties last year.
Mubadala Petroleum, a unit of Abu Dhabi government-owned Mubadala Investment Company, said the acquisition “will complement Mubadala Petroleum’s gas-based portfolio strategy in line with its energy transition goals.”
Delek Drilling CEO Yossi Abu said, ”This transaction marks a milestone in the alignment between Israel and the UAE following the Abraham Accords Peace Agreement signed between the two countries in 2020,” said Abu.
”On completion, the deal will represent one of the largest transactions between an Israeli entity and an Arab entity, which shows how Israel’s natural gas resources can be a source of collaboration between nations. This is yet another pivotal brick to the wall of friendship and collaboration Delek Drilling has been building in the region.
“Our focus right now in Delek Drilling is on the expansion of our mega Leviathan reservoir and on creating new markets in the region and beyond for our produced natural gas,” he added.