Noble Energy To Sell 3% Stake In Tamar Field, Offshore Israel, For $369 Mln

(RTTNews) - Noble Energy, Inc. (NBL), an oil and natural gas exploration and production company, announced Tuesday that it signed a definitive agreement to divest a 3 percent working interest in the Tamar field, offshore Israel, for $369 million.

The interest is being sold to the Harel Group, an insurance provider and pension manager in Israel, in partnership with Israel Infrastructure Fund, Israel's largest infrastructure private equity fund.

The transaction value is based upon a gross pre-tax Tamar valuation of approximately $12 billion and is subject to purchase price adjustments between January 1, 2016 and the closing date.

Closing for the transaction is anticipated in the third quarter of 2016, subject to customary terms and conditions, with after-tax proceeds received expected to be approximately $275 million. Under terms of the agreement, Harel and IIF have the option to elect, before closing, to purchase an additional 1 percent working interest from Noble Energy at the same valuation.

Noble Energy and partners are planning to drill and complete an additional development well at the Tamar field in response to the continued increasing demand and outlook for natural gas usage within Israel.

Drilling is anticipated to commence in the fourth quarter of 2016. The additional producing well will further enhance redundancy while meeting maximum deliverability for extended peak demand periods. There is no material change to the Company's overall 2016 capital program.

Prior to the announced working interest sale, Noble Energy operated the Tamar field with a 36 percent working interest.

The company said it is carrying out an 11 percent sell-down of its interest in the Tamar field in accordance with Israel's approved Natural Gas Regulatory Framework.

Noble Energy anticipates the sale of the remaining 7 to 8 percent working interest over the next 36 months.

Following completion of this sell-down process, Noble Energy will retain a 25 percent working interest and operatorship in the Tamar field, which has recoverable gross mean natural gas resources of 10 trillion cubic feet.