TEL AVIV AND ABU DHABI, April 26, 2021 /PRNewswire/ — Delek Drilling of Israel has announced the signing of a non-binding Memorandum of Understanding (“MoU”) with Mubadala Petroleum of Abu Dhabi, UAE for the sale of Delek Drilling’s 22% non-operated stake in the Tamar gas field offshore Israel. If finalized, the transaction will be the largest commercial agreement following the ‘The Abraham Accords Peace Agreement: Treaty of Peace, Diplomatic Relations and Full Normalization Between the United Arab Emirates and the State of Israel’, signed in August 2020.
The partners in the Tamar project are Delek Drilling (22%), Chevron (25% and operator), Isramco (28.75%), Tamar Petroleum (16.75%), Dor Gas (4%) and Everest (3.5%). 2P reserves in the Tamar lease, after production of more than 69.3 BCM, is approx. 300 BCM of Natural Gas and 14 million barrels of condensate (Source: NSAI, January 2020). Under the Gas Framework, outlined by the Government of Israel, Delek Drilling is obliged to sell all of its holdings in Tamar by the end of 2021.
The Tamar field was discovered in 2009 and is located c. 90 km west of Haifa, offshore Israel, at an overall depth of c. 5,000 meters below sea level, and in waters that are 1,700 meters deep. Production began in 2013, where the Natural Gas in Tamar is extracted through five production wells. The gas flows through two c.140 km pipelines to the primary and main processing facility on the Tamar Platform where most of the gas processing takes place. The Natural Gas is then transmitted from the platform through a pipeline to the onshore terminal in Ashdod, and into the Israeli market through the INGL national gas pipeline with a proportion being exported on to Jordan and Egypt.
Gas from Tamar is playing a critical role in de-carbonising the region as gas-produced electricity rapidly replaces electricity derived from coal. If finalized, the transaction will also complement Mubadala Petroleum’s gas-biased portfolio strategy in line with its proactive approach to Environmental, Social & Governance (ESG) considerations and its energy transition goals.
Mubadala Petroleum is a leading international, upstream oil and gas exploration and production company with