Noble Energy Divests 3% Stake in Tamar Field for $369 Million

Noble Energy, Inc.

disclosed Tuesday that it reached a definitive agreement to sell a three percent working interest in the Tamar field, offshore Israel, to the Harel Group for $369 million. According to the company, the transaction value was based upon a gross pre-tax Tamar valuation of about $12 billion and was subject to acquisition price adjustments between January 1, 2016 and the closing date. The company expects the transaction to close in the third quarter. Noble Energy said that it might get about $275 million after tax from the transaction. Their agreement terms offered Harel and IIF the option to elect, before closing, to acquire an additional one percent working stake at the same valuation. The company's EVP of operations, Gary Willingham, stated, "This transaction reflects the inherent value of our producing Tamar asset, which reliably fuels more than half of Israel's electricity generation today. It also highlights the potential of our other undeveloped Levant Basin discoveries, which share similar reservoir and well deliverability characteristics and are poised to bring needed energy to a region which is fundamentally short natural gas." He continued to say, "We are excited about partnering with Harel and IIF, which bring additional leading Israeli investors into the project. These proceeds further bolster our balance sheet in the near-term and will contribute to our upcoming capital investments in Israel, including our initial investment in the Leviathan project." Before selling the working stake, Noble Energy operated the offshore field with a 36 percent working interest. The Company is involved in divesting an 11 percent interest in the Tamar field in line with Israel's approved Natural Gas Regulatory Framework. Noble Energy expects to sell the rest of 7 to 8 percent working interest in the next three years time. After the completion of the divestment, the company would have 25 percent working interest, as well as, operatorship in the Tamar field that has recoverable gross mean natural gas resources of 10 trillion cubic feet (Tcf). The stock advanced 1.17 percent on Friday.