Alisa Odenheimer
- Delek Drilling will sell 22% stake in Tamar field off Israel
- Deal is biggest since UAE and Israel normalized ties last year
Tel Aviv-based Delek’s shares jumped after it said it would sell its 22% stake in the Tamar offshore field to Mubadala, an Abu Dhabi wealth fund with $243 billion of assets. The stock rose 4.8% to 5.02 shekels by 1.48 p.m. in Tel Aviv.
Israel and the UAE’s political deal in August 2020 was an historic breakthrough, hailed by leaders including then-U.S. President Donald Trump as a step toward forging peace in the Middle East. The UAE was the first Arab nation after Egypt and Jordan to recognize Israel.
The Israeli government said the Abraham Accords would lead to billions of dollars of investment in the country. Bahrain, Morocco and Sudan have since then also recognized Israel, following intense diplomacy from the Israeli officials and the U.S.
“This transaction marks a milestone in the alignment between Israel and the UAE,” Yossi Abu, Delek’s chief executive officer, said. It “shows how Israel’s natural gas resources can be a source of collaboration between nations.”
Mudabala signed a memorandum of understanding to buy Delek’s stake in April.
Tamar is Israel’s biggest field after Leviathan and located around 90 kilometers (56 miles) from the coastal city of Haifa. It supplies gas to Israel, Jordan and Egypt.
Chevron Corp. operates Tamar and has a 25% stake. Other owners include Isramco Inc. and Tamar Petroleum Ltd.
SOURCE // AGREEMENT HERE
