Delek Group is considering spinning off its interest in the Tamar gas field off Israel into a separate publicly traded company. The transaction would be part of an agreement with the Israeli government to divest its 31.25% stake in the giant field within five years. Inviting investors to take a stake in Delek's Tamar company might ease the sale of the Delek's stake, estimated at US$3.8bn (based on the recent sale of a 3% stake in Tamar by Noble Energy for US$369m).
Tamar is one of the largest field ever discovered in the Mediterranean Sea with reserves of 280-310 bcm (discovered in 2009). It started production in 2013 and is expected to make the country energy-independent for three decades and to enable gas exports. Noble Energy recently sold a 3% interest in the field to the Harel Group; the group, which owned 36%, is carrying out an 11% sell-down of its interest in the Tamar field and anticipates the sale of the remaining 7 to 8% working interest over the next 36 months.