/Delek close to buying Chevron North Sea fields for $2b – report

Delek close to buying Chevron North Sea fields for $2b – report

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, is close to buying Chevron’s oil and gas fields in the British North Sea, for around $2 billion, sources familiar with the matter have told “Reuters.”

Delek’s North Sea oil and gas unit Ithaca Energy could reach an agreement within days, two of five sources told “Reuters.”

US oil major Chevron Corp kicked has been trying to sell North Sea oil and gas fields Alba, Alder, Captain, Elgin/Franklin, Erskine and Jade as well as the Britannia platform and its satellites since last July when it hired US investment bank Morgan Stanley.

One source told “Reuters” that Delek would pay between $1.8 and $2 billion for the assets, which do not include Chevron’s 19.4% stake in the BP-operated Clair field.

The Israeli energy company has prevailed over rivals including a consortium formed by Britain’s Premier Oil and US private equity fund Apollo Global Management and also British petrochemical maker Ineos Group, the sources said. Delek hired JP Morgan and BNP Paribas as advisors to the acquisition.

Earlier this month Del3ek acquired Shell’s 22.4% stake in the Caesar-Tonga field in the US Gulf of Mexico for $965 million.

Chevron and Delek declined to comment.

Ithaca told “Reuters,” that “it is continuously looking at opportunities to grow its business but will not comment on any specific situations or market speculation.”

Published by Globes, Israel business news – en.globes.co.il – on April 24, 2019

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