Mubadala Petroleum signed a preliminary non-binding agreement with Israel's Delek Drilling for a 22 per cent non-operated stake in the offshore Tamar field in the Eastern Mediterranean, the Abu Dhabi company said on Monday.
The deal is worth $1.1 billion, according to a statement posted by the Israeli company.
"The proposed transaction is in line with our strategy of seeking high quality, value accretive and ESG-compliant investments that strengthen our gas-biased portfolio in line with our energy transition targets," Mubadala Petroleum said in a statement. ESG refers to environmental, social and governance-based investing.
"We look forward to pursuing the next steps in this process," the Abu Dhabi company added.
Israel has seen a rush in gas developments following exploration work in the Tamar and Leviathan gas fields in the Eastern Mediterranean.
There has been growing interest from the Gulf in the potential of the Eastern Mediterranean for further gas yields.
Large discoveries such as the Zohr gas field offshore Egypt, have transformed the fortunes of the Arab world's populous state from being importer to an exporter of the fuel.
Mubadala Petroleum already operates in the Eastern Mediterranean within the Zohr gas field through the Shorouk Concession, in which it has a 10 per cent stake.
Under the terms of the preliminary agreement between Mubadala Petroleum and Delek Drilling, the Israeli firm will sell its 22 per cent interest in the Tamar and Dalit leases, as well as the partnership's rights in the joint operating agreement governing the leases.
Other partners in the Tamar concession are Noble Energy that has a 25 per cent stake, Isramco that retains a 28.75 per cent interest, Tamar Petroleum which holds a 16.75 per cent stake, Dor Gas and Everest with 4 per cent and 3.5 per cent interests, respectively.
Should the sale of Delek's stake proceed, Mubadala Petroleum will make an unconditional payment of $1bn and a contingent payment of up to $100 million, which is subject to terms and conditions in the definitive agreement.
The approvals of the petroleum commissioner and consents from various parties in the concession will be included in the definitive agreement, according to Delek Drilling. A definitive agreement is likely to be finalised "no later than May 31, 2021", the company said.
Israel has become an exporter of gas, supplying neighbouring Jordan, which imports more than 90 per cent of its energy needs.
Export of gas from the Tamar field was the first to be approved by the Israeli government. Last year, Tel Aviv began exports to Amman under a $10bn agreement to supply gas for 15 years.
The Tamar field, which lies to the the west of the Israeli city of Haifa, was discovered by Noble Energy in 2009. The field, which is estimated to have 200 billion cubic metres of gas is the largest find of its kind in the Eastern Mediterranean's Levant basin.
A 2010 US Geological Survey estimated the Levant Basin in the Eastern Mediterranean could hold as much 122 trillion cubic feet of gas, which equals the total reserves of Iraq, the Middle East’s second-largest crude producer.
Following interest in the region's potential, Israel launched a third offshore bid round for oil and gas exploration in June 2020. In the previous round, it awarded 12 new exploration licences. The country is appraising development work in the Karish gas field, adjacent to the Leviathan and Tamar fields.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
The biog
Age: 19
Profession: medical student at UAE university
Favourite book: The Ocean at The End of The Lane by Neil Gaiman
Role model: Parents, followed by Fazza (Shiekh Hamdan bin Mohammed)
Favourite poet: Edger Allen Poe
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
COMPANY PROFILE
Name: Rain Management
Year started: 2017
Based: Bahrain
Employees: 100-120
Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund
UAE currency: the story behind the money in your pockets
BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
Disposing of non-recycleable masks
Use your ‘black bag’ bin at home
Do not put them in a recycling bin
Take them home with you if there is no litter bin
- No need to bag the mask
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
