Delek Drilling, Avner Oil Raise $2B for Leviathan Field
JERUSALEM, May 11 (Reuters) – Israel's Delek Drilling and Avner Oil have raised $2 billion in an international bond offering to help fund the development of the huge Leviathan natural gas field off the coast of Israel.
An announcement by the firms said demand of $13.5 billion was the largest ever for an Israeli enterprise and it was over-subscribed by 650 percent.
"This shows unprecedented confidence by European, U.S. and Israeli financial markets in the vision of Delek Drilling, Avner and Delek Group," Avner Chairman Gideon Tadmor said.
"The development of the Leviathan reserve will allow the continuation of the Israeli natural gas revolution and regional and international export that will significantly strengthen Israel's geo-political standing," he added.
Avner and Delek Drilling are major shareholders in the group developing Leviathan, which holds an estimated 19 trillion cubic feet of gas and is expected to go online around 2017. Much of the reserves are earmarked for export.
Company executives held a road show to attract investors in the United States, Europe and Israel. Five series of bonds were issued, each with its own fixed interest rate, and with the longest maturing in 2025, the companies' statement said.
Texas-based Noble Energy is the field's operator with a 39.66 percent stake. Avner and Delek Drilling, subsidiaries of Delek Group, hold a combined 45.34 percent, and Ratio Oil has the remaining 15 percent.
The partners are due to receive another large sum from the sale of a 30 percent stake in the field to Australia's Woodside Petroleum. However the deal, worth up to $2.7 billion deal, has been held up over a tax disagreement between Woodside and Israel. [IDn:nL4N0MO52B]
The partners have signed a 20-year deal with a Palestinian power company to sell $1.2 billion worth of gas, and earlier this month put in a bid to sell gas through a pipeline to Cyprus.
(Writing by Ori Lewis and Ari Rabinovitch)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Oil Falls as US Inventories Increase
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call