Noble Energy to Sell 3% Interest in Tamar Field

   By Anne Steele 
 

Noble Energy Inc. on Monday said it agreed to sell a 3% interest in the offshore Israel Tamar field it operates to Israeli insurance provider and pension manager Harel Group and infrastructure private equity fund Israel Infrastructure Fund for $369 million.

Noble is in the process of selling down 11% of its 36% interest in the field in line with Israel's natural gas regulations and anticipates the sale of the remaining 7% to 8% working interest over the next 36 months. Noble will retain a 25% working interest and continue to operate the Tamar field, which fuels more than half of Israel's electricity generation.

Harel and IIF have the option to purchase another 1% interest before closing, expected in the third quarter.

Noble sees the deal bolstering its balance sheet and aiding upcoming capital investments in Israel, including investment in the Leviathan field.

The company also said it plans to drill another development well at the Tamar field in response to the continued increasing demand and outlook for natural gas usage within Israel as the nation displaces coal. Drilling is anticipated to start in the fourth quarter.

Shares in the company, inactive premarket, have risen 20% over the past three months.

Write to Anne Steele at [e-mail].

(END) Dow Jones Newswires

July 05, 2016 09:07 ET (13:07 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.