Page 16 - GLNG Week 12 2023

GLNG MIDDLE EAST GLNG

ADNOC, BP make joint offer for

NewMed Energy

UAE ABU Dhabi National Oil Co. (ADNOC) and with a capacity to produce 4.5mn tonnes (6.5
BP this week have announced their intention to bcm) per year. Initial investment in the FLNG
NewMed, formerly form a gas-focused joint venture (JV) and have project is estimated to cost $100mn.
Delek Drilling, launched an offer for Israel’s NewMed Energy. Last week, a report by Texas-based Nether-
confirmed that a non- NewMed, formerly Delek Drilling, con- land Sewell and Associates Inc (NSAI) raised
binding offer had been firmed that a non-binding offer had been the value of the field to $12.5bn and the partners
tabled at a value of tabled at a value of $2bn for 50% of the com- are intending to construct a third pipeline to
$2bn for 50% of the pany. Its key asset is a 45.3% stake in Israel’s the platform at a cost of $562mn that will raise
company. Its key asset Leviathan gas field, in which it is partnered by production capacity from the current 1.2 bcf (34
is a 45.3% stake in Chevron Corp. (39.66%) and the local Ratio mcm) per day.
Israel’s Leviathan gas Oil Corp. (15%). NewMed also holds a 30% stake in Cyprus’
field. CEO Yossi Abu said: “The offer we received 3.5 trillion cubic foot (99 bcm) Aphrodite gas
today is the result of the warm relationships and field and some smaller Israeli assets.
connections we have built in recent years with BP confirmed the offer “to take NewMed
the energy companies working in the region. Energy private through an acquisition of the free
The offer unlocks value for our investors, and float and a partial acquisition of Delek’s stake.”
will catapult NewMed Energy from the regional The JV would purchase 45% of the company’s
to the global stage.” free floating shares and an additional 5% owned
Discovered in 2012, Levithan holds an esti- by Israeli conglomerate Delek Group [NewMed’s
mated 22 trillion cubic feet (623bn cubic metres) parent firm], which will hold the remaining 50%,
of natural gas and is the largest in a number of taking the company private. It added that the JV
natural gas discoveries made in the Israeli off- would focus on “gas development in interna-
shore by Houston-based Noble Energy, which tional areas of mutual interest including the East
was purchased by Chevron in 2020. Mediterranean.”
Production at Leviathan began in Decem- In 2021, Mubadala Petroleum, a subsidiary
ber 2019, with gas going to the domestic Israeli of Abu Dhabi’s Mubadala Investment Co. sover-
market. The field now supplies gas to Jordan and eign wealth fund, acquired Delek Drilling’s 22%
Egypt as well, and plans are being drawn up to stake in the Tamar gas field offshore Israel for
install a floating LNG (FLNG) vessel at the site around $1bn. ™

P16 www. NEWSBASE .com Week 13 30•March•2023