Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, continues to develop its energy business. The company announced this morning that it was negotiating with UK-based oil and gas development and production company EnQuest PLC (LSE: ENQ.L) to buy 20% of the latter's rights in exploration and production licenses in the Kraken field in the UK sector of the North Sea, for $612 million.
Under the terms of the deal being negotiated, Delek Group will buy 20% of the rights in blocks 9/2b and 9/2c within the P1575 license, about 350 miles north-east of Aberdeen. The field, which stretches over 42 square kilometers at a depth of 1,300 meters below sea level, reportedly contains about 147 million barrels of heavy oil.
According to reports from EnQuest, production should start in the first half of 2017.
Under the deal, Delek Group will also lend EnQuest $20 million for five years at an annual interest rate of 2%.
Published by Globes [online], Israel business news - www.globes-online.com - on July 18, 2016
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