Delek Group Ltd. (TASE: DLEKG) controlling shareholder Yitzhak Tshuva has apparently decided to focus on natural gas discoveries offshore from Israel, and sell off foreign exploration ventures.
Subsidiary Delek Energy Systems Ltd. (TASE: DEOL) has sold its stake in Premier Oil Vietnam Offshore BV to a partner, Premier Oil plc (LSE: PMO) of Australia, for $83.9 million. Delek Energy owned 25% of Premier Oil Vietnam through wholly-owned subsidiary Delek Energy (Vietnam) Ltd. Premier Oil will pay $72 million in cash, plus the amount equal to the option that Vietnam Oil and Gas Group Ltd. (PetroVietnam) (Ho Chi Minh Securities Trading Center: PGS) is realizing to buy 15% of Premier Oil Vietnam.
Delek Energy will report a capital gain of NIS 1.5 million on the sale.
Premier Oil Vietnam owns Block 12 W at the Chim Cong (Peacock) concession, which was declared commercially viable. If the oil field reaches commercial production, Premier Oil will also pay Delek Energy $7 million one year after its start.
Premier Oil and Santos International Holdings Pty Ltd. (ASX: STO) each own 37.5% of Premier Oil Vietnam. After PetroVietnam acquires 15% of the company, Delek Energy's share in it will fall to 21.25%, and Premier Oil and Santos will each own 31.88%.
Delek Group indirectly owns 88.9% of Delek Energy through Delek Investments and Properties Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on July 20, 2009
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