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Delek of Israel completes UK deal after East Med pipeline

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Delek Group of Israel, the company with stakes in the huge Leviathan field in the Eastern Mediterranean set to come on stream to supply Egypt and regional buyers and with LNG output plans, said its Ithaca Energy subsidiary completed the purchase of the UK North Sea oil and natural gas assets from Chevron Corp. for around $2 billion.

Delek said that after the close of the deal Ithaca signed a five-year marketing and distribution agreement for the acquired Chevron fields with UK major BP.

Chevron had off-loaded its central North Sea assets in a sale by tender won by the Israeli company.

The assets obtained by Delek’s unit include the Alba, Alder, Captain and Erskine fields as well as the Britannia, Elgin-Franklin and Jade non-operated projects.

Other companies in the bidding for the Chevron North Sea fields had included UK chemicals firm Ineos, Premier Oil of the UK and Oman’s Petrogas.

The Delek subsidiary’s transaction adds a further 10 producing fields to the existing Ithaca portfolio.

Delek Chief Executive Asaf Bartfeld said the latest transaction would enable the international energy business to grow after it also sold its Phoenix insurance unit.

“The closing of the Chevron transaction, concurrently with the closing of the Phoenix sale, are two significant steps in the group’s strategy for turning from a local company to a leading international energy company,” stated Bartfeld.

Delek, which is a partner in the Leviathan and Tamar natural gas fields offshore Israel with Noble Energy of the US, recently gained a stake in the Egypt-Israel natural gas pipeline to supply Egyptian company Dolphinus Holdings with Israeli volumes.