Delek to acquire Chevron North Sea for $2 billion

Chevron

An Israeli oil company, Delek Group has made a formal offer to acquire Chevron Corporation’s North Sea assets for the value of $2 billion.

Delek said in a statement that the transaction ‘will add a further ten producing field interests to the existing Ithaca portfolio’.

The Israeli energy company said the acquisition will add “an approximately 150% increase in the proven and probable reserves of the Company and a 300% increase in forecast 2019 production.”

The company will add 500 employees from the acquisition, of which around 200 work offshore on the operated assets.

Ithaca is a wholly owned subsidiary of the Tel Aviv stock exchange listed Delek Group Limited. Delek said it will fund the acquisition through an upsized $1.65 billion Reserve Based Lending senior debt facility, a $700 million acquisition debt financing facility, an equity investment by Delek and existing cash resources of the Company. While Ithaca’s existing $300 million term loan and associated Delek guarantees will be retired as part of this refinancing.

JP Morgan is acting as financial adviser on the transaction.