Israeli energy giant acquires stake in Gulf of Mexico oilfield

Israeli energy giant acquires stake in Gulf of Mexico oilfield

The Caesar Tonga oil field is one of the ten largest deepwater resources in the Gulf of Mexico, with a “production horizon” spanning dozens of years.

By World Israel News Staff

The Israeli Delek Group energy giant has announced that it signed an agreement on Wednesday to acquire 22.45% interest in the Caesar Tonga oil field, one of the ten largest deepwater resources in the Gulf of Mexico.

The Israeli conglomerate said that it will co-own the asset with three other leading oil and gas companies in the international energy market: Anadarko Petroleum, Equinor, and Chevron.

Under the terms of the agreement, Delek will maintain exploration, development, and production rights for oil and gas at the Caesar Tonga field, says Delek. Located 300 kilometers (185 miles) south of Louisiana at a depth of 1,500 meters (over 1,600 yards), the field contains eight wells connected by an undersea pipeline network to a production platform, it said in a statement.

The transaction is subject to a number of contingencies, foremost of which is the right of first refusal held by the other co-owners of the field, says the Israeli conglomerate. Refusal can be exercised within 30 days of the execution of the agreement, according to Delek. The transaction is also subject to obtaining all regulatory authorizations, says the statement.

“The transaction for the acquisition of the rights in the Caesar Tonga field is a further important stage in implementing Delek Group’s strategy to expand and establish our operations on the international stage,” according to Asaf Bartfeld, President and CEO of Delek Group.

“This is a strategic opportunity, which provides the Group access to a producing oil asset with significant proven reserves, with a strong cash flow, and partnership with leading players in the global energy market,” he said.

Delek says it focuses on high-potential opportunities in the North Sea and North America, while closer to home in the Eastern Mediterranean region, it has achieved major finds in the Levant Basin, including the Leviathan and Tamar gas fields.