Israel’s Delek Group said on Sunday its Ithaca subsidiary had signed a non-binding deal with an investment firm to establish a new infrastructure company for Ithaca’s North Sea operations.
Ithaca in late 2019 bought Chevron’s North Sea oil and gas fields for $2 billion.
Under the deal, which is subject to diligence on both sides, a joint venture between Ithaca and the investment firm will purchase two of Ithaca’s production platforms at an estimated value of $875 million, although the amount could rise above $1 billion, Delek said.
Delek, which plans to spin off Ithaca in a London share offering this year, did not name the investment firm, but a source close to the deal told Reuters it was BlackRock.
BlackRock was not immediately available to comment.
Ithaca will hold 40% of the new infrastructure company, while the investment firm will own 60%.
Delek said the parties planned to examine adding additional assets in the future beyond those purchased from Ithaca.
if(window.location.pathname.indexOf("656089") != -1){console.log("hedva connatix");document.getElementsByClassName("divConnatix")[0].style.display ="none";}Delek CEO Idan Vales also said Ithaca should make earnings before interest, tax, depreciation and amortization (EBITDA) of $900 million to $1 billion in 2020.