Dow 30 component Chevron Corporation (CVX), through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide.
Reportedly, Ithaca, a subsidiary of Israel’s Delek Group announced the acquisition of most of Chevron’s British North Sea oil and gas fields for $2 billion. The deal reportedly backdated to Jan 1, is expected to grow Ithaca’s Pro-forma production to 80,000 barrels of oil per day and boost the company’s proven reserves to 225 million barrels, an 150% increase.
Delek has reported that it plans to spin off Ithaca via a London listing. Ithaca paid $1.68 billion for the deal while the remaining difference is coming from cash flow accumulated from the sale of oil and gas at Chevron’s North Sea fields after the start of 2019. Ithaca also has signed a five-year marketing and distribution agreement with energy giant BP for the acquired Chevron fields.
“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 Delek chief executive Asaf Bartfeld.
10 fields acquired by Ithaca in the Chevron transaction are expected to generate an estimated EBITDA of $3 billion in the next three years and a considerable amount of cash flow of hundreds of millions of dollars per year.
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