Delek Drilling Posts Record 3Q Profit
Delek Drilling, one of the shareholders in Tamar Partnership, reported a $617mn net income for 3Q2017 , up from $81mn in 3Q2016.
The 662% increase is related mainly to the sale of 9.25% of its shareholding in Tamar gas field, offshore Israel, to Tamar Petroleum which closed in 3Q2017 for $837mn. Delek Drilling registered a $567mn profit on the divestment.
Delek Drilling reported net income for the first nine months of 2017 of $755nm, up 216% year on year; its revenues from sales of gas and condensate, net of royalties paid, were down to $91.7mn in 9M2017, from $125mn the year before, because of the sale of about 30% of its stake in Tamar gas field.
During 3Q2017 the Tamar gas field supplied 2.6bn m3 to customers at an average price of $5.35/mn Btu, with net revenue being $4.14/mn Btu. The average cost of production was $0.35/mn Btu. Total revenues for Tamar in 3Q2017 were $493mn.
Delek Drilling is controlled by Delek Group. Delek Drilling is headed by Yossi Abu and has a 40% stake in Tamar Petroleum; Abu is also chairman of Tamar Petroleum.
Meanwhile, Tamar Petroleum disclosed December 13 that Noble Energy is in talks with Tamar Petroleum to sell 7.5% of the shares in the Tamar gas field.