MEOG: Joint offer submitted for NewMed

Abu Dhabi National Oil Co. (ADNOC) and BP announced their intention to form a gas-focused joint venture (JV) and have launched an offer for Israel’s NewMed Energy.

NewMed, formerly Delek Drilling, confirmed that a non-binding offer had been tabled at a value of $2bn for 50% of the company. Its key asset is a 45.3% stake in Israel’s Leviathan gas field, in which it is partnered by Chevron Corp. (39.66%) and the local Ratio Oil Corp. (15%).

CEO Yossi Abu said: “The offer we received today is the result of the warm relationships and connections we have built in recent years with the energy companies working in the region. The offer unlocks value for our investors, and will catapult NewMed Energy from the regional to the global stage.”

Discovered in 2012, Levithan holds an estimated 22 trillion cubic feet (623bn cubic metres) of natural gas and is the largest in a number of natural gas discoveries made in the Israeli offshore by Houston-based Noble Energy, which was purchased by Chevron in 2020.