Tamar partners sign $105 mln natgas deal with Delek Israel

JERUSALEM Wed Dec 4, 2013 5:42am EST

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JERUSALEM Dec 4 (Reuters) - The partners in Israel's Tamar natural gas field said on Wednesday they signed a seven-year deal to sell $105 million worth of gas to Delek Israel, which owns and operates gasoline stations across the country.

Delek Israel plans to start selling compressed natural gas (CNG) at its stations in the coming years.

The company is a subsidiary of conglomerate Delek Group , which through two other units has a significant stake in Tamar. The deal needs approval from the Israel Antitrust Authority.

A total of 0.46 billion cubic meters (bcm) will be sold in the deal starting in the fourth quarter of 2014, according to a statement to the Tel Aviv Stock Exchange.

Tamar, discovered in 2009, is estimated to hold more than 280 bcm of gas. It began production in March.

Texas-based Noble Energy has a 36 percent stake in the field. Delek Group, through its units Avner Oil Exploration and Delek Drilling, holds a 31.25 percent share. Isramco Negev has a 28.75 percent stake, and Dor Gas Exploration holds the remaining 4 percent.