Abu Dhabi’s Mubadala Petroleum plans to buy Delek Drilling’s 22% stake in the Tamar offshore field, making this agreement the biggest deal since UAE and Israel established normal ties last year.
The UAE’s sovereign wealth fund with US$232 billion of assets has agreed to pay as much as US$1.1 billion by signing a memorandum of understanding (MoU) with Delek Trilling.
The east Mediterranean gas field Tamar is one of the primary energy sources of Israel, producing about 11 billion cubic meters of gas every year. According to Delek, the finalization of the deal would make for the biggest commercial agreement since the Abraham Accords signed by Israel, Bahrain, and the UAE.
Last year, the UAE and Israel’s deal was a significant milestone for forging peace in the Middle East. After Jordan and Israel, UAE became the first Arab nation to recognize Israel.
Amidst the boom in gas investments in the eastern Mediterranean, nations like Israel, Egypt, Turkey, and Cyprus have been trying to develop fields.
Prime Minister of Israel, Benjamin Netanyahu, has promised the deal would lead to billions of dollars of investment in the nation.