Davis Polk advised Delek Drilling LP, as the selling shareholder, and Tamar Petroleum Limited, as the issuer, on Tamar Petroleum’s international offering of 2,660,000 of its ordinary shares pursuant to Rule 144A and Regulation S. This offering was part of a global initial public offering by Tamar Petroleum of 50,000,000 of its ordinary shares on the Tel Aviv Stock Exchange. In connection with the IPO, Tamar Petroleum also raised approximately $657 million of bonds due 2028, which are traded on the TASE. The combined net proceeds of the IPO (including 19,990,000 shares transferred to Delek) and $650 million of the bond issuance were used to acquire a 9.25% working interest in the Dalit and Tamar leases over the Tamar natural gas field, located offshore Israel (“Tamar Field”), from Delek. 

Delek Drilling engages in natural gas exploration and production activities in the Eastern Mediterranean’s Levant Basin. Tamar Petroleum, a limited liability company organized under the laws of Israel, was formed for the purpose of acquiring a 9.25% working interest in the Tamar Field. Tamar Petroleum intends to effectively manage the 9.25% working interest in the Tamar Field and provide investors with attractive returns in the form of semi-annual dividends from the profits derived from the Tamar Field’s long-term contracted cash flows and from any additional future cash flows resulting from the potential expansion of current operations. The acquisition represents for Delek its first step in complying with the Israeli Gas Framework, which requires the divestment of its entire working interest in the Tamar Field by December 17, 2021.

The Davis Polk capital markets team included partner Richard D. Truesdell Jr. and associates Jeannette K. Safi, Rahim Manji and Joshua S. Sills. Counsel Alon Gurfinkel and associate Omer Harel provided tax advice. Counsel Loyti Cheng and associate Michael Comstock provided environmental advice. Counsel Sarah E. Kim and associate Zixuan (Jennifer) Wang provided 1940 Act advice. Members of the Davis Polk team are based in the New York and London offices.

Copy link to share post