Delek eyes North Sea targets Exclusive: Israeli company inmission to become major international player

Israel’s Delek Group is eyeing new acquisition targets in the North Sea.

The company said yesterday its mission to become a major player in international oil and gas exploration and production was just starting.

And it identified the North Sea and North America as areas of special interest.

In a conference call highlighting key points in the Netanya- based group’s 2016 results, Delek said the global ambitions were backed by “exceptional financial strength”.

It added it had a near £800million war-chest at its disposal for further acquisitions.

Delek became the biggest shareholder in North Sea- focused Ithaca Energy in 2015 through a £43million investment.

The Israeli group currently owns 19.7% of Aberdeen-based Ithaca and has offered £1.17 a share for the rest of the business.

Shareholders have until 10pm ( UK time) on April 20 to accept, with Ithaca’s board having unanimously recommended the offer.

Delek’s bid values Ithaca, which achieved start-up on the Stella field last month, at around £1billion.

In January, it emerged Delek had taken a 13.18% stake in Aberdeen company Faroe Petroleum, from Dana Petroleum, in a £42.77million deal to further boost its North Sea presence.

“The process does not end here,” Delek head of investor relations Dina Vince said

She added:“We continue to look for synergistic and strategic opportunities, especially in North America and in the North Sea.”

Delek more than trebled its pre-tax profits last year to £ 243million, from £ 79.4million in 2015, though revenue fell by 9% to £1.28billion.

Revenue in 2017 will be boosted by an expected 19,000-22,000 barrels of oil equivalent per day from Stella. yesterday.

NORTH SEA: Ithaca got start-up on the Stella field last month