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5/30, 9:41 AM (Source: TeleTrader)
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Chevron sells North Sea assets to Ithaca for $2B

Israel's Delek Group Ltd. will assume control over Chevron North Sea Ltd. via Ithaca Energy Ltd., according to a deal reached with the United States–based fossil fuel giant. The announcement published on Thursday revealed the oil and gas assets in ten producing fields will be sold for $2 billion, while the buyer already has interests in four of the units. Ithaca said the transaction would boost its so-called proven and provable reserves (2P) by 150% and the output outlook for this year by four times.

Chevron Corp.'s subsidiary is selling 225 million barrels of oil equivalent in the category and another 45 million in the proven and probable contingent (2C). Ithaca projected 2019 production at 80,000 barrels of oil equivalent per day, of which 60% are liquids, at $17 per barrel.

The purchase should be executed around the end of the third quarter, the statement adds, together with an estimate for the price payable at $1.65 billion. The figure will be covered by upsized senior debt while a $700 million acquisition debt financing facility is prepared alongside Delek's equity investment and cash, it said.

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