Chevron seals acquisition of Noble Energy, which operates in Israel gas fields

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4 years ago

Israel’s energy minister hails ‘tremendous news for Israel’s economy,’ asserts it will boost energy investment

By SUE SURKES and TOI STAFF 5 October 2020, 10:47 pm

US oil and gas conglomerate Chevron has completed its acquisition of Noble Energy, which operates two gas fields off Israel’s coast, following approval by the Texas-based company’s shareholders.

“We are pleased to welcome Noble Energy’s employees and shareholders to Chevron. Noble’s high-quality assets complement Chevron’s advantaged upstream portfolio, and the combination is expected to deliver strong financial benefits,” said Chevron Chairman and CEO Michael Wirth in a statement Monday.

“With an industry-leading balance sheet and a track record of capital discipline, we believe we’re in a different place than others and can protect the dividend while driving long-term value.”

The finalization of the sale was hailed by Energy Minister Yuval Steinitz, who called it “tremendous news for Israel’s economy” and said it would open up “huge investment opportunities for high-tech and start-ups in the energy sector.”

In July, Chevron announced that it had entered into a definitive agreement with Noble Energy to buy all outstanding shares in an all-stock transaction valued at $5 billion. The total value of the deal, including debt, is $13 billion, Chevron said.

Noble Energy has stakes in Israel’s mammoth gas fields, Tamar and Leviathan.

Last month, the Knesset Internal Affairs and Environment Committee heard that Chevron had left a trail of environmental and humanitarian disasters around the world, with 65 cases of litigation against the company in just 31 countries surveyed.

Steinitz has declared that it is “not necessary” to investigate oil spills linked to Chevron from a period before the multinational bought Noble Energy.

Source: The Times of Israel