Back to the complete issue
Monday, 30 November 2020

Israel-Egypt gas pipeline faces ownership change as Delek Drilling plans LSE spin-off

Israeli gas company to transfer ownership in Egypt pipeline to new company as part of LSE spin-off plan: Delek Drilling, one of the main operators of Israel’s large offshore gas fields, is planning to spin off most of its assets into a new company it will IPO on the London Stock Exchange, according to a regulatory filing on the Israeli exchange cited by Reuters. Delek will transfer some of its assets, including its partial ownership of the EMG pipeline that runs between Israel’s Ashkelon and Egypt’s Arish, to the new company.

The two fields from which Delek ships natural gas to Egypt won’t be held by the same company anymore: Delek will transfer its 45.3% share of the Israeli Leviathan gas field and 30% stake in Cyprus’ Aphrodite field to the new company, but retain its 22% stake in the Tamar field, which the Israeli government has ordered it to sell next year as part of its plan to prevent concentration in the gas market. Delek exports gas from Leviathan and Tamar to Egypt under a landmark USD 19.5 bn agreement signed with Alaa Arafa’s Dolphinus Holding in 2018.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.