White & Case Advises Delek Group on its US$965 Million Agreement to Acquire Gulf of Mexico Assets from Shell

Press Release
2 min read

Global law firm White & Case LLP has advised Delek Group on its agreement to acquire 22.45 percent of the Caesar Tonga oil field in the Gulf of Mexico from a subsidiary of Royal Dutch Shell plc for US$965 million.

Located in the Gulf of Mexico, 300 kms south of Louisiana, the Caesar Tonga oil field is one of the ten-largest deepwater resources in the US Gulf of Mexico, with a production horizon spanning 30 or more years. The field currently produces a total gross of approximately 71,000 barrels of oil-equivalent per day and is connected to an existing undersea pipeline network that transports oil to the coasts of Louisiana and Texas.

Delek Group will co-own the Caesar Tonga with three other leading oil & gas companies in the international energy market. As part of the transaction, Delek Group will sign a long-term off-take agreement with a Shell affiliate (Shell Trading (US) Company) to purchase oil produced from the field for a period of 30 years.

Completion of the transaction is subject to, among other things, the right of first refusal possessed by the field's other co-owners.

Delek Group is a leading independent E&P player with significant assets in the Eastern Mediterranean. In addition, Delek Group has embarked on an international expansion with a focus on high-potential opportunities in the North Sea and North America. It is one of Israel’s largest and most prominent companies. Its shares are traded on the Tel Aviv Stock Exchange (TASE:DLEKG) and are part of the TA 35 Index.

The White & Case team that advised on the transaction was led by partners Steven Tredennick (Houston), Charlie Ofner (Houston) and Daniel Turgel (London), and included partners Chad McCormick (Houston), Sabrena Silver (New York) and Farhad Jalinous (Washington, DC), counsel Morgan Hollins (Houston), and associates Peter Raish, Shawn Beloin, Joseph Castelli, Justin Synhorst and Janny Gandhi (all Houston).

White & Case is proud to be ranked in Band 1 for Corporate/M&A: Israel by Chambers Global and to hold the number 1 position for M&A volume in the IsraelDesks League Table.

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