From the CEO

With initiative, innovation and vision, we transformed Delek Group into Israel’s leading energy company. In the past two decades Delek Group’s initiatives were focused on developing the East Med into a major natural gas supplier to Israel and its neighbors. These efforts have created a fundamental change in Israel’s energy standing, transforming it from dependence upon external energy resources to become an energy-independent nation and an energy exporter.

Our persistent energy exploration efforts over the past two decades have resulted in a number of major discoveries of natural gas reservoirs in the Mediterranean Sea off Israel’s coast. The most important of these are “Tamar”, a 10.8 TCF reservoir that has been producing since 2013, and the 23 TCF “Leviathan”, one of the world’s largest gas discoveries of the 2000s. Following its successful development, Leviathan started production in early 2020. A major step towards establishing the East Med position as a major export hub to the area was the commencement of natural gas export from Leviathan to Egypt through the EMG pipeline.

In the past three years we focused our strategy, transforming Delek Group from a diversified conglomerate into a leading international energy company, by leveraging our experience and capabilities gained through the full range of our activities in the East Med, including our proven ability to develop and finance mega-energy projects. During this period, we expanded into additional E&P assets in the North Sea and North America. To this end, we have been systematically divesting all non-energy-related assets to focus on our core energy activities. Since 2014, these efforts have added more than USD 2.5 billion to our balance sheet.

2019 was a transformational year for Delek Group. During 2019 we concluded our largest transaction in the E&P arena so far, with the acquisition of Chevron North Sea Limited by our wholly owned subsidiary, Ithaca Energy, for $1.7 billion. The acquisition almost quadrupled Ithaca’s reserves and resources to 270 million BOE as of December 31, 2019, and further solidified the quality and competitiveness of Ithaca’s portfolio.

We look forward to continue executing our strategy, establishing Delek Group as a major international E&P player. We have a diverse, high-quality and cash generating portfolio of natural gas and oil assets as well as energy assets in various stages of exploration and development. These assets, together with additional measures we are taking to solidify our financial position, will provide us with the necessary financial flexibility to execute our strategy to become a leading E&P company in the global energy markets.

Idan Wallace
CEO

April 2020