Mubadala Petroleum LLC entered into a non-binding memorandum of understanding to acquire 22% interest in I/12 Tamar and I/13 Dalit Leases from Delek Drilling - Limited Partnership (TASE:DEDR.L) for $1.1 billion on April 26, 2021. As of September 2, 2021, Delek Drilling has announced the signing of a Sale and Purchase Agreement with Mubadala Petroleum for 22% interest in I/12 Tamar and I/13 Dalit Leases for $1.025 billion. Under the terms of transaction, Mubadala Petroleum will pay a total of up to $1.1 billion, which shall consist of an unconditional payment of $1 billion and a contingent payment of up to $100 million which will be paid subject to certain terms and goals being met as shall be agreed between parties in definitive agreement. Under the agreement, Mubadala Petroleum will pay Delek Drilling $1.025 billion, subject to certain adjustments. The definitive agreement shall include conditions precedent which include approval of the petroleum commissioner, approval by the meeting of unit holders and/or the Supervisor of Delek Drilling, required consents from parties to agreements, removal of encumbrances imposed on the Subject Interest and other conditions precedent that may be agreed on in the Definitive Agreement. The cut-off date for the purpose of calculating the consideration for the transfer of the rights and liabilities in the Subject Interest is April 1, 2021. The Parties will work to finalize the Definitive Agreement expeditiously and no later than May 31, 2021. The Partnership has undertaken not to enter into any agreement with any third party for the sale of the Subject Interest until such date. The MOU shall terminate on the earlier of the date of execution of the Definitive Agreement or 90 days following the date of the MOU. The proceeds of the sale will first be used to repay Delek Drilling liabilities to the Tamar Bond bondholders, 50% of the Series A bonds and tax payment in respect of the sale. JP Morgan has acted as leading financial advisor along with Value Base to Delek Drilling, and Agmon & Co. Rosenberg Hacohen & Co is serving as legal advisor to Delek Drilling.