Israeli entrepreneur Aaron Frenkel has completed the sale of a 10% stake in Israel’s Tamar natural gas field to Azerbaijan’s state-owned oil company SOCAR for $1.25 billion, Ynet’s sister outlet Calcalist learned Wednesday. The deal marks one of Frenkel’s largest deals to date, after investing approximately $860 million in acquiring the holdings.
The sale was approved Tuesday by Israel’s Petroleum Council and Competition Authority and is considered a significant milestone in Israel’s energy market. The deal brings SOCAR into the Israeli gas sector for the first time and reflects the strengthening strategic ties between Jerusalem and Baku.
The transaction is structured in two parts. SOCAR is acquiring 48.3% of Union Energy, Frenkel’s private company, which directly owns 14.5% of the Tamar field — effectively giving SOCAR a 7% stake.
Additionally, the Azerbaijani firm is buying 3% of the field through Frenkel’s shares in Tamar Petroleum. In a separate move, SOCAR is also purchasing 17.9% of Tamar Petroleum itself, which holds 16.75% of Tamar.
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“This is a major development in the local and regional energy market, expressing not only a business partnership but a strategic alliance between two key players working together to advance the Israeli and regional gas economy,” Union Energy said in a statement.
“It reflects a deepening of the longstanding friendship and trust between Israel and Azerbaijan, built on years of diplomatic, economic and security cooperation.”
“For SOCAR, this marks an entry into a strategic Mediterranean arena,” the company added. “For Israel, it’s another step in strengthening energy cooperation with a key regional ally.”
Frenkel emphasized that the transaction preserved the existing balance of ownership in the Tamar field. “SOCAR joins a partnership that includes Chevron and Mubadala of Abu Dhabi. This was a coordinated and carefully managed move that didn’t alter the structure or balance of power in the field but enhanced its investment framework,” his team said.