Shearman & Sterling has advised lenders Barclays Capital and HSBC Bank Plc in relation to the signing of a $430 million 18-24 month bridge loan to Israeli companies Delek Drilling, Avner Oil Exploration and Dor Gas. The loan will help the companies finance their share of exploration and development costs in the Tamar natural gas field off Israel’s northern coast.

About 56 miles from Haifa, Tamar was the largest global gas find of 2009. Avner Oil Exploration and Delek Drilling each holds 15.625% and Dor Gas 4% of the Tamar gas field, while Noble Energy (the Operator) holds 36% and Isramco Negev 28.75%.

This financing provides a substantial limited-recourse loan at an early stage in the project’s development.

The Shearman & Sterling team of lawyers in the firm’s London office was led by project development and finance partner Kenneth MacRitchie. He was assisted by associate Natasha Kirby and trainee Eric Ho. Counsel Simon Letherman and associate James Leslie provided tax advice.