Israel's Delek Drilling said on July 18 it expects to get $980 million from spinning off a 9.25% stake in the Tamar natural gas project.

The new company, Tamar Petroleum, is in the process of listing on the Tel Aviv Stock Exchange.]

Tamar Petroleum this month raised $650 million in a Tel Aviv debt offering and another $330 million in a share offering on July 17.

The transaction gives the Tamar field, Israel's primary supply of natural gas, a valuation of close to $12 billion.

Delek Drilling, a unit of conglomerate Delek Group, said $323 million of the money raised would be used to pay off early four series of bonds, and the rest, among other things, would be distributed as dividends.