NewMedEnergy has signed a memorandum of understanding with independent power producer Enlight Renewable Energy to enter the renewable energy industry. Israel Gas Energy Partnership holds a 45.34% stake in Leviathan Reservoir, said to be the largest gas reservoir in the Mediterranean.

Under the terms of the MoU, the two companies will collaborate on a regular basis on the initiation, development, financing, construction and operation of renewable energy projects. They will jointly develop solar, wind, energy storage and other renewable energy projects in countries including Egypt, Jordan, Morocco, UAE, Bahrain, Oman and Saudi Arabia.

In addition, Enlight will distribute part of its interest in the joint venture to Yossi Abu, CEO of Delek Drilling. The deal is subject to the signing of a detailed agreement and NewMed's shareholder approval to invest in the renewable energy sector, among other things.

In its statement, NewMed said the parties should form companies to participate in facilitating joint operations. The partnership's shareholding in the joint venture should be 33.33%, with the remainder of the joint venture interest held by the company held by Enlight and Mr. Abu.

Pursuant to the Memorandum of Understanding signed between Enlight and Mr. Abu, Mr. Abu's share of the investment required by Enlight Corporation will be provided by Enlight on his behalf in the form of a non-recourse loan. NewMed will leverage its business connections in target countries to promote the joint venture, in which Mr. Abu will be actively involved.

Enlight will provide professional design, development and management services for the joint venture operation and will control the construction and operation phases of the joint venture project. The parties can appoint the board of directors of the joint venture based on their stakes, and Mr. Abu will serve as chairman for the first two years. In addition, the term of the exclusive cooperation is three years from the date of signing the definitive agreement, which can be extended to five years in some cases.Editor/XingWentao