Israeli energy company Bazan has made a significant strategic move by investing $100 million in US-based Cantium to begin oil production. This marks Bazan’s inaugural venture into upstream oil, expanding from its usual downstream refining activities, it said.
The transaction was carried out through its fully owned American subsidiary, Energil, which holds a 52% controlling stake in Cantium. Located in Louisiana, Cantium manages numerous offshore wells and production platforms in the shallow Gulf of Mexico waters, mainly around the Bay Marchand and Main Pass areas.
“This is a breakthrough for Bazan,” chairman Moshe Kaplinsky said. “It allows us to integrate the entire value chain, from wellhead to final product, enhancing both flexibility and long-term resilience.”
Cantium was founded in 2016 and has extensive expertise in exploration, development, and production. The company also manages infrastructure upgrades and environmental commitments, such as decommissioning old wells.
Its operations yielded 6.7 million barrels of oil equivalent (BOE) in 2024, with net income of $158 million and projected EBITDA of up to $230m. in 2025.
A 'strategic leap' into a new domain
Bazan CEO Assaf Almagor said the deal was a “strategic leap” into a new domain.
“We’re partnering with a highly capable company and an experienced management team,” he said, expressing confidence in Cantium’s contribution to Bazan’s long-term growth.
The partnership also features US investment firm Community Fund, led by Jeremy Blank, holding a 6.78% stake in Bazan.
The deal values Cantium at $275m., with a roughly 1.2-times multiple based on its projected 2025 EBITDA.
Bazan said the acquisition aligned with its revised strategy to maintain energy supply during future crises and to broaden its growth options by gaining greater control over the oil supply chain.