Israel's Modiin Energy plans to buy North Sea drilling rights

TEL AVIV (Reuters) - Modiin Energy said on Sunday it signed a letter of intent to buy 25 percent of the oil drilling rights in a site in shallow North Sea waters in British territory. Modiin will pay the seller, who was not identified, $175,000 (£141,460) to cover previous expenses, Modiin said in a statement. The seller will continue to serve as operator and retain the remaining rights. Modiin will pay a third of the costs associated with the first drill in the site. The deal is conditioned on completion of due diligence by Modiin and the signing of an operating agreement with the seller. Modiin is controlled by Yitzhak Sultan and IDB Development Corp. The partnership also holds stakes in Israel's Shimshon and Daniel sites. (Reporting by Tova Cohen)