Acquisition of Karish and Tanin Natural Gas Fields Offshore Israel by Energean Receives Approval from Israeli Petroleum Council
07 December 2016 - 9:18AM
Business Wire
Energean to submit Field Development Plan in
mid-2017
The Petroleum Council of Israel has announced its approval of
the acquisition of 100% of the Karish and Tanin Natural Gas Fields
by Energean Oil & Gas (“Energean” or “the Company”) from Delek
Drilling and Avner. The transaction, estimated to be valued at
$148m, is being implemented as part of the Israeli Government’s Gas
Framework Strategy. The Karish and Tanin Fields, discovered in 2013
and 2011 respectively, have 2C gas resources of circa 2.4TCF.
Energean will now proceed towards completion of the transaction,
and within six months from that date will submit to the Israeli
authorities a Field Development Plan (FDP) for both fields. The
Company intends to produce first gas in 2020. The development of
Karish and Tanin is expected to involve an investment of circa $1
billion over the next few years.
Commenting on the approval, Mathios Rigas, CEO of Energean,
said: “We are delighted to have received the approval of the
Israeli Government on this transaction and for their swift
consideration of the matter. The acquisition of Karish and Tanin
and their development is a significant step for Energean, but it is
also a big milestone for Israel in developing its gas strategy, by
bringing competition in the local market. Energean is committed to
delivering a mutually beneficial and successful development and gas
sales programme as partners with the Israeli Government.”
“Karish and Tanin will supply the Israeli domestic market for
many years and we are eager to press ahead with its development as
soon as possible. We will be submitting a comprehensive Field
Development Plan within six months of closing the transaction, and
will be selecting our proposed contracting partners in the near
future. We will also be starting negotiations with potential gas
users and are confident that we can deliver competitive gas prices
and services for Israeli consumers.”
The Karish and Tanin FDP is the third FDP that Energean is
committed to over the next few years with development programmes
being prepared for the Epsilon (North Aegean Sea) and West
Katakolon (Western Greece/Ionian Sea) with combined 2P reserves of
circa 25 million barrels. Katakolon was approved to move into
development by the Greek Government in late November. Energean has
additional exploration acreage in Western Greece, Montenegro and
Egypt. The Company anticipates an investment of around $1.3 billion
in exploration and development (including Karish and Tanin) over
the next 5 years.
ENDS
Further details about Energean Oil & Gas may be
found on the company’s website
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Energean Oil & GasSotiris
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