Energean finds partner for Karish & Tanin development

Karish & Tanin development

Greek oil company Energean Oil & Gas has teamed up with the private equity fund manager Kerogen Capital, which committed to invest in the $1.3 billion development of the Karish and Tanin gas fields, offshore Israel.

Energean’s Israel entity is the operator of and holds a 100% interest in the Karish and Tanin licenses, acquired from Delek Group in December 2016, for a consideration of $40 million as well as $108.5 million in contingent payments.

The fields contain at least 2.4 Tcf of gas contingent resources and will be developed through an FPSO, which will be the first to be installed and operated in the East Mediterranean. The gas produced from the fields will supply Israel’s growing domestic gas market, with first gas expected in 2020.

The Greek company said on Wednesday that proceeds from an initial $50 million investment by Kerogen in Energean Israel would finance the acquisition and key workstreams to investment sanction including FEED studies and the Field Development Plan currently being prepared in cooperation with TechnipFMC.

To remind, TechnipFMC was recently selected as a contractor for the Concept and Front End Engineering Design (FEED) for the development.

Energean also added that the investment is subject to approval by the Israeli Government, after which Kerogen would own a 50 percent interest in Energean Israel.

As a part of the deal, Roy Franklin, Kerogen’s Executive Board Member, will become a non-executive chairman of Energean Israel.

Talks with customers underway

 

Energean Group Chairman & CEO, Mathios Rigas, said: “We are delighted to welcome Kerogen to the Karish and Tanin project, planned to deliver gas to a rapidly growing market in 2020 for the benefit of Israeli domestic consumers and the economy.

“Energean has already commenced negotiations with potential gas consumers in Israel and is progressing rapidly with the Field Development Plan that we expect to submit to the Israeli Government by May 2017 with an intention to FID the project by year end 2017.

“We believe Israel is an attractive destination for energy investment offering exciting growth opportunities underpinned by a supportive government policy and favorable financing environment.”

Roy Franklin added: “Kerogen intends to collaborate with Energean to deliver a successful development of the Karish and Tanin fields in Israel. This investment provides Kerogen with exposure to a large-scale, low break-even discovered gas resource located within an OECD country, which, as a near-term development, can benefit from today’s deflationary cost environment.”

Share this article

Follow Offshore Energy Today

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

OTC Asia 2018

The biennial OTC Asia is where energy professionals meet to exchange ideas and opinions to advance scientific and technical knowledge…

read more >

THE 5TH OIL & GAS VIETNAM 2017

The 5th edition of Oil & Gas Vietnam (OGAV) exhibition 2017 is the only specialized event in Vietnam that brings together an international…

read more >

FPSO Europe Congress 2018

The FPSO Europe Congress 2018 builds on these themes, lending a particular focus to FPSO Value Preservation and Operational Excellence…

read more >

Arabia 2018 Conference and Exhibition

Offshore Arabia is a focused prestigious meeting place of the Offshore Industry, and it’s diverse spectrum from the Oil & Gas…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you’ll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you’ll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you’ll reach countless professionals in the sector. For more information, click below...

apply