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>

<< Feb 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 1 2 3 4 5

23rd Annual BBSPA Conference

The Conference has established itself as a platform that brings together high-level professionals from regional and international oil…

read more >

SNS2017 – The Southern North Sea Conference & Exhibition

EEEGR’s flagship Southern North Sea conference is the most important event for the energy sector in the East of England…

read more >

CERAWeek 2017

CERAWeek by IHS Markit is the premier annual international gathering of energy industry leaders, experts, government officials…

read more >

MEOS 2017

Meos in Manama is a trade show and conference, which provides companies in the oil and gas industry in the Middle East a platform for discussion…

read more >

Jobs>

QC Coordinator Offshore

Do you attach great importance to quality and do you have an affinity with offshore projects? Then read about what Van Oord can offer you.

apply

Electrician

For one of our clients we are looking for a Ships Electrician. Our client is a company with worldwide activities. You will work in a rotation of 4 till 6 weeks on and off.

apply

Assistant Driller

Maersk Drilling Norge AS was established in 1990 and employs a staff of approximately 1000 people.

apply