Following the completion of a transaction with Delek and Avner Oil, Energean Oil & Gas is now taking over the Karish and Tanin natural gas fields, offshore Israel.
Israeli Delek Group reported on Sunday that the transaction for the sale of all of the rights in the I/16 Tanin and I/17 Karish leases to Energean had been closed.
The agreement for the sale of these two fields between Delek and Avner, the field partners, and Energean was inked in August this year. In December, the Petroleum Council of Israel gave its approval for the acquisition.
Delek stated that, according to the terms and conditions of the sale agreement, a cash payment of $40 million was sent to the sellers.
The company also added that the transfer of the rights in the leases would be done in the ‘coming days.’ After the transfer of the rights, Energean will hold 100% interest in both fields.
The Karish and Tanin fields, discovered in 2013 and 2011, respectively, have 2C gas resources of circa 2.4TCF.
Earlier in December, Energean said it would submit a Field Development Plan (FDP) for both fields to the Israeli authorities. The company intends to produce first gas in 2020. The development of Karish and Tanin is expected to involve an investment of circa $1bn over the next few years.
Offshore Energy Today Staff