Delek Drilling and Avner have signed a deal for the sale of 100 percent of their holdings in the Karish and Tanin natural gas fields, located offshore Israel, to Greece’s Energean Oil & Gas.
The deal, which is being undertaken as part of the implementation of the Gas Framework, set up by the Israeli Government as part of their strategy to develop the energy market, is estimated to be valued at $148 million.
Tanin, which was discovered in 2011, holds approximately 22.4 billion cubic metres of natural gas (contingent resources) and Karish, found in 2013, contains around 36.3 billion cubic metres of natural gas (contingent resources), according to Energean. The gas that will be produced from the Karish and Tanin reservoirs is intended for the domestic Israeli market and is expected to be sufficient to supply gas for domestic needs for several years. Energean has committed to submitting a development plan to the Israeli government within six months of closing the transaction.
“We are very pleased to sell Karish and Tanin to a serious, well-known and respected energy group. In recent months we have examined several offers and I believe that the present deal provides the most compelling route to developing Karish-Tanin in the coming years,” said Yossi Abu, CEO of Delek Drilling and Avner Oil Exploration.
“We are very pleased to enter Israel, a strategic market for us, and to sign a deal that will lead to the development of the Karish and Tanin fields,” said Mathios Rigas, chairman and CEO of Energean Oil & Gas.
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