The Petroleum Council of Israel has approved the acquisition of 100 percent of the Karish and Tanin natural gas fields by Energean Oil & Gas from Delek Drilling and Avner.
The transaction, estimated to be valued at $148 million, 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 around 2.4 trillion cubic feet, according to an Energean statement.
Energean, which will submit a Field Development Plan (FDP) for both fields to the Israeli authorities within six months, intends to produce first gas from the fields in 2020. The development of Karish and Tanin is expected to involve an investment of circa $1 billion over the next few years.
“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 CEO Mathios Rigas said.
“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,” he added.
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