Delek Drilling and Avner have signed an agreement to sell 100% of their interests in the Karish and Tanin natural gasfields north of Israel’s exclusive economic zone (EEZ) to Energean Oil & Gas for $148.5m.  

Tanin was discovered in 2011 and contains 22.4Bcm of natural gas (contingent resources) and 12.7Bcm of natural gas (prospective resources).

Approximately 36.3Bcm of natural gas (contingent resources) and 14Bcm of natural gas (prospective resources) were discovered in Karish, which was discovered in 2013.

Delek Drilling and Avner Oil Exploration CEO Yossi Abu said: “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.

“I am pleased that we have demonstrated absolute compliance with the provisions of the framework, in strict adherence with very challenging timetables.”

"I believe that the present deal provides the most compelling route to developing Karish-Tanin in the coming years."

The deal forms part of the implementation of the gas framework, which was set-up by the Israeli Government to develop the energy market.

The framework requires the partners to sell their holdings in the reservoirs 14 months after signing the agreement.

Gas produced from the Karish and Tanin reservoirs will be used for the domestic market.

Energean Oil & Gas chairman and CEO Mathios Rigas said: “Our experience of operating for more than 35 years in offshore natural gas and oil fields, the expertise of our key management in the development of some of the world’s most significant hydrocarbon fields, and our ability in fundraising even in adverse market conditions underpin our commitment to developing the Karish and Tanin fields for the benefit of Israeli consumers.

“Within six months of closing the deal, Energean will submit a development plan for the two fields to the Israeli government, in the context of a project which will also strengthen the geopolitical role of the energy triangle shaped by Israel, Greece and Cyprus.”

Energean holds five oil and gas exploration and development licences in Greece and Egypt, and has recently reached an agreement for exploration of two Montenegro offshore blocks.

The transaction is subject to final approval from the relevant Israeli authorities.