The Petroleum Council of Israel has approved Energean’s complete acquisition of Karish and Tanin Natural Gas Fields from Delek Drilling and Avner.
Located offshore Israel, Tanin and Karish Fields were discovered in 2011 and 2013 respectively.
The transaction is estimated to be around $148m which was executed as a part of the Gas Framework Strategy of Government of Israel.
These two gas fields are estimated to host 2C gas resources of around 2.4TCF.
Energean now intends to complete the transaction and submit Field Development Plan (FDP) for both fields to the Israeli authorities within six months.
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The company plans to produce first gas from these fields in 2020.
Karish and Tanin fields development is expected to cost the company approximately $1bn in the next few years.
Energean CEO Mathios Rigas said: “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 is committed to delivering a mutually beneficial and successful development and gas sales programme as partners with the Israeli Government.”
“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.”
The Karish and Tanin FDP will be the third FDP that Energean will be devising as in the next few years the company is also expected to commence the development programmes at Epsilon (North Aegean Sea) and West Katakolon (Western Greece / Ionian Sea).
The combined 2P reserves of these two fields are around 25 million barrels.
The Government of Greece approved the development of Katakolon field last November.
Additionally, Energean has exploration acreage in Western Greece, Montenegro and Egypt.
In the next five years, the company expects an investment of nearly $1.3bn in exploration and development, including the Karish and Tanin fields.
Image: Karish and Tanin Natural Gas Fields location. Photo: Courtesy of Energean