Energean Seeks Financing for Israel Plans
Greek upstream producer Energean has told NGW that it is seeking financing for its Israel gas development plans.
Reuters reported November 13 that Energean’s financing plans include he option of an initial public offering (IPO), adding that Energean is considering a listing on the London stock exchange to raise cash for a $1.5bn development of gas fields off Israel’s coast, and that Morgan Stanley and Citi are advising the firm on the IPO process.
Energean confirmed to NGW November 14: "We are in the process of developing the Karish and Tanin offshore gas fields in Israel and are engaged in a range of contracting and financing discussions to achieve this. We are currently examining all options of funding the project’s requirements." The company acquired the Tanin and Karish gas-fields from Delek Group in 2016 for close to $150 mn. The combined 2C contingent resources of the two fields are 68 bn m3 of natural gas and up to 41 mn barrels liquids.
A final investment decision (FID) is expected before the end of 2017, envisaging first gas in 2020. Energean has appointed Morgan Stanley as project finance advisor for the estimated $1.3bn to $1.5bn investment in this project. Energean recently signed three gas sales and purchase agreements for a period of about 14 years.
Charles Ellinas