Energean to Buy Out Offshore Israeli Partner
Energean is in talks to acquire private equity fund Kerogen's 30% stake in the Karish and Tanin gas leases off Israel, raising its ownership to 100%, the producer said in a London stock filing on December 7.
The pair have entered into an exclusivity agreement, giving them 30 days to cut a deal. The terms are still under discussion and a potential transaction will need shareholder approvals and regulatory consents. Energean expects to fund the acquisition without an equity issue.
Kerogen bought a position in Energean Israel, the holder of the Karish and Tanin gas leases, in 2017. The Karish, Karish North and Tanin fields within the areas had their 2P reserves certified last month at 98.2bn m3 of gas and 99.6mn barrels of liquids. A final investment decision on developing the Karish and Tanin was reached in 2018, and first gas is expected in the fourth quarter of 2021.
Energean Israel also has sole rights to exploration blocks 12, 21, 23 and 31 off Israel. It plans to kick off a drilling programme to target these "low-risk, near-infrastructure" opportunities in early 2022. The company also has 80% positions at four other blocks in Israel's offshore Zone D.