ATHENS, Greece – Kerogen Capital has committed to invest an initial $50 million in Energean’s subsidiary in Israel, ahead of the company’s planned $1.3-billion development of the offshore Karish and Tanin gas fields.
Energean Israel acquired a 100% operating interests in the Karish and Tanin leases from Delek Group last December for an upfront consideration of $40 million and $108.5 million in contingent payments.
Proceeds from Kerogen’s investment will finance the acquisition and critical work streams in the run-up to project sanction, including front-end engineering and design studies and the field development plan, currently progressing in cooperation withTechnipFMC.
The two fields, thought to contain at least 2.4 tcf of contingent resources, will produce through an FPSO, the first to be installed and operated in the East Mediterranean region.
Produced gas, due to start flowing in 2020, will help meet Israel’s domestic needs.
Kerogen’s investment remains subject to approval by the Israeli government. Assuming this comes through the company will own a 50% interest in Energean Israel with Energean holding the balance.
Roy Franklin, Kerogen executive board member, will become non-executive chairman of Energean Israel.