Energean secures funding for Karish development offshore Israel
Energean Israel has signed a $1.275-billion facility agreement with four international banks to finance the Karish development project.
The senior credit facility, led by Morgan Stanley, Natixis, Bank Hapoalim and Societe Generale, will be the primary source of funding for the development of the Karish offshore gas field over the next three years. First gas is expected in early 2021.
It also provides further momentum for the company to make a final investment decision onKarish and Tanin.
Energean Oil & Gas CEO Mathios Rigas said: “We are rapidly advancing the Karish and Tanin development by continually delivering on substantial project milestones.
“The participation of four international banks in the facility agreement is a strong vote of confidence in Energean’s flagship project. Long-term cash flow from Karish and Tanin has been secured through our previously signedgas supply agreements for approximately 4.2 bcm per year with 12 established counterparties.
“Furthermore, Energean has signed a $1.36-billion contract withTechnipFMC for the construction of an FPSO with a production capacity of 8 bcm per year, potentially enabling us to take advantage of future production potential from our existing licenses or adjacent fields to deliver gas to a rapidly growing regional market.
“The company is in the process of raising the equity required to develop Karish and Tanin through a premium listing on the London Stock Exchange’s Main Market. At the same time, we are pressing ahead with the expansion program of our existing production and development base in the Eastern Mediterranean, to deliver our next phase of growth.”