Energean in Talks to Take Full Ownership of Israeli Subsidiary

December 7, 2020
The Energean Power FPSO Illustration - the vessel will be used to develop Energean's gas fields offshore Israel - Credit: Energean

The Energean Power FPSO Illustration - the vessel will be used to develop Energean's gas fields offshore Israel - Credit: Energean

Mediterranean Sea-focused oil and gas company Energean is looking to take full ownership of its 70 percent-owned subsidiary Energean Israel.

The company said Monday it had entered into an exclusivity arrangement with an affiliate of Kerogen Capital regarding a potential acquisition of Kerogen's 30% shareholding in Energean Israel.

"On 7 December 2020, Energean and Kerogen entered into an agreement granting a 30-day period of exclusivity for the purposes of negotiating the potential transaction," Energean said, adding that there can be no certainty that a transaction will proceed.

Energean Israel holds a 100% working interest in the Karish and Tanin leases, offshore Israel. A recent independent Competent Persons Report by DeGolyer and MacNaughton ("D&M") certified gross 2P reserves of 98.2 Bcm (3.5 Tcf) of gas and 99.6 million barrels ("MMbbls") of liquids across the Karish, Karish North and Tanin fields representing approximately 729 million barrels of oil equivalent. 



Energean said its flagship Karish gas development project is expected onstream in 4Q 2021.

Apart from the Karish and Tanin leases, Energean Israel owns a 100% working interest in four exploration blocks (Blocks 12, 21, 23, 31) offshore Israel that offer low-risk, near-infrastructure drilling opportunities to be targeted by its next drilling program, which is, according to Energean expected to begin in early 2022. 

These prospects are located near the location where the Energean Power FPSO will be moored, representing potential low-cost tie-back options for future developments.

The D&M CPR estimated gross best estimate risked prospective resources across the Karish and Tanin leases and Block 12 of 62.0 Bcm of gas plus 33.4 MMbbls of liquids.

Also, Energean Israel has an 80% working interest in a further four blocks in Zone D, offshore Israel.

Energean in Talks to Take Full Ownership of Israeli Subsidiary Energean in Talks to Take Full Ownership of Israeli Subsidiary Reviewed by Crude Oil Facilitators on 08:49 Rating: 5

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