Energean takes full ownership of Israeli subsidiary
Energean has wrapped up its previously announced acquisition of a 30% stake in Energean Israel from Kerogen Investments No.38, an affiliate of Kerogen Capital.
The deal has enabled the UK-based oil and gas company to take full ownership of Energean Israel.
The total consideration for the acquisition is in the range of $380 million and $405 million.
Energean has added 29.5 billion cubic metres (Bcm) of gas and 30 million barrels of liquids of 2P reserves through the acquisition, which represents nearly 219 million barrels of oil equivalent (MMboe) in total to the company.
Energean Israel has a 100% stake in the Karish and Tanin leases in Israeli waters. Its Karish gas development project is slated to begin production in the fourth quarter of this year.
Apart from that, it also owns a 100% stake across the exploration concessions – Blocks 12, 21, 23, and 31 in Israeli waters, and an 80% working interest in four more blocks in Zone D.
Mathios Rigas – CEO of Energean said: “I am delighted that we have increased our holding in Energean Israel to 100%, which will enable us to further generate long-term value by capitalising on the production growth and upside potential of our Israeli acreage offshore whilst further supporting our ambition to be the leading independent gas producer in the Mediterranean.
“I would like to thank Kerogen for their support and involvement in the Karish development over the last four years. Together, we will have delivered a project that will provide diversity and security of gas supply to Israel, whilst also helping to remove significant amounts of CO2 annually from Israel’s emissions by enabling the switch from coal to natural gas.”