Cypriot firm Ocean Energean Oil and Gas is to buy 100% interest in the Tanin and Karish fields in the Mediterranean Sea, offshore Israel, for US$148.5 million.
Delek Group, Avner Oil Exploration and Delek Drilling have agreed to sell their 26.4705% shares each in the I/16 Tanin and I/17 Karish leases offshore Israel to Ocean Energean Oil - a subsidiary of Cypriot based, Greece-focused exploration firm Energean Oil & Gas. Noble Energy's 47.059% stake in the blocks will also be sold to Energean.
The move follows the ratification of a Gas Framework by Israel's government, which had included anti-trust rules, and which compelled the field partners, Anver Oil Exploration, Delek Drilling and Noble Energy, to sell their stakes in the fields. Noble and Delek have been hindered moving forward with its giant Leviathan gas development offshore Israel while details of the framework and anti-trust policy were worked out. Noble Energy also sold part of its producing Tamar gas field, as part of the Framework agreement.
Karish and Tanin are two small gas fields, 40km apart, offshore Israel and their combined gas capacity is estimated at 60-80 Bcm. According to Energean:
In addition, about 14.3 MMbbl of condensate (contingent resources) and about 4.3 MMbbl of condensate (prospective resources) was discovered in the two reservoirs.
The first $10 million of the payment will be paid on completion of the deal. Then, $30 million will be paid on the transaction closing date. The $108.5 million balance will be paid in 10 annual equal installments, plus interest, starting from when a final investment decision (FID) is made on the fields' development.
Image: The Tanin and Karish assets. Map from Energean.