Energean has closed its deal with Delek Group, Avner Oil Exploration, and Delek Drilling for 100% stake in the I/16 Tanin and I/17 Karish leases, offshore Israel, paving the way for Energean to stick to its plan of first oil at the two fields in 2020.
Map from Energean.
According to Delek, a cash payment of US$40 million was received earlier this month on 22 December.
“The transfer of the rights in the leases in the Petroleum Register will be performed in the coming days upon the deposit of a guaranty by Energean in accordance with the provisions of Section 57 of the Petroleum Law, 5712-1952 and the regulations promulgated thereunder,” Delek said in a statement.
In early-December, Energean said it is planning first gas from Tanin and Karish by 2020. The firm also said it will submit a field development plan (FDP) within six months and would be investing about $1 billion over "the next few years."
The deal, which was first inked on 16 August, was for a total of $148.5 million. Operator Noble Energy had to set out of the two leases under Israel’s Gas Framework, due to its part in the giant Leviathan field.
The Israeli trio agreed to sell their 26.4705% shares in each in the I/16 Tanin and I/17 Karish leases offshore Israel to Ocean Energean Oil - a subsidiary of Cypriot based, Energean Oil & Gas. Noble Energy's 47.059% stake in the blocks were also sold to Energean.
Karish and Tanin are two small gas fields, 40km apart, with a combined gas capacity estimated at 60-80 Bcm.
Tanin, discovered in 2011, contains about 22.4 Bcm of natural gas (contingent resources) and 12.7 Bcm of natural gas (prospective resources) was discovered.
Karish, discovered in 2013, contains about 36.3 Bcm of natural gas (contingent resources) and 14.0 Bcm of natural gas (prospective resources) was discovered.
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.