Karish and Tanin are located in the north of Israel’s exclusive economic zone (EEZ), approximately 40 km from each other (illustration: Energean Oil & Gas)

Delek Drilling and Avner, part of Israel’s integrated energy company, have signed a deal for the sale of 100% of their holdings in the Karish and Tanin natural gas fields to the international energy company Energean Oil & Gas.

The deal, which is being undertaken as part of the implementation of the Gas Framework, set up by the Israeli Government as part of their strategy to develop the energy market, is estimated to be valued at $148m, which reflects return of Delek Drilling and Avner’s investment and future royalties from the expected sales of gas and condensate from the reservoirs.

The two fields are located in the north of Israel’s exclusive economic zone (EEZ), approximately 40 km from each other. In Tanin, which was discovered in 2011, approximately 22.4 BCM of natural gas (contingent resources) and 12.7 BCM of natural gas (prospective resources) was discovered. In Karish, which was discovered in 2013, approximately 36.3 BCM of natural gas (contingent resources) and 14.0 BCM of natural gas (prospective resources) was discovered. In addition, a further approximately 14.3 million barrels of condensate (contingent resources) and approximately 4.3 million barrels of condensate (prospective resources) was discovered in the two reservoirs.

Under the requirements of the Gas Framework, the partners in the reservoirs were obligated to sell their holdings in the reservoirs 14 months after the date of execution of the agreement.

The gas that shall be produced from the Karish and Tanin reservoirs is intended for the domestic Israeli market and is expected to be sufficient to supply gas for domestic needs for many years. Energean has committed to submitting a development plan to the Israeli government within six months of closing the transaction.

Tags: Avner, Delek Drilling, ENERGEAN Oil & Gas