Energean gains backer and moves forward on fields path

Energean Oil & Gas has moved a step closer to sanctioning its two-field gas development off Israel by the end of the year after bringing on board a private equity backer with an initial cash injection.

Kerogen Capital is getting a 50% stake in the Greek player’s Energean Israel offshoot for its initial $50 million investment. That money is going towards progressing development plans for the Karish and Tanin fields.

Energean, which bought the fields from Israeli player Delek Drilling late last year for around $148 million, already has contractor TechnipFMC working on front-end engineering and design and a field development plan.

A plan is set to be presented to the government mid-year, with a final investment decision on a floating production, storage and offloading unit-based project expected to be made by the end of this year. The project looks set to cost around $1.3 billion, Energean said this week.

The development plan is expected to cover the drilling of three to four wells to develop Karish, and two to three wells to develop Tanin, once production from Karish has come off plateau.First gas, which will supply the domestic market, is estimated in 2020, with Energean already holding talks with potential offtakers.

For its initial and any follow-up investments, Kerogen is getting representation at board level in Energean, with Kerogen director Roy Franklin named non-executive chairman of Energean Israel.