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Energean gets partner ahead of Israel FID

Private equity player backs in to Greek company’s plans to develop two gas fields with FPSO

Greek player Energean Oil & Gas has received a $50 million injection after roping in a partner to help with its planned gas field development off Israel, which is set for sanction this year.

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Private equity outfit Kerogen Capital is getting a 50% stake in Energean Israel for its initial investment, which will in part fund front-end engineering and design studies and a field development plan, which are both currently ongoing with contractor TechnipFMC.

Kerogen is also set to name board member Roy Franklin as non-executive chairman of Energean Israel on foot of the investment.

He said: “This investment provides Kerogen with exposure to a large-scale, low break-even discovered gas resource located within an OECD country, which, as a near-term development, can benefit from today’s deflationary cost environment.”

Energean took over the Karish and Tanin gas fields from Israeli player Delek Drilling late last year in a $148 million deal and it plans to develop them with a floating production, storage and offloading unit. The field development is set to cost around $1.3 billion.

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The development plan is expected to encompass 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.

The 100% operator has already said it expects to take a final investment decision on the project by the end of this year, with a field development plan to be submitted to the Israeli government by May. First gas, which will supply the domestic market, is slated for 2020, with Energean already holding talks with potential offtakers.