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12.01.2017 15:52

Greece's Energean Sets 2020 Target for Gas Supplies to Israel

The cost of developing the two adjacent fields is estimated at USD 1.3 billion to USD 1.5 billion and expected financing to be complete by the end of this year

AUTHOR: publics.bg

© Energean

Greek-based Energean expects to begin production from the Karish and Tanin gas fields offshore Israel in 2020, according to executive chairman Mathios Rigas., as quoted by Platts

Speaking at a press conference in Tel Aviv Wednesday, Rigas estimated the cost of developing the two adjacent fields at USD 1.3 billion to USD 1.5 billion and expected financing to be complete by the end of this year. The Israeli project is the largest to date for the Greek company which is currently active in Greece, Egypt and Montenegro.

The Israeli government approved the acquisition of the two licenses by Energean in late December at a price tag of USD 148 million. The Greek company purchased the two licenses from Noble Energy Inc and Israel's Delek Group, who were required to sell them as part of the government's new framework for the gas sector approved in May of last year.

Under the terms of the sale, all output from the two fields, with estimated resources of 2.4 Tcf of gas and 25 million barrels of light crude, is earmarked for the domestic market. At present the Tamar offshore field is the sole supplier to the domestic market.