Greece-based Energean Oil & Gas has signed a financing agreement with Morgan Stanley and other banks for $1.27 billion to finance development of two natural gas fields off the coast of Israel.
Other banks in the deal include Natixis, Bank Hapoalim and Societe Generale.
It will be the primary source of funding for the development of the Karish offshore gas field over the next three years, with first gas production expected in early 2021.
It also provides further momentum for the company to make a final investment decision on Karish and Tanin.
“The participation of four international banks in the Facility Agreement is a strong vote of confidence in Energean’s flagship project. Long-term cash flow from Karish and Tanin has been secured through our previously signed gas supply agreements for approximately 4.2 BCM per year with 12 established counterparties,” said Mathios Rigas, Energean Oil & Gas CEO.
Furthermore, Energean has signed a $1.36 billion contract with TechnipFMC for the construction of an FPSO with a production capacity of 8 BCM per year, potentially enabling the firm to take advantage of future production potential from its existing licenses or adjacent fields to deliver gas to a rapidly growing regional market.
The company is in the process of raising the equity required to develop Karish and Tanin through a premium listing on the London Stock Exchange’s Main Market.
