Energean Oil & Gas PLC MOU signed with INGL (6064K)
December 17 2018 - 2:01AM
UK Regulatory
TIDMENOG
RNS Number : 6064K
Energean Oil & Gas PLC
17 December 2018
For immediate release
Energean Oil and Gas plc
("Energean" or the "Company")
MOU signed with INGL for the transfer of near shore and onshore
infrastructure
London, 17 December 2018 - Energean Oil and Gas plc (LSE: ENOG,
TASE: ) is pleased to announce that it has signed an Memorandum of
Understanding ("MOU") with Israel Natural Gas Lines ("INGL") that
will result in US$98 million of cash inflow for Energean. The MOU
is for the transfer of title (the "hand over") of the near shore
and onshore part of the infrastructure that will deliver gas from
the Karish and Tanin FPSO into the Israeli national gas
transmission grid. Energean expects the detailed agreement to be
signed in 1Q 2019.
As consideration, INGL will pay Energean 369 million Israeli New
Shekels, approximately US$98 million. Energean expects 15% of the
consideration to be paid and contribute to available liquidity in
early 2019. 80% of the consideration is expected to become
available to Energean's liquidity pool at hand over, with the
remaining 5% due following an 18 month warranty period.
The MOU covers the onshore section of the Karish and Tanin
infrastructure and the near shore section of pipeline extending to
approximately 10km offshore. It is intended that the hand over to
INGL will become effective shortly after the delivery of first gas
from the Karish field in 1Q 2021. Following hand over, INGL will be
responsible for the operation and maintenance of this part of the
infrastructure. Energean will not incur any charges or tariffs for
use of this infrastructure.
Mathios Rigas, CEO of Energean Oil & Gas said:
"The MOU is an important milestone for the Karish and Tanin
development. The Open Access System infrastructure being built by
Energean will enable connection of future gas discoveries to the
system, further contributing to Israel's energy security and
diversity of supply. Our collaboration with INGL demonstrates the
Israeli government's support and commitment to the Karish Tanin
project, from which natural gas will flow to the Israeli market
from 1Q 2021."
Enquiries
Energean Tel: 07917 608 645
Kate Sloan, Head of IR
Camarco (Financial PR) Tel: 020 3757 4980
Billy Clegg
Georgia Edmonds
Owen Roberts
About Energean Oil & Gas plc
Energean is a London Premium Listed FTSE 250 and Tel Aviv Listed
E&P company with operations offshore Israel, Greece and the
Adriatic. Energean has 349 mmboe of 2P reserves and 48 mmboe of 2C
resources across its portfolio.
In August 2017 the Company received Israeli Governmental
approval for the FDP for its Karish-Tanin gas development project,
where it intends to use an FPSO and produce first gas in 2021.
Energean has already signed firm contracts for 4.2 bcma of gas
sales into the Israeli domestic market. Future gas sales agreements
will focus on both the growing Israeli domestic market and key
export markets in the region. In Greece, the Company is pursuing an
ongoing investment and development programme to increase production
from its Prinos and Prinos North oil fields and to develop the
Epsilon oil field in the Gulf of Kavala, Northern Greece.
Energean has five exploration licences offshore Israel, and a 25
year exploitation licence for the Katakolo offshore block in
Western Greece and additional exploration potential in its other
licences in Western Greece and Montenegro.
www.energean.com
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END
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