Greek energy company Energean announced today that it plans to raise $500 million on the London Stock Exchange in order to develop Israel's offshore Karish and Tanin gas fields. Energean is also considering dual listing on the Tel Aviv Stock Exchange (TASE).
This sum will be added to the $1.25 billion from a consortium of Israeli and international banks that will finance development of the Karish and Tanin gas fields. Sources inform "Globes" that the consortium will be led by Bank Hapoalim (TASE: POLI), which will invest $375 million.
Energean recently announced that it already has enough signed gas supply contracts to raise financing. Energean has signed contracts to supply more than 4 billion cubic meters (BCM) at an average price of about $4 per thermal unit, about 20% less than agreements signed by Leviathan, and 305 less than the Tamar partners agreement with Israel Electric Corporation (IEC) (TASE: ELEC.B22).
Energean bought the rights to the Karish and Tanin gas field as part of the government's gas agreement forcing Noble Energy Inc. (NYSE: NBL) and Delek Drilling LP (TASE: DEDR.L) to sell their stakes because they formed a monopoly by also controlling the Tamar and Leviathan gas fields.
Energean expects to start supply gas by 2021.
Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2018
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