Greek energy company Energean announced today that it had signed a $1.275 billion financing deal for the development of Israel's Tanin and Karish offshore natural gas fields.
The funds are being raised from a consortium of four banks led by Israel's Bank Hapoalim (TASE: POLI), which will provide $375 million, while three international banks will each provide $300 million - Morgan Stanley, Societe Generale, and Natixis.
Energean is also planning an IPO on the London Stock Exchange to raise an additional $500 million, of which $300 million will be for developing the Israeli gas fields.
Energean recently announced that it had enough signed contracts to begin closing financing and developing the Tanin and Karish fields. Energean has signed contracts to provide 4 billion cubic meters (BCM) of natural gas annually
Energean bought the Tanin and Karish gas fields from Delek Drilling LP (TASE: DEDR.L) and Noble Energy Inc.(NYSE: NBL) following the Israeli government's gas outline agreement, which forced the two companies to sell the fields because they also owned Israel's offshore Tamar and Leviathan fields, which made them a monopoly.
Energean has signed agreements to sell gas to a range of plants in Israel at an average of $4 per thermal unit, about 20% less than deals agreed by the Leviathan partners and 30% less than Israel Electric Corporation (IEC) is paying the Tamar partners.
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2018
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