Energean Oil & Gas in Israel has signed a secured Senior Credit Facility that will provide funding for Karish and Tanin fields development.
In addition, the company also signed a contract with TechnipFMC for the construction of an FPSO for the project.
The company signed the Senior Credit Facility of up to USD 1.27 billion with Morgan Stanley, Natixis, Bank Hapoalim and Societe Generale as Mandated Lead Arrangers (MLAs).
The Facility will be the primary source of funding for the development of the Karish 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 (FID) on Karish and Tanin.
Energean Oil & Gas CEO, Mathios Rigas, said: “We are rapidly advancing the Karish and Tanin development by continually delivering on substantial project milestones.
“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.
“Furthermore, Energean has signed a USD 1.36 billion contract with TechnipFMC for the construction of an FPSO with a production capacity of 8 BCM per year, potentially enabling us to take advantage of future production potential from our existing licences or adjacent fields to deliver gas to a rapidly growing regional market.”
Energean Israel owns 100 per cent of the Karish and Tanin fields, which combined have 2.7 TCF of natural gas and 41 million barrels of oil equivalent (mmboe) of light hydrocarbon liquids, totaling 531 mmboe of 2C resources.