Energean takes full ownership of Israeli subsidiary
Oil and gas firm Energean has completed its acquisition of the 30 per cent minority interest in its Israeli subsidiary from Kerogen Capital.
Energean bought the 30 per cent stake of Energean Israel Limited from Kerogen’s affiliate Kerogen Investments No.38 Limited. As a result, it now owns 100 per cent of the Israeli subsidiary.
Energean’s Israeli subsidiary holds a 100 per cent working interest in the Karish and Tanin fields, offshore Israel, and the company is working to develop the Karish field which is expected to go online in late 2021.
The company said on Thursday that it would pay between $380 million and $405 million for Kerogen’s 30 per cent stake.
The deal includes an up-front payment of $175 million, deferred cash consideration of between $155 million and $180 million, post-first gas from the Karish project, and $50 million of convertible loan notes with a maturity date of 29 December 2023.
The up-front consideration has been funded through a drawdown from the $700 million term loan, arranged on 14 January 2021.
The remaining consideration will be satisfied through deferred cash amounts of between $155 million and $180 million.
The company added that the acquisition adds 2P reserves of 29.5 billion cubic metres of gas and 30 million barrels of liquids, representing approximately 219 million barrels of oil equivalent in total to Energean.
Mathios Rigas, CEO of Energean, said: “I am delighted that we have increased our holding in Energean Israel to 100 per cent, which will enable us to further generate long-term value by capitalising on the production growth and upside potential of our Israeli acreage offshore whilst further supporting our ambition to be the leading independent gas producer in the Mediterranean.
“I would like to thank Kerogen for their support and involvement in the Karish development over the last four years. Together, we will have delivered a project that will provide diversity and security of gas supply to Israel, whilst also helping to remove significant amounts of CO2 annually from Israel’s emissions by enabling the switch from coal to natural gas“.
To remind, the company entered into an agreement to buy the 30 per cent stake in Energean Israel from Kerogen in the final days of 2020.