Noble-led partners agree on offshore Israel lease transfer

I/16 Tanin and I/17 Karish leases offshore Israel
(Map courtesy Energean Oil and Gas)

Offshore staff

TEL AVIV, Israel – Noble Energy, Avner Oil Exploration, and Delek Drilling have agreed to sell all rights in the I/16 Tanin and I/17 Karish leases offshore Israel to Ocean Energean Oil and Gas.

Energean will pay a total of $148.5 million (in equal shares between the partners), constituting reimbursement of their past investments in the leases, plus royalties connected to future production of natural gas and condensate.

The agreement is pending receipt of the approval of the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources.

According to Delek Group, the buyer is a wholly-owned subsidiary of Energean E&P Holdings, an oil and gas company registered in Cyprus and active mainly in E&P offshore Greece.

Current interests in the two leases are as follows:

Noble Energy Mediterranean 47.059%
Avner Oil Exploration 26.4705%
Delek Drilling 26.4705%
Total 100%

Last month, the European Bank for Reconstruction and Development (EBRD) agreed to provide an additional $20-million subordinated loan to Energean to support its exploration program in Greece’s Prinos basin and its latest offshore development projects.

The company has been developing 30 MMbbl of proven and probable (2P) oil reserves in the Prinos field, and has 28 MMbbl of contingent resources in the same license, having identified significant exploration potential from a 3D seismic campaign last year.

The extra financing follows a $75-million loan agreed on earlier for development of Prinos offshore oil-producing field. The new EBRD loan will also support the introduction of new technology, investments to avoid gas flaring, and various resource efficiency investments to optimize the supply and use of energy.

08/17/2016

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