Energean Oil & Gas, the international oil and gas exploration and production company focused on the Mediterranean and North Africa, has agreed to purchase two offshore natural gas deposits from Anver Oil and Gas and Delek Drilling, both members of Israel’s Delek Group.
The deal, which includes future exploitation rights, is worth 148.5 million dollars, of which 40 million dollars will be paid in cash and the other 108.5 million dollars in ten installments over the next year.
The acquisition represents the first sign of Greek presence on the region’s development map for major natural gas deposits discovered in recent years within Israeli and Cypriot territory, and, more recently, Egypt (Zohr deposit).
Expected to gradually fully cover national needs, these deposits will also serve other major Mediterranean and European markets, establishing a new energy map in the wider region.
In a company announcement, Energean described the move as one that sets new conditions in the wider region’s entrepreneurial and geopolitical map.
The two natural gas deposits, Tanin and Karish, were discovered in 2011 and 2013, respectively, in the Levantine Sea, close to the Tamar deposit, already producing natural gas, as well as the Leviathan deposit, whose development is imminent.
The Tanin deposit has a capacity of 1.4 trillion cubic feet (TCF), while the capacity for Karish is estimated at one TCF.
“Energean, based on today’s agreement, yet again proves that it is ready to lead the hydrocarbon sector’s development not only in Greece but the wider region as well, thereby contributing to the upgrade of our country’s geopolitical role through wider energy-sector collaboration amid the Greece-Cyprus-Israel triangle and with Egypt, a country where our company is already present with exploratory activity,” noted Mathios Rigas, Chairman and CEO at Energean Oil & Gas.
The agreement comes at a time of increased business activity in the southeast Mediterranean region. Just weeks ago, numerous energy companies, including majors, emerged for a new international tender staged by Cyprus.
Energean’s agreement with the Delek Group companies now needs to be endorsed by Israeli authorities.