Energean Signs Further Gas Sales Contracts and Moves Closer to FID for the Karish and Tanin Development Project

The new GSPAs will bring total contracted volumes from the Karish and
Tanin development project to more than 4 BCM per year, surpassing the
Company’s initial targeted sales volumes and creating significant
additional value.

LONDON–(BUSINESS WIRE)–Energean Oil & Gas (“Energean” or “the Company”) is pleased to announce
that Energean Israel has signed further Gas Sales and Purchase
Agreements (“GSPAs”) for natural gas supply from the Karish and Tanin
fields, offshore Israel.

GSPAs totalling up to 2.6 billion cubic metres (“BCM”) of natural gas
annually have been signed with one of the largest industrial groups in
Israel, comprising Israel Chemicals (NYSE and TASE: ICL), Bazan Oil
Refineries (TASE:ORL) and the independent power producer OPC. In
addition, a GSPA totalling up to 0.3 BCM has also been signed with Rapac
Group, a leading group focusing on Telecom, Government and Energy &
Infrastructure in Israel.

The new GSPAs, together with those already signed with Dalia Group,
Dorad Group and Edeltech Group, bring the annual total committed
purchase volume to more than 4 BCM per year of natural gas from the
Karish and Tanin fields providing further momentum to progress to FID,
targeted for early 2018.

Energean Oil & Gas CEO, Mathios Rigas, commented: “In just
one year since the Israeli Government granted its approval for the
acquisition of the Karish and Tanin fields, Energean has succeeded in
securing its targeted gas supply volume to help de-risk the project.
Some of the leading private Israeli companies have seized the
opportunity to buy gas at an attractive price and Energean has brought
competition to the market for the benefit of Israeli consumers and the
country’s economy.

“These supply commitments, surpassing our initial 3 BCM per year target,
demonstrate the strength of the local gas demand and we look forward to
unlocking the significant further potential of these fields. We are
aiming to progress with FID early in 2018 and our focus now lies in
moving ahead on all related project milestones to deliver first gas as
planned.”

ENDS

Contacts

Energean Oil & Gas
Sotiris Chiotakis
[email protected]
+30
6932663877
or
Instinctif Partners
David Simonson / Laura
Syrett / George Yeomans
+44 20 7457 2020