Energean Takes FID on Karish & Tanin Gas Project

Following the Company’s successful IPO on the London Stock Exchange,
Energean takes FID to proceed with its $1.6 billion Karish & Tanin
development offshore Israel.

LONDON–(BUSINESS WIRE)–Energean Oil & Gas PLC (“Energean” or “the Company”; ENOG:LN) is pleased
to announce that its Board of Directors has approved the Final
Investment Decision (“FID”) to proceed with the $1.6 billion Karish &
Tanin Development Project, offshore Israel.

$405 million of the $460 million raised from the recent IPO of Energean
will be used to fund the Company’s 70% share in the project, while the
remaining 30% will be funded by Kerogen Capital, Energean’s partner in
the project.

The project is also being financed through a Senior Credit Facility of
US$1.275 billion recently announced and underwritten by Morgan Stanley,
Natixis, Bank Hapoalim and Société Générale.

Energean has secured long-term gas agreements with some of the largest
private power producers and industrial companies in Israel. The Company
has contracted for the purchase of a total of 61 BCM of gas over a
period of 16 years, at an annual rate of approximately 4.2 BCM per year
(on an ACQ basis).

Energean will develop the project through a new build, owned FPSO with
gas treatment capacity of 800 MMscf/day (8 BCM/per annum) and liquids
storage capacity of 800,000 bbls, which the Company believes provides a
flexible infrastructure solution and, potentially the scope to expand
output for potential additional projects. A 90km gas pipeline will link
the FPSO to the Israeli coast and necessary onshore facilities to allow
connection to the domestic sales gas grid operated by INGL, the national
gas transmission company.

The entire project infrastructure has been contracted to be engineered,
built and commissioned under a lump sum EPCIC Contract with Technip FMC,
with a contracted delivery date of Q1 2021.

During 2019, three wells will be drilled into the Karish discovery,
using the Stena Forth Drill Ship which is under contract from Energean.
The Company has also secured options to drill five further wells in the
licences Energean holds in Israel.

Energean Oil & Gas CEO, Mathios Rigas, commented: “We committed to the
investors in the IPO that we would take FID immediately after the equity
raise and I am pleased to be honouring this, the day after the shares
started trading on the London Stock Exchange.

“Today, we commence the development of the project having, in a very
short period of time, secured the necessary gas contracts, a turn-key
EPCIC contract with Technip FMC, a drilling contract with Stena and
project finance backed by four international banks. All this has been
achieved in just 14 months since January 2017, when the Israeli
Government approved the transfer of the licences to Energean.

“The Karish & Tanin development will bring competition and security of
supply to the Israeli gas market, and will support Energean’s strategy
to become a major player in the gas developments of the East
Mediterranean.

“Owning and operating the only FPSO in the East Mediterranean with an 8
BCM per annum capacity gives Energean significant scope for growth
through being able to support potential additional gas discoveries from
Karish & Tanin and the five adjacent licences that we own in Israel.”

ENDS

www.energean.com

The full version of this announcement can be viewed here.

Contacts

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