Energean buys Karish and Tanin, offshore Israel

On 17 August 2016, Delek Group announced the sale of its Karish and Tanin gas discoveries, offshore Israel, to Energean Oil and Gas for a consideration of US$148.5 million. The deal marks Energean’s entry into discovered resources in Israel and the start of Delek’s divestments in compliance with the 2015 Gas Outline Agreement. There will be challenges ahead for Energean in developing Karish and Tanin: executing gas sales agreements in a small domestic market will not be easy. However, the government may guarantee some marketspace as it incentivises the development of smaller fields ahead of a bid round expected later this year.