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| Energean CEO Mathios Rigas. Credit Ofer Vaknin |
Greek company proposes bargain rate to secure key contract for its Karish and Tanin fields in Israel, which it purchased last year.
Energean Oil & Gas, the Greek company that bought Israel’s Karish and Tanin offshore natural-gas fields last year, has offered to sell natural gas to Israel Electric Corporation for around 25% less than IEC is currently paying, beginning in 2021, TheMarker has learned.
The offer is for the sale of about 1 billion cubic meters a year more than IEC is already contracted to buy from the Tamar field. That field is controlled by Noble Energy, Delek Group and Isramco.
The price would be from $4.50 to $4.60 per million British thermal units, compared to the $6 IEC will likely have to pay in 2021 based on the formula in the 2012 contract it signed with the Tamar partners, TheMarker has learned.
