By PAUL TUGWELL
ATHENS (Bloomberg) -- Energean Oil & Gas, Greece’s only energy explorer and producer, said it signed a financing agreement with Morgan Stanley and other banks for $1.27 billion to finance development of two natural gas fields off the coast of Israel.
Natixis SA, Bank Hapoalim and Societe Generale are also part of the deal, with first gas from Israel’s Karish field expected in early 2021, Energean said Monday in an emailed statement. The Athens-based producer may export surplus gas from Karish and a second deposit, Tanin, that it can’t sell in Israel, using planned or existing pipelines in the eastern Mediterranean region, Chief Executive Officer Mathios Rigas said by phone from London.
“The agreement is a big milestone,” Rigas said. “We are rapidly advancing the Karish and Tanin development.”
The race to develop offshore energy resources in the eastern Mediterranean has accelerated since Israel discovered the Leviathan and Tamar gas fields. Egypt is developing the giant Zohr field, with help from Italy’s Eni SpA, while Cyprus plans to produce from at least two gas deposits and Lebanon is seeking undersea reservoirs of its own. Together, the finds position the region as a potential gas-producing hub on Europe’s doorstep.
ATHENS (Bloomberg) -- Energean Oil & Gas, Greece’s only energy explorer and producer, said it signed a financing agreement with Morgan Stanley and other banks for $1.27 billion to finance development of two natural gas fields off the coast of Israel.
Natixis SA, Bank Hapoalim and Societe Generale are also part of the deal, with first gas from Israel’s Karish field expected in early 2021, Energean said Monday in an emailed statement. The Athens-based producer may export surplus gas from Karish and a second deposit, Tanin, that it can’t sell in Israel, using planned or existing pipelines in the eastern Mediterranean region, Chief Executive Officer Mathios Rigas said by phone from London.
“The agreement is a big milestone,” Rigas said. “We are rapidly advancing the Karish and Tanin development.”
The race to develop offshore energy resources in the eastern Mediterranean has accelerated since Israel discovered the Leviathan and Tamar gas fields. Egypt is developing the giant Zohr field, with help from Italy’s Eni SpA, while Cyprus plans to produce from at least two gas deposits and Lebanon is seeking undersea reservoirs of its own. Together, the finds position the region as a potential gas-producing hub on Europe’s doorstep.
