Energean, INGL agree to the transfer of near shore and onshore infrastructure

6/25/2019

LONDON — Energean Oil and Gas plc has announced that it has signed a Detailed Agreement with Israel Natural Gas Lines (INGL) for the transfer of title (the hand over) of the near shore and onshore part of the infrastructure that will deliver gas from the Karish and Tanin FPSO into the Israeli national gas transmission grid. An MOU with INGL was signed in December 2018.

As consideration, INGL will pay Energean 369 million Israeli New Shekels, approximately $102 million, which will be paid in accordance with milestones detailed in the Agreement. The Agreement covers the onshore section of the Karish and Tanin infrastructure and the near shore section of pipeline extending to approximately 10 km offshore. It is intended that the hand over to INGL will become effective shortly after the delivery of first gas from Karish field in first-quarter 2021. Following hand over, INGL will be responsible for the operation and maintenance of this part of the infrastructure. Energean will not incur any charges or tariffs for use of this infrastructure.