Energean mulls IPO to fund Israel gas development - report

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The Greek energy company is considering raising money in London to fund development of the Karish and Tanin gas fields, reports "Reuters."

Greek energy firm Energean is mulling a London IPO to raise funds for the $1.5 billion development of the Israeli offshore Karish and Tanin gas fields, "Reuters" reports. It is unclear how much capital Energean would want to raise.

Four sources, including three banking sources, told 'Reuters" that investment banks Morgan Stanley and Citi are advising Energean on the potential IPO.

An Energean spokesman told "Reuters" “We are currently examining all options of funding the project’s requirements,” a company spokesman said in an email, without saying if this included a public listing."

The banks declined to comment.

The sources told "Reuters" that any IPO would take place in 2018.

Energean bought the Karish and Tanin licenses from Delek Group in December 2016 for $40 million cash and a further $108.5 million in contingent payments. Delek was forced to sell its holding in the two fields, which have an estimated capacity of 2.4 trillion cubic feet of gas, as part of the government's efforts to introduce competition into Israel's natural gas production sector.

Energean said in May it had signed contracts to supply up to 23 billion cubic meters of natural gas to private Israeli power stations from the fields and earlier this month the Greek company signed three more agreements worth $1 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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