Ofer cos to buy Energean gas for $6b

Idan Ofer

Israel Chemicals, Oil Refineries, and OPC Energy signed a 15-year deal to buy gas from Tanin and Karish.

OPC Energy, Oil Refineries Ltd. (TASE:ORL), and Israel Chemicals (TASE: ICL: NYSE: ICL), companies controlled by Idan Ofer, today notified the Tel Aviv Stock Exchange (TASE) that they had signed an agreement in principle to buy natural gas from the Karin and Tanin reservoirs owned by Greek company Energean. The agreement amounts to $6 billion over 15 years.

The three companies negotiated jointly in an attempt to obtain better terms. According to the report, OPC Energy will buy 9 BMC, Oil Refineries 17 BCM, and Israel Chemicals 23 BCM.

Sources said that the price for the deal was about $4 per MMBtu. It appears that Energean has now obtained enough contracts in order to make a final investment decision (FID) about developing the reservoirs, which it must do by the end of the year.

Published by Globes [online], Israel Business News - www.globes-online.com - on August 8, 2017

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

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