(Alliance News) - Energean PLC on Thursday said its unit Energean Israel Ltd has entered into a new set of agreements with Rapac Energy Ltd to supply an additional 0.4 billion cubic metres per year of gas for between six and 15 years.
The London-based exploration and production company with operations in Israel, Greece and Egypt said this will commence from first gas from the Karish gas development project in Israel. Energean Israel now has gas sales agreements in place to supply approximately 7.4 billion cubic metres per year of gas on plateau and all contracts contain provisions for take-or-pay, exclusivity and floor pricing, it said.
Energean said its target is to begin paying a dividend following first gas from the 8 bcm per year Karish project, which is currently expected in the fourth quarter of 2021.
The company currently owns a 70% stake in Energean Israel. It announced earlier this month it has entered into a 30-day exclusivity arrangement with an affiliate of Kerogen Capital to acquire Kerogen's 30% stake in order to completely own the company.
Shares in Energean were up 3.3% at 696.00 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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Energean Oil & Gas (ENOG)