Energean signs Gas Sales and Purchase Agreement with Israeli Utility MRC

Energean Oil and Gas plc, the oil and gas producer focused on the Mediterranean, is pleased to announce that Energean Israel and MRC Alon Tavor Ltd. (“MRC”) have signed a Gas Sales and Purchase Agreement (“GSPA”) for the sale of approximately 0.5 Bcm/yr, or up to 8 Bcm over the term of the contract. Supply will commence at Karish first gas and the contract term is for a period of 15 years from the date of signature. The GSPA is linked to the Israeli Electricity Production Index and has floor pricing and take-or-pay provisions. Energean estimates that the GSPA will add revenues in excess of $1 billion over the term of the contract.

Energean also recently signed a contract amendment with OPC Rotem that accelerated the rate of gas consumption and increased annual gas supply by 0.2 Bcm/yr. This was accompanied by a shortening of the contract term such that there was no change in the total contract quantity of gas. 

Energean now has firm GSPAs for the supply of 5.0 Bcm/yr of gas into the Israeli domestic market, excluding the contingent GSPAs that have been signed with I.P.M Beer Tuvia (0.4 Bcm/yr) and Or Power Energies (“Or”) (0.7 Bcm/yr).