Energean plc announced that Energean Israel Limited has entered into a new set of agreements and amendments to existing agreements with Rapac Energy Limited and its related companies to supply an additional amount averaging 0.4 Bcm/yr of gas for terms of between 6 and 15 years
commencing from first gas from the Karish gas development project on the border to Lebanon. The ownership of Karish is presently on the table of negotiations between Lebanon and Israel where Lebanon showed proofs that half of the field falls within the Lebanese Exclusive Economic Zone (EEZ).
The agreements include take-or-pay, exclusivity and floor pricing provisions.
Energean Israel Limited now has gas sales agreements in place to supply approximately 7.4 Bcm/yr of gas on plateau. All contracts contain provisions for take-or-pay and / or exclusivity, and floor pricing, ensuring that Energean’s revenue stream in Israel is secured, predictable and largely
insulated from global commodity price fluctuations, supporting Energean’s target to begin paying a dividend following first gas from the 8 Bcm/yr Karish project, which is currently expected in Q4 2021.