Energean
plc
("Energean" or the
"Company")
Karish North and second gas
export riser online and new GSPA signed
London, 29 February 2024 -
Energean plc (LSE: ENOG TASE: אנאג) is pleased to announce the
following:
· Karish
North and second gas export riser online, enabling utilisation of
the FPSO's maximum gas capacity
· New
Gas Sale and Purchase Agreement ("GSPA") signed for an initial 0.6
bcm/yr[1], rising to 1 bcm/yr from 2032
onwards
Karish North and second gas
export riser online
Karish North first gas was safely
achieved on 22 February 2024. The Karish North production well is
currently utilising the second gas export riser, the installation
of which was completed in December 2023. The Energean Power FPSO
now has four production wells in operation, increasing well stock
redundancy and flexibility to meet the demand requirements of
Energean's gas buyers.
New GSPA signed with Eshkol
Energies Generation LTD
Energean Israel has signed a new
GSPA with Eshkol Energies Generation LTD, majority owned Dalia
Energy Companies Ltd, for the supply of an initial 0.6
bcm/yr1, rising to 1 bcm/yr from 2032
onwards.
Energean supplies gas to all four
IEC power stations that have been privatised: Ramat Hovav, Alon
Tavor, East Hagit and now Eshkol. This new contract is in line with
Energean's strategy to bring competition and security of supply to
the Israeli market, and to secure long-term cash flows for its
shareholders via its long-term gas contracts.
The GSPA is for a term of
approximately 15 years, for a total contract quantity of up to
approximately 12 bcm and represents circa $2 billion in revenues
over the life of the contract. The contract contains provisions
regarding floor and ceiling pricing, take or pay and price
indexation (not Brent-price linked). The GSPA has been signed at
levels that are in line with the other large, long-term contracts
within Energean's portfolio.
Mathios Rigas, Chief Executive of Energean,
commented:
"Energean has successfully delivered
another milestone in bringing our fourth well, Karish North, to
first production. This provides us operational flexibility and
enables us to utilise the FPSO's maximum gas capacity.
"The new contract with Eshkol is a
further testament to the trust in Energean from the Israeli
electricity producers, adds circa $2 billion of revenues over the
life of the contract to our business, and is in line with our
strategy to secure long-term reliable cash flows from long-term gas
contracts."
Enquiries
For capital
markets: ir@energean.com
Kyrah McKenzie, Investor Relations
Manager
Tel: +44 7921 210 862
For media: pblewer@energean.com
Paddy Blewer, Head of Corporate
Communications
Tel: +44 7765 250 857
Forward looking
statements
This announcement contains
statements that are, or are deemed to be, forward-looking
statements. In some instances, forward-looking statements can be
identified by the use of terms such as "projects", "forecasts", "on
track", "anticipates", "expects", "believes", "intends", "may",
"will", or "should" or, in each case, their negative or other
variations or comparable terminology. Forward-looking statements
are subject to a number of known and unknown risks and
uncertainties that may cause actual results and events to differ
materially from those expressed in or implied by such
forward-looking statements, including, but not limited to: general
economic and business conditions; demand for the Company's products
and services; competitive factors in the industries in which the
Company operates; exchange rate fluctuations; legislative, fiscal
and regulatory developments; political risks; terrorism, acts of
war and pandemics; changes in law and legal interpretations; and
the impact of technological change. Forward-looking statements
speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise. The
information contained in this announcement is subject to change
without notice.