REG - Energean PLC - Karish North Online and New GSPA Signed

EnergeanAnnouncement

29/02/2024 07:15

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RNS Number : 8735E  Energean PLC  29 February 2024

 

 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/yr(1), 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.

 1  From 3 June 2024 to 31 December 2031

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