# Energean Oil and Gas plc MOU signed with INGL

- Link: https://www.directorstalkinterviews.com/energean-oil-and-gas-plc-mou-signed-with-ingl/412763214
- Published: 2018-12-17T08:04:26+00:00
- Author: Charlotte Edwards

**Energean Oil and Gas plc** (LON: ENOG, TASE: אנאג) today announced that it has
signed an Memorandum of Understanding with Israel Natural Gas Lines that will result
in US$98 million of cash inflow for Energean. The MOU is for the transfer of title(
the “hand over”) of the near shore and onshore part of the infrastructure that will
deliver gas from the Karish and Tanin FPSO into the Israeli national gas transmission
grid. Energean expects the detailed agreement to be signed in 1Q 2019.

As consideration, INGL will pay Energean 369 million Israeli New Shekels, approximately
US$98 million. Energean expects 15% of the consideration to be paid and contribute
to available liquidity in early 2019. 80% of the consideration is expected to become
available to Energean’s liquidity pool at hand over, with the remaining 5% due following
an 18 month warranty period.

The MOU covers the onshore section of the Karish and Tanin infrastructure and the
near shore section of pipeline extending to approximately 10km offshore. It is intended
that the hand over to INGL will become effective shortly after the delivery of first
gas from the Karish field in 1Q 2021. Following hand over, INGL will be responsible
for the operation and maintenance of this part of the infrastructure. Energean will
not incur any charges or tariffs for use of this infrastructure.

> **Mathios Rigas, CEO of Energean Oil & Gas said:**
> “The MOU is an important milestone for the Karish and Tanin development. The Open
> Access System infrastructure being built by Energean will enable connection of
> future gas discoveries to the system, further contributing to Israel’s energy 
> security and diversity of supply. Our collaboration with INGL demonstrates the
> Israeli government’s support and commitment to the Karish Tanin project, from 
> which natural gas will flow to the Israeli market from 1Q 2021.”

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