Kerogen Capital has committed to investing an initial $50 million in Energean Oil & Gas subsidiary Energean Israel ahead of the planned $1.3 billion development of the Karish and Tanin gas fields offshore Israel.

The investment, however, still needs the Israeli government’s approval. If given the green light, Kerogen will own a 50% interest in Energean Israel. Energean will hold the rest.

Energean shared the news Feb. 15, about two months after it acquired the fields from Delek Group for an upfront consideration of $40 million plus $108.5 million in contingent payments.

The operator said proceeds from Kerogen’s investment will finance the acquisition and key work streams to investment sanction, including FEED studies and the field development plan being prepared with TechnipFMC.

Plans are to develop the fields, which Energen said contain at least 67.9 Bcm (2.4 Tcf) of gas, through an FPSO unit. First gas is expected in 2020.

In addition, Energean said Roy Franklin, an executive board member for Kerogen, will become non-executive chairman for Energean Israel.

Offshore