The Petroleum Council of Israel has approved the acquisition of 100% of the Karish and Tanin natural gas fields by Energean Oil & Gas from Delek Drilling and Avner Oil for $148 million. Delek Drilling and Avner, both subsidiaries of Delek Group, were required by the government to sell off some assets in an effort to open the sector to competition.

Karish and Tanin, discovered in 2013 and 2011, respectively, off Israel's Mediterranean coast, have gas resources of about 2.4 trillion cubic feet.

Energean said on Dec. 7 that within six months it will submit to the Israeli authorities a development plan for both fields. The company intends to start production in 2020.

The development of Karish and Tanin is expected to require an investment of $1 billion over the next few years, Energean said.

"Karish and Tanin will supply the Israeli domestic market for many years," Mathios Rigas, CEO of Energean, said.

The Greek company will be selecting contracting partners in the near future and will also start negotiations with potential gas users, Rigas said.

Energean, which is focused on Greece, the Adriatic Sea, the eastern Mediterranean and North Africa, is 45% owned by hedge fund Third Point.