The Petroleum Council of Israel has approved the acquisition of 100 percent 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 Wednesday 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, chief executive 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, the East Mediterranean and North Africa, is 45 percent-owned by hedge fund Third Point.