Greece’s Energean Oil & Gas announced on August 30 that its subsidiary Energean Israel, a 50/50 joint venture between Energean and Kerogen Capital, has received approval from the Israeli Petroleum Commissioner for its Field Development Plan (FDP) for the development of the Karish and Tanin natural gas fields, offshore Israel. The FDP application was submitted on 20 June 2017.
“The Israeli Government’s approval of the Field Development Plan is a major milestone and achievement for us, and we are grateful for their swift handling of our submission,” Energean CEO Mathios Rigas said. “We are working at full speed to achieve the planned FID by year-end, and we have made significant progress in agreeing terms on the necessary gas sales contracts to this effect. We have already signed agreements or MOU’s for volumes exceeding 3 bcm (billion cubic metres per year. FDP approval takes us a significant step nearer to delivering a more competitive gas market to the benefit of the people and businesses of Israel,” Rigas added.
As stated at the time of submission, Energean Israel owns 100% of the Karish and Tanin Fields, which combined have 2.7 trillion cubic feet of natural gas and 41 million barrels of oil equivalent (mmboe) of light hydrocarbon liquids, totalling 531 million barrels of oil equivalent of 2C resources. The Karish Main Development envisages drilling three wells, using a Floating Production Storage and Offloading (FPSO) unit that will be located approximately 90 kilometres offshore with a production capacity of 400 mmscf/day.
The next stage in the field development, which envisages first gas production in 2020, is to reach the Final Investment Decision (FID), which is anticipated before the end of 2017. The Company has appointed Morgan Stanley as Project Finance Advisor for the $1.3-1.5 billion investment required for the Karish development.
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