Approval is a major step towards delivering the US$1.3-1.5 billion development on time and on budget in 2020
LONDON–(BUSINESS WIRE)–Energean Oil & Gas is pleased to announce that its subsidiary Energean Israel, a 50/50 JV 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.
As stated at the time of submission, Energean Israel owns 100 per cent of the Karish and Tanin Fields, which combined have 2.7 TCF of natural gas and 41 million barrels of oil equivalent (mmboe) of light hydrocarbon liquids, totalling 531 mmboe 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 km 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 US$1.3-1.5 billion investment required for the Karish development.
Commenting on the approval, Energean CEO, Mr. Mathios Rigas, said:
“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. 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 MOUs for volumes exceeding 3 BCM 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.”
About Energean Oil & Gas
Energean is a leading independent E&P company focused on the Eastern Mediterranean region, where it holds nine E&P licenses, encompassing offshore Israel, Greece, the Adriatic and onshore North Africa. It is the only oil and gas producer in Greece with a 35-year track record of operating offshore and onshore assets in environmentally sensitive areas and employs 480 oil and gas professionals. Through its subsidiary Energean Israel, the group has resources of 531million barrels of oil equivalent (2C) in the Karish and Tanin Fields as well as 41 million barrels (2P) in the Prinos License, offshore North-Eastern Greece.
The Company has recently received approval from the Israeli Government on the FDP for the Karish and Tanin fields, aiming to use an FPSO and produce gas in 2020. The Company is pursuing an ongoing investment and development program to increase production from the Prinos and North Prinos Oil Fields and develop the Epsilon Oil Field. The Company has secured a 25-year exploitation license for the West Katakolo offshore block in Western Greece with first oil expected in 2019/20, which will represent the first production of oil or gas in the west of country. The Company also has significant exploration potential in the licenses held in Western Greece, Montenegro and Egypt, which provide the basis for future organic growth.