First FPSO to operate in the Eastern Mediterranean

The Floating production storage and offloading (“FPSO”) vessel, which will be installed 90 kilometrs offshore’s Israel, will be the first to operate in the Eastern Mediterranean. It will have a gas treatment capacity of 800 MMscf/day (8 BCM/per annum) and liquid storage capacity of 800,000 bbls.

The Greek company Energean Oil & Gas made the Final Investment Decision for the development project in March 2018, after having signed 12 Gas Sales and Purchase Agreements for 4,2 BCM in total annuallyfor the domestic market and secured financing for the project.
The Karish and Tanin fields have 2.2 TCF of natural gas and 31.8 million barrels of light hydrocarbon liquids independently audited 2P reserves plus 5.4 BCM of gas and 1.0 mmbls of liquids 2C resources. NSAI has audited 2.94 TCF of gas plus 78.8 mmbls of liquids unrisked prospective resources.
The FPSO is scheduled to be delivered to the Karish field offshore Israel in late 2020, ahead of first production in the first quarter of 2021.

First steel was cut on FPSO vessel at the COSCO yard in Zhoushan, China, on 26 November. Energean has contracted TechnipFMC under a turnkey, lump sum EPCIC contract to deliver the FPSO. Energean is planning to spud in March 2019 Karish North, the first of four wells planned to be drilled in Israel during 2019.
Mathios Rigas, CEO of Energean said: The cutting of the first steel on the Karish-Tanin FPSO marks an important and symbolic moment for our flagship Karish -Tanin project and for Energean as a whole. The expected production will contribute to security and diversity of supply in the Israeli markets as well as giving Energean the optionality to target key regional export markets. We have gone from asset acquisition to FID in 15 months and to cutting first steel in under two years.

Karish is expected to provide the highest yield of liquid per volume of producing gas and is the closest discovery to the Lebanese borders. Capex for the Karish development (First Phase) is estimated at $1.6 billion.