Energean to develop Karish and Tanin gas fields with FPSO program, offshore Israel

1/11/2017

ATHENS, Greece -- Energean Oil & Gas outlined initial details for the development of the Karish and Tanin natural gas fields.  At a press conference in Tel Aviv, Energean management announced that the two fields will be developed using a floating production, storage and offloading (FPSO) unit to facilitate the quickest route to producing first gas with the objectives of the government of Israel.

This follows the closing of the acquisition of the assets after approval by the Petroleum Commissioner of Israel was granted. The transaction, valued at $148 million plus royalties, is being implemented as part of the Israeli government’s gas framework. The Karish and Tanin fields, discovered in 2013 and 2011 respectively, have gas resources estimated at 2.4 tcf.

The development through an FPSO will enable Energean to maximise recovery of reserves and minimize environmental impact.  It also enables the company to safely process, store and offload oil away from the coast, with minimal onshore installations needed. The use of the FPSO will result in delivering gas at competitive prices for the benefit of Israeli consumers and the Israeli economy.

Energean will submit a formal field development plan (FDP) for both fields mid-2017. This is expected to encompass the drilling of 3-4 wells to develop Karish field and 2-3 wells to develop Tanin field, once production from Karish has come off plateau. The company intends to produce first gas in 2020. The development of Karish and Tanin is expected to involve an investment of approximately $1.3-1.5 billion over the next few years.

Mathios Rigas, CEO of Energean, said, “We are delighted to be progressing strongly towards the development of a world class asset with 2.4 tcfg, which will bring diversification of supply and competitive prices to the Israeli domestic market. “With the continued support and swift decision making of the Israeli government and the cooperation of other stakeholders in the country, we are ready to proceed as quickly as possible with the development of the fields.”

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