Energean Oil & Gas plc (LSE: ENOG; TASE: ENOG), which holds the development licenses for the Karish and Tanin natural gas fields, reports progress in building the floating production storage and offloading (FPSO) units that will produce gas from Karish and Tanin by the end of 2021.
According to a statement issued by the company, it has completed laying the electrical house (E-house), which contains all FPSO electronic control and uninterruptible power supply (UPS) systems aboard the rig, currently under construction at the Admiralty Shipyard in Singapore.
The E-house, weighing at 850 tons and about 15 meters high (about 3.5 floors), controls the power supply and gas treatment processes. In addition, 13 suction anchors (piles) were installed last week, weighing between 176-233 tons each; these will anchor the FPSO installation when it reaches its permanent location above the Karish well, prior to starting production. The piles, 7.5-9 meters long and 17-19 meters high, were placed at a depth of about 1,700 meters below the water surface.
Energean holds production licenses and projects in Israel, Greece and the Adriatic Sea. Energean entered the Israeli market in 2016, with the acquisition of development licenses for the Karish and Tanin reserves. In March 2018, the company made a final investment decision to develop its flagship project, the Karish-Tanin natural gas fields, which will be implemented using FPSOs - the first floating production facilities of their kind in the Mediterranean basin, which will be located at about 90 km from the shore. The project is expected to begin production in 2021.
The company has signed agreements for the sale of 5.6 bcm (annually) of natural gas to the Israeli market, with future agreements expected to focus on both the domestic market and major export markets in the region.
In addition, the company holds nine additional exploration licenses in Israeli waters and additional exploration licenses in Greece and Montenegro. Last July, Energean acquired the gas and oil operations of Italian company Edison S.p.A.; upon completion of the transaction, expected later this year, Energean is also expected to have operations in Italy, Egypt, Croatia and the UK.
Published by Globes, Israel business news - en.globes.co.il - on August 27, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020