Greek energy production company Energean Oil & Gas unit Energean Israel, has submitted the Field Development Plan (FDP) for the Karish and Tanin offshore natural gas fields to the Israeli Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources.
Energean Israel holds 100% of Karish and Tanin, which combined have an estimated 76 billion cubic meters (BCM) of natural gas and 41 million barrels of oil equivalent of light hydrocarbon liquids.
The Karish development plan envisages drilling three wells, using a new Floating Production Storage and Offloading (FPSO) unit that will be installed approximately 90 km offshore, with 400 mmscf/day capacity. The development through an FPSO will enable Energean to maximize the recovery of reserves and minimize environmental impact and allow light hydrocarbons liquid to be safely processed, stored and offloaded away from the coast, with minimal onshore installations needed.
The Karish development plan will also include a dry gas pipeline connecting the field to the Israeli natural gas transmission system. First gas is expected in 2020. Total estimated capital expenditure for the Karish development is $1.3-1.5 billion.
The Tanin development plan will follow the development of Karish and envisages drilling six wells connected to the same FPSO.
Energean chairman & CEO Mathios Rigas said, "The submission of the FDP represents the achievement of yet another target we have set for Energean as part of our wider goal to bring competition to the Israeli gas market, for the benefit of consumers and the Israeli economy in general. We will continue working closely with the Israeli government to obtain the required approval of the FDP as soon as possible in order to be able to reach Final Investment Decision by the end of 2017. Following the gas sales agreement signed recently with Dalia Power Energies and Or Power Energies, we are in discussions with other buyers eager to benefit from competitive terms offered for the supply of gas in Israel."
He added, "The Karish and Tanin development is a top priority in Energean’s strategy to become the leading independent E&P company in the Eastern Mediterranean."
Energean bought Tanin and Karish from Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) for $148 million as part of antitrust measures to introduce competition into Israel's gas production sector.
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2017
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