Energean to invest $150m in Karish North field

Mathios Rigas Photo: Chen Galili

The offshore Israeli field has reserves of 32 billion cubic meters (BCM) of gas and 34 million barrels of liquids and should come on stream in 2023.

Energean Oil & Gas plc (LSE: ENOG; TASE: ENOG) has announced that it has taken a Final Investment Decision (FID) to develop the Karis North offshore gas field and will invest $150 million in the project.

The field is relatively small and external assessor DeGolyer and Macnaughton (D&M) have estimated that the field has reserves of 32 billion cubic meters (BCM) of gas and 34 million barrels of liquids.

Gas production will be undertaken using a low-cost tie-back to the Energean Power FPSO, which will be just 5.4km away. Energean believes that the gas will come on stream by the second half of 2023.

The Karish North field, which is 90 kilometers west of Haifa Bay, was discovered in April 2019.

Energean's total offshore assets in the Tanin, Karis and Karish North fields amounts to 99 BCM and 698 million barrels of liquid and the company has agreements to sell 7.4 BCM to the Israeli market.

Energean also announced yesterday that it had signed an 18-month, $700 million term loan facility agreement with J.P. Morgan and Morgan Stanley Senior Funding. Energean also agreed with the existing lenders of its $1.45 billion project finance facility to extend the maturity by nine months, from December 2021 to September 2022.

Energean CEO Mathios Rigas said, "The investment decision for the Karish North discovery of 32 BCM will contribute to natural gas supply stability for the Israeli energy market and significantly reduce emissions as a result of the switch from coal to natural gas."

Published by Globes, Israel business news - en.globes.co.il - on January 14, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Mathios Rigas Photo: Chen Galili
Mathios Rigas Photo: Chen Galili
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