Energean's Karish, Tanin development plan approved

Tamar

Energean CEO: We're working at top speed towards a final investment decision by the end of the year.

Energean Oil and Gas, an equal partner with Kerogen Capital in Energean Israel, today announced that the Ministry of National Infrastructure, Energy, and Water Resources Petroleum Commissioner had approved its plan for developing the Karish and Tanin gas fields. The plan was submitted in June.

"Approval of the plan by the Israeli government is an important milestone and an enormous achievement for us, and we appreciate the serious and rapid approval process at the Ministry of National Infrastructure, Energy, and Water Resources," said Energean Oil and Gas chairman and CEO Mathios Rigas.

"We're working at top speed to reach a final investment decision (FID) by the end of the year," Rigas adds. "We have made significant progress on the essential terms for contracts to supply gas from Karish and Tanin. Up until now, we have signed agreements and memoranda of understanding (MOUs) for the sale of over three BCM a year. Approval of the plan is an important step on the way to generating competition in the Israeli natural gas market, for the benefit of consumers and the Israeli economy."

The next step in the development plan, according to which gas will begin flowing already in 2020, is the FID, slated to take place this year. The company has appointed the Morgan Stanley bank as financial consultant for the project, which includes a $1.3-1.5 billion investment in development of the Karish gas reservoir.

Energean Israel owns 100% of the reservoirs, which contain an estimated 2.7 TCF according to the best estimate and 41 million barrels of oil equivalent (MMboe) of light crude oil, making a total of 531 MMboe 2C resources.

The main development plan for the Karish reservoir includes drilling three wells and complete treatment of the gas using a floating production and offloading (FPSO) unit that will be constructed above the reservoir, 90 kilometers from the shore, with an production capacity of 400 million cubic meters a day.

Published by Globes [online], Israel Business News - www.globes-online.com - on August 30, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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