Greek oil and gas company Energean expects the FPSO unit for its Karish and Tanin development located offshore Israel to sail away from a yard in Singapore in late 2020 ahead of first gas in 2021.
Energean sanctioned the 2.4 Tcf (gross, Energean 70%) Karish and Tanin development in March 2018. The company then revealed it would use $405 million of the $460 million raised from its IPO to fund its 70% share in the project, while the remaining 30% would be funded by Kerogen Capital.
In an update on Wednesday, September 12 the Greek company said that operations are progressing in line with expectations and the development remains on track for first gas in 1Q 2021. The first delivery milestone will be first steel cut on the FPSO before 2018 year-end.
Energean has contracted TechnipFMC under a turnkey, lump sum EPCIC contract to provide the full suite of FPSO and SURF services during the construction phase and TechnipFMC has subcontracted COSCO to provide the FPSO hull, which will be built at the Fabricator yard in Zhoushan, China. First steel cut is expected by year-end 2018 and Energean said it believes that this is a key milestone to demonstrate that the project is on track.
Energean has chosen a new-build FPSO based on an existing design and will adopt a spread moored system, which it believes reduces technical risk on the field. Hull completion is expected to take 12 months. The hull will then travel to the Sembcorp Admiralty Yard in Singapore for installation of the Siemens-built topsides. Energean expects the FPSO to sail away from Singapore in late 2020 ahead of first gas in 2021.
Energean also said that Stena Drilling and Halliburton have been selected to provide drilling services and Wood will provide operations and maintenance services once production has started.
To date, Energean has contracted gas sales of 4.2 bcm/yr, leaving 3.8 bcm/yr of spare capacity in its FPSO for the monetization of future discoveries. Over the next 18 months, Energean aims to fill this capacity.
Karish North prospect
In June 2018, Energean made the decision to drill the Karish North prospect with a planned spud date before the end of March 2019, subject to necessary approvals. Karish North is located within Energean’s Karish lease and will be drilled immediately prior to the three development well program that will target Karish Main.
In the success case, Karish North is expected to take 45 days to drill and is budgeted at $25 million. The well will be completed as a potential producer in the event a discovery is made with a view to tie back to the Karish FPSO in the future.
The August 2018 NSAI CPR estimated that Karish North contains 1.3 Tcf of gross recoverable prospective resources (Energean 70%).