Energean Oil & Gas has been awarded five offshore exploration licenses within the Israeli Exclusive Economic Zone (EEZ) by the Israeli Petroleum Commissioner following a recommendation by the Petroleum Council.
The initial exploration period under each license is three years, Energean said on Wednesday. The awarded licenses comprise blocks 12, 21, 22, 23 and 31, which were published for bidding in the recent First Israeli Offshore Bid Round.
The blocks are located near the Karish and Tanin gas fields which are currently moving towards development by Energean.
To remind, Energean submitted the Field Development Plan (FDP) for the Karish and Tanin natural gas fields to the Israeli Petroleum Commissioner in June. Earlier this month, the company signed further gas sales and purchase agreements for natural gas supply from the Karish and Tanin fields, providing further momentum to progress to FID, targeted for early 2018.
Energean said it believes that the licenses awarded are highly prospective and would benefit, in the event of any economic hydrocarbon discoveries, from being developed via tie-backs to the FPSO that Energean will construct for the development of the Karish and Tanin fields.
Energean believes these five additional licenses, which will raise the total number of licenses held by the company and its subsidiaries to 13, will provide upside potential for future growth and complement the company’s portfolio within the East Mediterranean region. This portfolio includes low cost production from Greece, a world class development project from the Karish and Tanin gas fields, as well as exploration potential in Israel, Greece and the Adriatic.