Greek oil company Energean Oil & Gas has received approval from the Israeli Petroleum Commissioner for its Field Development Plan (FDP) for the development of the Karish and Tanin natural gas fields, offshore Israel.
Energean’s subsidiary, Energean Israel, holds 100% of Karish and Tanin, which combined have 2.7 TCF of natural gas and 41 million barrels of oil equivalent (mmboe) of light hydrocarbon liquids, totaling 531 mmboe 2C resources. The FDP application was submitted on June 20, 2017.
The Karish main development envisages drilling three wells, using a floating production storage and offloading (FPSO) unit that will be located approximately 90 km offshore with a production capacity of 400 mmscf/day. The Tanin Area Development will follow the development of Karish and envisages drilling six wells connected to the same FPSO.
Energean has already appointed TechnipFMC as the contractor for Concept and Front End Engineering Design (FEED) for the development.
The next stage in the field development, which envisages first gas production in 2020, is to reach the final investment decision (FID) which is anticipated before the end of 2017. The company has appointed Morgan Stanley as Project Finance Advisor for the $1.3-1.5 billion investment required for the Karish development.
Commenting on the approval, Energean CEO, Mathios Rigas, said: “The Israeli Government’s approval of the Field Development Plan is a major milestone and achievement for us and we are grateful for their swift handling of our submission. We are working at full speed to achieve the planned FID by year end and we have made significant progress in agreeing terms on the necessary gas sales contracts to this effect.
“We have already signed agreements or MOUs for volumes exceeding 3 BCM per year. FDP approval takes us a significant step nearer to delivering a more competitive gas market to the benefit of the people and businesses of Israel.”