Report: Energean in talks to sell more gas from Tanin, Karish fields

Energean Oil & Gas, a Greek oil company that is increasingly looking abroad, is in talks to sell gas from its recently sanctioned offshore development in Israel.

According to Globes, a leading business news website in Israel, the Greek company is discussing a gas supply deal with three companies in Israel, OPC Energy, Israel Chemicals and Oil Refineries.

All the companies are controlled by Idan Ofer, a billionaire entrepreneur which – interestingly for our offshore audience – is a largest shareholder in the offshore drilling company Pacific Drilling.

Regarding the potential gas sales deal with Energean, Globes cited a statement by OPC Energy, who reportedly said the deal would entails a sale of 0.6 billion cubic meters of natural gas annualy for a period of 15 years.

Oil Refineries would buy 17 bcm over the same period, and Israel Chemicals wants 13 bcm, Globes said.

Offshore Energy Today has reached out to Energean, seeking more details on the reported talks. We will update the article if we get a response.

No deal yet

 

Worth noting, Energean, referring to the reports, said through social media channels Monday: “No deals signed yet, no comment on any specific details, but it is sure that Energean is offering competitive rates to the market.”

If confirmed, this will be the third, (fourth, and fifth) deal Energean has signed for the gas sales from the fields it acquired back in 2016.

In May 2017, the company signed with Dalia Power Energies and its sister company – Or Power Energies, two agreements for the supply of natural gas from the Karish and Tanin fields, offshore Israel.

Dalia and Or will purchase part of their gas requirements from Karish-Tanin to operate the Dalia power plant, the largest private power station in Tzafit, south-central Israel, as well as future power plants to be built by Or.

Energean Israel will supply an overall amount of up to 23 billion cubic meters of natural gas from Karish-Tanin reservoirs over the lifetime of the contracts with Dalia and Or Power Energies

The Greek company in june filed the Field Development Plan (FDP) for the Karish and Tanin fields to the Israeli Petroleum Commissioner.

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 Karish Main Development envisages drilling three wells, using a new floating production storage and offloading (FPSO) unit that will be installed approximately 90 km away from shore, with 400 mmscf/day capacity. The development through an FPSO will allow light hydrocarbons liquid to be safely processed, stored and offloaded away from the coast, with minimal onshore installations needed, the company said.

Energean has already appointed TechnipFMC as the contractor for Concept and Front End Engineering Design (FEED) for the development.

The Karish Main Development will also comprise a dry gas pipeline connecting the field to the Israeli natural gas transmission system. First gas is expected in 2020. Total estimated capex for the Karish development is $1.3-1.5 billion.

The Tanin Area Development will follow the development of Karish and envisages drilling six wells connected to the same FPSO.

During the term of the lease, which runs until 2044, and which may be extended to 2054, the Karish and Tanin development is estimated to deliver 88 BCM of natural gas to the Israeli market while up to 44 million barrels of light hydrocarbon liquids will potentially be exported to regional and international markets.

Update: July 19, 2017

In an email sent to Offshore Energy Today on Wednesday, Energean said: “Following the gas sales agreement signed recently with Dalia Power Energies and Or Power Energies, buyers are eager to benefit from competitive terms offered for the supply of gas in Israel. We are working towards securing signed contracts totalling 3 BCM so as to proceed with the Final Investment Decision by the end of 2017, and progress our wider goal of bringing competition to the Israeli gas market for the benefit of consumers and the Israeli economy in general. We are developing some of the natural gas resources already discovered in the area as well as seeking further opportunities in the Eastern Mediterranean for hydrocarbons upside potential.”

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< May 2019 >>
MTWTFSS
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

08th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

OWI WA 2019

West Africa’s only dedicated Offshore Well Intervention Conference is returning for its second year…

read more >

OIL & GAS PHILIPPINES 2019

Oil & Gas Philippines event display products like Oil & gas, fire protection systems and materials…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply