Energean to develop Karish and Tanin with FPSO, offshore Israel

ATHENS, Greece -- Energean Oil & Gas has outlined initial details for the development of Karish and Tanin natural gas fields. At a press conference today in Tel Aviv, Energean announced that Karish and Tanin fields will be developed using a Floating Production, Storage and Offloading (FPSO) unit to facilitate the quickest route to producing first gas, in line with the objectives of the Government of Israel.

This follows the closing of the acquisition of the assets after approval by the Petroleum Commissioner of Israel was granted. The transaction, valued at $148 million plus royalties, is being implemented as part of the Israeli Government’s gas framework. Karish and Tanin fields, discovered in 2013 and 2011, respectively, have 2C gas resources of 2.4 Tcf.

The development through an FPSO will enable Energean to maximize the recovery of reserves and minimize environmental impact, and allows oil to be safely processed, stored and offloaded away from the coast, with minimal onshore installations needed. The use of the FPSO will result in delivering gas at competitive prices for the benefit of Israeli consumers and the Israeli economy.

Energean will submit a formal Field Development Plan (FDP) for both fields mid-2017. This is expected to encompass the drilling of 3-4 wells to develop Karish field and 2-3 wells to develop Tanin field, once production from Karish field has come off plateau.

The company intends to produce first gas in 2020. The development of Karish and Tanin to first gas is expected to involve an investment of circa $1.3-1.5 billion over the next few years.