Photo: Energean Power FPSO; Source: Energean

Energean’s Karish project 85 pct complete

Greek oil and gas company Energean has completed 85 per cent of its Karish project offshore Israel.

Energean said in an operational update on Tuesday that it continued to make solid progress on Karish during the third quarter of 2020.

Currently, the development of the project stands at 85 per cent and first gas is scheduled to be delivered in the fourth quarter of 2021.

In September, Energean said that the Energean Power floating production storage and offloading (FPSO) vessel being built for the Karish field would set sail from Singapore in the summer of 2021.

Mathios Rigas, Energean’s chief executive, stated: “The project’s economics, cash-flows and returns profile have been further enhanced through increasing firm gas sales by 1.4 billion cubic metres per year, to 7 billion cubic metres per year, and revising the expected liquids production plateau to an average of 28,000 barrels per day, from previous estimates of less than 10,000 bpd”.

Energean made a final investment decision for the Karish development project back in March 2018. According to a report produced by DeGolyer and MacNaughton earlier this month, the Karish field contains 1,409 billion cubic feet of gas 2P reserves plus 61 million barrels of liquids 2P reserves. This represents a total of 317 million barrels of oil equivalent 2P reserves – 70 per cent net to Energean.

As for the Energean Power FPSO, the majority of the main modules and pipe racks are lifted onto the FPSO hull, signalling near-completion of the first major milestone of the hull and topside integration campaign. The only outstanding lifts are for one module and the flare.

The completed Energean Power FPSO is expected to sail away from Singapore to Israel in 3Q 2021 with first gas before year-end 2021.

In Tuesday’s statement, Energean also said that the deal for the acquisition of Edison E&P was expected to close in December this year.

To remind, the company entered into a conditional sale and purchase agreement to acquire Edison E&P from Edison S.p.A. for $750 million, with an additional contingent consideration of $100 million payable following first gas production from the Cassiopea development.

Regarding the deal, Energean stated that the deal for Edison was transformational and that it would provide it with immediate and material increases in cash flow and access to future growth opportunities.