Israel-Iran truce sends signal for Mediterranean gas story to continue with FPSO restart

June 25, 2025, by Melisa Cavcic

As the Israel-Iran ceasefire seems to be holding its ground, the UK-based oil and gas player Energean has been given the go-ahead to restart production from a floating production, storage, and offloading (FPSO) vessel, which is working on a field off the coast of Israel, enabling the country to keep unfolding the chapters of its East Mediterranean natural gas story.

Energean revealed a temporary suspension of production from the FPSO Energean Power following a notice from the Ministry of Energy and Infrastructure, ordering the suspension of production and activities in the aftermath of the geopolitical escalation in the Middle East region after Israel reignited its conflict with Iran by conducting air strikes against the other country on June 13, 2025.

The rekindled conflict enabled Israel to hit Iran’s military and energy infrastructure, which led the country to respond with missiles that managed to pierce the former’s defense systems, prompting the United States to undertake strikes against three Iranian nuclear sites with controversial results.

Once a U.S. military base in Qatar came under a missile attack, America changed its tune and opted to broker a ceasefire between the two countries, which nearly collapsed before President Donald Trump took matters into his own hands, warning Israel not to “drop those bombs,” as it would be “a major violation.”

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Exploration & Production

Less than 24 hours later,Energean confirmed the receipt of notice from Israel’s Ministry of Energy and Infrastructure, instructing the safe restart and resumption of production and operations at its FPSO Energean Power, which began production from the Karish field in October 2022.

Thanks to this notice, the company is working to safely restart production and resume normal operations in line with its operating procedures. The London-based firm will now be able to keep developing its assets in Israel, including a phased development, covering a string of gas discoveries to be tied back to this FPSO.

Mathios Rigas, Chief Executive Officer of Energean, commented: “I want to thank the entire team for their dedication and professionalism during this uniquely challenging time. We look forward to bringing production safely back online, in full coordination with the authorities, to deliver energy security to Israel and the broader region.”