Energean Takes FID on Egyptian Tieback
Mediterranean-focused Energean has taken a final investment decision on a subsea tieback project at the North El Amriya (NEA) and North Idkunea (NI) concession offshore Egypt, it said on January 21.
The NEA area contains the appraised Yazzi and Python gas discoveries, while the NI acreage holds four more gas finds, one of which is ready for development, Energean said. First gas from NEA/NI is on track for the second half of 2022, with the project targeting 49mn barrels of oil equivalent in proven and probable reserves.
Some 87% of this resource base is gas. Production is expected to peak at around 90mn ft3/day of gas and 1,000 barrels/day of condensate. Gas will be sold at $4.6/mn Btu when Brent crude is above $40/barrel, Energean said, calling it the highest price for shallow-water gas production in Egypt to date.
Capital expenditure is expected to come to $235mn, most of which will be used in 2022. Franco-American firm TechnipFMC has won an engineering, procurement, installation and commissioning contract for the development. Drilling work will be undertaken as part of Energean's broader Abu Qir campaign, Energean said, creating synergies.
It has been an eventful few months for Energean. The company closed the takeover of Edison E&P in December, giving it new operations in Croatia, Cyprus, Egypt, Italy, Israel, Malta, Montenegro and the UK. It then struck a deal later that month to buy out its private equity partner Kerogen at its flagship development assets, the Karish and Tanin gas leases off Israel.
And this month it took an extra 50% stake in a Greek offshore concession from France's Total and also reached a final investment decision on its third Israeli field Karish North, due to start up in the second half of 2023.