Karish-Tanin FPSO's First Steel Cut Due Soon
In a trading update Greek independent, Energean, said November 15 that it remains on track with its major Israeli offshore gas development Karish-Tanin.
Energean said it expects to produce first gas from the 2.4 trillion ft3 Karish-Tanin project in 1Q 2021, adding that the first steel cut on the project’s producer ship (or FPSO) is scheduled for November 26. Main subsea work is bring provided by TechnipFMC, but Energean said it recently awarded a second contract to Wood for specialist engineering services over the next five years.
Three development wells will target the Karish main field with completion expected by end-2019. These three will deliver 4.2bn m3/yr of contracted firm gas sales into the Israeli market from 1Q 2021.
As the FPSO has 8bn m3/yr capacity, Energean plans an exploration well at Karish North in March 2019, and hopes its medium-term exploration campaign will yield enough gas to fill its spare 3.8bn m3/yr capacity. CEO Mathios Rigas said: "Future gas sales agreements will focus on both further contributing to security and diversity of supply in the Israeli markets as well as targeting key regional export markets."
Energean’s Israel assets and developments are owned by its 70%-owned subsidiary Energean Israel, of which the other 30% is owned by private equity fund Kerogen.
Greek production however is 100% Energean-owned: its Prinos oilfield produced 4,000 b/d in 3Q 2018 with production in 9M 2018 averaging 3,900 b/d.
Energean’s update provided no update on its expression of interest in buying a 45% stake in the one-trillion ft3 Gaza Marine gasfield offshore Palestine, which its CEO mentioned in July 2018.