Energean Oil & Gas is planning to develop the Israeli Tanin and Karish gas and condensate fields using a floating production solution, the firm announced in a press conference today.
Energean says it will submit a formal field development plan (FDP) for both fields, jointly containing 2C gas resources of 2.4 Tcf in mid-2017. The development is expected to see the drilling of three-four wells to develop the Karish field and two-three wells to develop the Tanin field, once production from Karish has come off plateau.
Energean, which is based in Cyprus and has operations in Greece, will invest some US$1.3-1.5 billion in the Mediterranean Sea project over the next few years, with first gas is expected in 2020, the firm says.
Tanin and Karish, which are about 40km apart, were discovered in 2011 and 2013 respectively, and contain 22.4 Bcm and 36.3 Bcm contingent resources, respectively, as well as about 18.6 MMbbl of condensate between the two reservoirs, according to Energean's previous estimates.
Energean acquired the fields from Noble Energy, Delek Drilling, Delek Group and Anver Petroleum late last year, for $148 million, plus royalties, as part of Israel's Gas Framework, which included anti-trust rules. These rules compelled Noble, operator of the huge Leviathan field, a final investment decision on which is due imminently, to reduce its position in the market. As well as selling out of Tanin and Karish, Noble sold part of its producing Tamar field.
Energean says using a floating facility will enable it to maximize the recovery of reserves and minimize environmental impact, and would allow oil to be processed, stored and offloaded away from the coast, with minimal onshore installations. The use of a floating facility will result in gas being delivered at competitive prices for the benefit of Israeli consumers and the Israeli economy, the firm said, without outlining what the offtake arrangement for the gas or condensate in the fields would be.
Mathios Rigas, CEO of Energean, said: “We are delighted to be progressing strongly towards the development of a world class asset with 2.4 Tcf of natural gas, which will bring diversification of supply and competitive prices to the Israeli domestic market. With the continued support and swift decision making of the Israeli Government and the cooperation of other stakeholders in the country, we are ready to proceed as quickly as possible with the development of the fields.”
The Karish and Tanin FDP is the third FDP that Energean is committed to over the next few years with development programs being prepared for the Epsilon (North Aegean Sea) and West Katakolon (Western Greece/Ionian Sea) with combined 2P reserves of circa 25 MMbbl.
Katakolon was approved to move into development by the Greek Government in late November. Energean has additional exploration acreage in Western Greece, Montenegro and Egypt. The company has said it anticipated an investment of around $1.3 billion in exploration and development (including Karish and Tanin) over the next five years.
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