Energean Oil & Gas has submitted the field development plan (FDP) for the Karish and Tanin natural gas fields offshore Israel, with a target of reaching a final investment decision by the end of the year, and first gas by 2020.
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Map of Karish and Tanin, from Energean. |
Energean subsidiary Energean Israel filed the FDP with the Israeli Petroleum Commissioner, and expects to invest US$1.3-$1.5 billion for the two fields that have a total of 2.7 Tcf of natural gas and 41 MMboe of light hydrocarbon liquids, totaling 531 MMboe 2C resources.
At the Karish Main Development there will be three wells drilled using a new floating production storage and offloading (FPSO) unit that will be installed about 90km from shore, with a capacity of 400 MMcf/d. It will also include a dry gas pipeline connecting the field to the Israeli natural gas transmission system. Energean says that the FPSO concept will allow the company to maximize the recovery of reserves and minimize environmental impact. It will also allow light hydrocarbons liquid to be safely processed, stored and offloaded away from the coast, with minimal onshore installations needed. First gas is expected in 2020.
The Tanin Area Development will follow the development of Karish, with a total of six wells that will be connected to the same FPSO.
The term of the lease runs until 2044, and could be extended to 2054. During this time, Energean estimates that the Karish and Tanin development will deliver 88 Bcm of natural gas to the Israeli market, and up to 44 MMbbl of light hydrocarbon liquids to be exported to regional and international markets.
“We will continue working closely with the Israeli government to obtain the required approval of the FDP as soon as possible in order to be able to reach a final investment decision by the end of 2017,” says Energean Chairman and CEO Mathios Rigas. “The Karish and Tanin development is a top priority in Energean’s strategy to become the leading independent E&P company in the Eastern Mediterranean.”
Energean currently holds 100% stake in Karish and Tanin. However, in February, the company announced that it was in talks with Kerogen Capital for a $50 million investment for the fields that could see Kerogen acquire 50% stake in Energean Israel. Kerogen’s investment is subject to approval by the Israeli government.
Read more:
Energean to gain Israel funding, partner
Energean selects FPSO for Israeli gas fields
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