Energean takes $1.6-bln Israel FID

Israel

ATHENS, March 23, 2018 – Energean’s board of directors has approved a USD 1.6-billion FID for the Karish and Tanin gasfields offshore Israel, the Greek independent announced on Thursday.

The company plans to drill three wells in the Karish field in 2019 and to procure an FPSO with a gas processing capacity of 22.7 mcm (800 mcf) per day and liquids storage capacity of 800,000 barrels. All of the project infrastructure has been subcontracted to TechnipFMC through a EPCI and commissioning agreement with a projected delivery date of early 2021, the company statement added.

“Owning and operating the only FPSO in the East Mediterranean with an 8 bcm [283 bcf] per annum capacity gives Energean significant scope for growth through being able to support potential additional gas discoveries from Karish and Tanin and the five adjacent licences that we own in Israel,” said Energean CEO Mathios Rigas.

The company, which struck a financing deal with Morgan Stanley, Natixis, Bank Hapoalim and Société Générale and raised USD 460 million at a recent IPO to help finance the project, holds a 70% stake in the two fields. Its partner there is Kerogen Capital (30%).

Energean has also concluded sales deals with major Israeli power and industrial companies that have contracted a total of 61 bcm (2.15 tcf) of output over a period of 16 years, the company statement said.