Energean Oil & Gas has announced that its subsidiary has received an approval from the Israeli government for the development of the Karish and Tanin natural gas fields, offshore Israel.
A field development plan (FDP) submitted by Energean Israel for the development of the gas fields has been approved by the Israeli Petroleum Commissioner.
Energean Israel, which is a 50/50 joint venture between Energean and Kerogen Capital, owns the Karish and Tanin fields.
The gas fields are estimated to have 2.7 trillion cubic feet of natural gas and 41 million barrels of oil equivalent (mmboe) of light hydrocarbon liquids, totalling 531 mmboe of 2C resources.
They were acquired by Energean Israel last year from Delek Drilling and Avner for a total of $148m.
For the fields, Energean Israel will use a floating production storage and offloading (FPSO) with a production capacity of 400 mmscf/day.
The first gas production from the field development is expected to take place in 2020.
Reaching a final investment decision (FID) will be the next stage in the development in the field development. Energean Israel expects to take FID on the project before the end of 2017.
The Karish Main Development, which involves drilling of three wells, is estimated to require an investment of $1.3-1.5bn. Energean has appointed Morgan Stanley as project finance advisor for the investment needed for the Karish development.
Energean CEO Mathios Rigas said: “The Israeli Government’s approval of the Field Development Plan is a major milestone and achievement for us and we are grateful for their swift handling of our submission.
“We are working at full speed to achieve the planned FID by year end and we have made significant progress in agreeing terms on the necessary gas sales contracts to this effect. We have already signed agreements or MOUs for volumes exceeding 3 BCM per year.”
Energean is also pursuing a development program to increase production from the Prinos and North Prinos Oil Fields and develop the Epsilon Oil Field.
Image: The first gas production from the field development is expected to take place in 2020. Photo: courtesy of num_skyman / FreeDigitalPhotos.net.