Energean Israel has initiated development of two offshore Israeli natural gas fields by filing a Field Development Plan (FDP) with the Israeli Petroleum Commissioner.

Karish and Tanin gas fields are the two natural gas fields which are being planned to be developed by the Energean Oil & Gas subsidiary. The two gas fields were acquired by Energean Israel for a total of $148m last year from Delek Drilling and Avner.

Put together, the two gas fields have 2.7TCF of natural gas and 41 million barrels of oil equivalent (mmboe) of light hydrocarbon liquids, with a total of 531 mmboe 2C resources.

First gas from the $1.3-1.5bn Karish gas and condensate project is expected in three years time. The project would involve drilling of three wells with a new floating production storage and offloading (FPSO) unit of 400 mmscf/day capacity.

Through the FPSO, Energean expects to make most of the recovery of reserves while keeping the environmental impact at bare minimum.

A dry gas pipeline will also be built as part of the Karish Main Development project to connect the gas field to the country’s natural gas transmission system.

Energean chairman & CEO Mathios Rigas said: “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 Final Investment Decision by the end of 2017.

“Following the gas sales agreement signed recently with Dalia Power Energies and Or Power Energies, we are in discussions with other buyers eager to benefit from competitive terms offered for the supply of gas in Israel.”

The Tanin gas field is expected to be developed once Energean manages to achieve stability in the production from the Karish gas field. Two to three wells are likely to be drilled to develop the Tanin field.

Development of both the fields is estimated to yield 88BCM of natural gas and up to 44 million barrels of light hydrocarbon liquids for domestic and international exports. Energean’s lease in the fields runs until 2044 which can be extended by another 10 years.