Energean Oil & Gas subsidiary Energean Israel has submitted the field development plan (FDP) for the Karish and Tanin natural gas fields offshore Israel to the Israeli petroleum commissioner, the company said in a news release.
The plan includes using one FPSO unit, with a 400-MMscf/d capacity, for the two fields. At Karish, Energean plans to drill three wells. The Karish development, which has estimated capex of between $1.3 billion and $1.5 billion, will also include a dry gas pipeline connecting the field to the Israeli natural gas transmission system. First gas is expected in 2020.
Energean said the Tanin Area Development will follow Karish, with six wells connected to the same FPSO unit.
“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,” Energean CEO Mathios Rigas said. “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.”
Energean Israel holds 100% of Karish and Tanin, which combined have 76 Bcm (2.7 Tcf) of natural gas and 41 MMboe of light hydrocarbon liquids, the company said.
During the term of the lease, which runs until 2044 but may be extended to 2054, the two fields could deliver an estimated 88 Bcm (3 Tcf) of natural gas to the Israeli market, Energean said, adding up to 44 MMbbl of light hydrocarbon liquids could be exported to regional and international markets.
—Staff Reports
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