Energean Oil & Gas and its partner Kerogen Capital on Tuesday submitted plans that call for spending up to $1.5 billion for developing the offshore Karish and Tanin gas fields and to get the first gas flowing in the year 2020.
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“We will continue working closely with the Israeli government to obtain the required approval of the field development plan 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 in a statement.
The Greek company said it would drill three wells at the Karish site, which is 90 kilometers offshore Lebanon, using a new floating production storage and offloading (FPSO) unit. The field will supply about four billion cubic meters of gas annually via a pipeline connecting it to the Israel’s natural gas transmission system.
Tanin, 120 kilometers offshore Israel, will follow the development of Karish, with a total of six wells that will be connected to the same FPSO.
Energean bought rights to the two small fields from Delek Group last year for $148 million and has signed a contract to supply 1-1.5 BCM of gas annually to Dalia Power Energies and its sister company, Or Energy, two private electric-power companies. But for Energean to make its final investment decision it will need to secure contracts for at least 3 BCM.
Energean estimated that the Karish and Tanin fields will deliver 88 BCM of natural gas to the Israeli market over their lifetime as well as light hydrocarbon liquids to be exported to regional and international markets.
“The Karish and Tanin development is a top priority in Energean’s strategy to become the leading independent exploration and production company in the Eastern Mediterranean,” Rigas said.
The term of the lease runs until 2044, and could be extended to 2054