Greek firm Energean to invest $1.3b in Israeli reservoir

The Greek firm has a goal of supplying natural gas to Israel by 2020.

AN AERIAL SHOT of Prinos, a Greek oil reservoir that belongs to the energy firm Energean. (photo credit: Courtesy)
AN AERIAL SHOT of Prinos, a Greek oil reservoir that belongs to the energy firm Energean.
(photo credit: Courtesy)
Aiming to supply natural gas to Israel by 2020, the Greek firm Energean Oil & Gas announced plans on Tuesday to invest some $1.3 billion in developing the country’s Karish reservoir.
Through its local subsidiary, Energean Israel, the company said it has submitted its field development plan to the country’s petroleum commissioner for the Karish and neighboring Tanin gas fields. After purchasing the two reservoirs from the Delek Group in a $148m. deal last August, Energean now estimates that total capital expenditures for the first of the two fields, Karish, will amount to between $1.3b. and $1.5b.
Situated about 80 km. and 120 km. northwest of Haifa, respectively, the Karish and Tanin reservoirs lie just northeast of the country’s much larger, 613-billion cubic meter Leviathan reservoir. The two fields have a combined total of about 2.7 trillion cubic feet, or 76.5 billion cubic meters, of natural gas, as well as 41 million barrels of oil equivalent of light hydrocarbon liquids.
According to the development plan, Energean intends to use three drilling wells and a floating production storage and offloading unit installed about 90 km. away from the shore. Development by means of the floating unit would enable Energean to maximize the recovery of resources while minimizing environmental impact, the company said. Aboard the vessel, the company said it would be able to safely process, store and offload hydrocarbon liquids, with little need for onshore installations.
Following the development of Karish, Energean plans to develop Tanin by means of six drilling wells connected to the same floating unit, the company said. The firm’s lease runs until the end of 2044, with the option for a 10-year extension through 2054.
“The submission of the FDP represents the achievement of yet another target we have set for Energean as part of our wider goal to bring competition to the Israeli gas market, for the benefit of consumers and the Israeli economy in general,” said Mathios Rigas, Energean chairman and CEO.