Energean Oil & Gas announces beginning of FPSO construction

Energean Oil and Gas plc, the London Premium Listed FTSE 250 and Tel Aviv Listed E&P company with operations offshore in Israel, Greece and the Adriatic, announced that first steel was cut on the Karish and Tanin floating production storage and offloading vessel at the COSCO yard in Zhoushan, China, on 26 November.

First steel cut on the Karish and Tanin project is a major milestone in the delivery of the FPSO to the Karish field in late 2020, ahead of first production in 1Q 2021. Energean has contracted TechnipFMC under a turnkey, lump sum EPCIC contract to deliver the FPSO and SURF for the development of the Karish & Tanin project with first gas planned for Q1 2021. Energean is planning to spud in March 2019 Karish North, the first of four wells planned to be drilled in Israel during 2019. Karish North is targeting 1.3 TCF of prospective resources with a very high chance of success over and above the 2.4Tcf 2P reserves in Karish-Tanin. Energean has already signed firm contracts for 4.2 bcma of gas sales into the Israeli domestic market. Future gas sales agreements will focus on both the growing Israeli domestic market and key export markets in the region.

Mathios Rigas, CEO of Energean said: “The cutting of the first steel on the Karish-Tanin FPSO marks an important and symbolic moment for our flagship Karish -Tanin project and for Energean as a whole. I would like to thank the tireless work that has gone into getting us to this moment and look forward to hitting our milestones to first production in 1Q 2021, contributing to security and diversity of supply in the Israeli markets as well as giving Energean the optionality to target key regional export markets. We have gone from asset acquisition to FID in 15 months and to cutting first steel in under two years.”