Energean Oil & Gas plans to build its own production system in eastern Mediterranean at a cost of up to 1.5 billion euros for the development of two off shore Israeli gas fields, Mathios Rigas, chief executive of the company said.
In comments made to Reuters news agency, Rigas said that Energean Oil & Gas, the only oil production company in Greece, was seeking to find a financial partner to develop the natural gas fields in Tanin and Karish, located around 100 km off the shores of Israel, with an expected capacity of 2.4 trillion cubic feet. Energean acquired the two fields for 148 million US dollars last August from Delek Group and Noble Energy, two companies exploiting two larger natural gas fields nearby and were asked by Israeli authorities to sell other fields in an effort to boost competition in the sector.
Energean plans to lease its own FPSO vessel and to build a new pipeline to Israel. “We will be a fully independent system,” Rigas told Reuters, adding that domestic and international banks will help to find the 1.3-1.5 billion US dollars needed for the investment.
Israeli authorities are expected to approve the plan and Energean needs to safeguard contracts for the sale of 3.0 billion cubic meters of natural gas per year, before a final investment decision would be taken in December, Rigas said. He added that the Israeli fields are the biggest assets of Energean. Rigas expects natural gas production in the fields to begin in 2020.