Energean Oil & Gas, eastern Mediterranean focused exploration and production company received approval from the Israeli petroleum commissioner for its Karish and Tanin gas fields development plan.
The company had submitted its development plan of the two fields off Israel through its Energean Israel JV with Kerogen Capital on June 20, the company’s statement reads.
Energean Israel owns 100 per cent of the Karish and Tanin fields, which combined have 2.7 Tcf of natural gas and 41 million barrels of oil equivalent (mmboe) of light hydrocarbon liquids, totalling 531 mmboe of 2C resources.
The Karish main development envisages drilling three wells, using a floating production storage and offloading (FPSO) unit that will be located approximately 90 km offshore with a production capacity of 400 mmscf/day.
The next stage in the field development, which envisages first gas production in 2020, is to reach the final investment decision which is anticipated before the end of 2017.
The company has appointed Morgan Stanley as project finance advisor for the $1.3-1.5 billion investment required for the Karish development.
Commenting on the approval, Energean CEO, Mathios Rigas said the company has made progress in “in agreeing terms on the necessary gas sales contracts to this effect.”
“We have already signed agreements or MOU’s for volumes exceeding 3 BCM per year,” Rigas said.