Karish/Tanin 'First Steel Cut' Expected 4Q
Greek upstream firm Energean expects to cut first steel in 4Q2018 on the hull of the floating production ship (FPSO) for its Karish/Tanin gas development offshore Israel, it said in 1H results on September 12.
That confirms what its CEO Mathios Rigas told NGW Magazine in July, namely that the first steel cut on the hull – to be built in China and Singapore – would be made end-2018.
First gas from Karish/Tanin is on schedule to be produced in 1Q2021, it said September 12. The project will cost $1.6bn to develop and is being developed by Energean Israel, a joint venture 70%-owned by Energean and 30% by private equity fund Kerogen. Most of Energean's investment and growth into the 2020s will be in Israel.
In addition to that main development, Energean Israel will drill an exploration well on the Karish North block in 2Q 2019, Rigas added.
Energean reported a net 1H profit of $87.4mn, reversing a loss of $14.9mn in 1H2017. Its net production increased by 50% year on year to 3,801 barrels of oil equivalent, all from Greece.
It remarked that Italy’s Eni has entered into four blocks offshore Montenegro, close to two held by Energean, and said that Eni’s commitment to drill an exploration well “has the potential to de-risk the Energean acreage.” The four Eni blocks covering 1,228 km2 and were awarded to Eni as operator, jointly with Russian independent Novatek (each 50%), in 2016.
Not far away, Energean is partnered by Spain's Repsol in two exploration blocks offshore western Greece.