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    Losses at Energean Israel increase in Q1

Summary

With the launch of Karish gas field on the horizon, Energean reported greater losses but also increased its cash holdings.

by: Callum Cyrus

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Complimentary, Natural Gas & LNG News, Asia/Oceania, Corporate, Financials, News By Country, Israel

Losses at Energean Israel increase in Q1

Energean Israel's first quarter loss increased to $1.5mn from $345,000 the previous year, as it continued to build towards first production at its Karish gas and condensate field off the coast of Israel's east Mediterranean shoreline.

Energean's cash pile rose sharply, however, reaching $301.6mn at March 31, compared with $30.9mn one year ago, though down from $349.8mn on January 1.

The company's credit rating from Moody's currently stands at Ba3, while S&P Global has assigned the business a BB- rating.

Energean Israel acquired Karish along with Israel's Tanin gas field for $40mn in late-2016. The field is expected to launch in the third quarter after COVID-19 workforce restrictions in Singapore last year disrupted Energean's supply chains, leading to a significant delay. Current reserve estimates indicate Karish contains 1,409bn ft3 of 2P natural gas reserves and 61mn barrels of 2P liquids.

The scope of the project is being expanded following a final investment decision in May 2021 to upgrade the field's central infrastructure. Karish's FPSO liquids handling capacity will increase from 18,000 barrels of oil equivalent/day to 32,000 boe/d, while a second gas sales riser installation will bring capacity from 6.5bn to 8.0bn m3/year.