Energean has reached first gas from its Karish field, offshore Israel, with more wells coming online over the next month.
Initial production from the Energean Power FPSO will be 6.5 billion cubic metres per year. The company expects to reach this within four to six months. The FPSO, and pipelines, can scale up to 8 bcm per year.
Energean CEO Mathios Rigas described Karish as a “landmark project” bringing competition to the Israeli gas market. The project “enhances security of energy supply in the East Med region and brings affordable and clean energy that will displace coal-fired power generation, making a material impact to the environment”, he said.
Israeli Minister of Energy Karine Elharar, authorising the start of production yesterday, said Karish would “contribute significantly to supplying the needs of the local sector and to uphold Israel’s international commitments”.
The Israeli ministry went on to say Karish would allow the country to increase exports to Egypt and Jordan.
Karish, Rigas continued, would play a major part in increasing Energean’s production to 200,000 barrels of oil equivalent per day and $1.75 billion of EBITDAX per year.
“We are now focused on ramping up production and delivering the full 8 bcm capacity through our expansion project to the Energean Power FPSO,” Rigas said.
Energean expects to complete the Karish North development, with the second oil train and a second export riser, in late 2023. At this point, it should reach the full 8 bcm per year capacity.
The company is producing from the Karish Main-02 well. It is preparing to begin exporting the gas via pipeline. Sales to customers should start in the next couple of days.
Next up, Energean will open the Karish Main-01 and Karish Main-03 wells, in two and four weeks respectively.
Hamas had launched three reconnaissance drones in the direction of the Energean Power FPSO in July. Israeli forces destroyed all three and pledged they would keep Energean’s infrastructure safe.
In addition to this military commitment, Israel and Lebanon have made progress in agreeing a maritime border. This enshrines Energean’s right to Karish.
Updated at 2:23 pm with Israeli ministry comment.