En­ergean se­cures Is­rael gas project

Kathimerini English - - Focus -

Greek oil pro­ducer En­ergean has ex­ceeded its tar­get for gas sales con­tracts needed be­fore it goes ahead with plans to tap two gas fields off Is­rael’s coast, mar­ket sources said yes­ter­day. En­ergean bought the Kar­ish and Tanin fields, lo­cated in deep waters around 100 kilo­me­ters off Is­rael’s coast, last Au­gust for $148 mil­lion from US-Is­raeli part­ners Delek Group and Noble En­ergy. It plans to lease its own float­ing pro­duc­tion, stor­age and of­fload­ing ves­sel and build a sep­a­rate pipe­line to Is­rael at a cost of up to $1.5 bil­lion. En­ergean had tar­geted gas sales con­tracts of 3 bil­lion cu­bic me­ters an­nu­ally be­fore mak­ing a fi­nal in­vest­ment de­ci­sion and has so far se­cured 4.6 bcm a year, mar­ket sources said. This week, Is­rael Chem­i­cals, Bazan Group Oil Re­finer­ies and OPC En­ergy signed agree­ments to buy 39 bcm of gas from the Kar­ish and Tanin fields over 15 years, or 2.6 bcm an­nu­ally. En­ergean has se­cured an­other 0.8 bcm per year from deals with power pro­ducer Do­rad and Ra­pac Com­mu­ni­ca­tions and In­fra­struc­ture, and 1.2 bcm an­nu­ally from Dalia Power, which op­er­ates Is­rael’s largest pri­vate power sta­tion, sources said. En­ergean is Greece’s only oil pro­ducer with an av­er­age pro­duc­tion of 3,500 bar­rels per day last year. The Kar­ish and Tanin fields are the com­pany’s big­gest as­sets with com­bined gas re­serves of an es­ti­mated 2.4 tril­lion cu­bic feet. Pro­duc­tion is ex­pected to be­gin in 2020 and En­ergean has ap­pointed Mor­gan Stan­ley as global fi­nan­cial co­or­di­na­tor.

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