Energean plc on Thursday said it will give a priority to the development of the natural gas field in the Olympus Area in Israel over the Tanin field and it is expected to submit a Field Development Plan for approval by the Israeli government in the third quarter of the year before reaching in a final investment decision within the year.
In an announcement to the Stock Exchanges of London and Tel Aviv, Energean said that in the Olympus Area it discovered in 2022 fields with certified reserves of 31 billion cubic meters of natural gas and that it decided to give the Olympus concept a priority because of the lower development cost versus Tanin, since it was located closer to the FPSO “Energean Power” tie-back.
Olympus gas production is anticipated to be sold into the Israeli domestic market under the existing gas sales agreements. As there are no export restrictions on gas produced from block 12, production in excess of domestic gas buyer nominations is expected to target demand in Egypt (including international markets through the LNG facilities) and Jordan, utilising existing export infrastructure and spare capacity in the Energean Power FPSO.
Mathios Rigas, Chief Executive Officer of Energean, commented: “We are ramping up production from the Karish field and have seen four months of solid gas and liquids production in Israel, whilst optimising the operations of the Energean Power FPSO. Our Israeli gas contracts have moved to commercial status and our buyers are increasing nominations. This year, Energean expects to supply a significant proportion of Israel’s gas demand. “This is why we are moving quickly to develop our newly discovered Olympus Area resource, as efficiently as possible. As there is limited incremental capex, the initial development concept is in line with our stated commitment to remain capital disciplined. With no seller royalty payments or export restrictions, this strategy will create sustainable value for all our stakeholders and allow us to maintain and grow our stated sector-leading dividend policy. “We continue to focus on our Net Zero stated path through continuous reductions in our carbon intensity. We are and will remain a responsible hydrocarbon producer. We are committed to being the best version of Energean we can be: provide a secure and reliable energy supply, support our communities and underwrite the transition.”
SOURCE; ANA-MPA
