Energean prioritizes Olympus area as next offshore Israel gas project

Offshore staff

ATHENS, Greece – Energean has confirmed it will develop its recent gas discoveries in the Olympus area offshore Israel as a tieback to the Energean Power FPSO, which serves the Karish Field.

The Olympus project will take priority over the Tanin gas field development, which will likely be pushed back to the 2030s. The company plans to submit a field development plan for the Olympus area this summer and take FID before year-end 2023.

The project should incur lower capex than Tanin due to being closer to the FPSO, Energean explained, and its resources carry no seller royalties. In contrast, gas from the Karish and Tanin reservoirs bears 7.5% / 8.25% (pre-and post Sheshinsky levy) royalty on the value of production at the wellhead.

Since there are no export restrictions on gas produced from Block 12, production could be above domestic gas buyer nominations to target demand in Egypt and Jordan, with tie-ins to existing export infrastructure as well as spare capacity in the Energean Power.

Another option is exports to Cyprus, assuming third parties construct new pipeline infrastructure.

Elsewhere in the Mediterranean Sea, Energean is a partner to Eni in the Cassiopea gas development offshore Sicily. Here, seabed surveys have finished ahead of the planned pipeline installation.

Offshore western Greece, Energean has started FEED activities for the Prinos Carbon Capture and Storage project. On the Ioannina license, a drill or drop decision should follow later in the year.

Energean expects to take FID on the 13.3-Bcf Irena gas field development off Croatia this year and will spud the Izabela-9 well in the same sector this summer. But the company has just submitted notice of its intention to terminate its Montenegrin offshore exploration licenses (blocks 26 and 30).

In the Gulf of Suez offshore Egypt, production rates from the NEA#6 gas well, which came online in March, have declined quicker than expected. Earlier this month, the NEA#5 well was completed and will be flow tested ahead of first gas later this year.

The El Qaher-1 rig has now moved to drill the PY#1 well, followed by NI#1.

At the Abu Qir Field, the company is assessing infill and exploration targets for drilling in 2024. The Orion-1X well (Energean, 30%) on the offshore North East Hap’y concession should spud in late 2023.

05.18.2023