Greek oil company Energean Oil and Gas has submitted the field development plan (FDP) for the Karish and Tanin natural gas fields to the Israeli Petroleum Commissioner.
The Karish main development plan is for three wells to be drilled, using a new floating production storage and offloading (FPSO) unit, which will be installed about 90 kilometres from the shore.
The company said that the plan will allow it to maximise the recovery of reserves and minimise environmental impact.
Energean chairman Mathios Rigas said: “The submission of the FDP represents the achievement of yet another target we have set for Energean as part of our wider goal to bring competition to the Israeli gas market, for the benefit of consumers and the Israeli economy in general.
“We will continue working closely with the Israeli Government to obtain the required approval of the FDP as soon as possible in order to be able to reach a Final Investment Decision by the end of 2017. Following the gas sales agreement signed recently with Dalia Power Energies and Or Power Energies, we are in discussions with other buyers eager to benefit from competitive terms offered for the supply of gas in Israel.
“The Karish and Tanin development is a top priority in Energean’s strategy to become the leading independent E&P company in the Eastern Mediterranean.”
The Karish main development will also have a dry gas pipeline, which will connect the field to the Israeli natural gas transmission system.
The total estimated capital expenditure for the development is $1.3-1.5 billion and first gas is expected in 2020.
The Tanin development will follow the development of Karish and the plan said that six wells connected to the same FPSO will be drilled.
The lease will initially run until 2044, with an option to extend it until 2054.
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