Page 7 - MEOG Week 25

MEOG PIPeLInes & transPort MEOG
Energean signs deal for Israeli network access
IsraeL
GREECE’S Energean has announced the signing of a deal with Israel natural Gas lines (InGl) that will see the former acquire sections of a pipe- line that will feed gas produced o shore into the Israeli network.
A Memorandum of Understanding on the US$102 million deal was reached with grid operator InGl in December 2018, covering the onshore and near-shore sections of the 90-km pipeline connecting the FPSo for the Karish and Tanin elds with the domestic distribution system without incurring any tari s for use of the infrastructure.
Energean had previously been rebu ed by the Cypriot authorities over plans to build an export pipeline to the island. However, company o cials noted when signing the InGl deal that connection of the domestic system to the Karish/ Tanin facilities and other future elds would also allow the local network to serve as a vehicle for exports.
e hand-over of the assets will occur soon a er rst gas is produced from Karish, which is currently estimated in early 2021.
Energean CEo Mathios Rigas said: “The agreement signed with InGl is an important milestone for the Karish and Tanin development, which will start owing natural gas to the Israeli market in 1Q 2021. is demonstrates the com- mitment of the Israeli government to the project, and to long term development of gas resources o shore Israel.”
of the InGl agreement, Energy Minister Yuval Steinitz said in December: “This is an important step on the way to further develop- ment of small and mid-size gas elds, relying on the infrastructure built for InGl.”
He added: “It will encourage exploration and development of natural gas and contribute to Israel’s energy security in the future.”
In a results statement on March 21, the Greek rm con rmed that the rst well of a four-well 2019 drilling campaign had been spud at the Karish north prospect a week earlier. In doing so, it took up one of seven optional wells included in a contract with the UK’s Stena Drilling.
e exploration well is directly targeting 37 bcm of gas and 16.4 million barrels of liquids, and is also hoped to have a positive read-through into the Karish East prospect.
Gross prospective resources at Karish East are estimated at 14 bcm and 7.5 million barrels of liquids. e drilling has been budgeted at US$25 million and was anticipated taking 45 days.
Karish north is located only 5.4 km from the planned location of the FPSo unit due to be installed at the eld. Commercialisation of any discovery would thus potentially provide a cost-e ective means of delivering additional gas to that envisaged coming from so-called Karish Main.
A competent persons report (CPR) published in August certi ed 62 bcm of 2P reserves at Kar- ish and Tanin and le 5.7 bcm in the contingent category. Energean also picked up ve nearby licences in the north of Israel’s Exclusive Eco- nomic Zone (EEZ) in 2017 following the coun- try’s rst international o shore bid round.
Energean is clearly in growth mode having recently been reported by Bloomberg as bidding for EDF subsidiary Edison’s oil and gas assets, which include reserves of 248 million barrels of oil equivalent. e Italian-based rm is also the key proponent of the Eastmed Gas Pipeline.™
Week 25 25•June•2019 w w w . N E W S B A S E . c o m P7