Energean Busy, and Back in Black
Greek upstream firm Energean said that “project delivery” across its development portfolio is its priority for the remainder of 2018, as it reported a return to profitability last year. In annual results posted April 19, Energean made a profit last year of $8.3mn, compared with its net 2016 loss of $38.6mn.
Last month it took the final investment decision (FID) on its $1.6bn Israeli project to develop the Karish and Tanin offshore gas fields, from which first gas is expected in 2021. It expects to submit the Karish Lease Environmental Document to the Israeli regulator, and for this to be approved in 2H 2018, and for TechnipFMC to start fabricating the hull/topsides of the project’s production ship (FPSO) in 4Q 2018.
Under 2017 highlights, it listed the approval of the Karish/Tanin development plan by Israel in August, and sales agreements achieved for 61bn m3 over a period of 16 years at an average of 4.2bn m3/yr to 12 leading domestic industrial and independent power producers in Israel.
It said it is well positioned to capitalise on further growth opportunities in the eastern Mediterranean, having been awarded five exploration licences last year offshore Israel (blocks 12, 21, 22, 23 and 31) near its project, as well as licences offshore Montenegro, and brought in Repsol as a Greek exploration partner.
At its main oil producing asset, Prinos field in Greece, Energean expects average 2018 production of 4,000-4,500 barrels of oil equivalent per day.
Energean has embarked on a $350mn programme to boost Prinos basin production by 2021, including the drilling of up to 24 new wells, a third already done since December 2015; and building an unmanned platform to develop the adjacent Epsilon field. Prinos produced 2,803 b/d in 2017, all of which is sold under an offtake agreement to BP, realising on average $46.73/b last year.