Greece’s Energean Oil and Gas announced on Monday the initiation of its gas drilling programme at Israel within 2019. Energean pledged to undertake the development project in March 2018, upon ratification of 12 Gas and Sale Purchase Agreements with the Israeli government first in the Karish and then in the Tanin offshore blocks, both located within Israeli territorial waters. Energean is a leading energy producer in Greece, specialising in hydrocarbons. The company has undertaken several offshore gas extraction projects in the Adriatic Sea, within Israeli territorial waters and Greece.
First drilling efforts will initiate in the northern part of Karish field where the largest discovery of gas reserves has been spotted. Karish is also the most proximate offshore block to the shores. Capital expenses for the project expected to reach $1.6 billion. Energean through its subsidiary company in Israel managed to receive funding for the project and pledged to assume operations immediately. The drilling at Karish field is part of the contract already signed with Stena Drilling, the manufacturer and provider of the steel drills. Stena will provide the Stena Drill Max vessel whose drills can reach up to 10.000 metres below sea level. The drill will open three parallel wells with the view to free the entrapped natural gas reserves. The drill will operate near a Floating Production Storage Offloading (FPSO) platform, the first ever to be deployed in the Eastern Mediterranean Sea. The offshore platform will temporarily store extracted gas and has storage capabilities of 8 billion cubic metres (BCM) per annum.
Both fields are expected to extract approximately 4.2 BCM per annum. The overall findings in both fields estimate the presence of 67 BCM (2.4 trillion cubic feet) natural gas reserves which will be ready for market distribution by March 2021. The north Karish drilling effort aspires to extract an additional amount of 36 BCM (1.3 trillion cubic feet) natural gas reserves which remains entrapped in the particular area and adjacent offshore blocks.