Energean sees Karish gas well offshore Israel able to flow at capacity

London — UK-listed upstream company Energean Oil and Gas said Thursday it expected the Karish Main-2 development well offshore Israel to be able to flow at its design capacity of 300 MMcf/d (8.5 million cu m/d) following a clean-up of the asset.

The well flowed at a maximum rate of 120 MMcf/d, limited only by the capacity of the surface equipment, Energean said.

"Performance modeling confirmed the well is capable of delivering at the 300 MMcf/d design capacity," it said.

Energean is developing the Karish, Karish North and Tanin gas fields in Israel -- holding some 3 Tcf (85 Bcm) of gas -- with first production expected in the first half of 2021.

It made the final investment decision for the development in March 2018, with the Karish Main field the first asset to be developed.

Karish was selected as the initial development as it is the largest discovery, is expected to provide the highest yield of liquid per volume of produced gas and is the closest discovery to shore.

Dedicated production vessel

Energean said earlier this month it remained on track to deliver first gas from Karish in the first half of 2021 despite the potential for force majeure to impact the completion timetable of its dedicated floating production vessel under construction in China.

Energean has received notice under its EPCIC (engineering, procurement, construction, installation and commissioning) contract with TechnipFMC concerning the coronavirus outbreak in China and its potential impact on work on the FPSO hull.

The 8 Bcm/year capacity Energean Power FPSO hull was expected to sail from China in March and the FPSO itself to sail from Singapore at the end of the year, the company said late January.

Energean said work on the hull -- being built in Liuheng Island, China -- was ongoing despite emergency travel restrictions imposed by China and several other countries to prevent the spread of the virus.

But, it said, the travel restrictions "have had an immediate impact on the availability of labor and resources in affected areas, including Liuheng Island".

Gas sales

CEO Mathios Rigas said in late January that Energean had secured 5 Bcm/year of firmly contracted gas sales to Israeli domestic buyers from the Karish and Tanin gas fields.

Rigas said a further 1.3 Bcm/year of contingent gas sales had also been secured, while 2 Bcm/year of potential sales are to be discussed under a letter of intent with Greece's DEPA.

Israeli gas demand is expected to rise to some 30 Bcm/year in the mid-2030s from around 11 Bcm/year now.