INTERVIEW: Energean eyes West African hydrocarbon expansion

On the cusp of its third decade, gas-focused producer Energean is eyeing expansion beyond the East Mediterranean waters that host the bulk of its operations, CEO Mathios Rigas told Platts, part of S&P Global Energy, in a recent interview.

In particular, Rigas anticipates the model Energean has cultivated -- a focus on undeveloped discoveries too small to attract larger companies -- can translate to West Africa.

"I see West Africa having equal weight with the East Med portfolio," Rigas said. "Our second big area is going to be West Africa."

The focus on pre-existing discoveries comes after an unsuccessful exploration effort in Morocco in 2024.

"Exploration is not our strength," Rigas said. Instead, Energean wants to tap discovered-but-undeveloped resources below the "threshold of the majors."

"We're looking at opportunities to go in and deploy our technical capability to operate in deep waters and our financial strength to raise capital in the capital markets of the UK or the US," Rigas said.

His ambition is to add a West African project to the company's portfolio "by the end of the year."

East Mediterranean growth

Energean is also looking to widen its footprint in the Mediterranean.

Most of the company's existing production is offshore Israel, where it operates the Karish gas field. It recently reported 5.6 Bcm of gas production from its Israeli operations in 2025, up slightly from the 5.5 Bcm generated in 2024.

All those volumes are for the Israeli market, where the company has several fixed-price, long-term gas offtake agreements with local consumers through to around 2040, according to Rigas.

"That is a pretty unique situation because you have an E&P player which looks very much like a utility," he said.

Beyond sustaining production to meet those contracts, Energean wants to expand its Israeli output, largely by tying back smaller accumulations near its existing sites rather than developing entirely new infrastructure.

"To build something new, you need to find something big that would justify building something new," Rigas said. "Our view is that for now -- at least from what we've seen -- the big [fields], the elephants have been discovered."

The company expects to begin production at one such nearby Israeli field, Katlan, in the first half of 2027.

Yet Rigas is also working toward shoring up a broader gas market.

"Our vision and my vision is to see an interconnected East Mediterranean which becomes more like a regional market rather than a local market," he said. "Today, all our gas goes to the Israeli buyers. What we want is the gas to flow freely between countries."

Much infrastructure is already in place to support this, including pipelines linking Israel, Egypt and Jordan. Energean has proposed another pipeline linking Israel to Cyprus.

While the Israeli government supports the project, the Cypriot government has cast doubt on the plan's economic viability amid ongoing efforts to develop an LNG import terminal in the East Mediterranean country. Rigas said he has yet to speak about the proposal with Cyprus's new energy minister, Michael Damianos, who stepped into the role in December 2025.

In Egypt, Energean is also preparing for deepwater exploration at its Abu Qir concession, which Rigas said could hold above 3 trillion cubic feet of hydrocarbon potential.

"It has risks, but it has a huge advantage: it is next to infrastructure," he said.

The work is contingent on merging Abu Qir with the company's other two offshore concessions in Egypt: North El Amriya and North Idku. Rigas expects drilling could commence in 2027 if the merger discussions close in the coming months.

Platts, part of S&P Global Energy, assessed the DES East Mediterranean LNG marker at $12.605/MMBtu on Jan. 29.

European exploration

Europe is another focus for Energean.

The company continues to target previously-announced exploratory drilling in Greece's offshore Block 2 in late 2026 or early 2027.

The Block 2 exploration is the first exploratory offshore drilling in Greece since 1981. Energean has partnered with US producer ExxonMobil and Greece's HelleniQ Energy in the project. Energean is set to operate during the exploration. But, in the event of a discovery, ExxonMobil will take over as operator for the development stage.

ExxonMobil is one of several energy companies that have spoken out against the European Union's Corporate Sustainability Due Diligence Directive, or CSDDD, even as the EU advances legislative adjustments to reduce the regulation's requirements.

Under the CSDDD, large companies operating in the EU have to identify and address certain negative human rights and environmental impacts in their operations and those associated with them, or face penalties.

However, Rigas said ExxonMobil has not pulled back on its involvement in the Block 2 development amid its disdain for the law.

"They have not indicated or reneged on any of the commitments," he said.

More European drilling could also be on the horizon for Energean. The company is waiting on government approval for further exploration offshore Italy, according to Rigas.