Energean’s second natural gas field offshore Israel has been in operation since February 22. This is the Karish North field which has 34 billion cubic meters (bcm) of natural gas and 37 million barrels of liquid hydrocarbon proved (2P) reserves (total, 256 million barrels of oil equivalent). Karish North is being developed by the FPSO “Energean Power” as well as the Karish field which started production in October 2022.
Energean’s production in Israel comes from a total of 4 wells, a development that, as pointed out by the company, allows flexibility in the use of reserves. The Karish North field was discovered by Energean in April 2019 while a successful drilling was conducted in October. Energean received the Final Investment Decision for the development of the field in January 2021 and in a period of three years Karish North proceeded with the production.
New contract in Israel
Energean has entered into a new gas sales contract with Eshkol Energies Generation LTD, majority owned by Dalia Power Energies LTD, which initially provides for the supply of 0.6 bcm per year, with an increase to 1 bcm annually from 2032 onwards. The contract has a duration of 15 years for a supply of about 12 bcm in total and guarantees revenues of around 2 billion US dollars during its term.
Energean now supplies natural gas to all four power plants privatized by the Israel Electric Corporation, namely Ramat Hovav, Alon Tavor, East Hagit and Eshkol.
It is noted that Energean expects an increase in its production in Israel between 5.7 and 6.4 bcm this year compared to 4.4 bcm last year.
In his statements, Mathios Rigas, CEO of the Energean group, emphasized that “Energean has achieved another milestone, bringing our fourth well into production at Karish North, in a development that gives us operational flexibility and allows us to utilize maximum capacity of Energean Power.”
He also pointed out that “the new contract with Eshkol is a vote of confidence from Israel’s electricity producers to Energean, adding revenue of around 2 billion US dollars while it is also part of our strategy to secure long-term revenue from long-term natural gas sales contracts.”
