Energean said that the $1.7bn Karish gas project in the Mediterranean Sea continues to be on budget and on track to produce its first gas in mid-2022.
As of 30 September 2021, 91.8% of the offshore Israeli gas project was completed, said Energean.
The floating production storage and offloading (FPSO) vessel, on the other hand, was 97.3% complete as of the same date.
The company said that the work related to production wells has been 100% completed. On the other hand, the company reported 83.3% and 99.7% completion of the subsea and onshore works, respectively, as of 30 September.
Originally, the Karish gas project was to begin production in the first quarter of 2021. However, it was delayed due to the Covid-19 pandemic.
The project’s final investment decision (FID) was made in March 2018.
Energean said that the FPSO dubbed as Energean Power is anticipated to sail from Sembcorp Marine’s Admiralty Yard towards Israeli waters in the first quarter of next year. The gas treatment capacity of the FPSO will be 800 million standard cubic feet per day (MMscf/day) and liquids storage capacity of 800,000 barrels.
The journey is estimated to take nearly 35 days. Following this, the UK-based oil and gas company expects hook-up and pre-first gas commissioning to take nearly three months.
Energean had awarded a $1.36bn engineering, procurement, construction, installation and commissioning (EPCIC) contract for the FPSO to TechnipFMC. The latter was also given the subsea umbilicals, risers and flowlines (SURF) contract.
The Karish gas project involves the development of the Karish and Tanin fields in the Levant Basin. The fields are located 75-120km off the northern Israel coast and are contained in water depths of nearly 1,750m.
In a separate development, Energean said that Dalia Power Energies had served it notice for terminating the gas supply and purchase agreement, which represents 0.8 billion cubic metres per year (Bcm/yr) of contracted gas sales. The notice follows the initiation of arbitration proceedings by Dalia against the company in August 2021.
The company stated: “The notice does not specify what date, on Dalia’s view, the purported termination takes effect.
“Alongside the Notice of Termination, Dalia sent a separate letter informing Energean that if the Notice of Termination is determined by the arbitral tribunal to be invalid or wrongly issued, the contract will not have been terminated and Dalia will perform its obligations.”
