What does the 2nd discovery mean for Energean in Israel in three years?

Of Thanks to Floudopoulos

Yesterday’s announcement of Energean for the discovery of a natural gas field with the “Athena” drilling, was the 2nd discovery of the company in the Israeli sea.

It was preceded, in April 2019, by the discovery of the “North Karis” deposit, which is clearly larger than “Athena”, almost five times more accurate, while its development has already been launched with an estimated start of production in the second half of 2023 .

“Athena” is relatively small, but it is particularly important, as its discovery virtually eliminated the risk (de-risked) for about 50 billion cubic meters of gas located in neighboring structures or in the same block, Block 12, or in Tannin, acquired by Energean in 2017, together with Karis.

The company, which started its course 14 years before Prinos of Kavala, now names this enlarged geological area as “Olympus Area”, having given the hydrocarbon structures names such as Zeus, Hera, Artemis, Apollo, Estia, Aris, while we also meet Saturn, the ancestor of the Egyptians Velos as well as the mythical heroes Perseus and Achilles.

Energean is now studying the development prospects of “Athena” either independently or in a comprehensive context with some of the aforementioned structures. There could be autonomous development in the short term with the connection of “Athena” with FPSO “Energean Power”, which is on its way to Israel, but it is clear that the company also aims at exports to Cyprus or (and) Egypt and for that it needs larger quantities of natural gas.

Already, there is an initial proposal on the table to the Cypriot government for the connection of Cyprus with a pipeline to Israel in order for the island to receive natural gas for export, with the installation of a FLNG, or for its own use, to enhance security of supply. and competition, as there is already a Project planned for the installation of FSRU by the Cypriot government.

There is also a signed MoU with the Egyptian EGAS for the export of up to 3 billion cubic meters of natural gas annually. The development of “Olympus” as a whole will be done by renting an existing FPU and pipeline to Cyprus or Egypt, as well as leasing the FLNG for Cyprus, which belongs to the company Golar LNG and will be available from the media. of 2026 in a project in which Vitol is also planned to participate.

The required investments for the next day are under the microscope, given that the company’s management has recently announced that it will proceed with the distribution of dividends after the start of production from Karis, expected for the 3rd quarter of this year.

However, the next step comes with the continuation of the drilling program, as the Stena ICE MAX has already moved to Karis for a 4th confirmation drilling aimed at another 15 billion cubic meters (as well as several liquid hydrocarbons, a total of 172 million barrels of oil equivalent). ) and then to North Karis for development drilling.