Energean PLC Operational Update - Karish Project (1867P)
June 08 2020 - 1:00AM
UK Regulatory
TIDMENOG
RNS Number : 1867P
Energean PLC
08 June 2020
Energean plc
("Energean" or the "Company")
Operational Update - Karish Project
London, 8 June 2020 - Energean plc (LSE: ENOG, TASE: ), the gas
producer focused on the Mediterranean, is pleased to announce that
work recommenced on the Energean Power FPSO in the Admiralty Yard,
Singapore, on 2 June 2020 and the subsea installation campaign
offshore Israel is progressing as planned.
ENERGEAN POWER FPSO
On 2 June 2020, the Sembcorp Marine Admiralty Yard, Singapore,
reopened. Preparation works for lifting of the topside modules of
the Energean Power FPSO has commenced. An application has been
submitted to the Singapore Economic Development Board for the
return of up to 529 workers for the Energean Power project. The
ramp-up of the workforce, currently expected over the course of
June, will be dictated by the Singaporean authorities' ongoing
evaluation of the situation.
The forward work programme on the FPSO is contingent on the
evolution of the global pandemic and decisions of the Singapore
authorities. Before any further effects of COVID-19, the key FPSO
activities that are required to achieve first gas are as
follows:
-- Topsides integration and commissioning activities in
Singapore - expected to take approximately ten months; and then
-- FPSO tow to the Karish field in Israel and subsequent
mooring, hook-up and commissioning of the FPSO - expected to take
up to four months.
The health and safety of its workers remains of paramount
importance to Energean and it supports all necessary measures to
prevent further transmission of COVID-19.
Energean does not expect the revised timetable to have a
material financial impact on the Company due to the contracting
structures that it has in place with its main contractor and its
gas buyers.
SUBSEA
The pipelay vessel Solitaire and construction support vessel
Normand Cutter arrived offshore Israel in May 2020. The
near-and-onshore pipeline installation has now been completed and
laying of the remaining 80km gas pipeline that will deliver gas
from the Energean Power FPSO to Israel has now commenced. Core
installation using the Solitaire is expected to be completed by
end-June 2020. The full pipeline installation and pre-commissioning
programme is expected to be completed in 4Q 2020, well within the
project schedule.
Installation of the subsea equipment at the Karish field is
progressing in line with expectations. Installation of the manifold
and subsea isolation valves is ongoing and is expected to be
completed by end-June 2020. Installation of the three sets of
risers that will connect the three producing wells to the FPSO is
expected to commence in 4Q 2020 and to be completed in 1Q 2021.
COMMERCIAL
Following a CPR of Karish North resource volumes, issued by
Energean's independent reserves auditor, Energean Israel has
converted a further 0.6 bcm/yr of gas sales and purchase contracts
(GSPAs) from contingent to firm. Energean Israel's firm GSPAs are
now expected to deliver sold volumes of 5.6 bcm/yr on plateau, or
approximately 75% of Energean's independently verified resource
base. The CPR enables Energean to continue marketing its gas
resources into the growing Israeli domestic market and regional
export markets, with the aim to secure additional long-term cash
flows and fulfil its goal of filling the 8 bcm/yr capacity of its
FPSO.
All of Energean's Karish GSPAs contain take-or-pay and floor
pricing provisions, which reduce the risks on Energean's cash flow
generation profile on the Karish project and limit Energean's
exposure to global commodity price fluctuations.
Enquiries
Investors and Analysts
Kate Sloan, Head of IR & Tel: +44 (0)7917 608 645
ECM
Media
Sotiris Chiotakis Tel: +30 210 8174 242
About Energean plc
Energean is a London Premium Listed FTSE 250 and Tel Aviv 35
Listed E&P company with operations offshore Israel, Greece and
the Adriatic. In August 2017 the Company received Israeli
Governmental approval for the FDP for its flagship Karish-Tanin gas
development project, where it intends to use the only FPSO in the
Eastern Mediterranean to deliver gas into the Israeli domestic
market. Energean has already signed firm contracts for 5.6 Bcm/yr
of gas sales into the Israeli domestic market. Future gas sales
agreements will focus on both the growing Israeli domestic market
and key export markets.
Energean has nine exploration licences offshore Israel, and a
25-year exploitation licence for the Katakolo offshore block in
Western Greece and additional exploration potential in its other
licences in Western Greece and Montenegro.
On 4 July 2019, Energean announced the conditional acquisition
of Edison E&P for $750 million plus $100 million of contingent
consideration. On 23 December 2019, Energean announced the
exclusion of the Algerian assets from the transaction. The
acquisition of Edison E&P, exclusive of the Algerian assets and
Norwegian subsidiary is expected to be finalised in 3Q 2020.
www.energean.com
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END
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