Floating gas production rig/ Photo courtesy Energean
Energean, the British energy company which operates Israeli natural gas fields in the Mediterranean Sea, revealed that its Israeli operations sent the company into profitability in 2022 and that the company expects this trend to continue into 2023 as production from Israel’s Mediterranean gas fields continues to rise.
In 2022, Energean was the sole owner-operator of five deepwater wells there, which drove a 20% increase in its reserve base and marked the 15th consecutive year of reserve and resource base increases for the company. The company also stated it is on track to deliver between 4.5 and 5.5 bcm of gas into the Israeli domestic gas market this year, which also contributes towards the security of the energy supply of the region and improves the living conditions of the Israeli public through the reduction of emissions from the displacement of coal-fired power generation.
The news comes only a month after Energean reported that it was exporting hydrocarbon liquids in the form of crude oil from Israel, a historic first for the country which had never exported oil before.
Mathios Rigas, Chief Executive of Energean, commented, “2022 was a year of transformation for Energean – where a long-held vision became an operational reality. It was a year of positive delivery.”
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And the good news for Energean is continuing into 2023 as the company said the first quarter of 2023 has “continued the positive trend.”
The company cited production from Israel’s offshore Karish natural gas field in the Mediterranean as a cause saying that it has been “in line with our expectations.”
“The remainder of 2023,” added Rigas, “will see us present the development concept for the Olympus Area, offshore Israel, and increase the capacity of the Energean Power FPSO to 8 bcm/yr. This is alongside the delivery of production in line with guidance plus on-target returns, as promised, to our shareholder base. Through our gas contracting strategy we are in a unique position to have a very predictable and stable cash flow despite turbulence and challenges in the international financial markets.”
And last May, Energean, which specializes in the Eastern Mediterranean, revealed the discovery of 8 billion cubic meters (bcm) of natural gas between its Karish and Tanin fields in its Athena exploration well off the coast of Israel.
Israel’s natural gas fields like Karish have enough gas to not only satisfy the country’s needs for the foreseeable future – until renewable sources of energy like solar power replace fossil fuels entirely – but to also supply neighboring countries like Egypt as well.
