Greek energy company Energean Oil & Gas outlined on January 11 initial details for the development of the Karish and Tanin natural gas fields, offshore Israel, noting that they will be developed using a Floating Production, Storage and Offloading (“FPSO”) unit to facilitate the quickest route to producing first gas in line with the objectives of the Israeli government.

At a press conference on Janaury 11 in Tel Aviv, Energean said the development through an FPSO will enable Energean to maximise the recovery of reserves and minimise environmental impact, and allows oil to be safely processed, stored and offloaded away from the coast, with minimal onshore installations needed. The use of the FPSO will result in delivering gas at competitive prices for the benefit of Israeli consumers and the Israeli economy.

Energean will submit a formal Field Development Plan (FDP) for both fields mid-2017. This is expected to encompass the drilling of 3-4 wells to develop the Karish Field and 2-3 wells to develop the Tanin Field, once production from the Karish Field has come off plateau, the company said.

Energean noted that it intends to produce first gas in 2020. The development of Karish and Tanin to first gas is expected to involve an investment of circa $1.3-1.5 billion over the next few years.

“We are delighted to be progressing strongly towards the development of a world class asset with 2.4TCF of Natural Gas, which will bring diversification of supply and competitive prices to the Israeli domestic market,” Energean CEO Mathios Rigas said. “With the continued support and swift decision making of the Israeli Government and the cooperation of other stakeholders in the country, we are ready to proceed as quickly as possible with the development of the fields.”