Energean has partnered with TechnipFMC to advance the development of the Olympus Area. The company said in its press release that the partnership is pursuing a five-well exploration campaign in the eastern Mediterranean.
The company said the campaign discovered approximately 68 bcm of natural gas in the Olympus multi-block area, offshore Israel, which contains the Katlan and Tanin fields. The partnership with TechnipFMC will bring the significant regional-scale resource into production, Energean noted.
Energean and TechnipFMC have agreed a letter of award that will accelerate TechnipFMC’s provision of an integrated front-end engineering and design (FEED) study as a vital starting point for the delivery of a subsea architecture design of full field that will contribute to the FID support of the project. package, according to the statement.
The final contract is expected to be completed in September and the FEED study is expected to be completed by December 2023, supporting the wider Katlan field development programme, Energean said.
Israeli authorities recognized the Olympus well as an official natural gas discovery in May and the well was renamed Katlan. Official recognition of a discovery allows Energean to submit an application for a deed of possession; submit a development plan and, with the approval of the Israeli government, begin development as a gas-producing field.
The Olympus area is expected to be developed as a tie-in to the Energean Power FPSO, prioritized over the Tanin development, which is now expected to be postponed to the 2030s, Energean said earlier. The company said the resources can be developed at a lower cost than Tanin due to the closer proximity to the FPSO, resulting in lower capex for the next tie-in phase.
Energean said it expects to make a final investment decision before the end of 2023. Production is expected to be sold to the Israeli domestic market under existing gas sales agreements. As there are no restrictions on the export of gas produced from block 12 onwards, production above the nominations of domestic gas buyers is expected to be directed towards Egypt’s demand (including international markets through of LNG facilities) and Jordan, using existing export infrastructure and spare capacity in the Energy. FPSO power.
The company added that exports to Cyprus remain an option as long as new pipeline infrastructure is developed by third parties.
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