Greek energy firm hails 'significant' natural gas discovery off Israel's coast
The discovery represents the largest natural gas find in Israeli waters since 2013
Greek oil and gas company Energean on Monday announced its Karish North exploration well off Israel's northern coast had made a 'significant' discovery, marking the latest major energy find in the Eastern Mediterranean.
The publicly-listed firm said it had discovered between 28 and 42 billion cubic meters (BCM) in the north well of Israel's Karish offshore gas field in addition to 45 BCM already found.
"Further evaluation will now be undertaken to further refine resource potential and determine the liquids content of the discovery," the company said in a statement.
#ENOG #Discovery #OOTT #oilandgas #KarishNorthSee Energean's other Tweets
Though Energean's find is much smaller than Israel's other gas fields discovered in the last decade, it represents a significant development for both the company and Israel's growing energy market.
Israeli Energy Minister Yuval Steinitz congratulated Energean for its discovery during "the first exploration drilling following years of stagnation."
"Further discoveries will follow and turn Israel into a regional hub," the firm quoted Steinitz as saying.
Energean began the exploratory drilling on March 15, reaching a depth of 4,880 meters once the initial phase of drilling was completed. The firm said it will now deepen the well to assess its hydrocarbon potential.
"We are delighted to be announcing this significant new gas discovery at Karish North, which further demonstrates the attractiveness of our acreage offshore Israel," Energean CEO Mathios Rigas said.
"We continue to see strong demand for our gas, which we believe will be supported by today’s announcement," Rigas added, noting that the discovery's eventual commercialization relates to the company's Floating Production Storage and Offloading (FPSO) vessel located nearby and an existing agreement with an Israeli power plant.
In the hours after the announcement, Energean's share price jumped by almost 10 percent.
- Mediterranean agreements -
The discovery comes days after Lebanon and Cyprus agreed to speed up the conclusion of bilateral agreements on oil at the maritime border between the two countries in an effort to become "an oil and gas alliance."
A week earlier, Lebanon launched the second licensing cycle for oil exploration in five blocks within Lebanese waters, three of which are adjacent to Cyprus.
Last year, the Lebanese government signed contracts with three international companies, Total, Eni and Novatech, to explore oil and gas in two blocks in their territorial waters, despite tensions with Israel over a disputed part of block No. 9.
#Lebanon's Council of Ministers Approved during his session of April 4th the kick-off of the 2nd Offshore Licensing Round for Open Blocks 1,2,5,8 & 10
Deadline for Bids submission is January 31st 2020
Source: lpa.gov.lb#Oil #Gas #LPASee Lebanon Gas and Oil's other Tweets
Lebanon rejects the continued sharing of this area between Israel and Lebanon, after several initiatives have been taken to resolve the dispute between the two countries.
Lebanon has signed an agreement with French oil company Total to explore oil and natural gas in the Lebanese economic zone, including Block 9.
"The conflict with Israel will not prevent Lebanon from taking advantage of the potential reserves of oil and natural gas in Block 9," the Lebanese Energy Minister said when signing the deal.
Turkey, in turn, objects to exploration operations in Cyprus. Ankara has warned international oil companies against exploration in waters disputed by northern and southern Cyprus, with Turkey the only country to recognize the "Northern Cyprus Republic."
Gas exploration in the eastern Mediterranean heralds hopes of economic cooperation that could bring the region closer, but it created tension and underscores latent differences as different countries race to claim their shares.
Seven Mediterranean countries, including Cyprus, Egypt and Israel, agreed earlier this year to set up an "Eastern Mediterranean Gas Forum" with Cairo as its headquarters, and aim to create a regional gas market that serves the interests of all the members.
In November 2018, Israeli television news reported that the Jewish state had closed an extensive deal with Greece, Italy, and Cyprus to supply natural gas via a 2,000 kilometer (1200 miles) underwater pipeline in a five-year long construction that is estimated to cost nearly eight billion dollars.
Israel views its offshore gas reserves as highly valuable to its economic and strategic concerns in the region and has gone to great lengths to ensure its existing gas fields are secure. It has also made agreements with Egypt and Jordan to sell surplus gas.
Prime Minister Benjamin Netanyahu has hailed the offshore fields for their potential to "bring billions of dollars to state coffers" and boost Israel's energy independence.
Israeli officials have also expressed hope that -- once infrastructure necessary to tap and transfer the gas is complete -- exporting to Europe will present "a counterweight to Arab power."
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