Stena Drilling

Halliburton also joins Energean for Israel drilling, beginning 1Q in ‘22

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Two of the world’s biggest companies, in their respective fields, will participate in Energean’s new drilling program for Israel, scheduled to begin in the first quarter of 2022, an effort through which the company hopes to discover hydrocarbons the equivalent of one billion barrels of oil, primarily as natural gas.

American multinational Halliburton, one of the world’s biggest oil field service companies, has announced an agreement with Energean for three to five drilling procedures offshore Israel, following four drilling efforts completed in 2019 on behalf of Energean in the area, which led to the discovery of the Karish North gas field, set to begin production in 2023, one year after production at Karish, the main field.

Energean has already selected another major global player, Stena Drilling, for the supply of drilling equipment.

According to official announcements, confirmed drilling procedures to be completed in 2022 are: 1) Karish North, containing 33 billion cubic meters of natural gas and 31 billion barrels of certified liquid hydrocarbon (2P) stocks, with first gas production set for the second half of 2023; 2) Karish Main-04, to seek additional hydrocarbon quantities at the main Karish field, estimated at an equivalent of 166 million barrels of oil; 3) at Block 12, for an exploratory drill dubbed Athena, between the Karish and Tanin fields, aiming for 20 billion cubic meters of natural gas and a further 4 million barrels of liquid hydrocarbons.

 

Energean signs contract with Stena for drilling effort, offshore Israel

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Energean plc has announced that its 100% subsidiary, Energean Israel Limited, has signed a contract with Stena Drilling Limited for its 2022 – 2023 growth drilling programme offshore Israel, which is expected to target the derisking of unrisked prospective recoverable resources of over 1 billion barrels of oil equivalent (“boe“).

The contract is for the drilling of three firm wells and two optional wells, with the first firm well expected to spud in 1Q 2022. The firm wells are all expected to be drilled during 2022, and consist of:

  • The Karish North development well, a key part of the Karish North development. The scope includes re-entry, sidetracking and completion of the previously drilled Karish North well and completion as a producer. The Karish North development will commercialise 33 Bcm (1.2 Tcf) of gas plus 31 mmbbls of liquids 2P reserves (a total of 243 mmboe) and is expected to deliver first gas in 2H 2023.
  • The Karish Main-04 appraisal well, which is expected to target further prospective volumes within the Karish Main Block, including the potential oil rim that was identified as part of the KM-03 development well drilling. Total unrisked recoverable volumes estimated to be targeted by the well are 166 mmboe.
  • The Athena exploration well, located in Block 12, is situated directly between the Karish and Tanin leases. Athena is estimated to contain unrisked recoverable prospective resource volumes of 20 Bcm (0.7 Tcf) of gas plus 4 mmbbls of liquids; of which the primary target is estimated to contain unrisked recoverable prospective resource volumes of 10 Bcm (0.4 Tcf) of gas plus 2 mmbbls of liquids 1 with a 70% geological chance of success. Success at Athena would be expected to significantly de-risk approximately 90 Bcm (2.5 Tcf) plus 19 mmbbls of remaining unrisked recoverable prospective resource volumes located within Block 12 and Tanin.

Two factors support the commercialisation of a Block 12 discovery. Firstly, Block 12 was a new licence award to Energean Israel Limited in 2018; produced volumes will therefore generate no royalty payments in respect of Energean Israel Limited’s original acquisition of the block. Secondly, the more proximate location of the potential development to the expected location of the Energean Power FPSO is also expected to reduce like-for-like development costs when compared with Tanin.

The drilling campaign will be undertaken using the Stena Icemax drillship, a state-of-the-art ice-class harsh environment dual-activity dynamically positioned drillship, capable of drilling in water depths of up to 10,000 ft.

Mathios Rigas, Chief Executive Officer of Energean, commented:

“We are delighted to be working with Stena again; and this five-well programme follows the three-well development drilling programme and 243 mmboe Karish North discovery, all successfully executed with Stena over 2019 and 2020.

Our five-well growth programme offshore Israel, commencing 1Q 2022, has the potential to double Energean plc’s reserve base with resource volumes that can be quickly, economically and safely monetized. Combined with first gas from our flagship Karish gas development project in mid-2022, the next 12-months are set to be truly transformational for Energean.”

 

Energean Israel appoints Stena Drilling for drilling at Karish Field

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Energean Israel, a subsidiary of leading independent E&P company Energean Oil & Gas, has signed a contract with Stena Drilling for the development drilling of its Karish Field, offshore Israel, the firm has announced.

A wholly-owned subsidiary of Sweden’s Stena AB, Stena Drilling, headquartered in Aberdeen, Scotland, and standing as one of the world’s leading independent drilling contractors, will deploy the Stena Forth drillship, or any substitute agreed to by the parties, to drill three development wells in Q1 2019, with provision for further options, subject to Energean’s Final Investment Decision (FID) regarding the Karish and Tanin fields.

The Stena Forth, one of the DrillMAX Fleet vessels, is a DP Class 3 ultra-deep water drillship with a track record in world-wide operations, ranging from the Mediterranean (Libya), Egypt (Gulf of Suez), Malaysia, Greenland and the US (Gulf of Mexico).

The Stena Forth will be mobilised from Las Palmas, Spain, where the vessel is currently located. The Karish development program includes the drilling of three development wells and production from a new Floating Production, Storage and Offloading (FPSO) vessel, approximately 90km offshore. First gas is expected in 2021.

Energean considers this agreement to be a significant step in the development of Karish and part of a development plan targeting gas supply to the growing Israeli gas market.

Stena Drilling’s calibre, experience and safety record was crucial in making this decision, given Energean’s commitment to achieving the highest standards of HSE performance and the requirement to operate in line with or exceed the European Directive on Safety of Offshore Oil & Gas Operations, as implemented by the UK safety directive, the company noted.