Karish

Karish Gas Field Development Profile

Location and Geology

The Karish gas field is located offshore Israel in the eastern Mediterranean Sea, approximately 90 kilometers off the coast of Israel. It is situated within Israel's exclusive economic zone (EEZ), specifically in the north, about 25 kilometers northeast of the Tamar field. The field is in water depths exceeding 1,700 meters[3,.

The Karish field is part of the prolific Early Miocene Tamar Sands play and is characterized by a large two-way closure on the southern upthrow side of a significant down-to-the-north fault. The reservoirs are contained within the Early Miocene submarine fan deposits of the Tamar Sands, with the C Sands being approximately 130 meters thick and extensive across the entire structure.

Discovery and Ownership

The Karish field was discovered in 2013 by Noble Energy, with the discovery well "Karish-1" reaching a total depth of 4,812 meters and discovering a gross gas column of 135 meters with 72 meters of net pay over the Tamar A-B-C Sands.

Energean, a UK-based oil and gas exploration and production company, acquired the Karish and Tanin fields from Delek Drilling and Avner in December 2016. Energean holds a 70% stake in the Karish field, while Kerogen Capital, a private equity firm, holds the remaining 30% stake.

Field Development

The field development plan was approved by the Israeli authorities in August 2017. A final investment decision (FID) on the Karish and Tanin field development project was made in March 2018.

• Infrastructure: The development involves three initial development wells, a subsea production system, and the deployment of the Energean Power FPSO (Floating Production, Storage, and Offloading unit). The FPSO has a design life of 35 years, a gas processing capacity of up to 800 million cubic feet (mcf) per day or 8 billion cubic meters (bcm) per year, and a total liquids storage capacity of 800,000 barrels. The FPSO is approximately 227 meters long and 50 meters wide.
• Pipeline: The gas processed in the FPSO flows through a 90-kilometer-long pipeline to the Dor beach, consisting of 24-inch and 30-inch diameter sections. The pipeline construction was completed in June 2020.
• Drilling: The drilling of the three initial development wells was completed in 2019 by Stena Drilling using the Stena DrillMAX drillship. These wells are tied back to the FPSO.

Production

• First Gas: First gas production from the Karish field commenced on October 26, 2022, from the Karish Main-02 well, with the flow steadily ramping up. The Karish Main-01 and Karish Main-03 wells were expected to come online within four weeks.
• Current Production: As of the end of 2022, the Karish field contains 1.4 trillion cubic feet (tcf) of gas 2P reserves plus 54 million barrels of liquids 2P reserves, totaling 307 million barrels of oil equivalent (Mboe). Through 2023, gas production capacity reached an equivalent of 6.5 billion cubic meters (bcm) per year, with total production of gas and fluids at 87,000 barrels of oil equivalent per day (boepd).
• Karish North: The Karish North development, which includes the second oil train and the second export riser, started production on February 22, 2024. This addition allows Energean to produce to the full 8 billion cubic meters per year capacity of the FPSO and sales gas pipeline infrastructure. Karish North contains gross 1,137 billion cubic feet (bcf) of gas 2P reserves plus 34.1 million barrels of liquids 2P reserves.

Project Finance and Contracts

• Financing: A senior credit facility of approximately £924 million ($1.275 billion) was provided by a group of four banks, including Morgan Stanley, Natixis, Bank Hapoalim, and Societe Generale, in March 2018.
• Contracts: TechnipFMC was awarded a lump sum integrated engineering, procurement, construction, and installation (iEPCI) contract worth approximately £962 million ($1.36 billion) in March 2018. This contract includes the design, procurement, construction, and installation of the complete subsea system, the FPSO, the pipeline system, and the onshore pipeline and valve station.

Technological and Operational Aspects

• iEPCI Solution: TechnipFMC's integrated iEPCI solution was instrumental in managing the complete work scope of the project, streamlining the process, and reducing project interfaces and risks. This approach helped in lowering costs and accelerating the project schedule.
• FPSO Installation: The suction anchors of the FPSO were installed in the Karish field in August 2020. The electrical house (E-house) was the first topside module installed on the FPSO in August 2020.

Project Timeline and Milestones

• Discovery: 2013
• Acquisition: December 2016
• Field Development Plan Approval: August 2017
• Final Investment Decision: March 2018
• Pipeline Construction Completion: June 2020
• FPSO Installation: August 2020
• First Gas Production: October 26, 2022
• Karish North Production Start: February 22, 2024.

Economic and Strategic Impact

The Karish field is a significant contributor to energy competition and energy security in Israel. The project's total capital expenditure is estimated to be approximately £1.16 billion ($1.6 billion). The field's development and production are crucial for meeting Israel's energy demands and enhancing the country's energy security.