Energean, a leading independent gas producer, has reported robust results, remaining on track to achieve its goal of 200,000 barrels of oil equivalent per day (boepd) despite geopolitical challenges.
Energean CEO Mathios Rigas highlighted that 2023 marked the company’s transformation into “the major independent gas producer in the Mediterranean.”
In the past year, Energean maintained an average production of 123,000 boepd, with 83% of this being gas. The company’s target for this year is to achieve an average production of 155,000-175,000 boepd, with a focus on the second half of the year.
The company noted challenges in Israeli demand due to delays in the coal phase-out and higher-than-average winter temperatures.
Notable projects scheduled to commence this year include the Karish North first gas project, expected in the first quarter. However, the security situation has disrupted the delivery of the second oil train, which Energean plans to install as soon as conditions permit.
Additionally, the Cassiopea gas project is set to begin production in the summer. Drilling activities commenced in November 2023, and Energean intends to drill two near-field opportunities, Gemini and Centauro, within the year.
Energean CEO Rigas expressed optimism for 2024, citing “core strategic projects across Israel, Egypt, Italy, and Greece.” The company has also expanded its presence into Morocco.
Rigas stated, “As we continue to optimize our portfolio, we look forward to enhancing our position as the leading independent gas-focused exploration, development, and production company in the region.” Energean plans to allocate $400-500 million for expenditures this year.
In Egypt, Energean is participating in the Orion-1x well, spudded by Eni in October. The well is described as a “multi-tcf, high-risk, high-reward gas prospect.”
The company has also initiated discussions on merging the Abu Qir, NEA, and NI concessions in Egypt, a move that could improve fiscal terms and extend the economic life of these fields.
Energean is closely monitoring other developments, including the 3 million tonne per year carbon capture and storage (CCS) Prinos project and a final investment decision (FID) on Katlan. The FID is expected to be reached following negotiations on engineering, procurement, and construction (EPC) contracts.
Despite security concerns and challenges, Energean continues to demonstrate resilience and progress toward its strategic goals in the energy sector.
