Greek oil and gas company Energean Oil & Gas has received Class approval from DNV GL for the basic design of the new-build floating production storage and offloading (FPSO) that will be deployed at its deep water Karish-Tanin development, offshore Israel.
This rapid obtainment of class approval from the global quality assurance body reflects the maturity of the FPSO design at final investment decision (FID) and keeps the development on track to cut first steel as planned before the end of 2018, Energean commented on Tuesday.
According to Energean’s field development plan, which was approved in August 2017, the Karish main development envisages drilling three wells, using an FPSO unit that will be located approximately 90 km offshore with a production capacity of 400 mmscf/day. The Tanin Area Development will follow the development of Karish and envisages drilling six wells connected to the same FPSO.
The FID for this $1.6 billion worth project was made in late March , following the securing of financing for the project through an agreement with four international banks earlier that month.
Energean added on Tuesday that early class approval was viewed as a critical milestone and its on schedule achievement validates the adopted strategy of building upon an existing hull design from TechnipFMC subsidiary, Inocean.
To remind, TechnipFMC was in March awarded a $1.36 billion contract for the construction of the FPSO for the Karish-Tanin project with a production capacity of 8 BCM per year.
It is also worth mentioning that the Israeli Supreme Court earlier in May dismissed a petition against Energean’s Karish-Tanin development, which had been filed by Hof Hacarmel Regional Council against the Israeli Ministry of Energy, the Petroleum Commissioner, two planning and construction authorities, Energean Israel, and an environmental union of local authorities for Sharon-Carmel.
Offshore Energy Today Staff