Greece’s Energean is considering farming down its Katakolo field development located in Western Greece once it gets the approval of the environmental and social impact assessment for the project.
Energean’s 100 percent owned Katakolo development contains independently certified 2P reserves of 10.5 mmbbls.
The company submitted a field development plan for the West Katakolo project in March 2017 and received approval from Greek authorities in September of the same year.
The plan involves the development of the field through extended reach wells from an onshore location in the area. The $50 million development plan is targeting the 11 mmboe of recoverable oil that was discovered in the early 1980s by the state owned Public Petroleum Corporation, but remained undeveloped for decades.
Following the approval of the plan, Energean started working on the environmental and social impact assessment for the project, which it expects to submit during the fourth quarter of 2018.
The company said in an update on Wednesday that either Final Investment Decision (FID) or a farm-down will follow approval of the environmental and social impact assessment. Energean noted it will proceed with the option that delivers the most value for shareholders.
If the FID is taken in the fourth quarter, first oil will be in 2020, Energean said. It is worth mentioning that gross capex for the development is estimated at $60 million.
The Katakolo license covers onshore, shallow water and deep water acreage on the west coast of the Peloponnese. The block, covering an area of 545 km2 both offshore and onshore, contains 3 discoveries and multiple leads. The water depth is 200–300 meters, while the depth of the reservoir is 2,300-2,600 meters.
Energean is the operator of Katakolo with a 100 percent working interest. The asset is held as a 25 year production license with no outstanding commitments.
Energean is also working on its Karish and Tanin development offshore Israel with plans for first gas in 2021.
Offshore Energy Today Staff