At a press conference in Tel Aviv, the company explained that this would be the quickest way of producing first gas in line with the objectives of Israel’s government.
Late last year the Petroleum Commissioner of Israel granted transfer of the fields from a Noble Energy-led partnership under a transaction valued at $148 million, plus royalties.
The Karish and Tanin fields, discovered in 2013 and 2011 respectively, have estimated combined gas resources of 2.4 tcf.
Energean said an FPSO would maximize recovery of the reserves and minimize environmental impact, allowing the associated oil to be safely processed, stored, and offloaded away from the coast, with minimal onshore installations required.
It should also result in gas being delivered at competitive prices to Israeli consumers.
The company will submit a formal field development plan for both fields in mid-year, likely to entail drilling of three to four wells to develop the Karish field and two to three wells for Tanin, once production from Karish has come off plateau.
First gas could follow in 2020, with development set to cost $1.3-1.5 billion over the next few years.