PARIS – Energean Oil & Gas has awarded TechnipFMC an iEPCI (integrated engineering, procurement, construction and installation) contract for the Karish gas field development in the Mediterranean Sea offshore Israel.
Water depth is 1,750 m (5,741 ft).
TechnipFMC’s scope covers the design, procurement, construction and installation of the subsea system; an FPSO which will also be designed to accommodate production from the later subsea tieback of the Tanin gas field; the subsea pipeline system; and the onshore pipeline and valve station at the receiving station in Israel.
Hallvard Hasselknippe, president of TechnipFMC’s Subsea business, said: “Our strong value proposition builds on early involvement and integrated solutions. By simplifying subsea field architecture, we help our clients significantly improve their project economics.”
Last week Energean’s board committed to the $1.6-billion Karish/Tanin project. It will use $405 million of funds raided from a recent IPO to fund the company’s 70% share in the project, with partner Kerogen Capital covering its 30% share.
Further finance will come from a senior credit facility of $1.275 billion underwritten by Morgan Stanley, Natixis, Bank Hapoalim and Société Générale.
Energean has secured long-term gas agreements with various power producers and industrial companies in Israel.
The newbuild FPSO will have a gas treatment capacity of 800 MMcf/d and liquids storage capacity of 800,000 bbl, with potential to expand output for additional tie-in projects in future.
A 90-km (56-mi) gas export pipeline will link the FPSO to the Israeli coast, while the onshore facilities will be connected to the domestic sales gas grid operated by INGL, Israel’s national gas transmission company.