Chinese virus may alter Israeli FPSO timetable

Feb. 6, 2020
Construction of the hull of the FPSO Energean Power could be impacted by the novel Coronavirus in China, operator Energean has warned.

Offshore staff

ATHENS, Greece – Construction of the hull of the FPSO Energean Power could be impacted by the novel Coronavirus in China, operator Energean has warned.

The hull is being built at a shipyard in Liuheng Island for the Karish/Tanin gas development offshore Israel. Around 550 personnel are on-site working on the program.

At this stage, Energean stressed, the project is on track for first gas during 1H 2021.

However, to prevent the spread of the virus, various countries, including China, have introduced emergency travel and transportation restrictions, which have had an immediate effect on the availability of labor and resources in affected areas, including Liuheng Island.

TechnipFMC, the project’s EPCIC contractor, has advised that the travel restriction constitutes a Force Majeure event that could allow it to seek a time extension under the contract terms.

Energean, in turn, has sent corresponding notices to buyers of Karish gas and other relevant counterparties.

02/06/2020