Energean ups production guidance but Karish ‘first oil’ is delayed due to Covid-19 rules in Singapore

Energean Plc reported above guidance production volumes for the four months ended April 30.

Production averaged 44,200 barrels oil equivalent in the four month period, 15% above the mid-point of guidance range for the full year.

At the same time, the company increases its guidance to 38,000 to 42,000 barrels of oil equivalent per day.

The company noted the reintroduction of enhanced Covid-19 restrictions in Singapore, and said it now expects first production from the Karish field by mid-2022.

In the update, Energean also noted that a final investment decision had been taken on two growth projects offshore Israel with infrastructure to boost both oil and gas production volumes. It also greenlit an investment at the Epsilon project offshore Greece, where a well tie-back nearby infrastructure is set to deliver first oil before the end of 2022.

The company inked a new rig contract in the period, for a five well programme in 2022/23 offshore Israel.

"Although COVID-19 continues to present challenges, we continue to deliver upon all of our promises that are within our control,” said chief executive Mathios Rigas.

“Due to the ongoing impact of COVID-19 in Singapore, we are prudently updating our guidance for Karish first gas to reflect revised forecasts from our EPCiC contractor, TechnipFMC; but we continue to work together to improve the timetable.

“Although unfortunate, the revised timetable should not have a material impact on the 15+ year secured revenue stream of our Israeli gas business.”

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