Greek company Energean, owner of the Tanin and Karish natural gas fields, which contain nearly 70 BCM of gas, has signed an agreement with French-US company TechnipFMC to be the engineering planner for developing the fields. Energean announced that it would deliver a plan for developing the fields by mid-year, in which Karish will be developed first, and would announce $1.3-1.5 billion in financing for the development by the end of the year.
The field will be developed using an oil and gas floating production, storage, and offloading (FPSO) facility stationed near the wells that makes it unnecessary to build platforms near the shore.
Energean chairman and CEO Mattheos Rigas said, "Technip is a leading global oil and gas fields engineering, planning, and development company with great knowledge, experience, and expertise, especially in planning deep water projects like ours… We are confident that the combination of Energean's resources and TechnipFMC's qualifications will contribute both technologically and in personnel to expanding Israeli industry. We look forward eagerly to our joint work."
The first cooperation between the company was announced at a press conference for launching Energean's business in Israel in the second week of January. It was stated on that occasion that the companies would jointly manage the project. The possibility of Technip also actually carrying out the project can also not be ruled out. Technip's involvement in the engineering planning stage referred to now will include specifications for the FPSO facility, which will almost certainly be built at a shipyard in Singapore, South Korea, or China.
Technip merged last May with US company FMC; the merged company has a $13 billion market cap. The two companies' combined revenue totaled $20 billion in 2015. The merged company is still listed on the stock exchanges in Paris and New York on which the two companies were previous listed. The shareholders in Technip, the larger of the two companies, received two shares in the merged company for every share they held, while FMC shareholders received one share for each share they held.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 5, 2017
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