Energean to proceed with the exploitation of the ‘Olympus Area’

Energean has announced that, by September this year, it will submit a comprehensive programme for the exploitation of the deposits of the ‘Olympus Area’ of the Israeli Exclusive Economic Zone to the Israeli government for approval, so as to begin the programme's implementation in early 2024.

Moreover, a map published by Energean shows for the first time the planned pipeline, which will connect the Israeli deposits with the liquefaction station, which is to be built in Vassiliko, Cyprus, in the context of the discussions held during the recent meeting of the President of the Republic Nikos Christodoulides with Israeli Prime Minister Benjamin Netanyahu.

The 18 May regular quarterly update of Energean to the London and Tel Aviv stock exchanges, referred to its business activity in the Israeli EEZ by citing data on the amount of deposits it exploited in 2022 in the ‘Olympus Area,’ in which it discovered confirmed reserves of 31 billion cubic meters of natural gas.

In addition, in the framework of its 2022 exploratory drilling programme in the same area, it achieved de-risking for another 38 billion cubic meters.

Energean said that the new fields of the Olympus area are estimated to be able to be exploited at a lower cost than the Tanin field because the ‘Energean Power’ floating production storage and offloading (FPSO) is already in operation in the sea area and as a result no further expansion of the existing facilities is needed.

It is noted that unlike the neighboring Tanin and Karish fields, the Olympus area does not have third-party rights, which ensures increased profits for Energean, that will arise not only from the transport of natural gas within the Israeli market, but it opens new investment horizons in the markets of Egypt, Jordan and Cyprus.

Regarding the possibility of exporting gas from the ‘Olympus’ to Cyprus, Energean points out that the conditions will be extremely favorable provided an infrastructure with a new pipeline is developed.

The map released on 18 May by Energean demonstrates for the first time the planned subsea pipeline that will connect the existing Israeli fields and others that are expected to emerge in the Olympus area with Vasilikos, where a liquefaction station will be built.

According to a source from Energean in Greece, who spoke to CNA, the graphic representation of the planned Cyprus-Israel submarine pipeline is purely indicative and was not the result of a consultation with the relevant bodies in Cyprus and Israel, as the consultations between the two countries have not yet been finalised.

Meanwhile, a workshop will be organised by the Ministry of Energy on 29 May, and is anticipated to be attended by companies involved throughout the supply chain in the presence of President Christodoulides. The workshop will be important for the progress regarding the research and drilling and the course of the planned pipeline.

The prospect of the new Cyprus-Israel subsea pipeline was first mentioned by Israeli Prime Minister Benjamin Netanyahu during his public remarks before the Council of Ministers meeting on the morning of 14 May.

(Source: CNA)