Energean begins Israel’s first crude oil exports

Energean plc (LSE: ENOG; TASE: ENOG) announced today that Israel had joined the crude oil exporters club, when the company began exporting hydrocarbon liquids from the Karish offshore field.

Utilizing the liquids storage and offloading capability of the floating, production, storage and offloading (FPSO) Energean Power, the liquids are being offloaded in a controlled manner and sold on various global markets.

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The crude oil creates a significant differentiated income stream for Energean, which is fundamentally separate to its gas derived revenue. The “Financial Times” reported that while Karish is first and foremost a gas field, “the associated oil production is crucial to the economics of the project, according to people familiar with the matter.”

Energean said that the first cargo marketing agreement for the crude oil is with global independent oil trader Vitol and would be the first of a new source of eastern Mediterranean energy to reach Europe.

Energean Group commercial director Nick Witney said, “While we remain a gas focused company, with our Israeli gas production central to our role in enabling the energy transition, light, sweet crude oil responsibly produced from modern, low carbon intensity facilities is very much in demand, globally.”

Energean CEO Mathios Rigas added, “We are happy and proud that Energean has facilitated Israel joining the club of international oil exporters. This is another milestone for us, enhancing Energean’s growth as a significant player in the local and regional markets.”

Published by Globes, Israel business news – en.globes.co.il – on February 14, 2023.

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