In several prominent reports in major media outlets in Israel in recent weeks, security officials and political officials stated that production from the “Sharish” reservoir has been postponed until October, in order to avoid the possibility of a confrontation with Hezbollah during the negotiations with Lebanon on the border of the economic waters.
Here at Globes we built and reported that the Energian company, which owns the gas production concession in Karish, is standing by its announcement from the spring that production will begin in the third quarter, that is, by the end of September. This is what we also published this week in Globes, alongside the report on the progress in the negotiations.
This morning (Thursday), the Greek-American energy company Energian published a statement to the stock exchange in which Matthews Rigas, CEO and owner of the company, is quoted as saying, “Project Shark is progressing according to the schedule to start production within a few weeks.” In a conversation with investors Rigas was even more decisive : “The meaning of the wording is that a lot of work is being done at the rig to promote production and it is expected to start in the current quarter. The project is progressing as planned. The date indicated for the start of gas to the system is September 20, after which we will immediately begin selling commercial gas.” There is no clearer statement than this. In the conversation, Rigas added that the company is aware of the ongoing negotiations between Israel and Lebanon mediated by the United States and that “we have complete confidence in Israel in its government and its ability to protect its interests “.
The reports cited by political and security officials ignored the interests of Energian, which is obligated to start supplying gas to customers according to pre-signed contracts. Another commitment of the company is to the investors with whom Rigas spoke today and promised that the production will start on time as promised by the end of the month.
There is a solution to the division of the field area in the dispute triangle
Amos Hochstein, US President Biden’s energy advisor, is scheduled to arrive in the region tomorrow (Friday) after meetings in Paris with the heads of the French company “Total”, which is supposed to develop the “Kana/Sidon” gas field located in part of the disputed territory. According to reports in Lebanon, he will first arrive in Beirut and meet with outgoing President Aoun and Prime Minister Mikati.
In Globes we published that according to the agreement that is taking shape, Total will receive the full concession to produce gas from the Cana/Sidon field, and Israel will receive its share of the profits if any. According to the reports and sources, there is probably a solution to the division of the field area within the disputed triangle. One company that will engage in discovery and production and agreed profit sharing. Regarding the rest of the area of the dispute triangle, there is one outline that is probably on the way to closure and it is not a straight line, but a kind of “zigzag”.
Additional sections deal with the guarantee of maintaining the security of the gas rigs and determining the distances of the location of the rigs from the economic water boundary line that will be determined. As part of the agreement, Israel and Lebanon are supposed to submit their agreement to this line to the UN and it will be officially determined.
Energian pays first dividend
Energian, which is traded on the London and Tel Aviv Stock Exchanges, reports revenues of $339 million and pre-tax profit of $198.2 million, an increase of 65% and 165% respectively, compared to the same period last year. In light of the results, the company announced the distribution of a first dividend.
The CEO and owner Matthews Rigas called on the governments of Europe and the region to quickly promote solutions for the transmission of gas from the Eastern Mediterranean to meet the growing European demand for gas, in light of the cessation of gas supplies from Russia. Energian also updates on the developments in the drilling activity that is being carried out during this period, in which searches and tests continue Regarding additional natural gas reservoirs. Results from the drilling currently being carried out in the “Hermes” well in block 31, south of the Karish and Tamar reservoirs, are expected later this year. After that, the company will drill another well in block 12. Also, depending on the results in Hermes, the company will decide whether to drill another well, a sixth .