In a bold appeal for expanded energy initiatives, Mathios Rigas, CEO of the Israel-focused gas giant Energean, has called on the Israeli government to intensify offshore oil and gas exploration efforts. Speaking to Reuters on Thursday, Rigas emphasized the urgent need for new exploration licenses to meet skyrocketing energy demands across the eastern Mediterranean.
The Case for Expansion: Unleashing Israel's Energy Potential
"The eastern Mediterranean is transforming into a global energy powerhouse," said Rigas, "but we cannot rest on our laurels. To maintain momentum, we must engage in active dialogue with the Israeli government to accelerate exploration and unlock new reservoirs of natural gas. The energy security of Israel and its neighbors depends on it."
Energean's CEO calls on the Israeli government to expedite the issuance of new oil and gas exploration licenses. This move is crucial for enhancing energy security and attracting investment in the region, fostering economic growth and sustainability in the energy sector. pic.twitter.com/aMsP1AnHPd
— The Inquiry (@InquiryTh) November 28, 2024
Energean’s production numbers underscore the region's potential. In the first ten months of 2024, the company produced an impressive 153,000 barrels of oil equivalent per day (boepd), with 112,000 boepd coming from its Israeli operations, including the Karish and Tanin offshore fields. Looking ahead, the Katlan field, now under development, is set to come online by 2027, further cementing Israel's position as a leading energy player.
A Geopolitical Turning Point: Opportunities Amid Regional Stability
The discovery of extensive gas fields off Israel and Egypt in the late 2000s has reshaped the eastern Mediterranean into a vital gas hub. Despite recent challenges, a ceasefire agreement with Hezbollah has mitigated geopolitical risks for Energean, whose operations lie near the maritime border with Lebanon.
Rigas also urged the establishment of new export routes, emphasizing the need to strengthen regional energy ties with Egypt and Cyprus. "While Israel is already linked to Egypt and Jordan via key pipelines, we must invest in new infrastructure to enhance gas delivery to other regional partners," he said.
Energean Pushing for More Oil and Gas Exploration Licenses Off Israel https://t.co/a0hvybPQBe
— Offshore Engineer (@OEdigital) November 29, 2024
Overcoming Challenges: Weathering Production and Market Dynamics
While Energean's operations continue to achieve exceptional reliability—with a remarkable 99% uptime at its floating production storage and offloading (FPSO) vessel—external factors have impacted sales. The company recently adjusted its 2024 production forecast to between 150,000 and 155,000 boepd, down from a previous estimate of 155,000-165,000 boepd. The revision reflects subdued sales in Israel due to adverse weather conditions and evolving market dynamics in November.
However, Energean remains bullish on its prospects. "Despite short-term fluctuations, we are steadfast in our mission to deliver energy security to Israel and its neighbors," Rigas affirmed.
As @MathiosR states, "Our operations continue to deliver #energysecurity to Israel and the broader region". Increased #gas production supports #decarbonisation of Israeli #energy through coal displacement. https://t.co/8qIcVa1Cna pic.twitter.com/ChX6LdlSNp
— Energean (@Energean) November 28, 2024
Analysts Back Energean’s Vision for Growth
Industry experts remain optimistic about Energean's trajectory. Analysts at Peel Hunt praised the company for ramping up production at its flagship Karish field, forecasting "another robust year of growth and delivery" in 2025.
With its commitment to operational excellence, regional energy security, and pioneering exploration, Energean is poised to play a pivotal role in shaping the energy future of Israel and the broader eastern Mediterranean. As Rigas concluded, "This is not just about meeting today’s demands; it’s about laying the groundwork for decades of sustainable growth and collaboration."
