Energean Boosts Light Oil Output from Karish Gas Field by Over 70%

Energean has completed preparations to operate a second processing line for condensate at the Karish gas field, increasing its light oil treatment capacity by more than 70%. The company expects its processing rate to rise from 18,000 barrels per day to 31,000 barrels per day in the second half of the year, with annual production exceeding 7 million barrels, representing about 85% of Israel's condensate market. In the first half of the year, average production was around 10,000 barrels per day, impacted by the closure of the Karish platform in late February due to the war with Iran, as ordered by the Ministry of Energy and the security system.

This increase in condensate output will shift Energean's revenue mix, as condensate prices are linked to Brent crude, currently above $95 per barrel, unlike natural gas which is mainly sold under long-term contracts. The company is also preparing to start production at the Katlan gas field, which will involve a planned shutdown of the Karish platform for connection works. Energean is Israel's largest producer of liquid hydrocarbons.

Recently, Energean has been in talks with American energy giant ExxonMobil about a potential partnership in Israel's fifth natural gas exploration tender. If successful, this would mark ExxonMobil's first entry into Israeli gas exploration. Energean is traded on the Tel Aviv Stock Exchange with a market value of about 6 billion shekels. Its shares have fallen 15% over the past year but surged 22% in the last month, recovering some of the annual losses.