Energean has left unchanged its operational outlook for this year despite the ongoing war in Israel, saying it will finish 2023 with hydrocarbon production of between 120,000 and 130,000 barrels of oil equivalent per day.
The UK-listed company’s core production assets are located offshore Israel, where its oil and gas production platform at the Karish gas field was targeted by an unsuccessful Hezbollah drone attack last year.
Israeli defence forces said they shot down three drones in July 2022 and that no new attempts to attack the facility were detected as talks between Israel and Lebanon on the maritime border unfolded.
Energean achieved average output of 143,000 boepd in the third quarter, up 22% versus the second quarter of this year due to the ramp-up of production at the Karish field.
The company said there has been “no production impact from the ongoing security situation in Israel”, with Karish North and a second gas export riser on track for completion and final commissioning by the end of this year.
In Israel, day-to-day production has remained steady over the past two months, averaging about 570 million cubic feet of gas per day, or the equivalent of about 6 billion cubic metres per annum, Energean said.
Construction of the second oil train for the Karish North development has been completed and the module was scheduled to leave Dubai in early October.
However, the security situation in Israel has impacted the timing of the installation and the train will be installed when feasible, Energean said.
The company said it expects assets in Israel to average between 87,000 and 94,000 boepd this year and fields in Egypt to produce between 23,000 and 25,000 boepd, with the rest of its portfolio contributing between 10,000 and 11,000 boepd.
Development and production capital expenditure in Israel has been revised up slightly up for this year, but reduced at assets in Egypt and the rest of the world, the company said.
Energean said it expects sales and other revenues to exceed $1 billion for the first nine months of this year, almost double revenues of $550 million in the same period of 2022.
Energean’s largest operating subsidiary — Energean Israel, which is wholly owned by the UK-listed entity — reported revenues of over $646 million between January and September this year due to the start of production at the Karish development.
Net profit for Energean Israel was $157 million for the first nine months of this year against a loss of $5 million a year earlier.
The company’s consolidated results for the third quarter of 2023 will be released later this year.
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