Energean Increases Oil Processing Capacity off the Coast of Israel

The company Energean formalized the startup of a second liquids processing unit on the Energean Power floating platform to increase oil processing capacity. This technical development, located off the coast of Israel, enables a substantial increase in commercial extraction infrastructure at the Karish field.

Outlook for Oil Processing Capacity

As a result of this technological upgrade, the total processing capacity of the floating production, storage and offloading vessel has increased by approximately 72%. The facility has gone from a previous capacity of 18,000 barrels per day of liquids to an operational ceiling of 31,000 barrels per day.

In this regard, the modular expansion responds to the targets projected by the corporation for the second half of 2026. During the first half of this year, Energean’s liquids production in Israeli territory averaged 10,000 barrels per day. However, executive management anticipates that extracted volume will scale to an estimated range between 17,000 and 21,000 barrels per day during the last six months of the year.

Additionally, the production increase consolidates the group’s financial exposure to the international Brent crude oil price. The greater proportion of sales indexed to this benchmark acquires special relevance given the recent volatility of global energy prices, driven by regional geopolitical conditions.

Regarding the project timeline, the Energean Power platform began formal operations in the Karish gas field in October 2022. The floating unit arrived in Israeli jurisdictional waters in June of that same year after successfully crossing the Suez Canal.

However, the operations of the London-based firm underwent adjustments to its previous financial targets. Following a temporary shutdown of activities for 41 days that affected the operational balance of the first quarter, the company revised downward in May its dividend and production volume estimates for the 2026 fiscal cycle.

Likewise, the infrastructure optimization consolidates the operational reliability of the energy asset in a strategic zone. The incorporation of the new unit ensures continuity in the natural gas supply, condensates and industrial liquids to supply receiving markets in the Mediterranean area.

Source and photo: Energean