(Alliance News) - Energean PLC on Monday raised its annual output guidance but pushed back its forecast for first production at its Karish asset as Covid-19 restrictions in Singapore have tightened again.
The exploration and production company now expects first output at Karish in mid-2022. "Enhanced Covid-19-related restrictions in Singapore" have been reintroduced. The asset is located in Israel, but a floating production storage and offloading unit for the asset must set sail from Singapore.
Energean previously expected first gas at the project between the fourth quarter of 2021 and start of 2022.
More positively, Energean said overall company output during the four months to April 30 was 15% ahead of the mid-point of its guidance range. Output for the period was 44,200 barrels of oil equivalent per day.
Energean has upped its annual output forecast to 38,000 to 42,000 boepd. The initial range was 36,000 to 41,000 boepd.
"Although Covid-19 continues to present challenges, we continue to deliver upon all of our promises that are within our control. Our production is 15% ahead of guidance, we have taken final investment decision on three low-cost, high-return organic projects and have USD1.1 billion of cash on our balance sheet, providing financial flexibility and ensuring that we are fully-funded for all of our planned investments," Chief Executive Mathios Rigas said.
"Due to the ongoing impact of Covid-19 in Singapore, we are prudently updating our guidance for Karish first gas to reflect revised forecasts from our EPCiC contractor, TechnipFMC; but we continue to work together to improve the timetable. Although unfortunate, the revised timetable should not have a material impact on the 15+ year secured revenue stream of our Israeli gas business."
Energean shares were 0.7% lower at 787.00 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Energean Oil & Gas (ENOG)