Energy Company of the Year—small cap
Energean is living proof that a small energy company can think and act big—if it proceeds judiciously. A Greek company, listed on the London Stock Exchange and with its corporate headquarters here, Energean has risen from being a small player to one of the most successful newcomers in the Eastern Mediterranean.
In its first venture it acquired the Prinos oilfield in north-eastern Greek, a near moribund asset at the time. Energean is expanding production there, and Prinos remains Greece’s sole producing field.
But it is further to the east that Energean has made its name. At the end of 2016, it took over the Karish and Tanin fields offshore Israel, where natural gas had been discovered by Delek Drilling and Avner, but not developed. The following year, the Israeli authorities approved a field development plan. Earlier this year, the Greek firm took a final investment decision to develop Karish and will spud its first well in March 2019. First gas is scheduled to reach the Israeli market in Q1 2021.
The firm has signed 12 gas sales and purchase agreements with private Israeli company, with an average duration of 16 years. It has also commissioned the construction of its own floating production, storage and offloading facility. This will have sufficient capacity to process any gas found in five more concessions offshore Israel that Energean won in 2017.
Energean’s aim is to become a leading exploration and production player in the Eastern Mediterranean. It knows that it cannot compete with large international oil companies. But, remaining lean and flexible, and keeping costs to a minimum, it sees a clear role for itself taking over assets that the major may not want because they are too small or too complicated. Energean operates by the motto: reach high but keep your feet on the ground.