Energean wins $4bn in Israeli gas contracts in H1 2025

Energean, a gas producer, secured $4bn worth of new long-term Israeli gas offtake contracts in the first half of 2025 (H1 2025), ended 30 June.

This strategic move has significantly bolstered the company’s contract pipeline to $20bn over the next two decades.

Despite this positive development, Energean’s financial performance in the first half of the year has been affected by a series of operational challenges including a planned shutdown for essential works and a government-mandated suspension of production.

The company's operations across Egypt, Italy, Croatia, the UK and Greece, which collectively produced 44,000 barrels of oil equivalent per day (boepd) in H1 2025, remain a focus for maximising value.

However, Energean reported an 11% decline in core profit for the six months leading up to 30 June, while its after-tax profit increased by nearly 24%.

Adjusted earnings before interest, taxes, depreciation, amortisation and exploration expense (EBITDAX) stood at $505m, with after-tax profit reaching $110m.

The temporary suspension of production in Israel in June and a delay in commissioning the second oil train have led Energean to revise its production forecast for the year.

The company now expects production to range between 145,000boepd and 155,000boepd, a decrease from the previously anticipated 155,000boepd to 165,000boepd.

In Egypt, Energean's CEO, Mathios Rigas, told Reutersthere is an estimated further three trillion cubic feet of gas beneath its existing platforms.

Offshore Israel, the company is considering drilling into untapped formations in deep Mesozoic rocks in Block 23, which Rigas believes could be a "new play opener for the whole East (Mediterranean)".

However, Energean is seeking a partner for this well and anticipates that drilling will have to wait for regional stability.

Rigas also mentioned that Energean expects to produce up to two billion cubic metres a year from its Katlan field off Israel, which is set to begin production in 2027.

This output is due to be transported via the proposed Nitzana pipeline from Israel to Egypt, which is yet to be constructed.

"Energean wins $4bn in Israeli gas contracts in H1 2025" was originally created and published by Offshore Technology, a GlobalData owned brand.

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