Mediterranean-focused oil and gas producer Energean aims to double its size in the coming years, including through expansion of production in Israel, CEO Mathios Rigas said on Thursday.
The company reported a 41.2% slump in first-half profit, dented by a higher tax bill, and trimmed its full-year production forecast to 120,000-130,000 barrels of oil equivalent per day (boed) after slower than expected start-up of its Karish gas field off the coast of Israel.
Energean, with operations in eight countries across the Mediterranean and the UK North Sea, had previously forecast annual production of 125,000 to 140,000 boed. The Karish field accounts for about 75% of total production.
Having started production at Karish in October 2022, the company is on track to increase output to 200,000 boed by the end of 2024, Energean said.
Energean aims to double its production in the coming years, primarily through development of new prospects in Israel, including the Katlan field, Rigas told Reuters.
Potential acquisitions will also be considered, focusing primarily on the Mediterranean, he added.
Although Energean predominantly produces gas, it also produces 30,000 barrels per day of oil from its floating processing plant in Israel and plans to explore opportunities to increase output, Rigas said.
"We're planning to find out where the oil is coming from, drill wells, and potentially exploit that part of the hydrocarbon sector that we haven't yet looked at. That could be very big," he said.
The London-headquartered explorer pinned its drop in first-half profit on $65.3 million of tax after higher taxable profit and movement in deferred tax.
Profit after tax came in at $69.8 million for the six months to June 30, against $118.7 million a year earlier.
(Reuters - Reporting by Richard Rohan Francis in Bengaluru and Ron Bousso in London/Editing by Sherry Jacob-Phillips and David Goodman)