Energean lowers 2024 production outlook, says Israel operations unaffected by geopolitical situation

Gas producer Energean lowers its full-year 2024 production forecast due to lower sales in Israel owing to bad weather conditions.

The company expects 2024 production to be between 150,000 and 155,000 barrels of oil equivalent per day (boepd), compared with its prior forecast of 155,000-165,000 boepd.

Third-quarter production averaged 135,000 boepd, it adds, above brokerage Peel Hunt Research’s estimate of 120,000 boepd for the quarter.

“This reduction [in forecast] is due to Israel, which reflects lower than expected sales in November owing to weather conditions and market dynamics and, for the lower end, an assumption of flat month-on-month sales for December,” Energean says in a statement.

However, the company adds that day-to-day production in Israel remains unaffected by the ongoing geopolitical developments.

“Our operations continue to deliver energy security to Israel and the broader region through the optimisation of production from our FPSO (floating production storage and offloading), which has been operating at 99% uptime,” says Mathios Rigas, CEO of Energean.

Energean is producing increasing volumes of gas and oil from its flagship Karish field, offshore Israel, say analysts at Peel Hunt, adding that they expect 2025 to be another year of “robust delivery.”