Energean warns labour shortages at Karish could delay first gas

Energy producer and explorer Energean said delivery of first gas from its Israeli fields could slip by up to three months due to manpower shortages.

The company on Thursday said it was still targeting first gas for the end of the year from the offshore Karish fields, but warned “this requires a ramp-up … if manpower remains at current levels”.

Energean plans capital expenditure of $515m - $590m this year, most of which is earmarked to get the flagship gas field offshore Israel onstream.

The company said once Karish started production it would help to “deliver material free cash flows and meaningful, sustainable shareholder returns”, adding that it was aiming to pay a maiden dividend next year.