Full Breakdown
Energean Resumes Gas Production at Karish Field Following Ceasefire
4/10/2026, 10:37:47 PM
Restart of Operations
Israel's Ministry of Energy and Infrastructure has authorized Energean to resume gas production at its Karish offshore gas field, following a precautionary shutdown that lasted over a month due to escalating regional tensions and conflict involving Iran. The Energean Power Floating Production Storage and Offloading (FPSO) unit, which had been idle since February 28, 2026, is now set to reactivate operations and ramp up to normal production levels. Prior to the shutdown, Energean was finalizing upgrades to increase its liquids output from approximately 15,000 barrels per day to around 20,000 barrels per day. The Karish field, located roughly 90 kilometers off Israel's northern coast, is a significant asset with approximately 1 trillion cubic feet of proven gas reserves.
Context of the Shutdown
The shutdown of the Karish field was part of a broader security measure amid the U.S.-Israeli conflict with Iran. The Ministry of Energy aimed to restore normal operations in the energy sector, while the Ministry of Defense prioritized minimizing risks. The Karish platform is strategically important for Israel's energy landscape, diversifying supply beyond the larger Tamar and Leviathan fields, and supporting domestic energy needs, including desalination. The recent ceasefire facilitated the resumption of operations, allowing Energean to mitigate the financial impact of the shutdown, which incurred standby costs of approximately $10 million per month.
Economic Impact
The shutdown of the Karish field, along with the Leviathan field, has had significant economic repercussions. Estimates indicate that the closure of the Leviathan field for a month cost the Israeli economy about NIS 1 billion, while the Karish field's 40-day shutdown resulted in an additional loss of approximately NIS 660 million. The total economic damage from the shutdowns of both fields is estimated at NIS 1.7 billion. The resumption of production is expected to help offset deferred revenues and stabilize Energean's output, which is crucial for the company's operations in Israel.
Official Statements & Responses
Energean confirmed receipt of the notice from the Ministry of Energy, stating, "We are working to resume production safely and return operations to normal in accordance with procedures." The Ministry of Energy emphasized its commitment to ensuring the continuity of energy supply to consumers and is closely monitoring developments in the energy sector.
Criticism & Opposition
Despite the resumption of operations, concerns remain regarding the security risks associated with the Karish field's proximity to Lebanon and ongoing tensions with Hezbollah. Critics argue that the decision to restart production may expose the facility to potential threats, despite the ceasefire with Iran.
What's Next
As Energean works to ramp up production at the Karish field, analysts will be closely observing updates regarding the timelines for the Katlan development project and regional export ambitions, particularly in light of the recent ceasefire and its implications for energy security in the region.
