Friday 7 February 2020

Energean Oil and Gas plc (LSE: ENOG, TASE: אנאג ,(the oil and gas producer focused on the Mediterranean, issues an update on the potential impacts of the Novel Coronavirus on the construction of the Energean Power FPSO Hull, which is currently being built in Liuheng Island, China, and the overall project timetable. Work on the hull is ongoing and, at this stage, Energean re-iterates that the Karish Project remains on track to deliver First Gas in 1H 2021.

The Novel Coronavirus was recently identified in China and has spread to most provinces within China and several other countries, leading the World Health Organisation to declare the virus a “Public Health Emergency of International Concern”. In order to prevent the spread of the virus, several countries, including China, have issued emergency travel and transportation restrictions, which have had an immediate impact on the availability of labour and resources in affected areas, including Liuheng Island.

Energean has received a notice under its EPCIC contract with TechnipFMC in relation to the travel restriction constituting a Force Majeure event, potentially entitling TechnipFMC to claim an extension of time under the EPCIC contract. Energean has, in turn, issued corresponding notices to its buyers of Karish gas and other relevant counterparties. The rapidly evolving nature of these circumstances is such that it is impossible, at this stage, to determine the overall impact, if any, on Energean’s project timeline. However, work is still progressing well in the Chinese yard with approximately 550 staff on site; and Energean is working actively with TechnipFMC to ensure that all appropriate measure are being taken to avoid or mitigate any delay. Based on the information available at this stage, Energean still expects that the Karish Project remains on track to deliver First Gas in 1H 2021. Energean shall provide further updates as the situation clarifies.

Energean highlights the importance of guaranteeing the health and safety of its employees and contractors and will act in accordance with instructions and guidance from the UK and Chinese health authorities.