Under the contract, Stena Drilling will deploy the Stena Forth drillship to drill three development wells in the first quarter of next year.
The contract is conditional upon Energean’s final investment decision (FID) regarding the Karish and Tanin gasfields.
In a statement, Energean Israel said: “Energean considers this to be a significant step in the development of Karish and part of a development plan, which targets supplying gas to the growing Israeli gas market.”
The Stena Forth is a DP Class 3 ultra-deepwater drillship and will be mobilised from Las Palmas, Gran Canaria.
Under the development programme of the Karish field, Energean will engage in the drilling of three development wells and production from a new floating production, storage and offloading (FPSO) vessel around 90km offshore.
First production from the field is slated for 2021.
Last month, Energean Israel signed agreements for natural gas supply from the Karish and Tanin fields, with a consortium of Israel Chemicals, Bazan Oil Refineries, and OPC.
The supply agreements combined with previously reached deals bring the annual total committed purchase volume of natural gas to more than four billion cubic metres per annum from the Karish and Tanin fields.