Energean Takes FID on Israel’s $1.2 Billion Katlan Project

Energean plc, a London Premium Listed FTSE 250 and Tel Aviv TA-35 Listed E&P company with operations across the Mediterranean and UK North Sea, on Tuesday said that it has taken Final Investment Decision (FID) for the $1.2 billion Katlan development project in Israel.

The Katlan area will be developed in a phased approach through a subsea tieback to the existing Energean Power FPSO, Energean said.

The development will extend the production plateau from the FPSO with volumes that do not incur seller royalties or carry export restrictions. Production will underpin Energean’s existing gas sales agreements plus target international markets. First gas is planned for H1 of 2027.

The EPCI contract for the subsea scope has been awarded to TechnipFMC and includes four-well-slot tieback capacity to a single large ~30 kilometre production line, which can be used by future Katlan area phases.

The capital expenditure includes; the aforementioned subsea infrastructure, an upgrade of the FPSO topsides related to MEG treatment, injection and storage (which will benefit all future subsea tie-back developments) and, drilling the first two production wells of the development (Athena and Zeus; 170 mmboe (includes 26 BCM of gas) 2 of 2P reserves.

Lease for 30 Years

Energean also confirmed that the UK’s Ministry of Energy and Infrastructure has granted the associated 30-year lease for the Katlan area including a 20-year extension option. The Ministry has also ratified the Hermes discovery in the newly named Drakon area (Block 31) made as part of the drilling campaign in 2022.

Energean CEO Mathios Rigas said that this decision was another positive milestone on its growth journey. The decision to move ahead with Katlan will not surprise anyone that knows our successful track record, given our commitment to the swift development and production of gas assets.

He also said that the Ministry has officially granted the 30-year lease for Katlan and confirmed their 2022 Hermes discovery, which de-risked the nearby accumulations and represents attractive potential in the newly named Drakon area (Block 31).

“By developing Katlan, we will unlock further value in the Israeli subsurface that will provide additional energy security and drive sustainable development, both in Israel and the broader region,” Rigas added.