Energean to invest $1.2 billion to develop Israel's Katlan field

Energean announced in a press release that it will invest US $1.2 billion in the Katlan development project offshore Israel with first gas planned for H1 2027.

The Katlan area was discovered by Energean in 2022. The area contains 1.10 trillion cubic feet of proven and probable gas reserves, according to the company's website. Production will underpin Energean’s existing gas sales agreements plus target international markets.

After taking the final investment decision, the project will be developed in phases through a subsea tieback to the existing Energean Power FPSO. The development will extend the production plateau from the FPSO with volumes that do not incur seller royalties or carry export restrictions.

When commenting on the announcement, Mathios Rigas, Chief Executive Officer of Energean, said, “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. 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.”

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

Capital expenditure includes the costs for 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).

The Ministry of Energy and Infrastructure in Israel has granted the company a 30-year lease for the Katlan area including a 20-year extension option.