Energean has taken FID on the Katlan gas development project in the Mediterranean Sea offshore Israel.
The company plans a phased development of the fields in the Katlan area through a subsea tieback to the FPSO Energean Power. This should extend the production plateau from the vessel with volumes that do not incur seller royalties or carry export restrictions.
First gas is due in first-half 2027.
TechnipFMC has the EPCI contract for the subsea scope, covering a four-well-slot tieback to a ~30-km production line, which can also serve future Katlan area phases.
Energean estimates capex of about $1.2 billion, which includes the subsea infrastructure; an upgrade of the FPSO topsides related to MEG treatment, injection and storage; and drilling the first two production wells of the development on the Athena and Zeus fields, holding 170 MMboe combined.
Israel’s Ministry of Energy and Infrastructure has granted the associated 30-year lease for the Katlan area, including a 20-year extension option, and has in addition ratified the Hermes discovery in the newly named Drakon area (Block 31), made in 2022.
Energean is the 100% owner and operator of the Katlan Lease (I/21 Katlan), with all the discovered fields in water depths of up to 1,800 m.
Phase 1 encompasses Athena, Zeus, Hera and Apollo (229 MMboe in total). The wider Katlan area contains an additional 223 MMboe of prospective volumes across other accumulations, which Energean plans to develop in further phases.
This will require a shorter pipeline connecting into the Phase 1 pipeline, also benefiting from the Phase 1 FPSO upgrades and investment.
