Energean announces FID for Katlan project in Israel
London-based Energean has taken the final investment decision (FID) for the Katlan development project in Israel, the company announced on July 23. The capital expenditure for the project is expected to be approximately $1.2bn.
The Katlan area will be developed in a phased approach through a subsea tieback to the existing Energean Power FPSO. This development will extend the production plateau from the FPSO with volumes that do not incur seller royalties or carry export restrictions.
The production from Katlan will support Energean’s existing gas sales agreements and target international markets. The first gas is planned for the first half of 2027.
The engineering, procurement, construction, and installation (EPCI) contract for the subsea scope has been awarded to TechnipFMC. This includes a four-well-slot tieback capacity to a single 30 km production line, which can be used for future phases in the Katlan area.
The capital expenditure for the project will cover subsea infrastructure, an upgrade of the FPSO topsides related to MEG (monoethylene glycol) treatment, injection and storage, and drilling the first two production wells of the development, Athena and Zeus, with 2P reserves of 170mn boe, including 26bn m3 of gas.
Energean added that the Ministry of Energy and Infrastructure has granted a 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, made during the 2022 drilling campaign.
Katlan is a newly discovered collection of structures offshore Israel. Following a successful exploration campaign in 2022, the field contains 1.1 trillion ft3 of gas 2P reserves. Including liquids, total 2P reserves for Katlan amount to 205.9mn boe.
The development of Katlan will follow the Karish and Karish North fields. A field development plan was approved by the Israeli government in 2023. Phase 1a will focus on the Athena and Zeus structures, while Phase 1b will target Hera and Apollo.