Energean Makes FID on Its Katlan Development Project, Offshore Israel
[Click image to enlarge]
Energean has taken final investment decision (FID) for the 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. 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 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 kilometer production line, which can be used by future Katlan area phases.
Capital expenditure is expected to be approximately $1.2 billion, which includes:
• Subsea infrastructure
• An upgrade of the FPSO topsides related to MEG treatment, injection, and storage (which will benefit all future
subsea tie-back developments)
• Drilling the first two production wells of the development, Athena and Zeus.
Energean also said the 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.
“This decision marks yet another positive milestone on Energean’s 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,” said Mathios Rigas, chief executive officer of Energean.
“We are pleased that the ministry has officially granted the 30-year lease for Katlan and confirmed our 2022 Hermes discovery, which de-risked the nearby accumulations and represents attractive potential in the newly named Drakon area (Block 31),” added Rigas.
“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,” concluded Rigas.
KEY FACTS
• The Katlan area was discovered by Energean in 2022.
• Energean is the 100 percent owner and operator of the Katlan Lease (I/21 Katlan).
• The fields are located in water depths of up to 1,800 meters.
• The field development plan for phase 1 (Athena, Zeus, Hera, and Apollo; 229 mmboe, including 35 bcm of gas)
was approved by the Israeli Government in December 2023.
• The wider Katlan area contains an additional 223 mmboe (including 34 bcm of gas) of prospective volumes
across the other accumulations, which Energean views as substantially de-risked. This will be developed
in further phases and will require a shorter pipeline connecting into the phase 1 pipeline and will benefit
from the phase 1 FPSO upgrades and investment.
Energean is a London-based independent E&P company focused on developing resources in the Mediterranean. The multi country 1bn+ boe portfolio is 80 percent gas weighted, producing up to 150k boepd. Energean is committed to sustainable development and to be a net zero emitter by 2050.
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
