Energean will develop Israel’s Katlan area project

Energean plc has announced its Final Investment Decision for the Katlan development project in Israel. The Katlan area will be developed in a phased approach through a subsea tieback that will extend the production plateau from the FPSO with volumes that do not incur seller royalties or carry export restrictions.

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

Capital expenditure is expected to be approximately $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.

Energean has confirmed that 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.