Filenews 23 July 2024
Energean plc is proceeding with the development of the Katlan gas field in the Sea of Israel, which announced on the morning of Tuesday, July 23, the London and Tel Aviv stock exchanges that it has received the Final Investment Decision (FID) for the project.
The Katlan field, discovered by Energean in its 2022 drilling campaign as an "Olympus Area" at a water depth of about 1,800 meters, is to be developed in phases with an undersea connection to the FPSO "Energean Power", through which the Karish (from October 2022) and Karish North (from February 2024) fields are already being produced. The development will expand production from the FPSO with gas volumes, which are not subject to export restrictions or royalty payments. Production from Katlan will support the company's existing gas sales and target exports to international markets, provided all necessary permits are granted by the Israeli government. The start of natural gas production is placed in the first half of 2027.
Mr. Mathios Rigas, CEO of Energea n Group, commented: "The decision to develop the Katlan field marks another milestone in Energean's development path and comes as no surprise to those who know our successful track record and commitment to the efficient development of natural gas fields. By developing the Katlan field, we will unlock additional value in the Israeli subsoil, which will contribute to energy security and sustainable development both in Israel and the wider region."
The development of the Katlan deposit will be implemented by TechnipFMC and foresees the creation of a four-borehole system in a large production line with pipelines of approximately 30 kilometers. The investment is $1.2 billion and includes:
1) The aforementioned underwater infrastructure.
2) The required upgrade of the mechanisms of the FPSO.
3) The realization of the first two productive drillings in the structures
'Athena' and 'Zeus' containing 170 million barrels of oil equivalent confirmed (2P) reserves, including 26 billion cubic meters of gas. Phase 1 of the Katlan development includes both the Hera and Apollo structures (together with Athena and Zeus contain a total of 229 million barrels of oil equivalent certified 2P reserves, including 35 billion cubic meters of natural gas) and was approved by the Israeli government in December 2023.
The wider area of the Katlan deposit contains an additional 223 million. barrels of oil equivalent (including 34 billion cubic meters of natural gas), which Energean considers to be de-risked. Their development will take place in subsequent phases and will require the installation of a smaller pipeline that will be connected to the 1st phase pipeline, further exploiting the upgrade of "Energean Power" and the investment of the 1st phase.
Israel's Ministry of Energy and Infrastructure granted Energean a 30-year license for the Katlan field, with the possibility of extension for another 20 years. The Ministry also confirmed the discovery of "Hermes" made by Energean in the 2022 drilling campaign. The cubic meter deposit bears the name "Drakon", located in Block 31 of the Sea of Israel.
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