Filenews 21 March 2025
Energean plc has announced that it will start a new drilling program in Israel in 2026, with the first two drills, Athena and Zeus, being part of the development of the Katlan gas field. The program envisages the production of 26 billion cubic meters (bcm) of natural gas and 170 million barrels of oil equivalent (mmboe).
The company has already awarded Saipem the contract for the execution of the two boreholes, with the possibility of two additional boreholes, while drilling at the "Hera" and "Apollo" fields is scheduled for 2028.
Confirmation of gas production from Katlan
In its announcement to the London and Tel Aviv stock exchanges, Energean confirmed that gas production from the Katlan field will start in the first half of 2027. This production is expected to enhance the country's energy security and possibly be used for exports to the wider region.
In addition, Israel's Ministry of Energy confirmed the discoveries of the "Dragon (Hermes)" and "Hercules" deposits, boosting the prospects for further energy development in the country.
Increased production and financial results 2024
The CEO of Energean, Mathios Rigas, stressed that in 2024 the company recorded a 24% increase in production, reaching 153 thousand barrels of oil equivalent per day (KBOED). The 112 kboed came from its main deposits in Israel, Karis and North Karis.
Despite geopolitical challenges, the operation of the Energean Power FPSO floating production unit remained uninterrupted, with 99% availability.
The company also announced that it has received the Final Investment Decision (FID) for the Katlan field, while the second oil production plant is expected to be operational in the second quarter of 2025, increasing the company's production capacity.
Investments in CO₂ storage and strategic expansion
Energean is a pioneer in carbon storage, as the Prinos project secured €270 million in funding from the Recovery and Resilience Fund (RRF) and the Connecting Europe Facility (CEF).
The company operates in 8 countries, having built a dynamic and diversified portfolio. Its reserves increased from 2 million barrels in 2007 to 1.1 billion barrels (2P) in 2024, with a 20-year shelf life.
Energean's revenue in 2024 was $1.779 billion, while adjusted EBITDAX reached $1.162 billion, up 25% year-over-year.
Contracts and commercial strategy
Energean has signed more than 20 long-term gas sales agreements to Israel, securing $20 billion in revenue over the next 20 years.
Mr. Rigas said the company's commercial strategy is based on stable cash flows and safe contracts, while the dividend policy continues, with $595 million already returned to shareholders.
Sustainability and emission reduction
The company's carbon intensity decreased by 10%, reaching 87% below 2019 levels, to 8.4 kgCO₂e/boe.
Energean continues to invest in sustainable energy solutions, maintaining the goal of Net Zero.
Uncertainty in the transaction with Carlyle
The company announced that the transfer of its assets in Egypt, Italy and Croatia to Carlyle is facing delays due to pending regulatory approvals.
If no agreement is reached for an extension by March 20, the transaction may be terminated. However, Energean assures that its strategy and dividend policy will continue regardless of the evolution of the deal.
Prospects and development strategy
- Production in 2025 is expected to range between 120-130 kboed.
- The company is focused on the Mediterranean, with potential expansions in the wider Europe, Middle East and Africa (EMEA) region.
- Investments in natural gas will remain a strategic priority.
- The refinancing of loans of USD 750 million is proceeding normally, ensuring the development of the Katlan field.
Mr. Rigas stressed that Energean has unique capabilities in the development of deep-sea deposits and will take advantage of the new investment opportunities in EMEA.
