Floating gas production rig/ Photo courtesy Energean
Energean, the British energy company that operates Israeli natural gas fields in the Mediterranean Sea, is set to invest $1.2 billion in Israel’s Katlan natural gas reserve. Katlan is the newest of the many Israeli natural gas fields located off the coast of the country in the Mediterranean.
Israel’s Ministry of Energy and Infrastructure 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.
The news comes as the Ministry of Energy and Infrastructure confirmed the first discovery in Israel’s “Dragon” group of natural gas reserves. This small natural gas reservoir estimated by the company to be approximately 3-5 BCM, is part of the Katlan field.
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The Katlan area was discovered by Energean in 2022 and the company is the 100% owner and operator of the Katlan Lease. 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)2 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 derisked. 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.
“This decision marks yet another positive milestone on Energean’s growth journey,” said Mathios Rigas, Chief Executive Officer of Energean. “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.”
“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,” he added. “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.”
“These reservoirs will allow us to increase the output of natural gas, along with increasing exports to the countries of the region and Europe,” said Israel’s Minister of Energy Eli Cohen. “The desire of European countries to diversify energy sources following the war in Ukraine creates a window of opportunity for gas exports, which will strengthen our economic and political position. Israel’s natural gas reserves constitute a significant strategic asset, increase the state’s revenues, and lower the cost of living for the benefit of all Israeli citizens.”
Energean is a London Premium Listed FTSE 250 and Tel Aviv TA-25 Listed Exploration & Production company. The leading natural gas focused E&P in the Greater Mediterranean Region, Energean has a balanced portfolio of production, development and exploration assets across the greater Mediterranean and UK North Sea.’
Energean’s flagship production & development assets are the multi-tcf portfolio of Karish, Karish North, Katlan and Tanin, offshore Israel. Energean brings both competition and enhanced energy security to Israel and the broader regional energy market. Karish commenced production in 2022, with initial capacity of 6.5 bcm/yr. Following optimisation, the Energean Power FPSO will have the capacity to produce 8bcm / yr & 32 kbopd. In addition, the portfolio includes significant positive development and exploration upside.
