Oil and gas company Energean has announced a $1.2bn (£931.57m) final investment decision (FID) for the Katlan development project in Israel. 

The project, which is wholly owned and operated by Energean, is set to commence gas production in H1 2027.  

The development plan, approved by the Israeli Government in December 2023, estimates the initial phase to contain 229 million barrels of oil equivalent (mboe). 

Discovered in 2022, the Katlan area will undergo a phased development through a subsea tieback to the existing Energean Power FPSO unit.  

Capex for the project encompasses subsea infrastructure, FPSO topside upgrades and the drilling of the first two production wells, Athena and Zeus. 

The wider Katlan area holds an additional 223mboe of prospective volumes across other accumulations.  

These will be targeted in subsequent development phases, utilising the investments and infrastructure established in Phase 1. 

Recently, TechnipFMC was awarded the engineering, procurement, construction and installation contract for the subsea scope.  

This includes a four-well-slot tieback capacity to a roughly 30km production line designed to accommodate future phases of the Katlan area development. 

In addition to the FID, Energean has secured a 30-year lease for the Katlan area from the Israeli Ministry of Energy and Infrastructure, with an option to extend for an additional 20 years. 

Energean CEO Mathios Rigas said: “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.  

“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.”