Energean PLC has announced the Final Investment Decision (FID) for the Katlan development project in Israel. The project will be developed in phases through a subsea tieback to the existing Energean Power FPSO, extending the production plateau with volumes that do not incur seller royalties or carry export restrictions. The EPCI contract for the subsea scope has been awarded to TechnipFMC, with a capital expenditure expected to be approximately US$1.2 billion.

The development includes the upgrade of the FPSO topsides related to MEG treatment, injection, and storage, as well as drilling the first two production wells of the development. The Ministry of Energy and Infrastructure has granted the associated 30-year lease for the Katlan area, including a 20-year extension option. Additionally, the Ministry has ratified the Hermes discovery in the newly named Drakon area (Block 31) made as part of the drilling campaign in 2022.

Mathios Rigas, Chief Executive Officer of Energean, expressed, "This decision marks yet another positive milestone on Energean's growth journey. 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."

The Katlan area was discovered by Energean in 2022, and the company is the 100% owner and operator of the Katlan Lease (I/21 Katlan). The fields are located in water depths of up to 1,800 meters. The wider Katlan area contains an additional 223 mmboe of prospective volumes across the other accumulations, which Energean views as substantially de-risked and will be developed in further phases.

The announcement also contains forward-looking statements and includes contact information for capital markets and media inquiries. Energean PLC emphasizes that the information contained in the announcement is subject to change without notice.