As previously communicated, the Katlan area will be developed in a phased approach through a subsea tieback to the existing Energean Power FPSO. The development will extend the production plateau from the FPSO with volumes that do not incur seller royalties or carry export restrictions. Production will
underpin Energean’s existing gas sales agreements plus target international markets. First gas is planned for H1 2027.

The EPCI contract for the subsea scope has been awarded to TechnipFMC and includes four-well-slot tieback capacity to a single large ~30 kilometre production line, which can be used by future Katlan area phases.

Capital expenditure is expected to be approximately US$1.2 billion, which includes: (1) the aforementioned subsea infrastructure, (2) an upgrade of the FPSO topsides related to MEG treatment, injection and storage (which will benefit all future subsea tie-back developments) and, (3) drilling the first two production wells of the development (Athena and Zeus; 170 mmboe (includes 26 bcm of gas)2 of 2P reserves).

Energean is also pleased to confirm that the Ministry of Energy and Infrastructure has 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.

Mathios Rigas, Chief Executive Officer of Energean, commented:
“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.

“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 (Block 31).

“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.
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1 Subject to the issuance of an export permit by the Petroleum Commissioner and compliance with any governmental export policy.