Energean is moving ahead with the first phase of its Katlan area subsea tieback to the Energean Power FPSO serving the Karish and Karish North developments offshore Israel.
On 23 July, the operator announced making its final investment decision (FID) on the $1.2-billion project, with first gas expected in the front half of 20207. Energean discovered hydrocarbons at the Athena prospect in Block 12 in the Katlan area in 2022.
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Energean is developing the Katlan area with a phased approach; Phase 1 includes the Athena, Zeus, Hera, and Apollo discoveries and targets 229 million BOE, including 35 Bcm of gas. The Israeli government approved the field development plan for the fields in up to 1800-m water depth in December 2023.
The operator said it will develop the wider Katlan area, which contains an additional 223 million BOE, including 34 Bcm of gas of prospective volumes, in future phases. Such development would require a pipeline connecting to the Phase 1 pipeline and would benefit from Phase 1 FPSO upgrades and investments.
Katlan area hydrocarbons will help prolong the productive life of the Power FPSO.
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TechnipFMC announced 18 July it had won an integrated engineering, procurement, construction, and installation contract, which will use TechnipFMC’s configure-to-order Subsea 2.0 production systems, to support the first phase of development.
The contract, valued between $500 million and $1 billion, follows an integrated front-end engineering and design study by TechnipFMC. The contract covers the design, manufacture, and installation of the production systems, pipe, umbilicals, and subsea structures.
Energean said other capital expenditure for the project includes upgrading the FPSO topsides for MEG treatment, injection, and storage, which will benefit all future subsea tieback developments, as well as drilling the first two production wells of the development in the Athena and Zeus fields.
Energean operates the Katlan Lease with the 100% interest.