Energean plc has reported production of 156,000 barrels of oil equivalent per day (boepd), a 31 percent increase year over year, for the nine-month period ended September 30.
Production from continuing operations for the period was 117,000 boepd, a 40 percent increase year over year, Energean said in its most recent operations update.
The London-based company’s Katlan development in Israel is progressing on schedule, with first gas expected in the first half of 2027, as previously announced, it said in a statement.
Energean said it is planning a drilling campaign in 2026, which will include the Athena and Zeus development wells plus options for further exploration and appraisal.
Energean CEO Mathios Rigas, said, “Our operations continue to deliver energy security to Israel and the broader region through the optimization of production from our FPSO [floating production, storage and offloading unit], which has been operating at 99 percent uptime, underscoring our operational resilience. Progress on key development projects have also been robust: the Katlan area in Israel remains on schedule and the second oil train has been installed on the FPSO. Upon commissioning, the second oil train will increase the liquids production capacity, supporting enhanced operational performance”.
Energean plc in July made a final investment decision (FID) for the Katlan development project in Israel.
The Katlan area will be developed in a phased approach through a subsea tieback to an existing Energean Power FPSO, which currently serves the Karish and Karish North developments.
Energean said capital expenditure is expected to be approximately $1.2 billion, which includes: the subsea infrastructure, an upgrade of the FPSO topsides related to mono-ethylene glycol (MEG) treatment, injection and storage, and the drilling of the first two production wells of the development. The two wells, Athena and Zeus, have 170 million barrels of oil equivalent (MMboe), which includes 26 billion cubic meters of gas of 2P reserves.
The wider Katlan area contains an additional 223 million boe 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 Phase 1 FPSO upgrades and investment, according to an earlier release from the company.
According to Energean’s website, Katlan is a newly discovered collection of structures offshore Israel. Following a successful exploration campaign in 2022, the field contains 1.1 trillion cubic feet of gas 2P reserves. Including liquids, the total 2P reserves for Katlan measure 205.9 million barrels of oil equivalent.
“We are pleased to announce another strong quarter, marked by a 61% year-on-year increase in adjusted EBIDTAX from our continuing operations. Our production in Israel remains unaffected by geopolitical events, recording a 39 percent year-on-year increase, and we welcome the announcement of the ceasefire in Lebanon,” Rigas said.
Energean announced that it has reduced its 2024 production guidance to 150,000-155,000 boepd from 155,000-165,000 boepd, due to Israel, which “reflects lower than expected sales in November owing to weather conditions and market dynamics and, for the lower end, an assumption of flat month-on-month sales for December”.
Source: by Rocky Teodoro from rigzone.com