Energean to invest $1.2 bln to develop Israel Katlan gas project
July 23 (Reuters) - Energean ENOG.L will invest about $1.2 billion to develop the Katlan project off Israel, the company said on Tuesday as it announced its final investment decision, with gas output expected to commence in the first half of 2027.
Katlan, discovered by global oil and gas producer Energeanin 2022, is a group of formations located near two projects off Israel's Mediterranean coast - Karish and Tanin - also owned by Energean.
Initial gas production is planned for first-half of 2027 with capital expenditure of about $1.2 billion to develop the project, upgrade and drill wells, the company said.
The field contains 1.10 trillion cubic feet of proven and probable gas reserves, according to the company's website.
Energean said production will underpin its existing gas sales agreements and will target international markets.
The London-headquartered explorer aims to double its production in the coming years, primarily through development of new prospects in Israel including the Katlan field.
Developing Katlan "will provide additional energy security and drive sustainable development, both in Israel and the broader region," Energean CEO Mathios Rigas said in a statement.
The company said Israel's Ministry of Energy and Infrastructure had granted a 30-year lease for the Katlan area including a 20-year extension option.
Reporting by Arunima Kumar in Bengaluru
Editing by Bernadette Baum
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