This screen capture taken from a YouTube video shows Energean working in the Karish oil field, offshore Israel, in 2020.
A statement from the energy ministry said they "gave Energean the approval to begin producing natural gas from Karish".
A spokeswoman for Energean stressed to AFP that while they had received the permit, they had not yet begun producing gas from Karish.
An energy ministry spokeswoman told AFP Tuesday's permit was the last formality Energean needed before beginning production.
Israel and Lebanon, which are technically at war, agreed to terms earlier this month on the deal which will be approved by the Israeli government on Thursday.
Later that day the signing was due to take place in Lebanese town Naqura, just north of Israel.
Under the deal, Israel has full rights over the Karish gas field.
Lebanon will have full rights to operate and explore the Qana or Sidon reservoir with the Israel receiving some revenues.
Israeli Prime Minister Yair Lapid, who is facing an election on November 1 and refused to bring the agreement before parliament for approval, commended the energy ministry's green light.
"The production of natural gas from the Karish platform bolsters Israel's energy security, enhances our stature as energy exporters, strengthens Israel's economy and helps in grappling with the global energy crisis," he said in a statement.
Karish will join Tamar and Leviathan to become Israel's third offshore rig providing natural gas, with each connected to the mainland by separate infrastructure.
Short link: