Israel has granted exploration licenses to BP, Azeri national oil company Socar, and local firm NewMed Energy to search for natural gas in Israeli waters. This move aims to increase the country’s domestic gas reserves and boost exports.
The three companies jointly bid for two offshore blocks in a fourth licensing round held in 2023. Israel’s Energy Ministry announced that additional licenses are expected, with a fifth bidding round scheduled later this year.
Under the licenses for Cluster I, located near the Leviathan field, Socar will lead the exploration consortium. BP, entering Israel’s natural gas sector for the first time, will also participate, while NewMed, the largest stakeholder in the Leviathan field, will join the project. Each company will hold about one-third of the rights to the licenses.
Cluster I covers 1,700 square kilometers in the Mediterranean, in the northern part of Israel’s economic waters. The consortium’s first exploration phase will involve seismic and geological surveys. Drilling will follow in the second phase, based on the survey results.
Energy Minister Eli Cohen emphasized the strategic importance of natural gas, saying, “Natural gas strengthens our economic and diplomatic standing worldwide, especially in the Middle East. That’s why we are working to expand natural gas production for both domestic use and exports.”
The gas-rich basin, shared by Egypt, Israel, Cyprus, and Lebanon, has attracted leading global energy companies. This is especially significant as Europe seeks to replace Russian gas after the invasion of Ukraine.
Israel is positioning itself as a regional energy hub and plans to supply natural gas to Europe, which is diversifying its energy sources away from Russia.
Exploring oil and gas resources is a high-risk venture, involving seismic surveys and well drilling, a process that can span several years.
This month, Israel’s Energy Ministry reported that the country’s natural gas exports to Egypt and Jordan grew by 13.4% in 2024.
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