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BP and SOCAR of Azerbaijan to Explore Offshore Gas in Israel

by Krystal

A consortium consisting of BP, Azerbaijan’s state oil and gas company SOCAR, and Israeli firm NewMed Energy signed a licensing agreement on Monday to explore natural gas offshore Israel, according to Israel’s Energy Ministry.

This agreement marks BP’s first venture into Israel and SOCAR’s first exploration outside of Azerbaijan.

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The consortium has been granted exploration rights for natural gas in the Zone I area, a key part of Israel’s efforts to increase its domestic gas supply and exports. The Israeli Energy Ministry also announced that additional exploration licenses will be awarded later this year, with a fifth bidding round planned for 2025.

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The BP-SOCAR-NewMed Energy joint venture won the rights to Zone I in a competitive licensing round held in 2023. The bidding process covered four zones (E, G, H, I) within Israel’s Exclusive Economic Zone (EEZ), including 20 exploration blocks.

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SOCAR holds a 33.34% stake in the venture and will serve as the operator for Zone I, while BP and NewMed Energy each hold a 33.33% share.

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Israeli Energy and Infrastructure Minister Eli Cohen welcomed the deal, stating, “The entry of SOCAR and BP is excellent news for Israel. Natural gas is a strategic asset that strengthens our economic and political position globally, and particularly in the Middle East.”

Cohen emphasized Israel’s commitment to boosting its natural gas production for both local consumption and export.

Earlier this year, SOCAR also agreed to purchase a 10% stake in the Tamar gas field offshore Israel, one of the largest and most important gas fields in the Mediterranean. This move marks SOCAR’s entry into Mediterranean upstream projects.

With this new exploration agreement, SOCAR and BP will join efforts to tap into Israel’s offshore natural gas reserves, which have seen significant discoveries in recent years, including the Tamar and Leviathan fields, operated by Chevron.

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