Israel Awards Gas Exploration Licenses to Eni, BP and Four Others

Ari Rabinovitch and Steven Scheer
Monday, October 30, 2023

Israel's Energy Ministry said on Sunday it had awarded 12 licenses to six companies to explore for natural gas off the country's Mediterranean coast, aiming to create more competition and diversify suppliers.

The license awards, which came as the Israel-Hamas conflict entered its fourth week, included one group led by Italy's Eni along with Dana Petroleum and Israel's Ratio Energies which will explore in an area west of the massive Leviathan field, which supplies Israel with gas and is also used for export.

A second group, involving Azerbaijan's national oil company Socar along with BP and Israel's NewMed, will explore north of the Leviathan, the ministry said. 

"The winning companies have committed to unprecedented investment in natural gas exploration over the next three years, which would hopefully result in the discovery of new natural gas reservoirs," Energy Minister Israel Katz said.

The licenses will last for an initial three years, with the option to extend to up to seven years, depending on progress.

This, the ministry said, will enable the license holder to first study the area and only then decide whether to continue development.

Responding to a Reuters request for comment, an Eni spokesperson said on Monday that the bid round was launched in December and the Italian group submitted its offer in July. 

"The company was awarded a license in the country's southern offshore gas basin. Any technical considerations on the prospects and timing of the activities are obviously premature," the Eni spokesperson added. 

A BP spokesperson confirmed that a Socar-led consortium was awarded the license block.

Reuters reported in July that BP, Socar, and NewMed had jointly taken part in the licensing tender.

Large gas deposits were discovered in the east Mediterranean over the past decade and a half, and Israel hopes more will be found to increase reserves and advance plans to export gas to Europe, which is looking for new energy sources.

Energean, which operates the Karish gas field off northern Israel, a major supplier of gas to the country, had also applied for a license in the area north of Leviathan.

"Active, committed investors in a country at war should be respected and supported," Energean said in a statement.

(Reuters - Additional reporting Francesca Landini in Milan, Ron Bousso in London; editing by Giles Elgood and Jason Neely)

Categories: Energy Vessels Middle East Drilling Industry News Activity Gas Mediterranean Sea

Related Stories

Velesto Secures Malaysia Drilling Deal with Hibiscus

Yinson Production, PTSC Raise Over $130M for Vietnam’s Block B FSO

Lloyd’s Register Approves Wison’s Internal Turret FPSO Concept

IEA: Middle East Conflict Reshaping Medium-Term Gas Outlook

ADNOC Drilling Finalizes MB Petroleum JV, Expands Regional Fleet

Vessel Sector Deep Dive: WTIVs

Oil Prices Jump as Ships Come Under Fire in Strait of Hormuz

Middle East Producers Gear Up for Hormuz Export Restart

India Resumes Iranian Oil Imports After Seven-Year Hiatus

Eni Exits Consortium for Oil and Gas Exploration Offshore Israel

Current News

Wood Secures Subsea Design Scope on QatarEnergy’s Bul Hanine Redevelopment

Oil Prices Rise as Iran Talks Stall and Inventories Shrink

Indonesia Puts 13 Oil And Gas Blocks on Bidding Round Offer

BP Adds Three Exploration Blocks off Indonesia

Indonesia Signs Eight Oil and Gas Contracts

Inpex Inks Abadi LNG Gas Supply Deal With Indonesian State Firms

Energean Cuts 2026 Output Forecast After Israel Shutdown

Wison Starts Topsides Fabrication for Türkiye’s Sakarya Deepwater FPU

Oil Prices Ease as US Holds Off Renewed Strikes Against Iran

Velesto Secures Malaysia Drilling Deal with Hibiscus

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com