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

SLB to Support Kuwait Oil's AI and Digital Tech Initiative

Oil Holds Steady After US, Iran Agree to Cease Attacks

Floating Nuclear: A New Offshore Energy Frontier

Jadestone Brings First Malaysia Campaign Well Online at 3,000 bpd

Saipem to Sell Saudi Shallow-Water Drilling Business to ADES for $285M

Oil Slumps as US-Iran Reach Initial Peace Deal to Reopen Strait of Hormuz

JERA Takes Delivery of First LNG Cargo from Australia's Barossa Gas Project

TGS Books 3D Streamer Seismic Job in Africa and Middle East region

ADNOC Looks to Canada for Upstream and LNG Growth Through XRG

Oil Shoots Over $4 as Israel Expands Strikes Against Iran and Lebanon

Current News

SLB to Support Kuwait Oil's AI and Digital Tech Initiative

Sunda Reviews Timor-Leste Appraisal Plans as New Zealand Deal Advances

TGS Gets Exclusive Rights for Seismic Survey Offshore Brunei

Petronas Unit Probes Cause of Fire at Offshore Platform in Malaysia

SBM Offshore, SWS Sign Deal for Seventh FPSO Hull

Hormuz Reopening Risks Turning Oil Shortage Into Glut

Oil Holds Steady After US, Iran Agree to Cease Attacks

Floating Nuclear: A New Offshore Energy Frontier

Markets: Oil Majors Reload Exploration Hoppers Across Sub-Saharan Africa

ONGC Completes 44 Offshore Rig Moves Ahead of Monsoon Season

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