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

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

Velesto’s Jack-Up Rig Up for Drilling Job Offshore Vietnam

Turkey Discovers New Black Sea Gas Reserve

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Hanwha Ocean Marks Entry into Deepwater Drilling Market with First Drillship

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Current News

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

KBR-SOCAR Joint Venture Secures Work for BP in Azerbaijan

Baker Hughes, Petronas Team Up for Asia-Pacific Energy Resilience

EnQuest Acquires Harbour Energy’s Vietnamese Assets

Woodside Finds South Korean Partners to Advance LNG Value Chain

Valeura Makes Progress with Multi-Well Drilling Campaign in Gulf of Thailand

Santos and QatarEnergy Agree Mid-Term LNG Supply

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