Israel has awarded 12 licenses to six companies to explore for natural gas off the country’s Mediterranean coast. Six companies have been awarded 12 licenses to explore for natural gas off Israel’s Mediterranean coast. These companies have pledged to make unprecedented investments in natural gas exploration over the next three years, with the aim of discovering new reserves. The discoveries would not only strengthen Israel’s energy security and international ties, but also lower the cost of living and support the transition to renewable energies. This marks the fourth bidding process for natural gas exploration in Israel’s economic waters. The ministry has stated that the bidding process is intended to boost competition, ensure supply to the domestic market, expand state revenues, and encourage the signing of additional gas export agreements.
The fourth offshore bid round in Israel has resulted in the division of the winning companies into two consortia. These consortia will explore two areas adjacent to Israel’s Leviathan field, one of the world’s largest deep-water gas discoveries. The first group consists of Eni, Dana Petroleum, and Ratio Energies, while the second group comprises BP, State Oil Company of Azerbaijan Republic (SOCAR), and NewMed Energy. Exploration licenses will be granted to the winning bidders for a period of three years. During this time, the license holders will perform exploratory work on the entire licensed area as part of their bid’s work program commitments. After drilling at least one well and carrying out the additional work plan, license holders can extend the license period in the cluster by two additional years, up to a maximum of seven years, as stipulated in the Petroleum Law.
Despite the ongoing conflict with the Hamas terror group, large natural gas exploration companies have shown confidence in Israel’s resilience by committing to unprecedented investments in natural gas exploration. The discoveries would not only strengthen Israel’s energy security but also its international ties, lower the cost of living, and support the transition to renewable energies. The fourth bidding process for natural gas exploration in Israel’s economic waters is marked by the offshore tender. The ministry has stated that the bidding process is intended to boost competition, ensure supply to the domestic market, expand state revenues, and encourage the signing of additional gas export agreements.
This move comes at a time when Israel is at war with the Hamas terror group. The investment commitment by large natural gas exploration companies during this period is a sign of confidence in Israel’s resilience. The discoveries would not only strengthen Israel’s energy security but also its international ties. The proposed measure aims to reduce the cost of living while facilitating the transition of the economy to renewable energies by providing energy support.
