Israel Awards Offshore Gas Exploration Licenses
Israel’s Energy Ministry has announced the awarding of 12 licenses to six companies for the exploration of natural gas off the country’s Mediterranean coast, aiming to create more competition in the market and diversify suppliers.
The licenses have been granted to two groups of companies. The first group consists of ENI, Dana Petroleum, and Ratio Energies, who will explore an area west of the Leviathan field, which supplies Israel with gas and is also used for export.
The second group comprises bp, Socar, and NewMed, who will explore the northern region of the Leviathan field.
“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,” said Energy Minister Israel Katz.
The initial license period is set for three years, with the option to extend up to seven years based on the progress made during the exploration phase. This approach allows the license holders to study the designated areas before making decisions regarding further development.
Over the past decade and a half, large gas deposits have been discovered in the east Mediterranean, 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.
