Azerbaijani, UK Energy Giants Enter Israeli Natural Gas Exploration Market

Two international energy giants, Azerbaijan’s SOCAR and the UK’s BP, obtained licenses on Monday for natural gas exploration in Israeli waters.

The licenses are a significant step representing the first for SOCAR, as it is their first involvement in gas exploration outside of Azerbaijan.

The companies, together with Israeli NewMed Energy, received the licenses as part of the fourth competitive process launched by the Energy and Infrastructure Ministry. The licenses were granted for Cluster I, located in the north of Israel’s economic waters, covering an area of about 1,700 square kilometers (656 square miles). In the first stage, which is expected to consist of seismic surveys, the prospects for future development of natural gas fields in this area will be examined.

Energy and Infrastructure Minister Eli Cohen said that “The entry of SOCAR and BP into the natural gas market in Israel is great news for the State of Israel, which will allow not only the strengthening of the local economy but also the expansion of exports. Natural gas is a strategic asset that strengthens our position in the region and in the global scene.”

Following the process, additional licenses are expected to be published in a fifth competitive process in the coming year, as the head of petroleum affairs at the Ministry of Energy, Chen Bar-Yosef, emphasized the commitment to significant investments in the first stage, which could reach tens of millions of dollars, and contribute to strengthening the energy security of the State of Israel.