Israel Awarded Natural Gas Exploration Licenses

SEATTLE (Oil Monster): Israel awarded a total of 12 natural gas exploration licenses to six companies. The licenses to explore natural gas offshore the Mediterranean Coast was awarded to energy majors including Eni and BP. The licenses are initially granted for three years, with an option to extend them up to a maximum of seven years.

As per agreement, the recipients of the licenses are classified into two groups. A consortium of three companies- Eni, Dana Petroleum and Ratio Energies has been granted permission to conduct gas exploration activities west of the Leviathan gas field in the Mediterranean Sea off the coast of Israel. Also another group comprising of BP, Socar and NewMed will explore the area north of the Leviathan.

Israel Katz, the country’s Energy Minister noted that the awardees of the contract have committed to make significant investments in natural gas exploration over the coming three years, which is expected to lead to discovery of several new natural gas reserves in the region, which in turn will strengthen its energy security and boost transition to renewable energies.

This is the fourth round of offshore exploration license by Israel. The decision to award new licenses is aimed at increasing competition, boosting local market supply and signing of new gas export agreements.

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