Written by: Salma El-Sakka
The Israeli Ministry of Energy and Infrastructure announced the granting of six licenses for natural gas exploration in Block (G) in the Mediterranean to the American company "Murphy Offshore Oil" and the Israeli company "Ratio Energies," with a 50% stake for each, provided that Murphy takes charge of operating the exploration program.
Replacing Eni Following Its Withdrawal Under Political Pressure
The decision came based on the Petroleum Council's recommendation to change the composition of the consortium that won the fourth competitive licensing round, following the withdrawal of the Italian energy giant "Eni," which had initially won the tender. Eni withdrew following legal pressures and protests from pro-Palestinian organizations, due to parts of the block falling within disputed maritime areas, which led to delaying the project for months and almost resulted in the cancellation of the licenses.
Reserves Estimated at 100-150 Billion Cubic Meters
The Ministry estimates the potential reserves in Block (G) at approximately 100 to 150 billion cubic meters of natural gas, which is a significant amount for the Israeli energy market. Seismic surveys are scheduled to begin soon, with exploratory drilling works set to launch in about three years, at an estimated cost of about $80 million at this stage.
Murphy Oil.. An International Operator with Extensive Experience
Based in Houston, "Murphy Oil" is a company specialized in oil and gas exploration and production, with its operations in the Gulf of Mexico representing its backbone. It has also discovered light oil off the coast of Ivory Coast, recently signed two contracts off the coast of Mauritania, and operates in Vietnam, Canada, Brazil, Brunei, and Mexico. The company recently raised its production forecasts to 176-178 thousand barrels of oil equivalent per day.
Strategy to Attract International Companies Advances
Energy Minister Eli Cohen welcomed the step, considering it proof of the success of the strategy to attract international companies to expand gas production and increase reserves for domestic consumption and export. With this, Murphy joins a limited group of foreign operators in Israel's Exclusive Economic Zone, alongside American "Chevron" and Greek "Energean."
Fifth Licensing Round at the End of the Year
The Ministry announced an expected fifth licensing round toward the end of this year, with licenses to be granted in early 2027, covering five new blocks with a total area of approximately 7,100 square kilometers. The Ministry's Director General, Yossi Dyan, confirmed that the government is working to secure gas supplies for the local market while maintaining an attractive investment environment and competitive prices.
Historic Export Deal and Rising State Profits
In a related context, the Ministry revealed that the state's direct revenues from gas have exceeded 35 billion shekels and are expected to reach hundreds of billions over 30 years. Israel also signed the largest gas export agreement in its history to supply approximately 130 billion cubic meters from the "Leviathan" field to the Egyptian company "Blue Ocean Energy," with a value of 112 billion shekels and expected state revenues of 58 billion shekels.
