On March 17, 2025, Israel officially granted licenses to three major firms: the British company BP, Azerbaijan's national oil company SOCAR, and the local enterprise NewMed Energy. This decision is part of Israel's broader strategy to strengthen its domestic natural gas reserves and expand its export capabilities.
The awarded exploration licenses pertain to two maritime zones, approximated at around 1,700 square kilometers, located off the northern coast of Israel. The area, known as Cluster 1, is strategically important, particularly near the notable Leviathan gas field. This move aligns with the government's efforts to position Israel as a significant player in the regional energy market.
Back in 2023, BP, SOCAR, and NewMed submitted their joint proposal during the fourth round of licensing for these maritime zones. The Ministry of Energy noted the importance of this collaboration and announced plans for at least one more round of licensing later this year.
The Israeli Minister of Energy, Eli Cohen, emphasized the significance of natural gas, stating, "Natural gas is a strategic resource enhancing our global economic and diplomatic position, especially in the Middle East." His remarks underline the importance of increasing local production both for domestic use and for export, particularly amid current geopolitical tensions.
He highlighted how the gas-rich basin between Egypt, Israel, Cyprus, and Lebanon has attracted major energy companies, especially due to Europe’s urgent need for alternative gas supplies following the conflict between Russia and Ukraine. Israel is increasingly recognized as a regional energy hub, aiming to diversify European gas supplies away from Russian dependency.
For exploration, the consortium is expected to initially conduct seismic and geological surveys, laying the groundwork for future drilling operations based on survey results. This approach emphasizes the high-stakes nature of oil and gas exploration, which balances risks with potential high rewards.
To add to the optimism surrounding natural gas production, the Israeli Ministry of Energy recently reported a notable 13.4% rise in natural gas exports to Egypt and Jordan during the first quarter of 2024. This uptick demonstrates Israel’s growing role as an energy supplier and its impact on the regional economy.
Overall, the granting of these licenses marks another step toward leveraging Israel's natural gas resources, fostering greater energy security at both national and regional levels. The projects are not merely about tapping reserves but signify Israel's ambitions to strengthen its stance as both a regional power and international gas supplier.
