Consortium of SOCAR, NewMed Energy, BP to finalize plan with Israeli authorities for gas exploration in Mediterranean Sea in March
BAKU. March 7 (Interfax) - The State Oil Company of the Azerbaijani Republic (SOCAR) in a consortium with British BP Plc and Israel's NewMed Energy plans to finalize a plan for gas exploration in Israel's exclusive economic zone in the Mediterranean Sea with the Israeli Energy and Infrastructure Ministry within the next two weeks, the Israeli economic publication Globes reported.
"The consortium, which includes SOCAR, NewMed Energy and BP, will sign a work plan with the Israeli Energy and Infrastructure Ministry for gas exploration in Zone I-6 within the next two weeks," it said.
The project will be SOCAR's first exploratory drilling project outside Azerbaijan. It was planned that the project would be implemented earlier, but it was delayed due to the sharp escalation in the conflict between Israel and the Palestinian group Hamas.
"The consortium must present a plan by October 2026 that includes drilling on at least one of the licensed blocks, as well as an additional work program that must be approved by the petroleum commissioner," it said.
As reported, the consortium of SOCAR, NewMed and BP received a license from the Israeli ministry in October 2023 following a tender to conduct these operations in Zone I-6. SOCAR was selected as the project's operator.
According to the tender rules, exploration licenses are issued for an initial three-year period. During this period, license holders must complete a mandatory work program to assess the potential for natural gas discoveries in the allocated area.
After this period, license holders can request an extension for another two years, provided they submit an updated work program approved by the petroleum commissioner and commit to drilling as part of at least one of the licenses.
After conducting at least one drilling operation and completing all elements of the work program, the licenses in the group can be extended for another two years, up to a maximum of seven years. Such an extension will be possible provided that a drilling commitment is presented for each licensed block where drilling has not yet taken place by the end of the license term.
In addition to this project, SOCAR announced on January 31, 2025, that it had signed a deal with Union Energy to acquire a 10% equity stake in the Tamar project, one of the largest offshore gas fields in the Mediterranean.
Located off the coast of Israel, the Tamar field is a key supplier of natural gas to the region, playing a vital role in energy security and economic growth, the company said.
The company will continue to seek strategic assets worldwide to expand its energy portfolio. The operator of the Tamar project is the American company Chevron.
