State Oil Company of Azerbaijan to receive 33% stake in Israeli offshore project
BAKU. March 19 (Interfax) - The State Oil Company of the Azerbaijani Republic (SOCAR) will hold a 33.34% stake in a consortium with Israel's NewMed Energy and the UK's BP Plc in an offshore project in Israel, NewMed Energy said on LinkedIn on Wednesday.
"Earlier this week, together with BP and SOCAR, we received an official license for natural gas exploration in Zone I off the coast of Israel. The partnership structure is as follows: SOCAR - 33.34% (operator), BP - 33.33%, NewMed Energy - 33.33%," the company said.
The license issued to the consortium by the Israeli Energy Ministry covers six exploration blocks, it said.
"Israel's energy security depends on continuous research, new discoveries and the entry of leading international players into the Israeli natural gas market," it said.
NewMed Energy CEO Yossi Abu in turn said on social media that this is the first time that a national oil company from a Muslim country, SOCAR, has begun operations in Israel's energy sector.
"Together with BP and NewMed, this partnership holds significant economic, political and strategic value. Strong relationships between countries are often built on strategic, mutually beneficial partnerships. Lasting relationships are those that create value for both sides. We have seen this in recent years, and when it comes to growing partnerships in natural gas, we will continue to promote and strengthen them," he said.
As reported, the consortium comprising SOCAR, BP and NewMed Energy in October 2023 won a tender for a license from the Israeli Energy Ministry to conduct exploration work in Zone I-6 near the Leviathan field. The license was awarded to the consortium on March 17, 2025.
For SOCAR and BP, this will be their first experience in Israel's gas sector.
Zone I, covering an area of approximately 1,700 square kilometers, is located in the northern part of Israel's exclusive economic waters. Activities in this area, which has seen little exploration for natural resources in the past, are expected to initially focus on seismic and other studies, with decisions on further exploratory drilling in the most promising areas to be made based on the results of these studies.
The consortium must submit a plan that includes drilling on at least one of the four license blocks, as well as an additional work program, by October 2026.
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 may request an extension for an additional two years, subject to approval of an updated work program and commitments to drill at least one well under 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.