Israel opened its fifth competitive search for offshore natural gas, aiming to build domestic reserves and lift exports. The year-long tender lets Chevron bid within a consortium, and officials estimate as much as 400 bcm of gas remains undiscovered.
Israel launched its fifth competitive process to search for more natural gas in its economic waters on Monday, Energy Minister Eli Cohen said, moving to bolster domestic reserves while increasing exports. The ministry opened five new exploration blocks covering roughly 7,100 sq km.
Israel's gas comes mainly from the Tamar field off its Mediterranean coast, while most exports — largely to Egypt and Jordan — flow from the Leviathan site 130 km (81 miles) offshore. Both fields sit in the Eastern Mediterranean's Levant Basin.
A year-long tender opened by conflict's end
The tender will run in three phases and take about a year to complete, Cohen said. Chevron, which operates both Tamar and Leviathan, will be allowed to bid as part of a consortium.
The process had been ready for months but was delayed by regional conflicts. Cohen said a deal between Israel and Lebanon, which could attract more foreign companies, made the time ripe to launch it. Last year Israel awarded licences to BP, Azeri national oil firm Socar and local company NewMed Energy to explore its waters.
How much gas is at stake
Petroleum Commissioner Chen Bar Yoseph believes as much as 400 bcm of gas remains to be discovered. Israel consumes 14 bcm a year and exports another 14 bcm, while Leviathan holds an estimated 600 bcm. By law, the first 50 bcm discovered must go to local consumption, with the rest split between domestic use and exports.
Exports anchor the strategy. Europe remains interested in Israeli gas, Bar Yoseph said, but a pipeline is lacking and current reserves are not sufficient to supply it. Israel approved a $35 billion deal in December to supply 130 billion cubic metres of gas to Egypt through 2040.
Sources: Reuters, The Jerusalem Post
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