Israel Grants Gas Exploration Licenses to US Murphy and Ratio

Israel's Ministry of Energy announced on Monday that it has awarded six natural gas exploration licenses in the G block to the American company Murphy and Israel's Ratio. Murphy will replace Dana Petroleum, which withdrew from exploration in the area after Italian company ENI also pulled out. In response to these withdrawals, the Ministry of Energy is modifying the requirements for the fifth tender, currently open, to attract more companies that do not meet the current entry thresholds. The ministry had previously announced in October 2023 that a consortium including ENI (operator), Dana Petroleum, and Ratio had won the G block licenses. The change in the consortium's composition follows ENI's withdrawal and is coordinated with Dana Petroleum, which may, subject to ministry approval, exercise a commercial option to rejoin the licenses. According to the Ministry of Energy, the companies have committed to an "intensive work plan, including seismic surveys and several exploration wells." The ministry has recently highlighted the influx of major foreign companies into Israeli gas exploration. However, the Petroleum Council has recommended easing the entry requirements for the fifth competitive tender, launched last July, with the deadline for proposals set for January 27, 2027. Unlike previous exploration rounds, an operating company will no longer need its own prior experience; instead, the experience of its staff members will count. The Ministry of Energy stated that this change aims to "broaden the professional circle of companies eligible to participate in the process, partly due to a trend observed in the industry of experienced professionals moving between companies." The Supervisor of Petroleum will make a final decision, and the tender documents will be updated accordingly. Experts, however, express doubt about the existence of undiscovered giant gas reserves in Israel's maritime territory. Yossi Langotsky, the geologist credited with discovering the Tamar field, has repeatedly stated that no further giant gas discoveries should be expected in Israeli waters, asserting in August 2015 and again in 2018 that "the story of giant discoveries in Israeli waters is over" and that "geologists know there is no chance of finding more." Since then, smaller fields have been found, including discoveries by Energean in 2022, but no large gas fields have been located.