US Firm Murphy Replaces ENI in Israeli Gas Exploration Venture

Ratio Oil Exploration has secured a new American partner, Murphy Oil, to explore for natural gas in Israel's economic waters, after Italian energy giant ENI withdrew due to geopolitical considerations. Murphy will hold a 50% stake in the exploration license for "Block G." The Ministry of Energy has officially granted Ratio the license, which it won in late 2023, despite a delay of over three years. The companies now have up to 32 months for active exploration and 36 months to conduct an expensive exploratory drilling.

ENI's withdrawal followed pressure from pro-Palestinian groups and concerns over the sensitive geopolitical situation, leading to delays in officially taking up the license. Ratio's other partner, Dana Petroleum, is also not participating at this stage. This development comes after the fourth tender for gas exploration in mid-2023, where Ratio, ENI, and Dana Petroleum initially won the license, while a competing group including NewMed Energy, BP, and SOCAR had already begun their search.

Ratio stated that it has a track record of attracting experienced companies to invest in Israel and advance energy exploration, even during complex geopolitical times, highlighting its role in bringing Murphy into Block G. Minister of Energy and Infrastructure Eli Cohen emphasized that natural gas is a strategic asset that strengthens Israel's economic and political standing, and his policy is to expand gas exploration, attract international energy giants, and increase natural gas output for both domestic use and export.

Finding new gas reserves is crucial for Israel's energy market, potentially increasing competition, supporting the construction of new power plants, and easing export restrictions designed to secure gas supplies for the next two decades. NewMed Energy, the main partner in the Leviathan gas field, is also concurrently searching for gas in another Mediterranean sector.