ExxonMobil Considers Entering Israel's Offshore Gas and Oil Exploration Tender

American energy giant ExxonMobil is evaluating participation in Israel's fifth offshore natural gas and oil exploration tender, recently announced by the Israeli Ministry of Energy. ExxonMobil is considering partnering with Energean, which currently produces gas from the Karish reservoir. The two companies already collaborate on natural gas exploration near the Italy-Greece border under an agreement signed late last year.

The tender was unveiled earlier this week by Energy Minister Eli Cohen, who highlighted interest from a major international energy company comparable to or larger than Chevron. This interest underscores global confidence in Israel's energy sector. According to the Ministry of Energy, based on external consultancy reports, Israel's economic waters still hold hundreds of billions of cubic meters (BCM) of natural gas, with potential for oil discoveries in deeper layers. However, these reserves are scattered and mostly small, with a low chance of finding a significant field like Leviathan.

Energean is expected to receive priority in the tender due to its sale of all gas reserves from Karish, which restricts it from signing new supply agreements or expanding its competitive capacity. Chevron and NewMed Energy, partners in the Leviathan field, are barred from participating in this tender.

Separately, the Natural Resources Administration of the Ministry of Energy released its annual report showing that in 2025, revenues totaled 1.98 billion shekels, primarily from royalties on natural gas sales. Most royalties came from the Leviathan field, operated by Chevron, NewMed Energy, and Ratio, amounting to 833 million shekels from nearly 11 BCM of gas and condensate production, mostly exported. The Tamar field contributed about 675 million shekels from 10.5 BCM of production, and Karish royalties totaled 433 million shekels, with over 70% from domestic gas supply and the rest from condensate exports. From 2024 to 2025, gas company royalties brought approximately 17 billion shekels into the state treasury.