Investments in exploration of Zone I off Israel's coast estimated at tens of millions of dollars

The work under the licenses granted to the consortium of companies SOCAR (Azerbaijan), BP (UK), and NewMed Energy (Israel) will initially focus on conducting seismic and other studies. Based on the results of these studies, a decision will be made regarding further exploratory drilling in the most promising areas, according to the Ministry of Energy and Infrastructure of Israel (MEI), Report informs.

Each company in the consortium has been allocated roughly one-third of the rights for each of the six licenses granted by Israel's MEI.

The ministry states that investments in the first stage of work will amount to tens of millions of dollars, with the possibility of even larger investments in later stages.

The MEI further noted that the licenses were awarded for operations in Zone-I, located in Israel's exclusive economic zone in the Mediterranean Sea.

"Zone I, covering approximately 1,700 square kilometers, is situated in the northern part of Israel's exclusive economic waters. Activities in this largely unexplored area will initially focus on seismic and other studies. Decisions regarding the continuation of exploratory drilling in the most promising areas will be based on the results of these studies," the statement said.

The consortium, which includes SOCAR, NewMed Energy, and BP, won a tender in October 2023 for a license from the Israeli MEI to carry out exploration work in Zone I-6, adjacent to the Leviathan gas field. SOCAR was chosen as the project operator. According to the tender terms, exploration licenses are granted for an initial three-year period.

During this period, license holders must complete a mandatory work program to assess the potential for discovering natural gas in the designated area.