SOCAR says no plans to ditch Israeli project

SOCAR doesn’t plan to abandon exploration work in Israel’s exclusive economic zone in the Mediterranean Sea, Report informs referring to a source in Azerbaijan’s oil and gas market familiar with the situation.

“SOCAR is the operator of the project at the exploration stage in Zone I-6. Interest in this project remains, and the company does not intend to abandon it,” the source said.

At the same time, the source noted that work on the project is currently linked to the difficult geopolitical situation in this region.

At the end of October 2023, the Israeli Ministry of Energy and Infrastructure announced the issuance of a license based on the results of the fourth round of offshore bidding for natural gas exploration in the exclusive economic zone in the Israeli Mediterranean Sea to a consortium of SOCAR, BP and the Israeli NewMed Energy. At the same time, SOCAR was chosen as the project operator.

Israeli authorities expect that the discovery of additional natural gas fields will increase the diversification of supplies and stimulate competition in the domestic market.

In accordance with the tender rules, exploration licenses are issued initially for a three-year period. During this period, license holders should complete a mandatory work program to assess the natural gas reserve potential of the allocated area.