This article was edited on June 14 to omit incorrect information about existing field licenses.
Israel plans a second offshore bid round in late 2018 or early 2019, which will involve about 25 southern blocks. Israel’s Chief Geologist Miki Gardosh describes the blocks as being in a highly prospective area that has experienced less exploration than elsewhere offshore.
An initial offshore round was completed in November 2017 resulting in six exploration licenses being awarded. The first-round bidders primarily involved Indian companies. Gardosh said the second-round offering will group 3-4 blocks to make it “more attractive to companies.”
During a trip to Houston June 11, Gardosh said he was soliciting more interest from US oil companies in Israeli offshore blocks. He also visited Calgary.
The second round will offer licenses for up to 7 years with operators required to drill or deciding to drill within 3 years. He said Levant basin models forecast high potential for oil and gas. About 75 tcf of gas has been discovered in the Levant basin in recent years.
The Ministry of Energy reports a total of 10 gas fields discovered, most of them in deep water. Three fields are developed.
Israel has transformed from being a net fossil fuel importer to become self-sufficient in its gas consumption. In 2013, Israel adopted a gas export policy allowing export of 50-100% of production from newly discovered gas reservoirs.
Various options for export from Israeli gas fields include pipelines to Egypt, Jordan, Europe, and Turkey, he said.
“Large amounts of oil are still expected to be found,” Gardosh said. He believes the oil traps are in deeper horizons than gas already being produced or developed. He expects Noble will drill for oil off Israel although there is no date set yet.
Oil was discovered off Israel during the 1990s with 2-3 wells being tested but shut in at that time for economic reasons.
Meanwhile, questions about an Israeli-Lebanese maritime dispute over oil and gas in the eastern Mediterranean were deferred to previous statements already made by Israeli Energy Minister Yuval Steinitz.
One Lebanese block, Block 9, borders Israel’s maritime zone (OGJ Online, Feb. 2, 2018).
Steinitz told Reuters earlier this month that he is in indirect negotiations with Lebanon. “There are some new ideas on the table,” Steinitz told Reuters. “More than that, I cannot discuss. Nothing has been settled yet.”
Separately, Total SA has signed exploration and production agreements for Blocks 4 and 9 offshore Lebanon. The consortium includes Total SA as operator with 40%, Eni SPA 40%, and OAO Novatek 20% (OGJ Online, Feb. 9, 2018).
Contact Paula Dittrick at [email protected].