Azerbaijan state oil company to receive a 33% stake in the Israeli offshore project

Azerbaijan state oil company to receive a 33% stake in the Israeli offshore project

BAKU. March 19 (Interfax) -State oil company in the Republic of Azerbaijan (SOCAR) will hold a 33.34% stake in a consortium with Newmed Energy in Israel and BP PLC in a UK in an offshore project, Newmed Energy said on Wednesday.

“Earlier this week, together with BP and Socar, I received an official license for natural gas exploration in zone I off the coast of Israel. The structure of the partnership is: Socar – 33.34%, BP – 33.33%, Newmed Energy – 33.33%,” said the company.

The license issued to the consortium by the Ministry of Energy Israel covers six blocks of exploration, he said.

“The energy security of Israel depends on continuous research, new discoveries and the entry of international leaders on the Israeli natural gas market,” he said.

The Newmed Energy CEO, Yossi Abu, also said on social networks that it is the first time a national oil company in a Muslim country, Socar, started operations in the energy sector of Israel.

“Together with BP and Newmed, this partnership has a significant economic, political and strategic value. Strong relationships between countries are often built on strategic partnerships, mutually beneficial. Durable relationships are the ones that create value for both parties. We have seen this in recent years, and when it comes to growing in natural gas, we will continue to promote them,”

As reported, the consortium comprising Socar, BP and Newmed Energy in October 2023 won an offer for a license from the Ministry of Energy to perform exploration works in zone I-6 near the Leviathan Field. The license was granted to the consortium on March 17, 2025.

For Socar and BP, this will be their first experience in the Israel gas sector.

Zone I, covering an area of ​​approximately 1,700 square kilometers, is located in the northern part of the exclusive economic waters of Israel. The activities in this field, which has registered a small exploration of natural resources in the past, are expected to concentrate initially on seismic studies and other studies, with decisions regarding the exploratory drilling in the most promising areas that will be taken based on the results of these studies.

The consortium must present a plan that includes drilling on at least one of the four license blocks, as well as an additional work schedule, until October 2026.

According to the auction rules, the exploration licenses are issued for an initial period of three years. During this period, license holders must complete a mandatory work schedule to evaluate the potential of natural gas discoveries in the allocated area.

After this period, the license holders can request an extension for another two years, subject to the approval of an updated work schedule and the commitments to hole at least one of the licenses.

After performing at least one drilling operation and completed all the elements of the work schedule, the group licenses can be extended for another two years, up to a maximum of seven years. Such an extension will be possible provided that a drilling commitment is presented for each authorized block in which the drilling has not yet taken place until the end of the license term.