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Let the bidding begin! 

Monday, Nov. 26th 2018, Israel launches its Second Offshore Bidding Round (OBR 2018) to grant exploration licenses for natural gas and oil in Israel’s economic waters in the Eastern Mediterranean. OBR 2018 builds upon the growing regional importance of the East Mediterranean as a hydrocarbon province, the progress made with the development of the giant Tamar and Leviathan fields, as well as the Karish and Tanin fields in Israel’s offshore waters, and the rapidly improving domestic and export options for monetizing produced gas.

The Ministry of Energy offers multi-block, multi-license ‘Zones’ to provide companies with an opportunity to explore larger areas of up to 1,600 sq. Km (1,000 sq. Mi.), with a diversity of plays and potential targets for gas and oil.    The Zones are located in the southern extent of Israel’s economic waters, an area well covered by 2-D and 3-D seismic data and other data.

Research by BEICEP has shown that the yet-to-find in the Eastern Mediterranean (in Israel’s economic waters) is 75 TCF (2,120 BCM) of natural gas and 6.6 billion barrels of oil in-place, confirming and further developing similar estimates made by the US Geological Survey. This excludes the discoveries made by Noble Energy and its partners in 2009 to 2013, containing over 30 TCF (850 BCM).

Compared to the first bid round, which took place in 2016, Israel has increased the size of the zones 3 fold. The data package offered in the new bid round is significantly enhanced and includes all the available 3D seismic data in the bidding area. The data prepared for the zones include a geologic summary, along with volumetric and risk assessments.

An additional change from the 2016 bid round is the commercialization opportunities, which have increased dramatically:

  • An export deal with Jordan valued at US$12 billion
  • An export deal with Egypt valued at US$15 billion, gas to start flowing in early 2019
  • A subsea pipeline between Israel, Cyprus, Greece and Italy is in advanced stages of planning, with the support of the European Union. Gas is planned to start flowing to Western Europe in 2025.
  • Domestic demand in Israel is growing and will increase significantly in coming years, as Israel moves to cleaner fuels for power generation and transportation.

To support its oil and gas sector, Israel has opened an Energy Mission in Houston, Texas.  The Houston office creates a closer dialogue with the international E&P companies, and E&P companies are encouraged to contact the Energy Mission to find out more about oil and gas in Israel.

Bid submissions are being received up to June 2019, with announcement of the bid winners taking place in July 2019.

Companies who are interested in participating in the bid round and submitting proposals will be requested to enroll in the bid process.  Detailed information on the bid round can be found on the Israeli Energy Ministry website: Energy-Sea.gov.il