A consortium comprising the State Oil Company of the Azerbaijani Republic (SOCAR), BP Plc, and Israel's NewMed Energy has been granted licenses for gas exploration in Israel's exclusive economic zone (EEZ) in the Mediterranean. The announcement was made by Azerbaijani Economy Minister Mikayil Jabbarov during his visit to Israel.

"During our working visit to Israel, alongside Rovshan Najaf, President of SOCAR, we attended the presentation ceremony of exploration licenses for Block 'I' in Israel's EEZ," Jabbarov shared on social media. He emphasized that these licenses hold strategic significance, enhancing SOCAR's international influence and enabling the company to gain from innovative expertise.

The Israeli Ministry of Energy and Infrastructure confirmed that Minister Eli Cohen and Oil Commissioner Hen Bar-Yosef awarded the consortium six licenses under the fourth competitive bidding process for gas exploration in Israeli waters. The ministry underscored that these licenses align with national policy to expand natural gas reserves for domestic use and export. It also noted that additional licenses are expected to be awarded in the future, with a fifth tender planned within a year.

This initiative marks SOCAR's inaugural exploratory drilling project outside Azerbaijan. The project had faced delays due to the escalation of conflict between Israel and Hamas. Initially, the consortium was awarded exploration rights in Zone I-6 in October 2023 following a competitive bidding process, with SOCAR designated as the project's operator.

Under the tender's conditions, exploration licenses are valid for an initial three-year period. During this timeframe, license holders must execute a mandatory work program to evaluate the gas discovery potential in the allocated area. Upon successful completion of this phase, the consortium may request a two-year extension by presenting an updated work plan approved by the petroleum commissioner, including a drilling commitment for at least one licensed block.

Should the consortium fulfill the necessary requirements, including completing one drilling operation and all mandatory work program elements, the licenses can be extended for an additional two years, allowing a maximum total period of seven years. Such extensions require a drilling commitment for each remaining untested block by the license term's conclusion.

In addition to this exploration project, SOCAR announced on January 31, 2025, that it had secured a 10% equity stake in the Tamar project through a deal with Union Energy. The Tamar field is one of the Mediterranean's largest offshore gas reserves and plays a crucial role in regional energy security and economic development. The American company Chevron serves as the Tamar project's operator. SOCAR reaffirmed its commitment to pursuing strategic global energy investments to expand its portfolio.