US Firm Murphy Enters Israel Gas Sector in Joint Venture With Ratio
US firm Murphy Oil and Israel's Ratio Energies have secured six natural gas exploration licenses in Zone G following the withdrawal of Italy's ENI. Energy Minister Eli Cohen hailed the deal as a boost to the nation's strategic standing.
US energy firm Murphy Oil is entering Israel's natural gas exploration sector, joining forces with Israel's Ratio Energies. Minister of Energy and Infrastructure Eli Cohen and Petroleum Commissioner Chen Bar-Yosef have granted six natural gas exploration licenses in Zone G to Murphy and Ratio. Both companies will hold a 50% stake in the licenses, with the US firm serving as the operator.
The restructuring of the consortium follows the withdrawal of Italy's ENI, which was originally chosen to lead the project alongside Britain's Dana Petroleum and Ratio. In October 2023, the Ministry of Energy awarded the licenses to the initial group. Following ENI's exit and in coordination with Dana Petroleum, Murphy and Ratio secured the licenses in equal parts. The British company retains the option to rejoin the venture, subject to ministry approval.
Updated Work Program and Thresholds
Under the terms of the agreement, the companies have committed to a comprehensive work program including seismic surveys and exploratory drilling to assess the natural gas potential of the licensed areas. Murphy's entry introduces a major international operator with extensive industry experience to Israel's energy market.
Simultaneously, the Petroleum Council recommended adjusting the threshold requirements for the fifth competitive bidding process for natural gas exploration. The proposed change would allow professional experience of key personnel to be recognized even if the operating company lacks direct prior experience, facilitating broader participation.
Minister Eli Cohen emphasized the strategic importance of the move: "Natural gas is a strategic asset that strengthens our economic and geopolitical standing globally and in the Middle East in particular." The deadline for submitting bids for the fifth competitive round is set for January 27, 2027.
