The Petroleum Council that reports to the Ministry of National Infrastructures, Energy and Water Resources has approved the granting of new exploration areas in Israel's economic waters. The Council's made its recommendation after four years in which the sea was closed to new exploration, and following Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz's instruction that exploration should be renewed.
The Council recommends the minister to offer 24 blocks initially, in an international bidding process, in which energy companies will be called on to bid in an auction and participate in exploration for oil and natural gas in Israel's economic waters.
The Council selected 24 potential blocks, each up to 400 square kilometers in area. Some of the blocks are close to the large gas discoveries in water depths of 1.5-1.8 kilometers.
In accordance with the strategic environmental survey carried out by the ministry, the blocks will be at least seven kilometers from the shoreline. The Council's recommendation was based on independent research recently commissioned by the ministry that found that at a best guess there were resources totaling 6.6 billion barrels of oil and 2,137 billion cubic meters of natural gas as yet undiscovered in Israel's sea basin.
"The Council's recommendations on areas for oil and gas exploration in Israel's economic waters represent a significant and vital step towards the development of Israel's natural gas industry. This is a very important move that will encourage international energy companies to invest in Israel's natural gas industry," Steinitz said.
Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2016
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