Israel Licensing Round Attracts Few Bids

A consortium of four Indian companies and the Greek upstream firm Energean have submitted rival bids in a licensing round for 24 blocks offshore Israel, the energy ministry announced November 15.

The four Indian companies are NGC Videsh, Bharat PetroResources, Indian Oil Corporation, and Oil India.

The result is a disappointment for Israel's energy minister Yuval Steinitz who had sought to bring one or two international oil companies to Israel. Steinitz took part personally in at least four overseas road shows in Houston, London, and Singapore.

In order to lure energy companies, the bidding process's closure was delayed from April to November. However, none of the oil and gas majors that took part in licensing rounds in Cyprus and Lebanon and that operate in Egypt took part in the Israeli round. Those with existing production rights in Israeli gas fields, such as Delek and US firm Noble Energy, were not allowed to participate.

Over the next few weeks, energy ministry officials will examine the compliance of the companies that have submitted bids with the professional and economic thresholds and will examine the work plans in order to determine the licenses winners, before an approval by Israel Petroleum Council. 

Ya'acov Zalel