New US oil company joins gas exploration off Israel’s shores
Texas-based Murphy Oil to serve as operator, entering Mediterranean for first time and joining Israeli Ratio in fourth round of exploration
The Energy Ministry announced Monday that it had granted six natural gas exploration licenses to the US-based Murphy Oil Corporation — a first-time entrant into the Mediterranean — and to Ratio Petroleum.
Each company will hold a 50 percent working interest, with Murphy Oil Corporation serving as operator.
The announcement follows the Petroleum Council’s recent recommendation to amend the composition of the winning consortium in Cluster G, an area identified for deep-sea drilling west of the Leviathan field, under the fourth competitive bid round.
That followed the withdrawal of the Italian ENI company from the originally approved group.
“Natural gas is a strategic asset that strengthens our economic and diplomatic standing globally in general and in the Middle East in particular,” Energy Minister Eli Cohen said.
In October 2023, the ministry announced that the winning consortium for the Cluster G licenses included ENI, Dana Petroleum UK — a Scotland-based wholly owned subsidiary of the state-owned Korea National Oil Corporation — and Ratio Petroleum, an Israeli company.
Dana Petroleum has the option of rejoining the new consortium, the ministry said.
The Petroleum Council also recommended adjusting the threshold conditions for the fifth competitive bid round next year to take into account the experience of team members, as well as that of the operating company as a whole.
This is in light of a trend of experienced professionals moving between companies.
The Petroleum Commissioner will make the final decision on the change, and the bid documents will be updated accordingly.
The fifth competitive bid round was launched in July, with the deadline for proposal submissions set for January 27, 2027.
Ratio, listed on the Tel Aviv Stock Exchange, is an Israeli company that formed part of the consortium that discovered the massive Leviathan gas reservoir in 2010. Commercial gas production began in December 2019.
Yigal Landau, CEO of Ratio Energies, said the participation of international companies, including Murphy Oil Corporation, had the potential to attract further investment, strengthen competition in the natural gas market, and create new opportunities to develop additional energy resources.
Murphy Oil Corporation is an independent Texas-based international oil and natural gas exploration and production company listed on the New York Stock Exchange, with a market capitalization of around $5.5 billion.