Page 4 - EurOil Week 22 2022

EurOil COMMENTARY EurOil

Israel plans fourth bid round

to satisfy EU demand

As Israel looks set to begin gas exports to Europe via Egypt, Tel Aviv is laying

the groundwork for another offshore licensing round

ISRAEL ISRAEL’S Ministry of Energy has announced the inability to supply the needs of energy econ-
plans for the launch of the country’s fourth off- omies relying exclusively on renewable energy
WHAT: shore bidding round (OBR 4) as it looks to build based on existing technologies. Alongside sin-
The government said last on the success of previous auctions and resur- cere and genuine concern at what is happening
year that it would focus gence for hydrocarbons in M&A. in Europe, the global energy crisis represents an
on renewable energy but The announcement comes as Israeli officials enormous opportunity for the State of Israel to
conflict in Ukraine has prepare to sign agreements for the sale of the export natural gas.”
given rise to a change of country’s gas to European countries via lique- The ministry said that OBR4 is “part of a mul-
heart. faction terminals in Egypt as the EU sanctions ti-year programme to encourage the exploration
Russian supplies and looks for alternatives. It and development of Israel’s natural resources
WHY: also appears to mark a change of heart by Min- to provide low cost, environmentally friendly
Previous exploration ister of National Infrastructures, Energy and energy to Israel’s consumers and businesses and
success has seen the Water Resources Karine Elharrar, who said last to develop markets for Israeli natural gas beyond
Eastern Mediterranean year that her time as minister would focus on its borders.”
attract increasing developing renewable energy, in contrast to that While no dates have yet been set, not details
interest and Israel is keen of Yuval Steinitz, which was defined by the devel- about the specific acreage on offer, pre-qualified
to strike while the iron opment of offshore gas reserves. companies will be offered the opportunity to bid
is hot. “Alongside the necessity of moving forward on various zones, each covering an area of up to
on renewable energy in Israel, after it has been 1,600 square km and comprising around four
WHAT NEXT: neglected for many years, the Russia-Ukraine licences. The ministry said that around 25 blocks
Gas supplies will be war has illustrated in recent months the dangers have been mapped but noted that these are yet to
piped to Egypt where and risks of energy availability and prices, dur- be grouped and delineated, though it did say that
it can be liquefied for ing the transition period from fossil fuel use,” the blocks would be at least 7 km from the shore.
onward export to the EU. she said. The announcement follows the recent dis-
Elharrar added: “On the one hand, there is covery of a commercial gas find by London and
the problematic reliance of Europe on oil and gas Tel Aviv-listed Energean in Block 12, which it
supply from Russia. On the other hand, there is anticipates will de-risk further development of a

P4 www. NEWSBASE .com Week 22 02•June•2022