Page 4 - MEOG Week 22 2022

MEOG COMMENTARY MEOG

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 its borders.”
plans for the launch of the country’s fourth off- While no dates have yet been set, not details
shore bidding round (OBR 4) as it looks to build about the specific acreage on offer, pre-qualified
WHAT: on the success of previous auctions and resur- companies will be offered the opportunity to bid
The government said last gence for hydrocarbons in M&A. on various zones, each covering an area of up to
year that it would focus The announcement comes as Israeli officials 1,600 square km and comprising around four
on renewable energy but prepare to sign agreements for the sale of the licences. The ministry said that around 25 blocks
conflict in Ukraine has country’s gas to European countries via lique- have been mapped but noted that these are yet to
given rise to a change of faction terminals in Egypt as the EU sanctions be grouped and delineated, though it did say that
heart. Russian supplies and looks for alternatives. It the blocks would be at least 7 km from the shore.
also appears to mark a change of heart by Min- The announcement follows the recent dis-
WHY: ister of National Infrastructures, Energy and covery of a commercial gas find by London and
Previous exploration Water Resources Karine Elharrar, who said last Tel Aviv-listed Energean in Block 12, which it
success has seen the year that her time as minister would focus on anticipates will de-risk further development of a
Eastern Mediterranean developing renewable energy, in contrast to that broader area the company calls Olympus.
attract increasing of Yuval Steinitz, which was defined by the devel- Energean reported that it had discovered 8bn
interest and Israel is keen opment of offshore gas reserves. cubic metres of recoverable gas – on a standalone
to strike while the iron “Alongside the necessity of moving forward basis – with its Athena exploration well, which
is hot. on renewable energy in Israel, after it has been will be tied-back to its main asset, the Karish gas
neglected for many years, the Russia-Ukraine field, which is estimated to hold 267mn barrels
WHAT NEXT: war has illustrated in recent months the dangers of oil equivalent of 2P reserves as well as another
Gas supplies will be and risks of energy availability and prices, dur- 37mn boe of 2C resources.
piped to Egypt where ing the transition period from fossil fuel use,” Previous bid rounds have had varying suc-
it can be liquefied for she said. cess: 6 blocks were apportioned during the 2017
onward export to the EU. Elharrar added: “On the one hand, there is auction and 12 were handed out in 2019, but no
the problematic reliance of Europe on oil and gas winners have yet been announced for the 2020
supply from Russia. On the other hand, there is bid round.
the inability to supply the needs of energy econ-
omies relying exclusively on renewable energy Exports
based on existing technologies. Alongside sin- Meanwhile, Elharrar was quoted by the local
cere and genuine concern at what is happening Globes daily as saying that a memorandum of
in Europe, the global energy crisis represents an understanding (MoU) would be signed within
enormous opportunity for the State of Israel to weeks following months of talks with Egypt and
export natural gas.” European countries for the export of Israeli gas.
The ministry said that OBR4 is “part of a mul- She said that the tripartite deal would be sim-
ti-year programme to encourage the exploration ilar to an existing agreement between Tel Aviv
and development of Israel’s natural resources and Cairo and will allow gas firms to sign con-
to provide low cost, environmentally friendly tracts for the transportation of volumes of gas
energy to Israel’s consumers and businesses and from Israel to Egypt, liquefaction and onward
to develop markets for Israeli natural gas beyond export to the EU.

P4 www. NEWSBASE .com Week 22 01•June•2022