Murphy Oil Enters Mediterranean With Gas Exploration Licenses Off Israel
Israel has awarded six exploration licenses to Murphy Oil Corporation and Ratio Petroleum following a change in the consortium selected for an offshore drilling area.
By Larissa Bell ·
US-based Murphy Oil Corporation is entering the Mediterranean for the first time after Israel’s Energy Ministry announced on Monday that it had awarded the company and Ratio Petroleum six natural gas exploration licenses. The two companies will each hold a 50 percent working interest, with Murphy responsible for operating the exploration venture.
The licenses cover Cluster G, a deep-sea drilling area west of the Leviathan gas field. The award follows a recent Petroleum Council recommendation to revise the membership of the consortium selected for the area during Israel’s fourth competitive bidding round. Italian energy company ENI had withdrawn from the previously approved group.
When the ministry announced the original winning consortium in October 2023, its members were ENI, Ratio Petroleum and Dana Petroleum UK. Dana is based in Scotland and is wholly owned by the state-owned Korea National Oil Corporation. According to the ministry, Dana retains the option to join the newly constituted consortium.
Energy Minister Eli Cohen described natural gas as a strategic asset that bolsters Israel’s economic and diplomatic position internationally, particularly in the Middle East. The licensing announcement brings a new US participant into the country’s offshore exploration activity following the departure of ENI.
Separately, the Petroleum Council has recommended changes to the qualification requirements for the fifth competitive bidding round. Under the proposed adjustment, assessments would take account of the experience of individual team members alongside the experience of the operating company as a whole.
The council’s recommendation reflects the movement of experienced professionals between companies. A final decision on the proposed change rests with the Petroleum Commissioner, after which the bidding documents will be updated accordingly. The fifth round opened in July, and companies have until January 27, 2027, to submit proposals.
Ratio is an Israeli company listed on the Tel Aviv Stock Exchange. It was part of the consortium that discovered the large Leviathan natural gas reservoir in 2010. Commercial production from the field started in December 2019.
Yigal Landau, chief executive of Ratio Energies, said the involvement of international companies such as Murphy could help draw additional investment and increase competition in the natural gas market. He also said their participation could open opportunities to develop further energy resources.
Murphy is an independent international oil and natural gas exploration and production company headquartered in Texas. Its shares trade on the New York Stock Exchange, and its market capitalization is approximately $5.5 billion.
