Two groups compete for one license

תאריך: 9/23/2020
​For the first time since the re-opening of the sea for exploration: two groups compete for one license:
The competitive process for a gas exploration license in Block 72, located along the Northern border of Israel's EEZ, closed on September 23, 2020.

For the first time since the re-opening of the sea for exploration: two groups compete for one license: The competitive process for a gas exploration license in Block 72, located along the Northern border of Israel’s EEZ, closed on September 23, 2020

​Energy Minister, Dr. Yuval Steinitz: "Even in these difficult times, the Ministry of Energy continues to develop the natural resources of Israel, with a focus on the introduction of competitive processes to the natural gas sector and to the energy market in general".
Three oil and gas exploration companies submitted two bids in the third offshore bid round conducted by the Ministry of Energy. The current process is focused on one license – Block 72, and it had closed on September 23, 2020. The documents submitted by the companies will now be reviewed and the Ministry will announce the winning bidder in several weeks' time. The 3rd bid round was announced around three months ago, following the 1st and 2nd offshore bid rounds (2016, 2018), at the end of which 18 oil and gas exploration licenses were awarded.
The contending companies are Energean that submitted a bid, and Delek and Noble that submitted a joint bid.
The current process is a competition for one license, which is located along the Northern border of Israel's EEZ. Preliminary tests conducted in the past identified in the area of the block a potential natural gas reservoir geologically similar to other nearby natural gas reservoirs, such as Karish and Tamar.
For the first time, the decision to grant the license will be based primarily on the amount of the proposed signature bonus (70%), as well as on a commitment to execute a work program (30%). The binding work program under the license will include the performance of any and all actions and surveys required for drilling. The work program under the license includes two drill-or-drop decision points, such that at each such point the license may be extended by two additional years – one after 3 years and the other after 5 years. The license will be granted for a maximum period of 7 years from the signing date. The license defines an initial 18-month period during which the developer is required to perform research and data analysis work in the area, at the end of which period it will be required to prepare to drill in the license.
The bid documents and relevant maps may be found on the website of the competitive process: