4th Offshore Bid Round (OBR4)

Bid Round Highlights

On December 13, 2022, the Ministry of Energy launched the 4th Offshore Bid Round (OBR4) for hydrocarbon exploration offshore Israel. OBR4 is launched in the context of the global energy crisis and many countries' strategy of diversification of natural gas supply, the increasing recognition of the East Mediterranean as an exploration hotspot, and in anticipation of related technological developments in fields such as Carbon Capture, Utilization and Storage (CCUS) and hydrogen production. The Ministry foresees greater interest in OBR4 compared to previous Offshore Bid Rounds, and invites all relevant stakeholders to engage with us in the process of considering their participation.



Bid Zones

מפה מעודכנת נובמבר 2022.PNGThe area offered for bidding in OBR4 includes 20 exploration blocks (up to 400 km2 each), totaling 5,888 kmin area, and comprising 4 Zones within the Israeli EEZ (see right):


  • Zone E - 3 blocks, 1,127 km2
  • Zone G - 6 blocks, 1,732 km2
  • Zone H - 5 blocks, 1,527 km2
  • Zone I - 6 blocks, 1,677 km2

While bidding and work programs will be accepted for entire Zones, licences within the zones will be granted for specific blocks, in compliance with the Israeli Petroleum Law. 

Most of the areas offered for bidding include 2D and 3D seismic data acquired by previous operators, and some include exploration prospects which have not been drilled.  The working period for the blocks offered includes two Drill-or-Drop decision points after 3 and 5 years and it may be extended up to 7 years from the date of award. Additional information regarding the areas under offer is included within the Data Package of OBR4.





Bid Timeframe

The following is the planned timetable for the Bid Round process:

 

Event Date
Publication of Initial Call For Bids & Availability of Data Package
December 13, 2022
Deadline for submission of Letters of Interest (LOI) - optional
February 1, 2023
End of Q&A period
March 31, 2023
Publication of Updated Call For Bids & Opening of Submissions
April 30, 2023
Closing Date for Submission of BidsJune 29, 2023
14:00 Israel Time

Estimated Date for Announcement of Successful BidsJuly 31, 2023

 




Key Documents

pdf.pngBid Round Documents

pdf.pngModel Licence (English - an unofficial, nonbinding translation) - also included as Schedule 6 in the Bid Round Documents.


doc.pngConfidentiality Undertaking - to be sent along with proof of payment of the Participation Fee (see below)
doc.pngLetter of Interest - optional, to be sent by February 1




Information for Bidders

application.pngThe procedure for submitting a bid for OBR4 is as follows:

    1. Payment of a Participation Fee of USD 50,000, to be transferred to the Ministry of Energy through its correspondent bank, according to the following details:

Correspondent bank:

Federal Reserve Bank of New York, New York

Swift code: FRNYUS33

ABA/FW: 0210-0120-8

Acc: 021084393 ISRAEA

 

Final Beneficiary Bank:

Bank of Israel, Jerusalem

Swift code: ISRAILIJ

Beneficiary Name: MINISTRY OF ENERGY.

Beneficiary IBAN: IL700990011317120084582

Held in Bank of Israel's books


The Fee deposited in the Ministry's bank account should be equal to USD 50,000, with all other taxes and handling expenses payed by the bidder (Details of charges on the transfer order should be: OUR).


2. Submission of a receipt showing the payment of the Participating Fee, and a signed copy of the Confidentiality Undertaking (Schedule 1.5 of the Bid Round Documents), to sagig@energy.gov.il. The bidder will then be contacted in order to confirm that the Participating Fee has been received, and to coordinate details for the delivery by courier of the external hard drive containing the Data Package.

3. Physical submission of the final bid documents according to the Ministry's offices in Jerusalem, according to the address provided in the Bid Round Documents, by June 29, 2023, at 14:00 Israel Time.

Full details regarding the process may be found in the Bid Round Documents.


monitoring.pngFollowing payment of the Participation Fee, bidders for OBR4 are entitled to receive a Data Package, including seismic and well data and other documentation. For more information about the data package, please click here.


security.pngSome of the data contained in the Data Package may be viewed (but not downloaded) prior to payment of the Participation Fee via the dedicated Virtual Data Room. Additional data regarding 3D coverage will be updated soon.


question.pngQuestions should be submitted by March 31, 2023, by using the designated format at the end of the bid documents in MS Word format. See the Q&A page for answers to questions that have been submitted so far.