Israel has launched its fifth competitive process to search for more natural gas in the country's economic waters, Energy Minister Eli Cohen said on Monday, seeking to bolster domestic reserves while increasing exports.
Israel's gas needs are served by a number of fields off its Mediterranean coast, mainly Tamar, while most exports — largely to Egypt and Jordan — come from the nearby Leviathan site 130 kilometres (81 miles) offshore.
Both sites are part of the Eastern Mediterranean's Levant Basin. The tender will comprise three phases and take about a year to complete, Cohen said.
Chevron, which operates Tamar and Leviathan, will be allowed to bid as part of a consortium.
"The gas sector has proven its economic viability," Cohen told a news conference, adding that exports to Egypt and Jordan, "help to promote regional stability". Israel approved a $35 billion deal in December to supply 130 billion cubic metres of gas to Egypt through 2040.
The tender has been ready for months but delayed by regional conflicts. A deal between Israel and Lebanon, which could attract more foreign companies, made the time ripe to launch the process, Cohen said.
By law, the first 50 bcm of gas discovered must be for local consumption, with the rest split between domestic consumption and exports.
Petroleum Commissioner Chen Bar Yoseph believes there is as much as 400 bcm of gas yet to be discovered. Israel consumes 14 bcm a year while another 14 bcm is exported. Leviathan holds an estimated 600 bcm of natural gas.
Bar Yoseph said Europe remains interested in Israeli gas but a pipeline is lacking. At the same time, Israel does not have sufficient reserves to export to Europe but that could change if the latest exploration leads to large gas discoveries.
Last year, Israel awarded licences to BP, Azeri national oil firm Socar and local company NewMed Energy to explore for natural gas in Israeli waters.
(Reporting by Steven Scheer Additional reporting by Tala Ramadan Editing by Aidan Lewis and David Goodman)