Israel's Minister of Energy has opened the country's first offshore bid round covering 24 areas in the Levant Basin, with some located close to existing major gas discoveries.
The discovery of giant gas fields in the Levant Basin, offshore Israel and in neighboring countries have proven the potential of the area as a world-class petroleum province.
At present, the total amount of recoverable gas reserves found offshore Israel is estimated at 900 Bcm, according to the Israeli government.
A further 6.6 billion bbl and about 2137 Bcm of yet to find gas resources also exist, according to independent research by consultancy Beicip-Franlab.
The 24 areas in the bid round, numbered 12 to 66, each have a 400sq km maximum area and sit in water depth from 680-1770m.
The government says licenses will be awarded for a three-year period, at the end of which it may be extended by an additional three years, if the license holder has executed an agreed work plan and intend to undertake to drilling during the extension period.
Licensees will have to deposit between US$2.5-10 million, as a security against their undertaking the work. Companies will existing holdings in the sea with estimated reserves exceeding 200 Bcm will not be allowed to bid, in order to encourage competition, says the government. Proposals may be submitted by 21 April 21 2017. Three months later, in July 2017, the winner shall be declared.
Leviathan finds
Israel's profile as a gas province rose in 2009, which the Noble Energy Partnership, Avner, Delek Drillings, Isramco and Dor made the Tamar discovery in 1600m water depth, 90km west of Haifa.
Tamar was estimated to contain at the time of discovery some 240 Bcm of recoverable gas reserves, an amount sufficient for Israel’s domestic consumption of gas for several decades.
In June 2010, a partnership headed by Noble Energy, Delek Drillings and Ratio announced the largest discovery made so far in Israeli waters; the giant Leviathan, 30km west of Tamar. Initial studies indicated to recoverable reserves of 450 Bcm, says Israel's Ministry of Energy.
Further exploration, through 2011-2013, has seen more gas fields discovered, including Karish, Tanin, Dolphin, Tamar SW, Aphrodita-Ishai and Shimshon.
In 2013, the Tamar gas field was connected to shore via a 150km long tie-back pipe, amongst the longest in the world, and gas started to flow to the Tamar production platform and from there to the Israeli gas transportation system.
Conditions
Companies bidding for the 24 areas will also have to prove their financial capabilities, to a tune of minimal total assets equivalent to $400 million, minimal equity capital of $100 million, and the operator shall be required to present at least half of those sums.
Operators will also be required to prove financial stability and professional in the field of offshore oil, natural gas search and production.
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