Israeli Ministry of Energy to Launch a Fifth Offshore Bid Round for Natural Gas Exploration Licenses
On November 20, 2025, the Israeli Petroleum Council recommended to the Israeli Minister of Energy to launch a fifth offshore bidding process for natural gas exploration in Israel’s economic waters, with the Minister expressing strong support for such a process. Within the framework of the process, six zones (Zones A, B, C, F, H and J) with a total area of approximately 8,500 sq. km, will be subject to bidding, with the aim of increasing production for domestic consumption and exports, increasing competition in the market and positioning Israel as a regional energy power.
The Israeli Ministry of Energy assumes that there are hundreds of additional BCM of natural gas yet to be discovered in the Eastern Mediterranean, with the announcement regarding this new round of bidding taking place while the Ministry is yet to announce the winning bids with respect to the two remaining zones subject to the fourth offshore bid round.
According to the principles of the competitive process and the Israeli Petroleum Law and regulations promulgated thereunder, the winning bidders in each zone will receive several exploration licenses for an initial period of three years. During this period, the license holders will be required to execute a work plan to which they commit to in advance, the core of which is the examination of the potential for natural gas discovery in the zone they are awarded. After the execution of the work plan, it will be possible to extend the licenses or some of them for a total period of up to seven years, subject to the execution of an additional work plan.
The zones proposed for exploration within the framework of the bidding process are being offered after an examination of the potential environmental impact of such exploration and after it was determined that they meet the required criteria. Prior to conducting actual offshore drilling procedures, there will be several additional specific tests and surveys to ensure the prevention of environmental damage.
Further details on the bid round are expected to be published during January 2026. This news should be of interest to international energy companies interested in exploring the growing Israeli market. Should you have any questions or require any further information regarding the above developments, please do not hesitate to contact any of the members of Arnon, Tadmor-Levy’s Oil & Gas Practice.
The above content is a summary provided for informational purposes only and does not constitute legal advice. It should not be relied upon without obtaining further professional legal counsel.
