The Petroleum Council that
reports to the Ministry of National Infrastructures, Energy and Water Resources
has approved the granting of new exploration areas in Israel's economic waters.
The Council's made its recommendation after four years in which the sea was
closed to new exploration, and following Minister of National Infrastructures,
Energy and Water Resources Yuval Steinitz's instruction that exploration should
be renewed.
The Council recommends the
minister to offer 24 blocks initially, in an international bidding process, in
which energy companies will be called on to bid in an auction and participate
in exploration for oil and natural gas in Israel's economic waters.
The Council selected 24
potential blocks, each up to 400 square kilometers in area. Some of the blocks
are close to the large gas discoveries in water depths of 1.5-1.8 kilometers.
In accordance with the
strategic environmental survey carried out by the ministry, the blocks will be
at least seven kilometers from the shoreline. The Council's recommendation was
based on independent research recently commissioned by the ministry that found
that at a best guess there were resources totaling 6.6 billion barrels of oil
and 2,137 billion cubic meters of natural gas as yet undiscovered in Israel's
sea basin.
"The Council's recommendations
on areas for oil and gas exploration in Israel's economic waters represent a
significant and vital step towards the development of Israel's natural gas
industry. This is a very important move that will encourage international
energy companies to invest in Israel's natural gas industry," Steinitz
said.
(
www.globes.co.il)