Energean Pushing for More Oil and Gas Exploration Licenses Off Israel

Energean Power FPSO (Credit: Energean)

The CEO of Israel-focused gas producer Energean on Thursday urged Israel to issue new offshore oil and gas exploration licences to meet rising demand in the region.

Speaking to Reuters, Mathios Rigas also called on governments to develop new export routes from Israel to neighbouring Egypt and Cyprus.

"One thing we need is to have a discussion with the (Israeli) government about new licences and more exploration, because we need to find more gas. We need to develop more gas," Rigas said.

Energean produced 153,000 barrels of oil equivalent per day in the first 10 months of the year, including 112,000 boed in Israel, where it operates an offshore production vessel from the Karish and Tanin fields, it said on Thursday.

The London-listed company is also developing the Katlan field in Israel, which it expects to start gas production in the first half of 2027.

Israel last awarded offshore licences in October 2023, four weeks after the start of the war with Hamas in the Gaza Strip. But exploration activity has slowed down since then.

A ceasefire deal between Israel and the Lebanese armed group Hezbollah has removed some uncertainty and risk for Energean, whose production vessel sits not far from the maritime border between the two countries, Rigas said.

The discovery of vast gas resources off Israel and Egypt since the late 2000s has transformed the eastern Mediterranean into a major regional gas hub.

Israel is connected to Egypt and Jordan by several pipelines, but requires more export routes to deliver gas to Cyprus and more to Egypt, Rigas said.

(Reuters - Reporting by Ron Bousso; Editing by Kevin Liffey)