Israel launches new offshore gas exploration as officials predict major undiscovered reserves

Israel launched a new round of offshore natural gas exploration on Monday, opening five new exploration blocks in the Mediterranean as officials estimate that hundreds of billions of cubic meters (BCM) of additional gas could still lie beneath the country's exclusive economic zone.

The five exploration blocks cover approximately 7,100 square kilometers (2,741 square miles) – roughly equivalent to one-third of Israel's land area – and are part of the government's broader effort to expand domestic production, attract international investment, and strengthen the country's position as a regional energy exporter.

“Natural gas is a strategic asset that strengthens our economic and diplomatic standing in the world in general, and in the Middle East in particular,” Israeli Energy and Infrastructure Minister Eli Cohen stated.

“Therefore, my policy is to expand natural gas exploration, bring international energy giants to invest in Israel, and increase natural gas production, for the local market and for export,” the minister added.

Israel has transformed its energy sector over the past decade after discovering the Tamar gas field in 2009 and the much larger Leviathan field in 2010. Natural gas production began from Tamar in 2013, turning the country from a long-time energy importer into a net gas exporter.

Since then, Israel has generated more than NIS 30 billion (nearly $10 billion) in direct natural gas revenues, with the Energy Ministry forecasting hundreds of billions of shekels in revenues over the next three decades.

The ministry said additional offshore discoveries could further increase state revenues, boost competition, and help lower electricity prices.

It also confirmed that it has already awarded six exploration licenses to an international consortium that includes London-based BP, Israel's NewMed Energy, and the State Oil Company of the Republic of Azerbaijan (SOCAR).

In December 2025, Israel and Egypt announced a record agreement under which Cairo would purchase $US 34.7 billion worth of Israeli natural gas over the coming years. Beyond its commercial value, the deal has also been viewed as an important pillar of diplomatic ties between Jerusalem and Cairo.

“The ministry is acting to ensure the supply of natural gas to the local market, while maintaining an attractive environment for investments and competitive prices,” Energy and Infrastructure Ministry Director-General Yossi Dayan explained.

“The competitive procedure is intended to increase the supply of natural gas, increase competition, attract additional players, and assist in the continued development of the market. The correct way to ensure competition and reduce prices is through expanding supply, and not through burdensome regulation,” he continued.

“Alongside its contribution to the market, the procedure will strengthen Israel’s energy resilience and its regional and international standing for the coming years,” Dayan assessed.

Chen Bar Yossef, director of the Energy and Infrastructure Ministry's Natural Resources Administration, said the latest licensing round is expected to attract additional international investment in Israel's energy sector.