Murphy Oil Bets on Israeli Gas Near Leviathan

Israel’s Energy Ministry on Monday awarded six offshore natural gas exploration licenses to Houston-based Murphy Oil and Israel’s Ratio Energies, eight months after the war with Iran forced Israel to shut its biggest gas field. The Zone G licenses cover about 1,700 square kilometers of seabed roughly 25 kilometers southwest of Leviathan. Murphy will operate the licenses, and each partner holds 50%. The award marks Murphy’s first venture into the Eastern Mediterranean, and it joins Chevron, the operator of Leviathan and Tamar, as a U.S. operator in Israeli waters.Murphy replaces Italy’s Eni, which won Zone G with Ratio and Korea-owned Dana Petroleum in October 2023, delayed accepting the license after the Gaza war began that month, and later withdrew. Eni cited a reallocation of investments, and the Israeli financial daily Globes reported that political pressure also weighed on the decision. The partners now have 36 months to drill an exploration well.Israel has halted production at its offshore gas fields twice in less than a year. Leviathan went offline for 32 days after the U.S. and Israel struck Iran in late February, and it also shut down during the June 2025 conflict. Ratio holds a 15% stake in Leviathan, which supplies Egypt under a $35 billion export contract.The disruption of shipping through the Strait of Hormuz has made that gas more valuable. Eastern Mediterranean supply reaches Europe and Egypt without passing through a Gulf chokepoint, and the Atlantic Council estimates the region could support 30 to 40 billion cubic meters of annual exports under favorable conditions. Egypt hosts the Eastern Mediterranean’s only operating LNG export terminals, at Idku and Damietta.Energy Minister Eli Cohen said natural gas strengthens Israel’s economic and diplomatic standing. Israel’s fifth offshore bid round closes on January 27, 2027.By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.comOil Sinks to $94 as Iran’s $8 Billion Hormuz Deal Heads to TrumpCOP31 Opens in Antalya With a UN Push for Faster Climate ActionEurope’s Power Prices Jump to 2022 High as Wind and Solar Falter