Murphy Oil Joins Israeli Gas Exploration Group

Two energy companies will hold rights to drill for natural gas in deep waters west of the Leviathan field, a change that brings a major American firm into Israel’s offshore energy sector for the first time. The Energy Ministry announced on Monday that it awarded six exploration licenses to Murphy Oil Corporation and Ratio Petroleum. This decision follows a shift in the consortium structure for Cluster G, an area targeted for drilling under the fourth competitive bid round.

Murphy Oil, a Texas-based independent exploration and production company listed on the New York Stock Exchange, will serve as the operator for the project. The company holds a 50 percent working interest in the licenses, matched by an equal share for Ratio Petroleum. Murphy Oil has a market capitalization of approximately $5.5 billion. This marks its initial entry into Mediterranean exploration.

The license grant responds to a recommendation by the Petroleum Council to modify the winning group for Cluster G. This area was originally assigned to a consortium including ENI, Dana Petroleum UK, and Ratio Petroleum in October 2023. The group changed after the Italian company ENI withdrew from the approved lineup. The ministry stated that Dana Petroleum, a subsidiary of the state-owned Korea National Oil Corporation, retains the option to rejoin the new consortium.

Energy Minister Eli Cohen described natural gas as a strategic asset that bolsters Israel’s economic and diplomatic position globally and in the Middle East. He emphasized the value of international participation in the sector. The ministry’s decision aligns with the ongoing process of the fourth competitive bid round, which focuses on deep-sea drilling opportunities.

Ratio Petroleum, an Israeli firm listed on the Tel Aviv Stock Exchange, was part of the team that discovered the Leviathan gas reservoir in 2010. Commercial production from that field started in December 2019. Yigal Landau, the CEO of Ratio Energies, said that involving international partners like Murphy Oil could attract further investment. He added that such participation would strengthen market competition and create new avenues for developing energy resources.

The Petroleum Council also recommended changes to the rules for the fifth competitive bid round, scheduled for next year. The proposed adjustments aim to account for the experience of team members and the operating company as a whole. This move addresses a trend where experienced professionals move between different energy firms. The Petroleum Commissioner will make the final decision on these threshold changes, and the bid documents will be updated to reflect any modifications.

The fifth competitive bid round launched in July 2026. Companies must submit their proposals by January 27, 2027. The current licensing structure for Cluster G now places control in the hands of Murphy Oil and Ratio Petroleum, with the former managing the day-to-day operations of the exploration activities.

The announcement was made public on Monday, detailing the specific split of interests and the operational roles assigned to each partner. The new consortium structure replaces the previous arrangement that included ENI and Dana Petroleum UK. The ministry confirmed that the licenses cover the designated deep-sea area west of the existing Leviathan infrastructure.