Azerbaijan is set to finalize agreements for natural gas exploration in Israeli waters, marking a significant step in the growing strategic partnership between the two countries, particularly amid regional instability.
A consortium consisting of Azerbaijan’s state-run SOCAR, BP Plc, and Israel’s NewMed Energy LP will gain exploration rights in one offshore block, in an agreement to be overseen by Azerbaijan’s Economy Minister Mikayil Jabbarov and Israel’s Energy Minister Eli Cohen.
This deal further strengthens SOCAR’s presence in Israeli energy assets, following the company’s recent acquisition of a 10% stake in the Tamar gas field earlier this year. The timing of the agreement is notable, as Israel seeks to bolster ties with Azerbaijan to counter the influence of neighboring Iran. Both countries depend on each other for energy and defense, and Azerbaijan has maintained a close relationship with Prime Minister Benjamin Netanyahu’s government amid the ongoing conflict in the region.
While the consortium won exploration rights in October 2023, the Israel-Hamas conflict delayed the formal signing. Now, the companies will have three years to conduct seismic surveys in the designated block to assess potential gas reserves. Jabbarov’s visit to Jerusalem is the first by an Azerbaijani minister since the war began.
Last year, Israel was Azerbaijan’s sixth-largest oil buyer, with sales totaling $713 million. The exploration licenses will cover Cluster I, an area of roughly 1,700 square kilometers in the northern part of Israel’s economic waters. According to the Israeli Energy Ministry, this area has been scarcely explored for natural resources.