Murphy Oil, Ratio Energies secure Israeli offshore gas blocks
Israel's Energy Ministry granted six exploration permits in Zone G to Murphy Oil of Houston and Israel's Ratio Energies, taking over from Eni after the Italian company exited the project.
Zone G covers around 1,700 square kilometers of seabed situated roughly 25 kilometers southwest of the Leviathan field. Murphy will act as operator with a 50% interest, with Ratio holding the remaining half, marking the US company’s entry into the Eastern Mediterranean and making it the second American firm active in Israeli waters alongside Chevron, operator of Leviathan and Tamar.
Murphy takes over a permit originally awarded in October 2023 to Eni, together with Ratio and South Korea’s Dana Petroleum. Eni postponed accepting the license once fighting broke out in Gaza that month and ultimately withdrew altogether, pointing to a reassessment of its investment priorities; Israeli business publication Globes noted that political considerations may have influenced the move as well. Under the new arrangement, the partners are required to drill an exploratory well within three years.
This license grant follows two separate suspensions of Israel’s offshore gas output within less than twelve months. Production at Leviathan paused for 32 days after Israeli and American forces targeted Iranian sites in late February, and the field was again taken offline during fighting in June 2025. Ratio owns a 15% share of Leviathan, a field that supplies Egypt through a $35 billion supply agreement.
Interruptions to tanker traffic through the Strait of Hormuz have boosted the appeal of Eastern Mediterranean gas, since it can reach European and Egyptian markets without transiting that strategic passage. According to the Atlantic Council, the region has potential for 30 to 40 billion cubic meters in yearly exports if conditions remain favorable. Egypt’s Idku and Damietta facilities continue to be the only functioning LNG export terminals in the Eastern Mediterranean.
Israel’s energy minister, Eli Cohen, stated that natural gas reinforces the nation’s economic and diplomatic standing. The country’s fifth round of offshore licensing is scheduled to conclude on January 27, 2027.
From a market perspective, growing Eastern Mediterranean gas output gives Europe and Egypt a supply route that sidesteps Gulf shipping hazards, a dynamic that can shape natural gas prices and regional security whenever tensions rise in the Middle East.
Source: OilPrice.com