Israel approves SOCAR's stake in Tamar gas project

Israel’s Ministry of Energy has approved Azerbaijan’s state oil company SOCAR as a stakeholder in the Tamar gas field project located in the Eastern Mediterranean, the ministry said.

SOCAR acquired a 10% stake in the project from Israeli businessman Aaron Gover Frenkel. According to Israeli sources, the transaction was valued at approximately $1 billion.

The Tamar offshore gas field, located about 90 kilometers off the coast of Haifa, was discovered in 2009. According to estimates by consulting firm NSAI, the recoverable reserves amount to around 13.7 trillion cubic feet (roughly 380 billion cubic meters) of natural gas. Commercial production at the site began in 2013.

Current annual output at Tamar is around 10 billion cubic meters, with plans to increase production to 15 bcm over the next three years. The license for the project is valid until 2038, with the possibility of extension until 2047.

The project is operated by U.S.-based Chevron, which holds a 25% stake. Other shareholders include Israel’s Isramco (28.75%), Tamar Petroleum (16.75%), UAE’s Mubadala Energy (11%), Dor Gas (4%) and Everest (3.5%).

Gas from the Tamar field is supplied to Israel’s domestic market, regional partners, and exported to Europe.

N.Tebrizli