Azerbaijan is deepening its engagement in Israel’s energy sector, marking a significant step beyond its traditional energy alliances in Central Asia. Following a visit by Azerbaijani officials to Jerusalem, a key gas exploration deal was finalized.
Led by Mikayil Jabbarov, Azerbaijan’s Minister of Economy, the delegation’s talks were focused on solidifying Azerbaijan’s role in Israeli energy projects. In 2023, the Azerbaijan State Oil Company (SOCAR) was awarded rights to explore natural gas off Israel’s coast, but progress had been hindered by the ongoing Gaza conflict that began in October 2023.
On Monday, Israel granted exploratory licenses to a consortium that includes SOCAR, the UK’s BP, and Israel’s NewMed Energy. The consortium will search for gas in Zone I, a 1,700 square kilometer area in Israel’s northern economic waters. This marks SOCAR’s first foray into drilling outside of Azerbaijan.
Additionally, SOCAR and Israeli company Union Energy signed a memorandum of understanding to collaborate on joint exploration activities within Israel’s Exclusive Economic Zone (EEZ). SOCAR had already made waves in Israel’s energy sector when it announced in January that it had acquired a 10% stake in the Tamar project, one of the Mediterranean’s largest offshore gas fields. With these new exploration licenses, SOCAR is expanding its involvement in Israel’s energy landscape.
