Israel Oil and Gas Exploration and Production Market Volumes and Forecast by Terrain, Assets and Major Companies, 2021-2025
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Israel’s total gross crude oil and condensate production capacity in 2020 was valued at 2,081 barrels per day (bd) and is projected to grow at a CAGR of more than 30% by 2025. The marketed natural gas production capacity of Israel in 2020 was valued at 1,303 million cubic feet per day (mmcfd) and is expected to increase with a CAGR of more than 15% by 2025. Israel’s oil and gas resources are produced both onshore and offshore. Onshore producing assets date back to the 1950s, whilst its offshore sector is fairly immature, particularly in ultradeep water. The primary hydrocarbon resource is natural gas, and the country is forecast to see potential growth in gas production by 2025. The increase in domestic gas production aligns with the country’s ambitions for more gas power in its generation mix. Israeli domestic gas production is sufficient to meet its demand needs while also exporting to supply neighboring Jordan and Egypt. On the other hand, production from onshore assets represents the Israeli crude oil production and is likely to continue to decline over the coming years as it is unclear whether the investment will continue to be made in the producing fields.
Overview of Israel total crude oil and condensate production
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What are the market dynamics of Israel’s exploration & production sector?
The outlook for Israel’s hydrocarbon production is strong. The growth in production is forecast to continue out to 2025 as Leviathan output reaches a plateau and volumes are introduced from the Karish field in 2021. However, the output may be constrained due to export capacity availability and/or weakened gas demand. The under-construction Karish project continues to make progress, however, the startup has been delayed due to COVID-19 disruptions at the FPSO construction yard, pushing the first gas too late 2021.
In 2021, total production in Israel is expected to jump by just under 50% compared to 2020 The significant increase is driven by the ramp-up in Leviathan Phase 1, which came online in late 2019 as well as the startup of Karish field. Despite this increase, both the Leviathan and Tamar fields had their production forecast revised downward in 2020. A reduction of LNG exports out of Egypt due to marginal pricing, coupled with weaker regional gas consumption were the main reasons for the revisions. The Karish North discovery announced in 2019 by Energean Israel Ltd, was discovered by the Karish North -1 exploration well after a second sidetrack. The discovery comes after a number of years of muted exploration drilling activity in the country. The discovery lies in the adjacent structure to the already discovered Karish field and is estimated to contain over 1.3 tcf of natural gas and 50 million barrels of liquids. Energean have another 3 exploration wells planned to be drilled following the Karish development well drilling campaign. A 3rd Offshore Bid Round was announced in June 2020 and closed in September 2020. The only block on offer, Block 72 exploration license, is located near major gas fields Karish and Tanin. The successful bidder has yet to be announced. No further bid rounds have been reported.
In April 2021, Delek Drilling announced it intends to sell its remaining 22% interest in the Tamar Project, Offshore Israel to Mubadala Petroleum for approximately $1.1 Billion. Delek is obliged by the Israeli government to sell its stake in Tamar by the end of 2021 to encourage more competition in the domestic gas sector. In October 2020, Chevron Corp completed its acquisition of Noble Energy. The deal is significant for Israel in that the producing offshore gas fields Tamar and Leviathan will now be operated by Chevron, a world-class operator with ultra-deepwater experience. In May 2020 Delek Group stated its intentions to sell rights to royalties in two Leases that contain the Karish and Tanin discoveries, as part of the company’s exit strategy out of the current “energy market crisis”. In April 2020, Delek Group also finalized the divestment of its shares in Cohen Development Gas & Oil Ltd, another move to build the company’s financial stability during times of market volatility.
What are the key categories of Israel’s crude oil and natural gas production?
By terrain, Israel’s crude oil and condensate production are categorized into onshore and ultra-deepwater. Israel’s natural gas production is categorized by terrain into onshore, deepwater, and ultra-deepwater.
Israel’s gross crude oil and condensate production is categorized by assets including Karish, Leviathan Phase 1A, Tamar, Meged, Heletz, Brur and Kokhav, and others. Karish is the leading asset followed by Leviathan Phase 1A, Tamar, Meged and Heletz, Brur, and Kokhav. Israel’s marketed natural gas production is categorized by assets including Leviathan Phase 1A, Tamar, Karish, Zohar, Yam Tethys, and others.
Israel total gross crude oil and condensate production, by terrain
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Which are the major companies in Israel’s exploration & production sector?
The key companies of Israel’s crude oil and condensate production include Energean PLC, Delek Group Ltd, Chevron Corp, Isramco Negev 2 LP, Givot Olam Oil Exploration Limited Partnership (1993) and Ratio Oil Exploration Ltd Partnership, and others. The key companies of Israel’s natural gas production include Delek Group Ltd, Chevron Corp, Isramco Negev 2 LP, Energean PLC, Tamar Petroleum Ltd, Ratio Oil Exploration Ltd Partnership, and others. Energean PLC is the leading company with licensed blocks followed by Ratio Oil Exploration Ltd Partnership, Cairn Energy Plc, Delek Group Ltd, Pharos Energy Plc, and Chevron Corp.
Israel exploration & production sector, by key players
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Market report scope
Market Production (Year – 2020) | Crude oil and condensate production: 2,081 barrels per day (bd)
Natural gas production: 1,303 million cubic feet per day (mmcfd) |
Growth | Crude oil and condensate production: CAGR >30% during 2021-2025
Natural gas production: CAGR >15% during 2021-2025 |
Base year for estimation | 2020 |
Key categories | Onshore, deepwater, and ultra-deepwater |
Key Companies | Energean PLC, Delek Group Ltd, Chevron Corp, Isramco Negev 2 LP, Givot Olam Oil Exploration Limited Partnership (1993), and Ratio Oil Exploration Ltd Partnership |
Scope
This report provides an overview of Israel’s exploration & production sector. The report includes:
- Israel’s oil and gas production outlook by assets terrain, and major companies.
- Key details of active and upcoming oil and gas assets in the country.
- Recently licensed blocks details, licensed blocks count by company, and latest discoveries.
- Latest mergers and acquisitions, and awarded contracts related to the E&P sector in the country.
Reasons to Buy
- Gain a strong understanding of Israel’s E&P sector.
- Facilitate decision-making based on strong historical and outlook of oil and gas production data, licensed blocks details, and discoveries.
- Assess your competitor’s production outlook and licensed blocks count in the country.
- Analyze the latest M&A landscape and awarded contracts related to the country’s E&P sector.
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Frequently asked questions
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What was the crude oil and condensate production capacity of Israel in 2020?
Israel’s total gross crude oil and condensate production capacity in 2020 was valued at 2,081 barrels per day (bd).
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What is the growth rate of Israel’s crude oil and condensate production?
Israel’s crude oil and condensate production capacity is expected to increase by a CAGR of more than 30% during 2021-2025.
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What was the marketed natural gas production capacity of Israel in 2020?
The marketed natural gas production capacity of Israel in 2020 was valued at 1,303 million cubic feet per day (mmcfd).
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What is the growth rate of Israel’s natural gas production?
Israel’s natural gas production is expected to increase by a CAGR of more than 15% during 2021-2025.
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Who are the major players in Israel’s exploration & production sector?
The key companies in Israel’s exploration & production sector include Energean PLC, Delek Group Ltd, Chevron Corp, Isramco Negev 2 LP, Givot Olam Oil Exploration Limited Partnership (1993), and Ratio Oil Exploration Ltd Partnership.
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