BP, SOCAR, and NewMed Move Ahead with Israeli Offshore Gas Project

In a key development for the Eastern Mediterranean energy sector, Israel has approved a long-delayed offshore gas exploration license to a consortium comprising British energy major BP, Azerbaijan’s state-owned oil company SOCAR, and Israel-based NewMed Energy. The license, located in Zone I—a 1,700-square-kilometer block in Israel’s northern exclusive economic zone—was originally awarded in October 2023 but had been frozen due to the outbreak of the Israel-Hamas war.

Joint statements from Israel’s Energy Ministry and Azerbaijan’s Minister of the Economy now confirm the project is moving forward.

Azerbaijan Strengthens Energy Ties with Israel Despite Regional Tensions

While BP’s continued involvement signals confidence in Israel’s gas potential, SOCAR’s decision to proceed as project operator during wartime underscores deepening Israel-Azerbaijan relations. Baku has supplied crude oil to Israel for nearly two decades and maintains security cooperation and defense technology ties with Tel Aviv.

The move also illustrates Azerbaijan’s ability to balance complex regional relationships—maintaining ties with Turkey, Iran, and Russia, while preserving a strategic alliance with Israel. This balancing act becomes especially significant as Turkey’s rhetoric toward Israel intensifies amid the ongoing Gaza conflict.

Potential Energy Bridge Between Israel and Turkey

The renewed gas exploration effort could create a new export corridor linking Israeli gas reserves to Turkey and beyond. While domestic demand in Israel is saturated, the country needs viable export routes to attract more development. Azerbaijan’s presence could act as a stabilizing force, branding future gas exports as “Azerbaijani-produced,” and potentially insulating energy deals from Turkish-Israeli political tensions.

A precedent exists: Azerbaijani crude flows through Turkey to Israel have continued uninterrupted even during periods of diplomatic strain.

Export Options: Egypt, Turkey, or Direct Pipelines?

With Israel’s gas deals with Egypt hampered by supply issues, and plans for EastMed pipelines via Greece and Cyprus repeatedly delayed, Turkey is emerging as a logical export partner due to its existing infrastructure and strategic ambition to be a regional energy hub.

One option includes leveraging the Arab Gas Pipeline—currently used to transport Israeli gas to Jordan and Egypt—which could be reversed to reach Turkey. Another is the long-discussed underwater pipeline directly connecting Israel and Turkey, though this remains hampered by political uncertainties.

Mutual Gains in a Volatile Region

This new trilateral gas partnership offers economic and strategic advantages for all parties:

• Israel secures a reliable foreign partner and potential access to new gas markets.

• Azerbaijan expands its international energy presence while strengthening its role as a regional diplomatic broker.

• Turkey stands to benefit from renewed energy flows and potential downstream exports to Europe.

As the energy cooperation deepens, Azerbaijan may also help mediate disputes over maritime zones or resource-sharing in the East Mediterranean—offering both political leverage and diplomatic utility in EU and U.S. circles.