BP Secures Israeli Offshore Gas Licenses With SOCAR, NewMed

BP plc BP, the UK-based energy major, has secured a foothold in Israel’s offshore gas exploration sector through a newly granted set of licenses, marking a strategic move alongside Azerbaijan’s SOCAR and NewMed Energy. This joint venture, approved by Israel’s Ministry of Energy and Infrastructure, will explore six blocks within the country’s Exclusive Economic Zone (“EEZ”), strengthening Israel’s energy security and boosting its export potential.In a competitive bidding round, BP, SOCAR, and NewMed Energy successfully secured exploration rights to six offshore blocks — licenses 4, 5, 6, 7, 8 and 11 — within a cluster referred to as Zone I. This 1,700-square-kilometer area, located in northern Israeli waters, has remained largely untapped in terms of natural gas potential. SOCAR will serve as the operator for all licenses, marking its first natural gas venture outside Azerbaijan.Eli Cohen, Israel’s minister of Energy and Infrastructure, highlighted the significance of BP and SOCAR’s entry in the country’s gas sector, emphasizing the strategic role of natural gas in strengthening Israel’s economic and geopolitical standing. He noted that the move aligns with the nation’s goal of expanding domestic production and exports.BP’s involvement in Israel’s offshore exploration aligns with its broader strategy to expand its global natural gas footprint. The company has been actively diversifying its energy portfolio with a strong focus on natural gas as a transition fuel. This latest move follows BP's recent ventures in other energy-rich regions, positioning it as a key player in the Eastern Mediterranean’s growing gas market.The joint venture’s immediate focus will be on conducting seismic surveys and geological studies to assess the viability of drilling exploration wells. The Ministry of Energy anticipates that the companies’ initial investments will amount to tens of millions of dollars, with further capital inflows expected as exploration progresses.The Israeli government has been actively granting new licenses to bolster its energy security and enhance its position as a regional gas exporter. Chevron and its partners, including NewMed and Ratio Energies, recently submitted an updated reservoir development plan aimed at increasing production capacity. Additionally, NewMed has extended its reach beyond Israel by partnering with OMV Petrom for hydrocarbon exploration in Bulgaria’s Black Sea.With a fifth bid round expected to launch soon, Israel’s push for further natural gas exploration presents new opportunities for international energy firms. BP’s entry into the market highlights the increasing attractiveness of Israel’s offshore resources, paving the way for potential long-term energy partnerships and investment growth.As BP, SOCAR and NewMed embark on this exploration journey, the results of initial surveys will determine the next steps, potentially leading to new drilling operations and an expanded natural gas supply for both domestic consumption and export markets.BP’s Zacks Rank & Key PicksBP currently carries a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and W&T Offshore, Inc. WTI. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. The company operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030. W&T Offshore leverages its strong Gulf of Mexico assets, which offer low decline rates and significant untapped reserves. The company recently expanded its portfolio with six shallow-water field acquisitions, adding substantial proven and probable reserves. Focused on high-return organic projects, WTI has maintained positive cash flows for 27 consecutive quarters.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report W&T Offshore, Inc. (WTI): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks