Jerusalem – Azerbaijan is intensifying its strategic energy expansion beyond Central Asia by deepening its involvement in Israel's lucrative energy sector. This move comes following a high-level visit by Azerbaijani officials to Jerusalem, aimed at finalizing crucial gas exploration agreements.
Led by Economy Minister Mikayil Jabbarov, the Azerbaijani delegation concluded talks that paved the way for significant advancements in offshore gas exploration. The Azerbaijan State Oil Company (SOCAR), which secured exploration rights from Israel in 2023, is now poised to commence its first drilling operations outside of Azerbaijan. Delays caused by the recent conflict in Gaza have been overcome, allowing the project to proceed.
On Monday, Israeli authorities granted exploratory licenses to a consortium comprising SOCAR, UK-based BP, and Israel’s NewMed Energy. This consortium will focus on Zone I, a vast 1,700 square kilometer area located in the northern part of Israel’s economic waters, marking a pivotal step in SOCAR’s international expansion.
Minister Jabbarov also announced the signing of a memorandum of understanding between SOCAR and the Israeli company Union Energy, solidifying collaborative exploration activities within Israel's Exclusive Economic Zone (EEZ).
Furthermore, SOCAR’s strategic investments in Israel’s energy sector were underscored by its recent acquisition of a 10% stake in the Tamar project, one of the Mediterranean’s largest offshore gas fields, as announced on January 31. This acquisition, also in partnership with Union Energy, highlights Azerbaijan’s commitment to establishing a robust presence in the Mediterranean energy market.
These developments signify a major strategic pivot for Baku, as it diversifies its energy portfolio and strengthens its ties with Israel, positioning itself as a key player in the region’s energy landscape. The collaborative ventures promise to enhance both nations' energy security and foster long-term economic benefits.
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