Azerbaijan’s SOCAR expands Mediterranean footprint with Israeli gas field acquisition

The State Oil Company of the Republic of Azerbaijan (SOCAR) has finalized the acquisition of a 10 per cent stake in Israel’s Tamar offshore gas field, marking a significant milestone in energy cooperation between the two nations.

The deal, valued at approximately $1.25 billion, was consummated following regulatory approvals from the Petroleum Council and the Israel Competition Authority, Caliber.Az reports per Israeli media.

SOCAR purchased the stake from Union Energy, controlled by Israeli businessman Aaron Frenkel, who previously held a 24.99% interest in Tamar Petroleum, the investment company overseeing part of the gas field. As part of the transaction, SOCAR acquired a 48.3% share in Union Energy and secured roughly 17.9% of Frenkel’s holding in Tamar Petroleum, consolidating its position to hold an effective 10% ownership of the Tamar gas field.

The Tamar reservoir, situated 90 kilometres west of Haifa in the Mediterranean Sea, was discovered in 2009 with production commencing in 2013. It currently boasts an annual production capacity of 10.3 billion cubic metres (BCM) of natural gas, with proven reserves estimated at 291.5 BCM. Key partners in the field include Chevron, the US energy giant and operator of the site (25%), and Abu Dhabi’s Mubadala investment fund (11%), alongside Israeli firms Isramco and Dor Gas.

SOCAR, a state-owned enterprise headquartered in Baku, manages Azerbaijan’s oil and gas sectors and has been actively expanding its international presence through investments in key hydrocarbon assets.

The Tamar gas field remains a cornerstone of Israel’s energy independence and export potential, and SOCAR’s entry as a partner is expected to enhance collaborative efforts in Mediterranean energy development.

By Vafa Guliyeva