Energy diplomacy: Israel, Azerbaijan elevate cooperation to new level Expert opinions on Caliber.Az

On March 17, Azerbaijan’s Minister of Economy, Mikayil Jabbarov, and Israel’s Minister of Energy, Eli Cohen, signed an agreement on gas exploration in Israel’s exclusive economic zone. Analysts believe this move underscores the strategic importance of the Azerbaijan-Israel alliance. A consortium comprising Azerbaijan’s SOCAR, Britain’s bp, and Israel’s NewMed Energy has been granted exploration rights for an offshore block.

New licenses will be issued for Cluster I—an area covering approximately 1,700 square kilometres in the northern territorial waters of Israel. For SOCAR, this represents yet another step in strengthening its position in Israel’s energy market, following its acquisition of a 10% stake in the Tamar gas field earlier this year.

What opportunities does this project create for Israel-Azerbaijan cooperation? To explore this question, Caliber.Az reached out to Israeli experts and political analysts.

Mikhail Finkel, an international expert and rabbi, believes that the agreements reached between Azerbaijan and Israel hold strategic significance and possess long-term potential.

"Azerbaijan's selection as a partner is driven by its high level of expertise in hydrocarbon exploration, extraction, and transportation. Azerbaijan has extensive experience in this area, surpassing Israel's, as the country is one of the leading players in the global energy market.

The involvement of Azerbaijani specialists in the development of gas fields on Israel's continental shelf ensures efficiency and professionalism in carrying out the work. This agreement reflects not only economic but also political independence for Azerbaijan. Signing this deal demonstrates Baku's sovereign foreign policy, as it independently chooses its strategic partners without external pressure. Israel, in turn, views Azerbaijan as one of its closest allies. While the United States remains Israel's primary strategic partner, Azerbaijan holds second place in this regard, surpassing many other countries.

The cooperation between Israel and Azerbaijan has deep historical roots. During World War II, Azerbaijan played a crucial role in the victory of the Red Army by supplying Baku oil to the front and sending thousands of soldiers to fight. Today, Azerbaijani oil has become a key resource for Israel: more than 50% of all imported oil comes from Azerbaijan. This strengthens Israel's energy security and enhances economic ties between the two countries.

Israel intends not only to receive energy resources but also to share its technologies and experience with Azerbaijan in various fields, including innovation, agriculture, and security. This cooperation benefits both countries and will contribute to further strengthening bilateral relations. The signing of this agreement marks an important milestone in the development of Israeli-Azerbaijani partnership, which is based on mutual respect, benefit, and strategic trust," said Finkel.

Mikhail Shafranov, an Israeli journalist and economic commentator for Newsru.co.il, believes that for Azerbaijan's SOCAR, this contract provides at least one key advantage — access to the Mediterranean Sea.

"For Israel, the deal involving SOCAR and bp is important for several reasons," said the expert. "The circle of companies operating in the Israeli market is expanding, including the arrival of another representative from the 'big oil and gas seven' — bp. Relations with Azerbaijan are a strategic asset for Israel not only because of oil supplies but also due to Azerbaijan's geopolitical position, sharing a border with Iran.

Furthermore, Cluster I is located at the intersection of the economic zones of Israel, Lebanon, and Cyprus. If a deposit is discovered, part of which lies in Cyprus's or Türkiye's waters, the project’s implementation could become more resilient to political obstacles," said Shafranov.