Murphy Oil Wins Israeli Gas Exploration Licenses Near Leviathan

Murphy will operate the Zone G licenses, with each partner holding a 50% stake. The award makes the company the second U.S. operator in Israeli waters, alongside Chevron, which operates the Leviathan and Tamar fields. The partners have 36 months to drill an exploration well.

The licenses were first awarded in October 2023 to Italy’s Eni, Ratio and Dana Petroleum, which is Korean-owned. Eni delayed accepting them after the Gaza war began that month, then withdrew, citing a reallocation of investments. Israel’s financial daily Globes also reported that political pressure weighed on the decision.

Israel has halted production at its offshore gas fields twice in less than a year. Leviathan was offline for 32 days after the U.S. and Israel struck Iran in late February, and it also shut down during the June 2025 conflict. Ratio holds a 15% stake in Leviathan, which supplies Egypt under a $35 billion export contract.

Shipping disruptions in the Strait of Hormuz have increased the value of gas supplied from the Eastern Mediterranean, which can reach Europe and Egypt without passing through the Gulf chokepoint. The Atlantic Council estimates that, under favorable conditions, the region could support annual exports of 30 to 40 billion cubic meters. Egypt has the region’s only operating LNG export terminals, at Idku and Damietta.

Energy Minister Eli Cohen said natural gas strengthens Israel’s economic and diplomatic standing. The country’s fifth offshore bid round closes on January 27, 2027.