After losing its partnership with Italian oil and gas giant ENI because of political considerations, Ratio has secured an alternative partner for gas exploration in Israel’s Exclusive Economic Zone: US company Murphy Oil Corporation (NYSE: MUR), which will hold a 50% stake in the exploration license. With this move, the Ministry of Energy has officially granted Ratio the license it won in late 2023, despite a delay of over three years. The company now has up to three years to carry out exploration activities in the hope of discovering new gas reserves in the Israeli Mediterranean.
Murphy Oil is a US oil and gas company with operations in the US itself, Canada, Vietnam, and Ivory Coast. In early 2026, the company achieved a significant milestone by discovering an oil reservoir containing 430 million barrels off the coast of Vietnam. Now, it is looking to invest in gas exploration in Israel.
In the fourth offshore gas exploration licensing round, held in mid-2023, a consortium comprising Ratio (a minority partner in the Leviathan field, holding a 15% stake in Israel’s largest gas reservoir), Italian giant ENI, and Korean-owned oil and gas firm Dana Petroleum, was awarded a gas exploration license. Following the outbreak of war in October 2023, however, ENI delayed formal acceptance of the license. This was while a competing group consisting of NewMed, Britain’s BP, and Azerbaijan’s SOCAR had already secured its license and commenced active exploration. While the official explanation cited a strategic reallocation of investments, in reality, pro-Palestinian groups had pressured ENI; the company was evidently reluctant to enter Israel given the highly sensitive political situation.
32 Months for active exploration
In May 2026, Ratio reported a partnership with a new international operator, but the formal announcement was delayed by another six months. The Ministry of Energy, whose deadline for exercising the license had long since passed, granted Ratio’s request, authorizing the company to proceed with the exploration license alongside its new partner. Another of Ratio’s international partners, Dana Petroleum, is not participating in the exploration phase at this time; consequently, the exploration license is held by Ratio and Murphy on a 50-50 basis. Exploration activities will take place within "Cluster G," for which the companies secured exploration rights.
The two companies now have 32 months to conduct active exploration and must drill a costly exploration well within 36 months. Should these efforts yield positive results, a new natural gas reservoir could be discovered in Israel. Such a discovery would be highly significant for Israel’s energy sector: it would foster greater competition in the domestic market just as a wave of new power plants is being constructed, and alleviate pressure from export restrictions intended to reserve Israeli gas for domestic use over the next 20 years. NewMed, the main partner in the Leviathan field, is also actively searching for gas in a different area of the Mediterranean.
In a press release, Ratio states: "Time and again, the company has succeeded in attracting firms with the necessary experience and capabilities to invest in Israel and advance the exploration and development of new energy sources, even during this complex geopolitical period. It was Ratio that brought US company Murphy into drilling operations in 'Cluster G'."
Minister of Energy and Infrastructures Eli Cohen said, "Natural gas is a strategic asset that strengthens our economic and diplomatic standing globally, and particularly in the Middle East. My policy is therefore to expand natural gas exploration, attract international energy giants to invest in Israel, and increase natural gas production both for the domestic market and for export."
Published by Globes, Israel business news - en.globes.co.il - on November 9, 2026.
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