Azerbaijan's state-owned energy company SOCAR has made its first Mediterranean upstream investment in the form of a 10% stake in Israel’s Tamar gas field.  SOCAR has stated this is part of a deliberate strategy to expand its footprint by acquiring “stakes in strategic assets in foreign countries.”  Given the close relationship between Israel and Azerbaijan, largely revolving around the sale of oil and weapons, this investment strengthens an already solid international partnership. 

Discovered in 2009 and producing natural gas since 2013, Tamar is Israel’s second-largest gas reservoir.  The field currently produces 1.1 billion cubic feet (BCF) of gas a day with estimated reserves of 389 billion cubic meters (BCM).  Covering an area of approximately 100 square kilometers 90 km west of Haifa, gas is extracted from six production wells.  Previously, Chevron was the only company able to operate these rigs; however, this new investment from SOCAR means the field will have a new company capable of operating the platforms.  

 On January 31, SOCAR signed an agreement to purchase its stake from Union Energy, noting that the deal will come into effect subject to the necessary regulatory and other approvals.  Other major stakeholders in the field include the U.S. energy titan Chevron (with 25% ownership), as well as various Israeli and Emirati investors Including investments through Isramco (28.7%), Tamar Petroleum (16.8%), Tamar Investment 2 RSC owned by Mubadala Petroleum (11%), Alon Natural Gas Exploration (4%), and Everest Infrastructure (3.5%).  Natural gas from Tamar is primarily used to meet Israel’s domestic energy demands or exported to Egypt and Jordan through a network of pipelines.

 This marks SOCAR’s first investment into Israeli natural gas production, but the company has been involved in exploration since 2023, when it was granted a three-year license to explore an area north of the Tamar field alongside a consortium including the British oil and gas firm BP, and NewMed Energy.

Source: Tamar Petroleum

The investment in Tamar adds to SOCAR’s expanding global footprint.  The company already has representation in 13 countries, spanning three continents.  Azerbaijan and Israel enjoy robust commercial ties, with the supply of Azerbaijani oil to Israel and Israeli weapons to Azerbaijan as key examples.  This new investment in Israeli gas is another positive sign for the future of this strategic relationship.

SOCAR Global Footprint

Map of countries with SOCAR representation      Source: SOCAR