Why is Zone G considered a strategic location for Murphy Oil?

Zone G is located immediately adjacent to the Leviathan field, sharing similar geological characteristics that have already proven to hold massive gas reserves. Its proximity to existing infrastructure makes it an ideal hub-and-spoke exploration target for a new entrant.

Does Murphy Oil have experience in deepwater environments like the Levant Basin?

Yes, Murphy Oil is a seasoned deepwater operator with significant experience in the Gulf of Mexico and offshore Brazil. Their technical expertise is well-suited for the high-pressure, deepwater challenges typical of the Eastern Mediterranean's gas plays.

How does this impact the regional energy security of the Eastern Mediterranean?

By bringing in a new operator, Israel reduces its reliance on a small group of companies, fostering a more resilient energy sector. This diversification potentially increases the total volume of gas available for regional export to Europe or Egypt, enhancing overall energy security.

Offshore Engineer · November 9, 2026 (3h ago) · 1 min read

Murphy Oil Secures Six Offshore Israel Licenses Near Leviathan Gas Field

Leviathan

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Murphy Oil's entry into Israel's offshore sector via Zone G represents a significant diversification of the regional operator landscape. By securing licenses adjacent to the massive Leviathan field, the US independent is betting on the untapped potential of the Levant Basin's deeper structures. This move underscores the continued attractiveness of the Eastern Mediterranean despite geopolitical volatility, signaling confidence in long-term export infrastructure.

Key Facts

Murphy Oil Corporation has been awarded six exploration licenses in Zone G, located in the northern part of Israel's Exclusive Economic Zone.
The licenses are strategically positioned in close proximity to the Leviathan gas field, which is the largest subsea gas discovery in the Mediterranean.
This acquisition marks Murphy Oil's first operational footprint in the Eastern Mediterranean, expanding its global deepwater portfolio.
The award follows Israel's fourth offshore bidding round, which aimed to increase competition and exploration activity in the Levant Basin.
Murphy Oil will serve as the operator of the licenses, bringing its expertise in deepwater exploration to the Israeli offshore sector.
The exploration program is expected to target geological horizons similar to those hosting the Tamar and Leviathan reservoirs.

Background & Context

The Eastern Mediterranean has transformed into a global gas hub since the discovery of Tamar in 2009 and Leviathan in 2010. Israel has conducted several offshore bidding rounds to attract international oil companies beyond the initial pioneers like Noble Energy, which was later acquired by Chevron. Zone G was identified as a high-potential area during the 2023-2024 licensing cycles, aimed at bolstering domestic supply and regional export capacity through the EastMed pipeline or LNG facilities in Egypt.

Market Impact

Murphy Oil's entry introduces a new, technically proficient US independent into a region dominated by Chevron and European majors. This increases competitive pressure and could accelerate the pace of exploration in the northern Levant Basin. For Israel, securing a mid-sized US player validates its regulatory framework and resource potential amidst ongoing regional tensions. The proximity to Leviathan suggests that any discovery could potentially leverage existing subsea infrastructure, lowering development costs and time-to-market.

What to Watch

In the coming 12-24 months, Murphy Oil will likely conduct seismic data reprocessing and environmental impact assessments before committing to a firm drilling schedule. The industry will watch for the announcement of a specific prospect name and the selection of a drilling rig, likely in late 2027 or early 2028. Success in Zone G would likely trigger further interest in adjacent blocks and could influence the scale of the Leviathan Phase 1B expansion.

Why This Matters for Cyprus

The development of Zone G is highly relevant to Cyprus as it sits in the same geological province as the Aphrodite and Cronos discoveries. Increased activity in northern Israeli waters often leads to cross-border data sharing and could revive discussions regarding joint infrastructure or unitization agreements for reservoirs that might straddle maritime boundaries.

Frequently Asked Questions

Why is Zone G considered a strategic location for Murphy Oil?: Zone G is located immediately adjacent to the Leviathan field, sharing similar geological characteristics that have already proven to hold massive gas reserves. Its proximity to existing infrastructure makes it an ideal hub-and-spoke exploration target for a new entrant.
Does Murphy Oil have experience in deepwater environments like the Levant Basin?: Yes, Murphy Oil is a seasoned deepwater operator with significant experience in the Gulf of Mexico and offshore Brazil. Their technical expertise is well-suited for the high-pressure, deepwater challenges typical of the Eastern Mediterranean's gas plays.
How does this impact the regional energy security of the Eastern Mediterranean?: By bringing in a new operator, Israel reduces its reliance on a small group of companies, fostering a more resilient energy sector. This diversification potentially increases the total volume of gas available for regional export to Europe or Egypt, enhancing overall energy security.

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