Israeli Oil Giant Delek Eyeing Morocco For Offshore Drilling Venture

Rabat - Israeli oil conglomerate Delek Drilling is in talks with Moroccan authorities to acquire an offshore oil and gas exploration license in the country, according to reports in the Israeli media.

Speaking in Tel Aviv, Delek Drilling CEO, Yossi Abu, said that the oil group is looking to secure exploration permits extending to both Morocco’s Mediterranean Sea and Atlantic Ocean coasts. “Morocco has significant geological and commercial potential,” Abu said.

Political and regulatory stability is driving Morocco’s green transition to produce electricity from gas rather than coal, Abu explained.

Delek Drilling recently changed its name to NewMed Energy. The group controls significant offshore oil and gas reserves in the North Sea through its Ithaca Energy subsidiary.

As the Israeli company sets its sights on entering the liquified gas business, said Yitzhak Tshuva, NewMed’s largest shareholder, its aim is to strengthen its foothold in the Middle East and North Africa (MENA) region through regional cooperation.

NewMed will further invest in developing technological assets with the aim of reducing its carbon footprint, Tshuva noted.

Over the past decade, the company has unlocked eight natural gas reservoirs, including some of the largest in the world. In 2021, the company struck a $1 billion deal with Abu Dhabi’s state-held Mubadala over 22% stake in the offshore Tamar gas field on the Israeli coast.

The company’s future expansion plans include boosting gas exports to Egypt via Jordan.

The news comes days after Morocco and Israel declared interest in boosting economic ties by quadrupling their trade volume. While trade between the two countries has already doubled over the past year, increasing from $70 million in 2020 to $130 million in 2021, Israel’s Economy Minister recently said that her country aims to further increase trade volume with Morocco to $500 million or more.