Azerbaijan鈥檚 state oil company, SOCAR, is set to acquire a 10% stake in Israel鈥檚 Tamar natural gas field from Israeli businessman Aaron Frenkel. While the financial details of the deal have not been disclosed, the acquisition is a significant step in SOCAR鈥檚 strategy to expand its presence in global energy markets. SOCAR is purchasing the stake from Union Energy, a company controlled by Frenkel. In 2022, Frenkel acquired an 11% stake in the Tamar field from Abu Dhabi鈥檚 Mubadala Petroleum for approximately $520 million.
The Tamar gas field, discovered in 2009, began production in 2013 and has played a critical role in Israel鈥檚 energy sector. Located about 90 kilometers west of Haifa in the Mediterranean Sea, Tamar is Israel鈥檚 second-largest natural gas reservoir, with an estimated 10 trillion cubic feet (tcf) of reserves. The field鈥檚 output has helped Israel transition toward energy independence and establish itself as a regional gas exporter. Since 2017, Israel has been exporting natural gas from Tamar to Jordan, further solidifying its role in the regional energy market.
SOCAR stated that this acquisition is part of a broader plan to invest in strategic energy assets worldwide and expand its production footprint. 鈥淭he agreement was signed subject to certain conditions being met, including customary regulatory and other approvals,鈥� the company noted. The move aligns with SOCAR鈥檚 long-term objective of securing valuable energy resources and diversifying its portfolio beyond Azerbaijan鈥檚 borders.
Tamar is operated by US energy giant Chevron, which holds a 25% stake in the field. Other stakeholders include Isramco, Tamar Investment 2, Tamar Petroleum, and Dor Gas. The field鈥檚 production is crucial for both domestic consumption in Israel and exports to neighboring countries, making it a valuable asset in the region鈥檚 energy landscape.
This deal marks SOCAR鈥檚 latest attempt to enter Israel鈥檚 natural gas sector. In 2023, the company joined forces with British energy major BP and NewMed Energy to bid for offshore gas exploration licenses near Israel鈥檚 Leviathan field, one of the world鈥檚 largest deep-water gas discoveries. That bid reflected SOCAR鈥檚 growing interest in the Eastern Mediterranean鈥檚 energy potential and its commitment to securing a foothold in the region.
Azerbaijan鈥檚 relationship with Israel carries strategic significance, particularly given its geographic position bordering Iran. The ties between the two countries have strengthened in recent years, partly due to Israeli support for Azerbaijan in its conflict with Armenia. Israel is among Azerbaijan鈥檚 leading arms suppliers, while Azerbaijan plays a crucial role in Israel鈥檚 energy security by providing oil.
SOCAR鈥檚 latest investment in Tamar highlights Azerbaijan鈥檚 ambitions to expand its global energy presence while deepening economic ties with Israel. As the energy landscape continues to evolve, this deal underscores the growing importance of regional partnerships in securing long-term energy security and economic stability.
