The Tamar gas field is a natural gas field in the Mediterranean Sea off the coast of Israel. The field is located in Israel's exclusive economic zone, roughly west of Haifa in waters deep. The Tamar field is considered to have proven reserves of of natural gas, while the adjoining Tamar South field has . Together, they may have an additional 84 BCM of "probable" reserves and up to 49 BCM of "possible" reserves (reserves having a 10% probability of extraction).Haifa Gas Discovery Bumped to 5 Trillion Cubic Feet Oil In Israel, 10 February 2009 At the time of discovery, Tamar was the largest find of gas or oil in the Levant basin of the Eastern Mediterranean Sea and the largest discovery by Noble Energy. Since Tamar's discovery, large gas discoveries have been made in other analogous geological formations dating back to the Oligocene–Miocene epoch in the Levant basin. Because Tamar was the first such discovery, these gas containing presalt formations have become collectively known as Tamar sands.
History In 1999, Israel's Oil Commissioner granted BG Group preliminary exploratory permits to deep-sea blocks that included the Tamar field. In December 2000, BG received an exploratory license, in a partnership that included three Israeli industrial companies, Mashav (15.6%, Dor Chemicals (7.2%), and Israel Petrochemical Enterprises (7.2%).Israel Government Yalkut Reshumot, 4953, 18 January 2001, p.1312 . In May 2001, Mashav left the partnership and BG brought in STX, Isramco, Clal Industries, and Granit-Sonol,Israel Government Yalkut Reshumot, 4989 the latter two leaving the partnership in 2004.Israel Government Yalkut Reshumot, 5359.
In December 2001, BG completed 3D seismic studies that indicated the potential of the Tamar field and of the adjoining Dalit field. BG recommended drilling an exploratory well at an estimated cost of $40 million.BG Group to invest $40 million on drilling off Haifa Coast (Hebrew)
In May 2002, the BG license was extended by the Oil Commissioner, on the condition that drilling begin no later than September 2003. In February 2003, the Commissioner extended the deadline to December 2004, and in December 2004 a further extension was given to June 2005.Isramco Negev 2 Limited Partnership FINANCIAL STATEMENTS AS AT DECEMBER 31, 2004, 10-K,· EX-99.1 During this period, BG conducted negotiations for selling gas to the Israel Electric Company.IEC confirms negotiating natural gas contract with Isramco, BG.
In April 2005, BG announced that it was abandoning its stake.Isramco Negev 2 Limited Partnership FINANCIAL STATEMENTS AS AT DECEMBER 31, 2005, 10-K,· EX-99.1 According to some reports, BG quit after being unable to conclude an agreement to supply gas to the Israel Electric Company. (Israel in mid-2005 reached an agreement to receive gas from Egypt for US, a price that BG stated it was not willing to match.BG says it will not return to Israel (Hebrew).) In May 2005, the Oil Commissioner extended the license to December 2006 and allowed the remaining partners, STX, Isramco, Dor Exploration, and Dor Chemicals to bring in the Delek-owned partnerships, Avner and Delek Drilling, on the condition that a contract for drilling be concluded by June 2006. (According to one source, Avner bought its stake from BG for one dollar).
Noble Energy joined as operator in 2006.Isramco Negev 2 Limited Partnership FINANCIAL STATEMENTS AS AT DECEMBER 31, 2006, 10-K,· EX-99.1 In 2006, the license was extended to December 31, 2008, despite the failure to begin drilling, and despite the statutory seven-year limit on oil licenses set by Israel's Oil Law. Isramco reported in 2006 that exploratory drilling was expected to cost $69 million.Isramco Negev 2 Limited Partnership FINANCIAL STATEMENTS AS AT DECEMBER 31, 2006, 10-K,· EX-99.1
Drilling of Tamar 1 began in November 2008. At the time, seismic studies indicated that there was a 35% chance that the formation contained gas. The studies further indicated that if there was gas, the median estimate for the producible quantity was 107 BCM.
Tamar 1 was drilled to a depth of at a cost of $92 million. The partners announced the discovery on January 17, 2009. On July 7, 2009, the partners announced a second successful appraisal drilling at Tamar 2, increasing the estimated reserves of the field by 26%.Noble Energy Successfully Appraises Tamar Offshore Israel In mid-2011, four more appraisal wells were drilled, with additional gas found at Tamar 3.Tamar Field--Offshore Technology In September 2011, Noble began production development.Israel began drilling in the Tamar natural gas fields despite the presence of Turkish warships
In September 2010, Noble announced that development of the Tamar field was beginning at an expected cost of $3 billion.Tamar Development Begins. In March 2012 the Tamar partners signed a 15-year, US$14 billion deal with the Israel Electric Corporation to supply it with 42 billion cubic meters (BCM) of natural gas, with an option to increase the gas purchases up to $23 billion. By March 2012, the consortium developing Tamar had signed deals worth up to a total of $32 billion with six Israeli companies, committing up to 133BCM. According to a study commissioned by the government, the prices set were significantly higher than the price that would be demanded under comparable circumstances elsewhere. In 2012, Tamar was found to be the largest air polluting plant in Israel.
Due to Delek and Noble Energy's monopolistic position in the Israeli gas market as the owners of the Tamar, Leviathan, and Karish/Tanin fields, in 2016 the Israeli government ordered the companies to sell most of their stakes in the Tamar and Karish/Tanin fields. As a result, in January 2018, Tamar Petroleum acquired 7.5% of Noble Energy's holdings in the Tamar gas field, increasing its total holdings to 16.75%. In September 2021, Delek Drilling signed an agreement to sell the remainder of its holdings (22%) to the Abu Dhabi-based Mubadala Energy company for $1.05 billion.
About a year later, billionaire Aaron Frenkel, who was part of the acquisition deal made by Mubadala in 2021, exercised his option to purchase half of the shares (11% of the gas field) for $525 million. This deal also included all the cash flow from the gas field from early 2021 until the date set for the transfer of rights, valued at an additional $75 million.
In March 2024, Frenkel acquired an additional 3.5% of the Tamar gas field from Everest (a partnership between Harel Insurance and the Israel Infrastructure Fund) for approximately 970 million shekels ($272 million), reflecting a total gas field value of about 32 billion shekels (approx. $8.5 billion). With this purchase, Frenkel's direct holding in the Tamar gas field increased to about 14.5%. Additionally, he holds about 25% of Tamar Petroleum shares, which in turn owns 16.75% of the Tamar gas field, effectively adding an additional 4.2% to Frenkel's holdings.
The stakeholders in the Tamar gas field are Isramco (28.75%), Chevron (25%), Tamar Petroleum (16.75%), Aaron Frenkel (14.5%), Mubadala (11%), and Dor Gas (4%).
On 9 October 2023, production at the gas field was temporary suspended by the Israeli government following the outbreak of the Gaza war.
In June 2025, it was announced that SOCAR acquired a 10% stake in Tamar, which is worth an estimated $1.25 billion.
Production Production is carried out by eight wells connected by a long subsea double pipe tie-back to a gas processing platform located offshore Ashkelon. First commercial gas delivery took place on 1 April 2013 after three years of development work. Total initial delivery capacity was per day or 10billion cubic metre annually. This was increased in 2015 to per day with the addition of compressors in the Ashdod reception terminal. In 2016, the reservoir produced 9.3billion cubic metre of gas, a 12% increase over the previous year. In 2018, the output from the Tamar gas field yields more than 60% of Israel's electricity. In 2022, Tamar produced 10.25billion cubic metres of gas.
Pipeline connection controversy On June 14, 2009, Shaul Tzemach, Director General of Israel's Energy and Water Resources Ministry, announced that the Ministry would rely on an analysis by Noble Energy to determine how pipelines from Tamar would connect to the national gas infrastructure. On September 22, Noble presented its analysis for connecting Tamar at a site on the Israeli coast, either adjacent to Moshav Ma'ayan Tzvi or 5 km farther north at Moshav Dor.Tamar project plans Public controversy arose over the location of a plant to clean and process the gas from Tamar. Communities in the Carmel region brought a petition to Israel's High Court in March 2010, demanding that alternative sites be considered. In July 2010, the High Court issued an injunction that the Ministry explain its decision. In August, Uzi Landau, Minister of Energy and Water Resources, announced that the connection would be to Ashdod, a move that was expected to allow Noble to complete the project by the end of 2012, in line with the original deadline.Gas to Flow to Ashdod (Hebrew)
Energy crisis and economic consequences The crisis in Egypt which began in 2011 led to sabotage of the pipeline in Sinai which supplied natural gas to Israel from Egypt. This, as well as declining production from the Israel Yam Tethys field, reduced the gas supplies to the Israel Electric Corporation and other large users, who turned to much more expensive liquid fuels until Tamar development was completed. The direct economic costs alone to the Israeli economy of the energy crisis have been estimated at NIS 20 billion.
Sheshinski Commission Through 2009, Egypt increased the price of gas being sold to the Israel Electric Company, and the Israeli joint venture of Noble and Delek Energy, producing from the Yam Tethys field, followed suit."If Egypt renegotiates contracts with IEC, we won't stand by idly" Higher prices enabled Yam Tethys profits for the third quarter of 2009 to reach new records, prompting several Knesset members to consider the need for revising the country's tax and royalty regime. On February 23, 2010, the Knesset Economics Committee held a session to discuss options for increasing taxes and royalties.Protocol 194, Knesset Economics Committee During the session, committee member Carmel Shama stated that the government revenue from oil sales, as set in the Petroleum Law (1952), was relevant in an era when exploration risks were high and profits low, which was no longer the case in 2009. Gideon Tadmor, chairman of Delek Energy, claimed that changing the tax and royalty regime would freeze exploration and development.
On 12 April 2010, in response to the Knesset concerns, Israel's Treasury Minister Yuval Steinitz established a committee to consider the country's fiscal policy regarding its gas and oil resources. Eytan Sheshinski was appointed to head the committee. By the time the committee presented its findings in January, 2011, the Leviathan gas field had also been discovered.
The main recommendations of the committee included: 1) eliminating the tax allowance for "depreciation" of a field's value as its gas and oil was produced; 2) leaving the royalty rate unchanged at 12.5%; and 3) imposing a windfall profits levy, which would reach 50% of a producer's profits once the producer had recouped a certain percentage of his exploration and development costs. The windfall profits levy was incorporated into the Petroleum Profit Taxation Law, 5771–2011, which passed in March 2011. The law set the "recoup" percentage at 280% for the Tamar field and 200% for the Leviathan field and any field that would be developed later. State income from the windfall profits levy will be set aside in a sovereign wealth fund called the Israeli Citizens' Fund.