Eni Withdraws From Offshore Gas Exploration Consortium in Israel

Eni S.p.A E, an Italian integrated energy company, stepped away from a consortium that was seeking to explore natural gas offshore Israel. The consortium consisted of Eni, Dana Petroleum and Ratio Energies, and the remaining partners will continue to pursue offshore natural gas exploration under a different structure.

The consortium had received six exploration licenses in Cluster G, awarded under Israel’s fourth offshore licensing round, which commenced in December 2022. The licenses include blocks 27, 28, 36, 37, 70 and 74. The blocks have not been officially awarded yet. Previously, Eni was expected to assume operatorship of these licenses. In October 2025, the company informed Israel’s Commissioner for Petroleum and its partners about its decision to exit the consortium.

Following Eni’s withdrawal, Dana Petroleum and Ratio Energies have decided to work together and apply for the license. The ownership structure and division of holdings between the two companies have not been decided yet. Ratio Energies reportedly waited before announcing Eni’s exit, as it wanted to ensure that Dana Petroleum would act as the operator of the gas field if one is discovered in the exploration process. Dana Petroleum has stated that it plans to remain in the consortium and continue the licensing process to begin exploration activities. The partners are evaluating the potential compensation that Eni will have to pay for backing out of the consortium.

E’s Zacks Rank and Other Key Picks

E currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the energy sector are Archrock Inc. AROC, Equinor ASA EQNR and Subsea7 S.A. SUBCY. While Archrock and Equinor sport a Zacks Rank #1 each, Subsea7 carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

Equinor ASA is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Equinor’s gas exports to Europe, positioning the company to benefit from heightened prices. The company’s expansion in the renewable energy space positions it for long-term growth as more countries transition toward cleaner energy solutions to meet their climate goals.

Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.

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