NEW DELHI/JERUSALEM (Reuters) – Indian state-run Oil and Natural Gas Corp plans to bid for Israeli offshore oil-and-gas exploration blocks, India’s oil minister told Reuters, the first major deal between the two countries since a groundbreaking trip by Prime Minister Narendra Modi in July.
India and Israel have deep defence ties but Modi and his right wing ruling group are pushing to expand the relationship into other sectors such as energy and technology with a country they see as a natural ally against terrorism.
A high-ranking delegation from India, the world’s third-biggest oil consumer, visited Israel last month to discuss taking part in the tender for blocks in the Mediterranean Sea and Israeli officials said they were pleased with the visit.
“We will definitely bid for Israel’s oil-and-gas blocks,” Indian Oil Minister Dharmendra Pradhan told Reuters.
There was no immediate comment from Israel’s energy ministry.
When Modi visited Israel in July, both sides showed interest to build a broader economic relationship, rather than one based on defence, which had drawn them together because of similar concerns about militant threats they face. They are starting from a relatively low economic base as bilateral trade was just $2 billion in 2016.
Many oil majors have been hesitant to enter the Israeli market, fearing a backlash from oil-rich Arab states hostile to the country.
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