Israeli firm Ratio is looking to farm in to two Egyptian Mediterranean blocks. With Exxon eying the Israeli upstream, the state may no longer be the regional pariah.

Ratio oil, a privately-owned Tel-Aviv based firm, is hoping to become the first Israeli company to hold stakes in Egypt’s upstream, MEES learns.

The move is part of a deal Ratio has struck with Edison, the Italian subsidiary of French utility EdF. This will see Edison remain as operator in Israel’s Royee license, whilst Ratio, Edison’s partner at Royee take stakes in Edison’s two adjoining blocks in the Egyptian deepwater: North East Hapy and North Thekah (see map).

Edison had planned to quit Royee upon license expiry next month, but has now committed to drill an exploration well by 30 September this year as part of an extension deal under...