PetroMed, a Canada-based oil and gas exploration company, announced earlier this week that it had officially received permit approval from the National Infrastructures Ministry to begin exclusive exploratory pursuit of hydrocarbons off the coast of Haifa.

The permit area covers 3,500 square kilometers.

PetroMed operates from Canada but also has offices in London and Tel Aviv. It recently went public on the Frankfurt stock exchange.

PetroMed's chairman and CEO, Hagai Amir, said the company's mission was to help Israel free itself of dependence on importing oil and gas.

Amir noted Israel consumes some 385,000 barrels of oil a day, yet produces fewer than 1,000 barrels.

"This immense energy deficit is reflected in a balance of payments hemorrhage for Israel of over $14 million daily," he said.

According to the company's press release, "Our pre-drilling budget for the exploratory process is about $17.2 million through first quarter 2008, at which point PetroMed will be in a 'drill-ready' posture."

After completing this initial stage, PetroMed plans to receive the requisite drilling license for five to seven years. Successful drilling could lead to a production license for the next 30 to 50 years.

Some six months ago, National Infrastructures Minister Benjamin Ben Eliezer signed an order allowing offshore oil exploration, overriding a previous order from 2000 that closed the sea to such exploration. The previous order was meant to allow amending the oil law to increase state revenue in the wake of natural gas discoveries off the Ashkelon and Gaza coasts.