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,...