Cyprus has looked to Israel to pool their respective gas finds in order to build a gas processing facility on the island that could be used to supply domestic demand and liquefy it for export.
Experts say the most obvious route to Europe from Israel would be through Cyprus, then to Turkey, but those traditional enmities could block such a solution. Cyprus fears that Israel may instead opt to sign a deal to pipe its excess gas to Turkey directly via a pipeline in order to reach European markets.
Brenda Shaffer, an expert on natural gas at Israel's Haifa University, noted that the renewed alliance opens the door to cooperation with Turkey, a large market and rising player on the global stage.
"Cyprus can never replace Turkey in terms of geopolitical value for Israel," she said.
Meanwhile, entering the European market risks placing Israel at odds with Russia, a natural gas juggernaut that supplies much of Europe. Russian energy giant Gazprom has shown interest in working with the consortium drilling off Israel's coast, which observers say may reflect a desire to ensure a role in the region's gas projects.
There are more challenges closer to home. The maritime border between enemies Lebanon and Israel is disputed. Although it appears no major gas sits in the contentious area, tensions have flared over the disagreement. The Hezbollah militant group, which battled Israel to a stalemate during a monthlong war in 2006, has threatened to use force to protect what it says is Lebanon's natural wealth.
Any infrastructure Israel builds is vulnerable to attacks from the myriad militant groups in Egypt, the Gaza Strip and Lebanon. Sending gas to a processing plant in Egypt, one of the many ideas floated, is contingent upon whether the tenuous peace agreement between Israel and Egypt remains intact. Egypt's own gas exports to Israel have ground to a halt following more than a dozen pipeline attacks by militants in Egypt's Sinai desert.
But some opportunities are at hand. No longer reliant on Egypt, Israel will have a stable source of energy, along with a chance to strengthen ties with its neighbors by providing clean energy that is cheaper than oil.
An official from Israel's Energy Ministry said the government has "an interest" in providing energy to Jordan and the Palestinians. He spoke on condition of anonymity because the government has not made any firm decisions.
Jordan, in particular, makes sense for Israel. Jordan signed a peace agreement with Israel in 1994, and new commercial ties would help cement that peace.
Jordan, which has also seen its gas supplies disrupted by the repeated pipeline attacks in Egypt, would also benefit from a stable source of energy. These disruptions from Egypt have forced Jordan to use oil to fuel its electric plants.
A Jordanian government official said Jordan would be interested in Israeli gas "if it's cheap." He spoke on condition of anonymity because no decisions have been made.
Although Israel has a head start, it has yet to determine how much of its gas will be sold abroad, how to ship it overseas and which markets it may serve.
A 2012 inter-ministerial report recommended that Israel preserve enough gas for itself for a 25-year period, leaving just over half of its estimated reserves for potential export. Those recommendations have yet to be adopted, and for now, only deals with Israel's national electricity provider and other local industry are in place.
Once it does forge its export policy, Israel will look to strike a balance between diplomacy and commercial viability.
"Gas is always very political," said Shaffer. "The politics have to support the commercial interests, but if the commercial interests aren't there, the politics aren't enough."
Associated Press writers Menelaos Hadjicostis in Nicosia, Cyprus, Dale Gavlak in Amman, Jordan, and Bassem Mroue in Beirut contributed to this report.