Israeli companies Modiin Energy LP and Adira Energy Corp. on Tuesday announced the discovery of oil and natural gas reservoirs near the Tel Aviv coastline.

According to the companies' initial assessments, the reservoirs could include some 128 million barrels of crude and 1.8 trillion cubic meters of gas. The reservoirs are located in shallow waters some 24 km off the Tel Aviv coast, the Globes business daily reported.

IDB Holding Corp., which controls Modiin Energy LP, plans to begin drilling toward the end of the year, and estimated that the oil would be available for consumption within five years.

"We found high-quality oil. A well (at the same site) previously produced 500 barrels a day. In other words, we have commercial quantities that can supply Israel's energy needs for 18 months," said IDB's CEO Haim Gavrieli, according to Globes.

"At a time of soaring oil prices, this is good news for IDB, Modiin, Adira and for the Israeli economy, which is trying to diversify its energy sources," Gavrieli added.

Israeli and U.S. companies have discovered other significant reservoirs of natural gas in the Mediterranean Sea, off the coast of the northern Israeli city of Haifa, in the past three years. The Tamar and Leviathan fields, discovered in 2009 and 2010 respectively, together contain an estimated 690 billion cubic meters of natural gas.

In February, an American-Israeli drilling consortium announced the discovery of another natural gas field some 120 km off the Haifa coast. It said the field could contain 34-37 billion cubic meters of gas.