BG Group at centre of $4bn deal to supply Gaza gas to Israel

[Joanne98]

May 23, 2007


BG Group is poised to agree the terms of an historic $4 billion (£2 billion) deal to supply Palestinian gas to Israel from a discovery off the Gaza coastline, The Times has learnt.

Representatives from the British energy company are scheduled next week to meet a team of negotiators chosen by the Israeli Cabinet to thrash out a 15-year contract. Despite the violence in Gaza, the Israeli Foreign Ministry has insisted that it wants to conclude a deal “as soon as possible”.

It would enable BG Group, the former owner of British Gas, to begin to develop an offshore field that is the Palestine Authority’s only natural resource. The move would mark an unprecedented milestone in Middle East relations. There would be enough gas to provide 10 per cent of Israel’s annual energy requirement, and the Palestinians would receive total royalties of $1 billion. Sources in the Middle East note that the sensitive talks could be derailed at any time by the acute political tension that surrounds the deal.

However, Nigel Shaw, the BG Group vice-president in the region, said: “We are making progress. There are commercial issues to be completed and we also require bilateral agreement between the two governments to get this project across the line. But this is a chance for greater economic prosperity in Palestine and that is only good for peace.”

Continued>>>
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article1826739.ece

I didn't know Gaza had oil and gas fields. I guess the corporate media FORGOT to mention this!


:sarcasm:

[Joanne98]

1. British Gas, Israel to freeze Hamas out of $4b. gas deal

Jul 5, 2007


Israel and the British natural gas company BG Group Plc will move ahead with controversial plans to drill for natural gas in the Gaza Marine field, despite Hamas's takeover of the Gaza Strip last month, The Jerusalem Post learned on Thursday.

The two sides have arrived at an "understanding" that will transfer funds intended for the Palestinian Authority's Palestinian Investment Fund into an international bank account, a BG source told The Post.

"Both Israel and BG intend that until the PA is able to remove Hamas from power in the Gaza Strip, the money will be held in an international bank account," the source said. "Neither side wants the money to go to fund terror-related activities."

According to the plan, BG will drill for natural gas 36 kilometers off of the Gaza coast, in an area that was designated as PA territory following the Oslo Accords. The gas will then flow four km underwater in a pipeline 850 meters below the surface to an Ashkelon refinery. The field, which BG purchased in 2000 and to which Hamas now claims rightful ownership, contains 1 trillion cubic feet of natural gas worth an estimated $4 billion, with Israel set to become the sole consumer of the resources.



Continued


http://www.jpost.com/servlet/Satellite?cid=1183459207651&pagename=JPost%2FJPArticle%2FShowFull

[lynnertic]

2. This explains why the Senate supports Israel's action in Gaza doesn't it?

[Joanne98]

4. It explains why Bush supports it.

[Vegasaurus]

3. This is almost two years old

[Joanne98]

5. I know but it never got reported here so it's new to us.

I didn't know did you?

[Igel]

6. It's been bandied about in I/P from time to time.

Sometimes it lands outside of I/P.

Recent, outside:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4785998

Old, inside:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x268481

Eveything in between is obtainable through judicious use of the great and noble google.

From time to time Israeli resource-lust is proposed as the real reason for Israel's continued occupation/blockage of Gaza, on the premise that Israel would never, but never, give up a valuable resource under any condition. Just not in their nature, I suppose, although I usually figure that says more about the people making the proposals.

On the other hand, this claim is contradicted by Israel's returning of the Sinai to Egypt. By so doing, it gave up oil fields--not huge ones, but sufficient. http://giwersworld.org/911/oil/israel-oil.phtml , for a not-exactly-pro-Israel blogger's take on it, and http://www.theisraelproject.org/site/c.hsJPK0PIJpH/b.3599867/k.A4EA/Israels_Withdrawal_from_Sinai_19791982.htm for the opposite take.

Note, however, that Israel's gas supply is at least partially in danger: Egypt supplies a hefty fraction of Israel's gas, and while this is guaranteed by treaty it's also undercut by local law, according to a recent Egyptian judge's ruling.

Also in recent news, and more to the point, is an article recently posted in this forum, IIRC. The article claims that negotiations, having continued too long, have terminated inconclusively.

[muriel_volestrangler]

7. What BG Group says on their website:

Offshore Gaza

BG Group is operator of an exploration licence covering the entire marine area offshore the Gaza Strip. Following acquisition of over 1 000 square kilometres of 3D seismic data, BG Group drilled two successful wells in 2000 (Gaza Marine-1 and Gaza Marine-2). Reserves are estimated to be around 1 tcf. In 2001, a technical review recommended a sub-sea development and pipeline to an onshore processing terminal. In 2002, an outline Development Plan was approved by the Palestinian Authority.

BG Group holds 90% equity in the licence, which would be reduced to 60% if the Consolidated Contractors Company (its current 10% partner in the licence) and the Palestine Investment Fund exercise their options at development sanction.

In December 2007, BG Group withdrew from negotiations with the Government of Israel for the sale of gas from the Gaza Marine field to Israel. In January 2008, BG Group closed its office in Israel. The Group is evaluating options for commercialising the gas.

http://www.bg-group.com/OurBusiness/WhereWeOperate/Pages/pgIsraelandAreasofPalestinianAuthority.aspx

[HeraldSquare212]

8. Next step: taking the marine area back for security reasons.

That's how it works on the West Bank, isn't it?