Gaza Marine

History

The Gaza Marine natural gas field was discovered in 2000 in water that is legally under the control of the Palestinian National Authority. It is located about 36 kilometres (22 mi) offshore at a depth of 2,000 feet (610 m). It has around 1.4 trillion cubic feet of gas and an estimated value of 2.4 to 7 billion dollars. In 1999, the then leader of the Palestinian Authority, Yasser Arafat, made a deal with British Gas (BG), that gave BG 25 years to exploit the oil fields. In 2000, BG discovered the Gaza Marine Gas Field. It has enough energy to supply Palestinian territories and still have a surplus for export, making the Palestinian territories more energy independent. After this agreement was signed in 1999, the rights were divided. BG had 60 percent, Consolidated Contractors Company had 30 percent, and the Palestine Investment Fund (PIF), under the control of the Palestinian Authority, retained 10 percent. Despite many attempts to strike a deal with BG to open the Gaza Marine Gas Field, it is still unexploited. Two of the main parties involved in the negotiations are the Israel Electric Corporation (IEC) and Egypt, who seek to convert the natural gas into liquefied natural gas to export. The gas field remains unexploited for political and historical reasons although when it was first discovered the media coverage projected it to be a subject which could lead to cooperation and negotiation between Israel and Palestine, offering benefits to both parties.

Israeli involvement

In 2000, BG proposed to supply gas from Gaza to the IEC. IEC refused, claiming that gas from Egypt was less expensive. Around the same time, from 2001 to 2002, Ariel Sharon, the then Prime Minister of Israel, vetoed any purchase of Palestinian gas. In late 2004 and early 2005, Arafat died. He was succeeded by Mahmoud Abbas. In 2006 Sharon was replaced by Ehud Olmert. Both of these political shifts in leadership led to a more cooperative climate for negotiations. Negotiations between BG and Israel began again in 2007 and a contract was drafted, set to start in 2009. It stated that Israel would purchase .05 trillion cubic feet of natural gas from Palestine in exchange for 4 billion dollars annually. The money was to go into an account not accessible directly by the Palestinian National Authority.

In the 2006 elections in the Palestinian territories, Hamas, a group recognized internationally as a terrorist group, gained control of the parliament. This change, paired with the outbreak and intensification of the second intifada which had lasted from 2000 to 2005, affected Israeli's decision. As Hamas took control of the Gaza Strip in 2007 (the Palestinian Authority continued to have control over the West Bank) Israel claimed that any monetary profit from the gas deal would help to finance Hamas, whom Israel felt would use the profit to terrorize Israel. By the end of 2007, the deal had stalled again. In 2012 more negotiations between the Palestinian Authority and Israel began. Hamas opposed the deal and the negotiations once again halted.

Ownership and access disputes

Israel and the Palestinian Territories are situated in close proximity to many other countries: Lebanon and Syria are to the north, while Cyprus, an island that rests nearby in the Mediterranean sea, is to the west just below Turkey. To the south is Egypt, a major energy supplier to Israel. The gas fields that lie under the Mediterranean do not conform to national borders. Lebanon and Egypt objected to Israel's claims to certain gas fields. And Israel has tightened ties with Cyprus over gas field negotiations. Regionally, the discovery of gas fields has led to increased tension between these closely placed countries.

Maritime law and Israeli occupation in the Palestinian Territories also complicated the question of who owns the Gaza Marine gas field. Although they are legally under the jurisdiction of the Palestinian Authority as a result of the Oslo Accords, Israeli forces have prevented Palestinians physical access to the resources available offshore.