Gaza Marine

Gaza Marine is a natural gas field off the coast of the Gaza Strip.

History

The Gaza Marine natural gas field was discovered in 2000 off the coast of Gaza in water which is legally under the control of the Palestinian National Authority. It is located about 36 kilometres (22 mi) offshore and 2,000 feet (610 m) below the water. It has around 1.4 trillion cubic feet of gas and an estimated profit worth 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 explore and tap into the oil fields. In 2000, British Gas discovered the Gaza Marine Gas Field. This oil field has enough energy to supply Palestinian territories with sufficient energy 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, had the remaining 10 percent. Although there have been many attempts to strike deals with BG to tap into the Gaza Marine Gas Field, it is still unexploited. Two of the main, separate, parties involved in the negotiations have been 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 a number of 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.

In 2000, BG proposed to supply gas from Gaza to the IEC. IEC refused, claiming the gas from Egypt was more reasonably priced. 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, Yasser Arafat, President of the Palestinian National Authority died. He was succeeded by Mahmoud Abbas. In 2006 Ariel Sharon was replaced by Ehud Olmert as the new Prime Minister of Israel. 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 the Israel would purchase .05 trillion cubic feet of natural gas from Palestine in exchange for 4 billion dollars annually. It was detailed that the money would go into an account not accessible directly by the Palestinian National Authority. This detail came as a result of the 2006 elections in the Palestinian territories, by which 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 lasted from 2000 to 2005, effected 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 expressed the senitment that any monetary profit from the gas deal would help to sponsor Hamas, whom Israel felt would use the profit to terrorize Israel. By the end of 2007, the dealing had stalled again. In 2012 more negotiations between the Palestinian Authority and Israel began. Hamas opposed the possibility of selling the natural gas from the Gaza Marine gas field. The negotiations once again came to a halt.

Power 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 which rests nearby in the Mediterranean sea, is to the west just below Turkey. To the south is Egypt, a major supplier of energy to Israel. The water of the Mediterranean sea, which connects these countries, is not easy to divvy up equitably and often the gas fields that lie under it do not abide by given country borders. Concerns have been raised by both Lebanon and Egypt over 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.

The maritime laws and Israeli occupation in the Palestinian Territories have also complicated the clarity 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, by means of the Israeli occupation Israeli forces have prevented Palestinians physical access to the resources available offshore.