Palestine approves deal with Egypt to operate Gaza gas field

By Qais Abu Samra

RAMALLAH, Palestine (AA) – The Palestinian government said Monday it has approved a framework agreement with Egyptian companies to extract gas from the Marine field off the shore of the Gaza Strip.

The move came a few weeks after the government said earlier this month that it had formed a committee to follow up with the Palestinian Investment Fund (PIF) - the official Palestinian sovereign fund - on finalizing steps with the Egyptian side to operate the Marine gas field.

Both PIF and the Athens-based Consolidated Contractors Company (CCC) have each 27.5% shares in the Marine gas field, while the remaining 45% would go to the operating company.

The first Gaza gas field (Marine 1) was discovered in the 1990s located within Gaza territorial water. The field is 36 kilometers (23 miles) west of the Gaza Strip in Mediterranean waters and was developed in 2000 by the British Gas company.

The second gas field (Marine 2) is another gas field for Palestinians located on the sea border area between Gaza and Israel.

Yet, Palestinians were unable to utilize both gas fields due Israeli opposition.

Home to 2.3 million population, the Gaza Strip has been reeling under a years-long Israeli blockade since 2007, badly affecting livelihood in the territory.

*Writing by Ahmed Asmar