RAMALLAH, April 4, 2018 (WAFA) - Pursuant to the Palestinian cabinet’s decision approving Shell’s exit from Gaza Marine project and the restructuring of the rights in the development license for the gas field, the Palestine Investment Fund (PIF), the Palestinian Authority’s investment arm, reached an agreement with BG Great Britain Limited, an affiliate of Royal Dutch Shell PLC, on its divestment from the Gaza Marine development license offshore Palestine, a PIF press release said on Wednesday.

Shell’s divestment is related to its corporate strategy and global portfolio management priorities, said the press release, adding that following completion of this transaction with Shell, PIF received rights for 90% of the Gaza Marine license.

PIF, together with its investment partner CCC Oil and Gas Ltd., a subsidiary of the Consolidated Contractors Company (CCC), will focus their efforts on advancing gas sales agreements and preparing a field development plan with the selected operator, said the release.

Under the new structure approved by the cabinet for Gaza Marine License, PIF and CCC will each hold 27.5% of the development rights pursuant to existing options under the license agreement, and an international operator will hold 45% following its approval by the Palestinian government.

The new structure gives momentum to the development of one of Palestine’s most vital, strategic assets. Gaza Marine’s development is central to PIF, its development partner, and the State of Palestine’s vision for domestic energy security backed by a thriving energy sector, said PIF.

Gaza Marine would satisfy Palestine’s market demand for gas—fueling power plants in Gaza and Jenin—and enable Palestine to become an energy exporter.

For PIF, Gaza Marine’s development is part of a comprehensive energy program which includes upstream, gas transportation infrastructure, and power generation. The program is led by Massader, PIF’s arm for energy and infrastructure, whose portfolio also includes investments in solar power and renewables, broadband, conventional power generation, and more.

The new arrangements for Gaza Marine were only made possible due to the commitment of the Government of Palestine to accelerate the development of the field  as part of its development plan for Palestine’s energy sector, said the press release.

The Gaza Marine field contains one trillion cubic feet of natural gas and was discovered by BG Great Britain Limited in 2000.

M.K.