LONDON: Official recognition of a Palestinian state would end legal ambiguities over the Gaza Marine gas field and secure the Palestinian Authority’s right to develop its most valuable natural resource, according to energy expert Michael Barron.
Barron, author of “The Gaza Marine Story,” estimates the field could generate $4 billion in revenue at current prices, with the PA reasonably earning $100 million annually for 15 years, .
“The revenues would not turn the Palestinians into the next Qataris or Singaporeans, but it would be their own revenue and not aid, on which the Palestinian economy remains dependent,” he said.
Gas was discovered in 2000 in the Gaza Marine field, a joint venture between BG Gas and the Palestinian Consolidated Contractors Co.
Despite initial hopes of ending energy shortages in the Gaza Strip, the project has been repeatedly stalled over ownership disputes, lack of sovereignty, and political instability.
“The Oslo Accords agreed in 1993 clearly give the Palestinian National Authority jurisdiction over territorial waters, the subsoil, power to legislate over oil and gas exploration and to award licenses to do so,” Barron said.
“Control over natural resources was an important element of (the) state-building agenda of the Palestinian leader Yasser Arafat. Israeli exploitation of Palestinian resources was and remains a central part of the conflict,” he added.
Israel has historically blocked development over concerns that revenue could reach Hamas, which controls the Gaza Strip. An Israeli court once ruled the waters a “no-man’s water” due to the PA’s lack of sovereignty, and Israel has long claimed any license 20 miles off the Gaza coast should be seen as a gift, not a right.
Barron said that if Palestine were recognized as a state, particularly by countries where major oil firms are based, it would “effectively end the legal ambiguity” and allow the PA to develop the field and achieve energy independence from Israel.
A separate controversy has emerged over Israeli-issued gas licenses in a disputed area known as Zone G.
Lawyers acting for Palestinian human rights groups recently warned Italian energy firm Eni not to proceed with exploration, saying “Israel cannot have validly awarded you any exploration rights and you cannot validly have acquired any such rights.”
Eni has since told Italian campaigners that “licenses have not yet been issued and no exploratory activities are in progress.”
Activist group Global Witness also argues the East Mediterranean Gas pipeline, which passes through waters claimed by Palestine, is unlawful and does not provide any revenue to the PA.
The 56-mile pipeline transports gas from Ashkelon in Israel to Arish in Egypt for export.
The issue has gained new attention following a UN report by Special Rapporteur Francesca Albanese.
She warned corporations of their potential legal liability for supporting Israel’s occupation of Palestinian territory, citing international court rulings.
Her report concluded companies have a “prima facie responsibility ‘to not engage and/or to withdraw totally and unconditionally from any associated dealings with Israel, and to ensure that any engagement with Palestinians enables their self-determination.’”
Israel has rejected the report in full.
Barron argues that, with Israel now self-sufficient in gas, “so long as a Palestinian state with unified governance is recognized, Israel will have no motive or legal right to block Palestine exploiting its single greatest natural resource.”
