BG gas strike lifts Palestinian hopes

BG International PLC and Consolidated Contractors Co. (CCC) said today they have made a groundbreaking gas discovery off Gaza, raising hopes that offshore oil and gas could become an economic engine for the impoverished state of Palestine.

Sep 29th, 2000


LONDON�BG International PLC and Consolidated Contractors Co. (CCC) said today they have made a groundbreaking gas discovery off Gaza, raising hopes that offshore oil and gas could become an economic engine for the impoverished state of Palestine.

The find, located 36 km west of Gaza City, was made with the Gaza Marine-1 well, which was drilled in a water depth of 603 m. A 37 m interval was tested and flowed at a rate of 37 MMcfd of gas on a 48/64-in. choke.

"This is a significant step both for BG and for the economic development of the region," said BG International Pres. Frank Chapman. "Further analysis of this test result will be carried out before we implement a full appraisal program to identify the level of reserves. However, we expect to drive forward an ambitious gas development plan to bring these reserves to local and regional markets as soon as possible."

CCC Pres. Said Khoury added: "We are extremely pleased with the project and development so far. The potential economic benefits for the people of the region are significant. We believe that the operations will prove to be one of the main economic cornerstones for a future independent state of Palestine."

Palestinian National Authority President Yasser Arafat, following a visit offshore to the field to witness operations today, announced the well's success.

BG and CCC acquired 1,000 sq km of 3D seismic data coverage over the concession earlier this year. The deal, signed by the Palestinian National Authority in November 1999, committed the partners to drill two wells within 18 months from the contract date. The second scheduled well will be drilled at the end of the year, said BG.

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