War and Natural Gas: The Israeli Invasion and Gaza's Offshore Gas Fields

War and Natural Gas: The Israeli Invasion and Gaza's Offshore Gas Fields

by Michel Chossudovsky


Global Research, January 8, 2009





"The military invasion of the Gaza Strip by Israeli Forces bears a direct relation to the control and ownership of strategic offshore gas reserves.
This is a war of conquest. Discovered in 2000, there are extensive gas reserves off the Gaza coastline.
British Gas (BG Group) and its partner, the Athens based Consolidated Contractors International Company (CCC) owned by Lebanon's Sabbagh and Koury families, were granted oil and gas exploration rights in a 25 year agreement signed in November 1999 with the Palestinian Authority.
The rights to the offshore gas field are respectively British Gas (60 percent); Consolidated Contractors (CCC) (30 percent); and the Investment Fund of the Palestinian Authority (10 percent). (Haaretz, October 21, 2007).


The PA-BG-CCC agreement includes field development and the construction of a gas pipeline.(Middle East Economic Digest, Jan 5, 2001).
The BG licence covers the entire Gazan offshore marine area, which is contiguous to several Israeli offshore gas facilities. (See Map below). It should be noted that 60 percent of the gas reserves along the Gaza-Israel coastline belong to Palestine.
The BG Group drilled two wells in 2000: Gaza Marine-1 and Gaza Marine-2. Reserves are estimated by British Gas to be of the order of 1.4 trillion cubic feet, valued at approximately 4 billion dollars. These are the figures made public by British Gas. The size of Palestine's gas reserves could be much larger.
Who Owns the Gas Fields
The issue of sovereignty over Gaza's gas fields is crucial. From a legal standpoint, the gas reserves belong to Palestine.
The death of Yasser Arafat, the election of the Hamas government and the ruin of the Palestinian Authority have enabled Israel to establish de facto control over Gaza's offshore gas reserves.
British Gas (BG Group) has been dealing with the Tel Aviv government. In turn, the Hamas government has been bypassed in regards to exploration and development rights over the gas fields.
The election of Prime Minister Ariel Sharon in 2001 was a major turning point. Palestine's sovereignty over the offshore gas fields was challenged in the Israeli Supreme Court. Sharon stated unequivocally that "Israel would never buy gas from Palestine" intimating that Gaza's offshore gas reserves belong to Israel.
In 2003, Ariel Sharon, vetoed an initial deal, which would allow British Gas to supply Israel with natural gas from Gaza's offshore wells. (The Independent, August 19, 2003)
The election victory of Hamas in 2006 was conducive to the demise of the Palestinian Authority, which became confined to the West Bank, under the proxy regime of Mahmoud Abbas.
In 2006, British Gas "was close to signing a deal to pump the gas to Egypt." (Times, May, 23, 2007). According to reports, British Prime Minister Tony Blair intervened on behalf of Israel with a view to shunting the agreement with Egypt.
The following year, in May 2007, the Israeli Cabinet approved a proposal by Prime Minister Ehud Olmert "to buy gas from the Palestinian Authority." The proposed contract was for $4 billion, with profits of the order of $2 billion of which one billion was to go the Palestinians.
Tel Aviv, however, had no intention on sharing the revenues with Palestine. An Israeli team of negotiators was set up by the Israeli Cabinet to thrash out a deal with the BG Group, bypassing both the Hamas government and the Palestinian Authority:
"Israeli defence authorities want the Palestinians to be paid in goods and services and insist that no money go to the Hamas-controlled Government." (Ibid, emphasis added)
The objective was essentially to nullify the contract signed in 1999 between the BG Group and the Palestinian Authority under Yasser Arafat.
Under the proposed 2007 agreement with BG, Palestinian gas from Gaza's offshore wells was to be channeled by an undersea pipeline to the Israeli seaport of Ashkelon, thereby transferring control over the sale of the natural gas to Israel.
The deal fell through. The negotiations were suspended:
"Mossad Chief Meir Dagan opposed the transaction on security grounds, that the proceeds would fund terror". (Member of Knesset Gilad Erdan, Address to the Knesset on "The Intention of Deputy Prime Minister Ehud Olmert to Purchase Gas from the Palestinians When Payment Will Serve Hamas," March 1, 2006, quoted in Lt. Gen. (ret.) Moshe Yaalon, Does the Prospective Purchase of British Gas from Gaza's Coastal Waters Threaten Israel's National Security? Jerusalem Center for Public Affairs, October 2007)
Israel's intent was to foreclose the possibility that royalties be paid to the Palestinians. In December 2007, The BG Group withdrew from the negotiations with Israel and in January 2008 they closed their office in Israel.(BG website).
Invasion Plan on The Drawing Board
The invasion plan of the Gaza Strip under "Operation Cast Lead" was set in motion in June 2008, according to Israeli military sources:
"Sources in the defense establishment said Defense Minister Ehud Barak instructed the Israel Defense Forces to prepare for the operation over six months ago [June or before June] , even as Israel was beginning to negotiate a ceasefire agreement with Hamas."(Barak Ravid, Operation "Cast Lead": Israeli Air Force strike followed months of planning, Haaretz, December 27, 2008)
That very same month, the Israeli authorities contacted British Gas, with a view to resuming crucial negotiations pertaining to the purchase of Gaza's natural gas:
"Both Ministry of Finance director general Yarom Ariav and Ministry of National Infrastructures director general Hezi Kugler agreed to inform BG of Israel's wish to renew the talks.
The sources added that BG has not yet officially responded to Israel's request, but that company executives would probably come to Israel in a few weeks to hold talks with government officials." (Globes online- Israel's Business Arena, June 23, 2008)
The decision to speed up negotiations with British Gas (BG Group) coincided, chronologically, with the planning of the invasion of Gaza initiated in June. It would appear that Israel was anxious to reach an agreement with the BG Group prior to the invasion, which was already in an advanced planning stage.
Moreover, these negotiations with British Gas were conducted by the Ehud Olmert government with the knowledge that a military invasion was on the drawing board. In all likelihood, a new "post war" political-territorial arrangement for the Gaza strip was also being contemplated by the Israeli government.
In fact, negotiations between British Gas and Israeli officials were ongoing in October 2008, 2-3 months prior to the commencement of the bombings on December 27th.
In November 2008, the Israeli Ministry of Finance and the Ministry of National Infrastructures instructed Israel Electric Corporation (IEC) to enter into negotiations with British Gas, on the purchase of natural gas from the BG's offshore concession in Gaza. (Globes, November 13, 2008)
"Ministry of Finance director general Yarom Ariav and Ministry of National Infrastructures director general Hezi Kugler wrote to IEC CEO Amos Lasker recently, informing him of the government's decision to allow negotiations to go forward, in line with the framework proposal it approved earlier this year.
The IEC board, headed by chairman Moti Friedman, approved the principles of the framework proposal a few weeks ago. The talks with BG Group will begin once the board approves the exemption from a tender." (Globes Nov. 13, 2008)
Gaza and Energy Geopolitics
The military occupation of Gaza is intent upon transferring the sovereignty of the gas fields to Israel in violation of international law.
What can we expect in the wake of the invasion? What is the intent of Israel with regard to Palestine's Natural Gas reserves?
A new territorial arrangement, with the stationing of Israeli and/or "peacekeeping" troops?
The militarization of the entire Gaza coastline, which is strategic for Israel?
The outright confiscation of Palestinian gas fields and the unilateral declaration of Israeli sovereignty over Gaza's maritime areas?
If this were to occur, the Gaza gas fields would be integrated into Israel's offshore installations, which are contiguous to those of the Gaza Strip. (See Map 1 above).
These various offshore installations are also linked up to Israel's energy transport corridor, extending from the port of Eilat, which is an oil pipeline terminal, on the Red Sea to the seaport - pipeline terminal at Ashkelon, and northwards to Haifa, and eventually linking up through a proposed Israeli-Turkish pipeline with the Turkish port of Ceyhan.
Ceyhan is the terminal of the Baku, Tblisi Ceyhan Trans Caspian pipeline. "What is envisaged is to link the BTC pipeline to the Trans-Israel Eilat-Ashkelon pipeline, also known as Israel's Tipline." (See Michel Chossudovsky, The War on Lebanon and the Battle for Oil, Global Research, July 23, 2006)"

Nancy Pelosi - paving the way to war in Iran

When America goes to war with Iran we can thank Democrat Speaker of the House - Nancy Pelosi.

Here in a speech delivered Jun 6, 2008 Republican presidential candidate Ron Paul tells how Pelosi - acting on a request from Israel - pulled a bill that would have required the president to get congressional approval before going to war with Iran.

In other words - Israel want white crosses on the sands of Arabia - and Nancy Pelosi is making it easier for them to do.

Click on the link below to hear Ron Paul's courageous words.

Ron Paul tells how Pelosi facilitates Israel's demand for American wars.

US professor denied entry to Israel

US professor denied entry to Israel
05.25.2008

The Jerusalem Post
By YAAKOV KATZ

American political scientist and fierce critic of Israel, Prof. Norman Finkelstein, was denied entry to Israel and deported from the country early Saturday morning. Officials said that the decision to deport Finkelstein was connected to his anti-Zionist opinions and fierce public criticism of Israel around the world.

Finkelstein landed at Ben-Gurion International Airport at 2 a.m. Friday morning and was immediately taken for questioning by the Immigration Authority and the Interior Ministry. He arrived in Israel from Europe, where he was on a speaking tour. According to his Web site, his last talk was at the University of Amsterdam.

His lawyer, Michael Sfarad, said he was interrogated for several hours and told that he would not be allowed into the country on security grounds. He was held overnight and forced to board a flight to Europe early Saturday morning.

Finkelstein reportedly said that Israel uses the Holocaust as an excuse for the fight against anti-Semitism and has managed to trick Germany into paying exorbitant sums of money in compensation. He also called Holocaust survivor and scholar Eli Wiesel a "clown prince."

Prof. Alan Dershowitz of Harvard was active in campaigning against Finkelstein. His most recent book, Beyond Chutzpah: On the Misuse of Anti-Semitism and the Abuse of History, is largely an attack on Dershowitz's The Case for Israel. In his book, Finkelstein argues that Israel uses the outcry over perceived anti-Semitism as a weapon to stifle criticism.

Ron Paul Stands Alone Against Gaza Bill (404-1)

What courage! God bless Ron Paul.

On Wednesday, March 5, the House passed H.R. 951, which condemns the ongoing Palestinian rocket attacks on Israeli civilians, holding both Iran and Syria responsible for "sponsoring terror attacks." Additionally, the resolution claims that "those responsible for launching rocket attacks against Israel routinely embed their production facilities and launch sites amongst the Palestinian civilian population, utilizing them as human shields". For the full text of House Resolution 951, click here.

This resolution problematically includes a strong defense of the recent Israeli incursions in Gaza.

The resolution passed the House with an unequivocal majority of 404 to 1 with four representatives voting present and nineteen abstaining. Who was the lone Member of Congress to stand up to the Israel Lobby? Congressman Ron Paul (R-TX) not only voted against HR 951, but also made a very strong statement explaining why he opposed such a biased pro-Israel statement.

Below is Rep. Paul's statement he gave to the House before the vote:

"Mr. Speaker I rise in opposition to H. Res. 951, a resolution to condemn Palestinian rocket attacks on Israeli civilians. As one who is consistently against war and violence, I obviously do not support the firing of rockets indiscriminately into civilian populations. I believe it is appalling that Palestinians are firing rockets that harm innocent Israelis, just as I believe it is appalling that Israel fires missiles into Palestinian areas where children and other non-combatants are killed and injured.

Unfortunately, legislation such as this is more likely to perpetuate violence in the Middle East than contribute to its abatement. It is our continued involvement and intervention - particularly when it appears to be one-sided - that reduces the incentive for opposing sides to reach a lasting peace agreement.

Additionally, this bill will continue the march toward war with Iran and Syria, as it contains provocative language targeting these countries. The legislation oversimplifies the Israel/Palestine conflict and the larger unrest in the Middle East by simply pointing the finger at Iran and Syria. This is another piece in a steady series of legislation passed in the House that intensifies enmity between the United States and Iran and Syria. My colleagues will recall that we saw a similar steady stream of provocative legislation against Iraq in the years before the US attack on that country.

I strongly believe that we must cease making proclamations involving conflicts that have nothing to do with the United States. We incur the wrath of those who feel slighted while doing very little to slow or stop the violence."

Israel’s Toy Soldiers

Israel’s Toy Soldiers
by Chris Hedges
October 1, 2007

The article makes a very good point. Every year many American Jews go to Israel to play war games and generally align themselves with the Israeli military. When young Muslims go to a Mideast country for similar training, they are greeted upon their return by investigators from Homeland Security.

The Israel Lobby and U.S. Foreign Policy

By JOHN J. MEARSHEIMER and STEPHEN M. WALT

America is about to enter a presidential election year. Although the outcome is of course impossible to predict at this stage, certain features of the campaign are easy to foresee. The candidates will inevitably differ on various domestic issues-health care, abortion, gay marriage, taxes, education, immigration — and spirited debates are certain to erupt on a host of foreign policy questions as well. What course of action should the United States pursue in Iraq? What is the best response to the crisis in Darfur, Iran's nuclear ambitions, Russia's hostility to NATO, and China's rising power? How should the United States address global warming, combat terrorism, and reverse the erosion of its international image? On these and many other issues, we can confidently expect lively disagreements among the various candidates.

Yet on one subject, we can be equally confident that the candidates will speak with one voice. In 2008, as in previous election years, serious candidates for the highest office in
the land will go to considerable lengths to express their deep personal commitment to one
foreign country — Israel-as well as their determination to maintain unyielding U.S. support
for the Jewish state. Each candidate will emphasize that he or she fully appreciates the
multitude of threats facing Israel and make it clear that, if elected, the United States will
remain firmly committed to defending Israel's interests under any and all circumstances.
None of the candidates is likely to criticize Israel in any significant way or suggest that
the United States ought to pursue a more evenhanded policy in the region. Any who do
will probably fall by the wayside.

This observation is hardly a bold prediction, because presidential aspirants were already proclaiming their support for Israel in early 2007. The process began in January, when four potential candidates spoke to Israel's annual Herzliya Conference on security issues. As Joshua Mitnick reported in Jewish Week, they were "seemingly competing to see who can be most strident in defense of the Jewish State."

Keeping Talk Radio Pro-Israel

Jonathan Mark - Associate Editor

The Jewish Week

July 19, 2007

"Three years after Air America first came on the air, intended to be a leftist voice in the mostly conservative world of talk radio only to go bankrupt as ratings sank, it has been newly “relaunched” under former Democratic politician Mark Green on 64 stations (1600 AM, WWRL in New York).

Michael Harrison, publisher of Talkers magazine, the leading industry publication for talk radio, told the Cybercast News Service that Air America Radio is “heading in the right direction ... You have to look at Air America in context. Too many people have said, ‘Look, it’s liberal. It failed,’ as if that’s why. The fact that they’re liberal or progressive is irrelevant to me. It has to do with talent and a good business plan.”

But whether talk radio, be it left or right, is fair to Israel, is, in fact, very important to Harrison. For the past five years, Harrison and his publication have been shepherding more than 50 talk show hosts to Israel in conjunction with America’s Voices for Israel (AVI), a group founded and presided over by Malcolm Hoenlein, executive vice chair of the Conference of Presidents of Major American Jewish Organizations. Harrison, a member of AVI’s board of directors, recently devoted an entire glossy front page of Talkers to these Israel trips. And on one trip, several weeks ago, conducted in conjunction with United Jewish Communities, among the radio personalities traveling with Harrison was Lionel, the uni-monikered host newly hired as Air America’s 9 a.m. mid-morning slot. ...."

Harvard Professor is censored by Jewish organizations for a book review they didn't like.


Muzzlewatch
Harvard Middle East expert Sara Roy: "I have never experienced such?blatant..censorship."

Thursday July 5, 2007

A nation of thieves honors one of its own

From The Seattle Times, May 16, 2007. p. A2

Bar-Ilan University awarded an honorary doctorate to billionaire Marc Rich, 72, who was pardoned of tax evasion by Pres. Clinton in 2001 and who founded an oil-trading firm under investigation for dealings with Saddam Hussein. The university conferred the degree in recognition of the financier's contributions to Israel and the university's research programs.