Palestine Moves Forward With Onshore Oil Bid Round Amid Difficult Politics

As with the 1tcf Gaza Marine discovery, it may be some time before Palestine gets the ball rolling with its first ever bid round for a West Bank block.

The Palestinian Authority will close bidding for rights to the Rantis-1 exploration block on 30 June, though it is unclear how much interest the bid round has received thus far amid minimal publicity.

Rantis-1 covers 432km² of the West Bank directly adjacent to Israel’s Meged oil field (see map), which is operated by Israeli minnow Givot Olam. Bidding opened in mid-March.

It is unclear whether Givot Olam’s drilling activity, which includes at least one well – Meged-5 – spudded directly on the armistice line, extracts West Bank resources; however, the Ramallah-based Palestinian ministerial committee for Rantis-1 says that Israeli seismic indicates that a large section of Meged resources extend into the Palestinian license area. The ministerial committee estimates that Rantis-1 reserves range between 30mn and 186mn barrels and says that area will likely yield about 8,000 b/d at a plateaued level; however, the value of these estimates is unclear given the fact that no seismic or exploratory drilling has been conducted in the license area. It appears that the committee’s estimates are based on extrapolations of Givot Olam data from the adjacent producing zones in Israel. (CONTINUED - 811 WORDS)