BG Group has been active in Israel and areas of Palestinian Authority since 1996, with current activities focused upon the successful commercialisation of its offshore Gaza Marine field.

Offshore Gaza

BG Group is operator of an exploration licence covering the entire marine area offshore the Gaza Strip. Following acquisition of over 1 000 square kilometres of 3D seismic data, BG Group drilled two successful wells in 2000 (Gaza Marine-1 and Gaza Marine-2). Reserves are estimated to be around 1 tcf. In 2001, a technical review recommended a sub-sea development and pipeline to an onshore processing terminal. In 2002, an outline Development Plan was approved by the Palestinian Authority.

BG Group holds 90% equity in the licence, which would be reduced to 60% if the Consolidated Contractors Company (its current 10% partner in the licence) and the Palestine Investment Fund exercise their options at development sanction.

In December 2007, BG Group withdrew from negotiations with the Government of Israel for the sale of gas from the Gaza Marine field to Israel. In January 2008, BG Group closed its office in Israel. The Group is evaluating options for commercialising the gas.

Med Yavne licence

BG Group is currently in the process of relinquishing the Med Yavne licence.