05.07.2009

The Gaza Marine natural gas field is situated 36 km offshore the Gaza coast. BG Group is operator of an exploration license covering the entire marine area offshore the Gaza strip and holds 90% equity in the GM field which would be reduced to 60% if the Consolidated Contractors Company (its current 10% partner in the license) and the Palestine Investment Fund exercise their options at development sanction.

Following acquisition of over 1000 km² of 3D seismic data, BG Group drilled two successful wells in the second half 2000 (Gaza Marine-1 and Gaza Marine-2). Reserves are estimated to be around 1 tcf. Indeed, on 29th August 2000 Gaza Marine-1 was spudded by the Southern Cross semi-submersible drilling rig in 603m water depth. The well targeted the large Lower Pliocene Gaza Marine Prospect, which is a 4-way dip closed anticline with DHI’s such as a prominent seismic flat spot. On 12th September 2000, the well reached a total depth of 1891m in the Messinian after encountering a 71m gas-bearing Yafo Sandstone Member reservoir. A 37m interval was tested and flowed at a rate of 37 MMscf/d on a 48/64” choke and this rate was constrained by the equipment. The well operation was completed on 6th October 2000.

In 2001, a technical review recommended a sub-sea development and pipeline to an onshore processing terminal in Israel. In 2002, an outline Development Plan was approved by the Palestinian Authority.

Established in 1914, includes customers in Jerusalem, Ramallah, Jericho and Bethlehem.

Measuring the level of oil in a tank

Pressure above one atmosphere

A system of pipelines, compressor stations and any other related facilities that gather natural gas from a supply region and transports it to the major transmission systems. Generally, pipelines in gathering systems are smaller in diameter and operate at lower pressures (field-gathering systems), although some gathering systems also have lines that are comparable to those found in transmission systems. >

A gathering line is a pipeline that transports oil or gas from a central point of production to a transmission line or mainline. Narrow diameter pipeline used to aggregate crude oil from an oil field to a single point before moving it to the main pipeline for further transportation.

Gate valves are named after a wedge-shaped internal plastic barrier, called a gate which rises and falls inside the valve as a handle is turned (the handle does not rise or fall, only the gate). Gate valves effectively regulate flow rates from zero to full flow, they work well with solids-laden water, and these valves can be serviced in place if necessary. In comparison, ball valves are designed to be either fully on or fully off, and can be easily damaged by solids-laden water. Thus ball valves are usually not repairable unlike gate valves.

Gasunie is a Dutch gas infrastructure company that owns one of the largest high pressure gas pipeline grids in Europe, consisting of 12,000 kilometers of pipeline, dozens of installations and approximately 1,100 gas receiving stations. In 2005, gas throughput totaled more than 95 billion cubic meters.

The quality of a source rock that makes it more likely to contain gas than oil

GasPro is the largest company in Israel that deals in alternative fuel systems for cars