An Israeli-Palestinian consortium will drill for oil near Rosh Ha'ayin, northeast of Tel Aviv on land which stretches into the Palestinian Authority. A group of businesspeople headed by former Minister of Energy Moshe Shahal and including former Israel Corporation CEO Nir Gilad and former Avner Oil and Gas LP CEO Gideon Tadmor will bid for the rights to the concession formerly held by Givot Olam Oil Exploration LP.
Sources inform "Globes" that Shahal recently met with Palestinian Authority president Mahmoud Abbas and other senior Palestinian figures and obtained agreement to also drill in the land belonging to the Palestinian Authority. The Al-Masri family from Nablus headed by Munib Al-Masri will also finance the drilling.
There is believed to be great potential for finding hundreds of millions of barrels of oil beneath the land east of Rosh Ha'ayin although Givot Olam was in recent years has only been able to produce a relatively small amount of oil.
Givot Olam lost its license to drill there after failing to implement its work plan or raise the minimum amount of financing required to continue drilling. The Ministry of National Infrastructure, Energy and Water Resources is set to issue a new tender to sell the rights to drill in the area and Moshe Shahal's group are considered the leading candidates to win the tender.