Palestinian Authority - Israel fuel deal:
(From: Stuart Schoenfeld )
Subject: Palestinian Authority - Israel fuel deal: Al Jazeera, Jordan Times, Haaretz
Hamas in Israel fuel deal Al-Jazeera
Thursday 05 October 2006, 19:45 Makka Time, 16:45 GMT
Abu Eisheh, interim Hamas finance minister, signed the deal
The Hamas-led government has signed a contract with a new Israeli oil supplier
to provide fuel to the Palestinian territories.
Samir Abu Eisheh, the interim finance minister, said on Thursday that the
Palestinian government had signed a contract with Paz, a private Israeli
company, to replace Dor Alon, the firm which has provided fuel to Gaza and the
West Bank for 12 years.
"We signed the agreement several days ago after more than four months of
negotiations," Abu Eisheh said
The deal comes despite the Israeli government's refusal to deal with the
Hamas-led administration, headed by what Israel and many Western countries
consider a terrorist organisation.
"We negotiated with three companies, including Dor Alon, and we managed to
improve the terms of the contract in reducing the margin of the new supplier
which will begin supplies at the start of next year," Abu Eisheh said.
Interrupted supplies
A Paz spokeswoman confirmed that the contract had been signed and would come
into effect in January 2007.
Abu Eisheh said the contract would allow the Palestinian treasury to save $17m a
year over the terms of the old contract with Dor Alon.
Dor Alon has frequently interrupted supplies owing to unpaid bills by the
Palestinian government, which is on the verge of bankruptcy due to the
suspension of aid and Israel's decision to withhold millions of dollars in
taxes.
http://english.aljazeera.net/NR/exeres/2C6EC050-A136-4504-94CA-E71651B168F3.htm
Israeli fuel firm strikes deal with Hamas gov’t Jordan Times
(AP) — An Israeli fuel company on Thursday said it has reached an agreement to
supply gasoline to the Palestinians, the first major business transaction
between an Israeli firm and the Hamas-led Palestinian government.
The Paz Oil Co.'s deal underscored Israel's substantial business interests in
the Palestinian areas, which have continued despite the Israeli government's
crippling sanctions against the Islamic Hamas. Officials on both sides conceded
that when it comes to doing business, they are ready to put politics aside.
"This is the first formal agreement the current government has signed with an
Israeli company," said Ismail Mahfouz of Hamas, the Palestinian deputy finance
minister. It comes just a day after frustrated Palestinians lined up at gas
stations because of a sudden West Bank fuel shortage, the result of a dispute
between their government and the present Israeli supplier — underlining how
dependent the Palestinians are on the Israelis.
Israel and the West imposed its sanctions on Hamas after the group won
legislative elections and took power last March. Israel, the US and European
Union consider Hamas, which has killed hundreds of Israelis in suicide
bombings, a terrorist group.
Israel has withheld hundreds of millions of dollars in taxes collected on behalf
of the Palestinians. It also has frequently closed the main cargo crossing into
the Gaza Strip, preventing goods from moving in and out of the area, citing
security concerns and planned attacks by Palestinian fighters. In June, gunmen
linked to Hamas tunnelled into Israel, attacked an army base and captured a
soldier stationed along the Gaza border.
Despite the crackdown, business contacts have continued.
Israel is the main supplier of dairy products, food items and fuel to the
Palestinians, while state-run monopolies such as the Israeli electricity and
water companies also continue to serve them.
Some of these dealings, such as providing power, are motivated by humanitarian
concerns. But many others, including Paz's deal with the state-run Palestinian
fuel authority, are focused purely on the bottom line.
"There are three million Palestinians, who regardless of their political views
need water, electricity and fuel," said Moudi Ben-Shach, Paz's chief executive.
"We for many years wanted to do this, and now we have." Under the deal, Paz will
become the exclusive supplier of gasoline in the West Bank and Gaza Strip on
January 1. Paz will replace Dor Alon, the Israeli company that has been
providing fuel to the Palestinians under a contract reached before Hamas took
power.
Ben-Shach declined to release details of the deal, but said the terms are more
favourable to the Palestinians than the previous arrangement. "It's very
positive for them and us," he said.
A contract dispute between the Palestinian fuel authority and Dor Alon led to
the gasoline shortages in the West Bank and Gaza this week, though supplies
appeared to be replenished on Thursday.
In the West Bank town of Ramallah, the Palestinians' acting finance minister,
Samir Abuaishi, proudly trumpeted the Paz deal as a victory in Hamas' campaign
to clean up the government.
"I am always ready to sit with any Israeli counterpart to discuss services for
our people," he said at a news conference, claiming the fuel deal would save
the government close to $18 million a year.
The Palestinian fuel industry has been widely linked to corruption. Abuaishi
said he had received a death threat late Wednesday night because of the fuel
deal.
http://www.jordantimes.com/fri/news/news5.htm
Paz strikes deal to refine crude oil for the Palestinian Authority
04.10.06 | 19:30 By Sharon Kedmi Haaretz
The Paz energy company has struck a deal to refine fuels for the Palestinian
Authority at its refinery in Ashdod, TheMarker has learned.
The agreement was only finalized in the past few days.
The Palestinian Authority will import crude straight to the Ashdod refinery,
which Paz just bought last week for NIS 3.5 billion.
Paz will refine the crude oil and deliver the products and distillates to the
Palestinian Authority.
The Palestinian Authority means to import oil mainly from the Gulf states, which
are expected to give it attractive prices.
Paz, which belongs to Zadik Bino, yesterday confirmed that negotiations with the
Palestinians were taking place.
In essence Paz is taking over where Dor-Alon (TASE: DRAL) left off. On the eve
of Yom Kippur, Dor-Alon admitted in an announcement to the Tel Aviv Stock
Exchange that the Palestinian Authority will cease buying gasoline and gas from
it from the start of 2007.
Dor-Alon had refused to sweeten the terms of sale to the Palestinians, it
explained. But the Palestinian withdrawal is a blow to the Israeli company, as
the PA had been responsible for about 40% of its income.
Dor-Alon had been supplying the Palestinians with fuel since 1994. Two years ago
the parties extended their agreement by five years and at present, Dor-Alon is
the sole supplier of fuels to the Palestinian Authority.
Each month the Palestinian Authority buys 50 million liters of gasoline and
diesel from Israel.
Paz refused to comment for this report.