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Palau Gets World Bank Help To Regulate Oil/Gas Search

By David Miho in Koror
Sunday: July 06, 2008

The pursuit of possible oil and gas resources in northern Palau took one step forward with the selection of five international companies for consultancy services to provide expertise in developing petroleum regulatory policies, rules and regulations for exploration.

The Palau Oil and Gas Task Force, co-chaired by Delegate Noah Idechong and Senator Santy Asanuma, narrowed the applicants down from the original seven respondents to a solicitation for proposal by Palau and the World Bank and these five companies have now been referred to the World Bank for final selection.

The Washington, D.C-based World Bank provided a grant and guidance to Palau to assure proper organization and processes are followed with strict adherence to environmental concerns as well as potential revenue sharing between the national and state governments.

Palau is one of 185 members globally in the World Bank.

Once the World Bank names the consultant company, a contract will have to be negotiated to meet the target start date of September 26. The consultant then has a two-month period to complete its work.

The primary areas discussed for potential oil and gas are in the area of Kayangel State and Palau’s Northern Reef. The proposal has been the subject of debate between environmentalists and economic development advocates prompting the Congress and President Tommy Remengesau, Jr. to get assistance the World Bank.