UK/Dutch Shell is giving up its stake in an undeveloped natural gas field off the Gaza Strip, according to a statement released by cabinet ministers from the Palestinian Authority.

Cabinet ministers said they had been informed that Shell was withdrawing from the project and were now “trying to attract a global company” to take its place.

Shell had been struggling to find a buyer for its 55 per cent stake in the Gaza Marine field, which it took over during its acquisition of BG Group in 2016.

A Shell spokesman says: “We can confirm we have been in discussions with various parties about the future of the Gaza Marine project. As of now, Shell continues to holds its equity in the Gaza Marine asset.”

The Gaza Marine natural gas field was discovered in 2000 in water that is legally under the control of the Palestinian National Authority.

It is located about 35 kilometres offshore at a depth of 2,000 feet.

The field has long been seen as a golden opportunity for the Palestinian Authority to reduce its reliance on foreign aid.

Plans to develop the field, estimated to hold more than 1 trillion cubic feet of natural gas, have been put off several times over the past decade.

With Shell’s exit, the Palestine Investment Fund, a sovereign wealth fund, will be the sole stakeholder.

A Palestinian official familiar with the matter, who spoke on condition of anonymity, told Reuters that once a potential buyer is located they will discuss options regarding how much control of the project could be acquired.