Swiss-american-israeli Group Seeks Oil Concessions in Israel

Negotiations were begun here today between a Swiss-American-Israeli group of oil prospectors and the Israel Government for concessions for exploratory drilling for oil. The success of the negotiations will hinge on the proposed Israeli oil exploitation bill which will be submitted shortly to the Knesset.

The prospectors’ group is headed by Dr. Walter Fehr, noted Swiss oil expert and geologist who was formerly chief geologist for Royal Dutch Shell and who prepared a general oil survey of Israel during 1938 and several years thereafter. The group has already formed an Israeli corporation headed by B. Federmann of Haifa.

Speaking to newsmen, Dr. Fehr said that there is evidence to support the belief that oil exists in several regions of the country. While he refused to be specific about these locations, he said they were not confined to the southern part of the country and that they included an off-shore strip paralleling Israel’s 120-mile Mediterranean coastline. He said that first drilling would not be carried out in this strip, because under-water prospecting is six times as expensive as drilling on land.

It is known that the company seeks concessions in three regions for a start. If agreement is reached with the Israel Government, Dr. Fehr will make a new survey and then will fix the places for drilling.

A group of 22 Swedish pilgrims arrived here today to visit the Holy Places and to establish business contacts with Israeli firms. Among the members of the group is Pastor Einar Rimmesforrs, who helped rescue many Jewish youths from Germany during the war.