This report was prepared by the oil & gas task force. The first petroleum exploration license was signed in 1977. Since then, there has been continued interest in exploring Palau’s territorial waters for the potential of oil and gas. Although limited, petroleum exploration interests have been persistent over the years. Currently, one company has existing petroleum licenses with the States of Kayangel, Hatahobei, and Anguar respectively. However, to date, no exploratory drilling has occurred.

In 2003, the Executive Branch requested the assistance of the World Bank (WB) Oil, Gas, and Mining Policy Division to aid Palau develop an oil and gas sector. In response, the WB sent two Missions to Palau, first in the early part of 2003 and again in November 2003. In 2005, the Republic of Palau requested financial and technical assistance from the WB to begin the implementation of the WB Road Map developed during the second WB Mission to Palau.