10 bcm of Israeli gas planned in first phase of Turkey deal

(CNN)Israel and Turkey have reached an agreement to normalize relations, unnamed Israeli officials said Thursday.

Under the proposed agreement, which has yet to be signed, Israel would pay compensation for a deadly incident in 2010, Israeli radio reported.

The ship, the Mavi Marmara, was part of a flotilla carrying aid to Gaza when Israeli naval commandos rappelled onto the ship’s deck and killed nine activists after being met with violent resistance.

Talks with Israel have been ongoing for some time, Turkish Prime Ministry officials told the Hürriyet Daily News, adding that they were continuing in a positive manner but no consensus has yet been reached. As a result of Ankara’s tension with Moscow, this issue is now much more pressing for Turkey, since it is highly dependent on Russian gas. “The agreement still needs the final signature – an Israeli source was quoted as saying by local media – work still needs to be done on some details, but the crisis is being resolved”.

A US official familiar with the agreement confirmed the details.

Despite delays, Israel is set to become an important supplier of natural gas once its 18.9 trillion cubic feet Leviathan gas field begins production, a development Turkey is closely watching.

The Prime Minister’s Office stressed that the understandings are awaiting final signatures from both sides.

Turkey withdrew its ambassador to Israel after the flotilla incident and refused to resume normal diplomatic ties with the Jewish state without an apology and compensation for the victims’ families. Greece says it is Greek Cyprus’ right to exploit offshore natural gas fields to the south of the island while Turkey says the Turkish Cypriot population has to get its share from this revenue.

Israeli officials largely welcomed the deal, but said Israel should stick to its guns when it comes to security and limiting of activity of some members of the Palestinian Islamist group Hamas living in Turkey.

The emerging deal was announced a few days after President Recep Tayyip Erdogan of Turkey told reporters that reconciliation “would be good for us, Israel, Palestine, and the entire region”.