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Tectonically the islands of Palau are an uplifted island arc that initially developed in the Eocene in response to subduction to the west in the Ryuku trench. This was at the collision boundary of the Philippine tectonic plate which is subducting below the Eurasian plate.
Palau thus lies on the Kyushu-Palau ridge which is uplifted oceanic crust within the Philippines plate. The archipelago is a remnant of a large coral reef on this volcanic ridge. The islands are volcanic-cored with varying amounts of fringing limestone reefs.
Globalshift believes the islands and surrounding waters have no oil and gas potential.
The coral and volcanic islands of Palau have no history of drilling and production. No exploration wells have ever been drilled on any of the islands or in their surrounding waters.
Globalshift does not forecast any future production of oil or gas from the country.
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