TEL AVIV, Israel (Ma'an) -- Israeli firms on Monday announced they had signed a two-year deal to provide oil to the Palestinian Authority, the Israeli daily Haaretz reported.

The deal between Oil Refineries, Petrochemical Industries and the PA is valued at 1.9 billion shekels ($491 million), according to the report.

ORL said in a statement to the Tel Aviv Stock Exchange the deal is for two years beginning Oct. 1.

ORL will provide 50 percent of the Palestinians' fuel needs in a deal that can be cancelled up to 90 days in advance, Reuters reported separately.

This is the first time ORL, Israel's largest refinery and a subsidiary of Israel Corp, will be selling fuel to the Palestinians.

On Monday, Paz Oil said it extended a deal to supply at least 50 percent of the Palestinians' fuel needs through October 2014.

Paz had previously shared the supply deal with Dor Alon.