Lebanon signs gas exploration deal with French, Qatari and Italian firms
A consortium comprising TotalEnergies, QatarEnergy and Italy’s Eni on Friday signed with Lebanonj an agreement for gas exploration in Block 8 off the Lebanese coast. The ceremony took place this morning at the Grand Serail.
The agreement was signed on the Lebanese side by Minister of Energy and Water Joe Saddi.
"We return today to sign the Exploration and Production Agreement for Block 8. Under this agreement, the consortium will conduct a 3D seismic survey covering 1,200 km² in this block. This will pave the way for drilling an exploratory well during the second exploration period, based on the results of the data analysis," said Gaby Daaboul, the head of the Lebanese Petroleum Administration.
Daabul emphasized that Lebanon aims to continue its exploration journey by promoting unlicensed blocks to achieve a commercial discovery that would bolster the national economy. He noted that the Ministry and the LPA are working internally to modernize the rules and conditions for granting exclusive petroleum licenses in offshore waters, while also working with parliament on legislation for onshore exploration.
Following the signing, Minister Saddi addressed reporters by saying: "This step reaffirms the consortium's commitment to continuing exploration activities in Lebanon despite all challenges, reflecting continued confidence in Lebanon’s offshore petroleum potential."
He continued: "We look forward to the consortium preparing and executing the 3D seismic survey as soon as possible to enhance our geological knowledge of Block 8. Meanwhile, we are working on preparing the fourth licensing round and updating the tender specifications to attract more international companies."
Responding to a question regarding the results of previous activities, Saddi clarified: "Regarding Block 9, Lebanon has received an official technical report. Oil companies do not spend tens of millions of dollars wishing to find nothing; it is in their interest to find resources. It happened that the specific spot drilled in Block 9 did not yield oil, but the detailed report exists, and a summary is available via the LPA website."
He concluded by noting that the LPA will present proposed amendments to the tender documents in about a month to increase the number of bidding companies, adding that "stability in Lebanon and the region" remains a crucial factor for success.
Cash-strapped Lebanon hopes that future gas discoveries will help the small Mideast nation pull itself out of the worst economic and financial crisis in its modern history.
In 2017, Lebanon approved licenses for France’s TotalEnergies, Italy’s ENI and Russia’s Novatek to move forward with offshore oil and gas development for two of 10 blocks in the Mediterranean Sea, including one that was at the time in a disputed part with neighboring Israel.
The companies did not find viable amounts of oil and gas in one of the blocks north of Beirut, and drilling in another in the south was repeatedly postponed because of the maritime border dispute with Israel. Lebanon and Israel later signed a deal over their maritime border in 2022.
In August 2023, an offshore drilling rig began operations in the Mediterranean Sea off Lebanon’s coast.
That did not give positive results, but Patrick Pouyanné, Chairman and CEO of TotalEnergies, said in a statement that they will keep trying in other areas.
“We remain committed to pursue our exploration activities in Lebanon,” said Pouyanné. "We will now focus our efforts on Block 8, together with our partners Eni and QatarEnergy and in close cooperation with Lebanese authorities.”
In January 2023, Lebanon, ENI, TotalEnergies and state-owned oil and gas company Qatar Energy signed an agreement in which the Qatari firm replaced Novatek. Under the deal, Qatar Energy takes Novatek’s 20% stake in addition to 5% each from ENI and TotalEnergies, leaving the Arab company with a total stake of 30%. TotalEnergies and ENI will each have 35% stakes.
Source: Naharnet, Associated Press
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