The international oil and gas business and investment community have expressed huge interest in Lebanon and with good reason
Substantial information and very positive data has been collated and Lebanon is positioned now for success with estimates of huge petroleum resources in its territories both offshore and onshore.
Based on the recommendation of the Lebanese Petroleum Administration (LPA), the Minister of Energy and Water, Cesar Abi Khalil declared in January 2017 that blocks 1, 4, 8, 9 and 10 will be open for bidding during the first offshore licensing round in Lebanon.
The LPA had already prepared a study driven by the following objectives that the Lebanese government aims to achieve during the first licensing round:
- Hitting commercial discoveries that justify the required investments in infrastructure that will lead to the development of petroleum resources
- Safeguarding the rights of Lebanon to benefit from its potential petroleum resources over its complete exclusive economic zone
A set of different alternatives that satisfy the above objectives were studied and evaluated based on the following criteria leading to the selection of open blocks, namely:
- Implementing a gradual licensing policy that gives the Lebanese state, public institutions and the economy the time to adapt and benefit from this new sector in a gradual and transitional manner
- Investigating the potential of joint development whenever possible
- Ensuring a conducive business environment of joint development whenever possible
- Taking into account health, safety and environmental standards
(Source: www.lpa.gov.lb July 2017)
With the deadline for submitting bids rapidbly approaching in September 2017, there is huge interest in these five blocks initially on offer in this year's historic tender process.
The door is now open to more companies to engage with the Mediterranean's most promising hydrocarbons region.