Home Cover storyLebanon’s fiscal conundrum

Lebanon’s fiscal conundrum
ENAR

by Mona Sukkarieh

There are two arguments being made today. Both agree the state should maximize its share of benefit, though they do not agree on what is the maximum benefit achievable. Some aim for a bid round that is as competitive as more comparable bid rounds—while others demand a greater level of state participation. While it is commendable to stand up for Lebanon’s rights, we would all be well advised to avoid misinformed populism. To put it simply, arguing Lebanon deserves a fair share implies the existence of a “share.” This share can only exist if the state contracts partners to explore for and produce potential resources. There are two parties to the deal; the terms must be attractive enough for both sides to commit to signing a contract. If no contract is signed the “share” vanishes, given the absence of indigenous capacity to conduct upstream operations. Contrary to some claims, perpetuated

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