Lebanon's Petroleum Administration (PA) and the Ministry of Energy and Water (MoEW) have announced the names of 46 companies who have successfully pre-qualified to enter the first licensing round for offshore oil and gas exploration. The bidding is set to begin on May 2.
52 companies from 25 countries submitted applications, 14 as operators, 37 as non-operators and one unspecified. Six companies were rejected — one operator, four non-operators, and the firm which had not specified. One firm, Cairn India, applied as an operator but qualified as a non-operator. “This is an unprecedented step towards entering the oil and gas producing world,” claimed Gebran Bassil, minister of energy and water.
The PA assessed the companies on a strict set of legal, financial, technical and Quality Environmental Health and Safety criteria. For example, operators had to evidence total assets of at least $10 billion and ownership of at least one petroleum development in water depths beyond 500 meters. Non-operators must have total assets of at least $500 million and an established petroleum production.
As the companies proceed into the licensing round there are two outstanding decrees that threaten to delay progress. The government still has to approve the ten exploration blocks that the companies will bid for and sign off on the model production sharing agreement that will form the basis of the contracts that the international oil companies (IOCs) will sign.
With the resignation of former Prime Minister Nijab Mikati the caretaker cabinet cannot pass these decrees. Elections are due to take place this summer, but there are fears they may be delayed.
Minister Bassil deflected questions on how they could proceed under these circumstances deferring an answer until a later press conference to be held on April 30.
Speaking on the sidelines of the conference a senior member of the ministry explained that they had “some leeway” until September. The ministry has already delineated the blocks and drafted the agreements and in the short term the PA, ministry and IOCs can proceed on this basis.
However, bid evaluation is scheduled to begin in November and contracts awarded by February 2014. If this timetable is to be stuck to then Lebanon will need a new cabinet to have signed off on the decrees by the coming fall.
The full list of firms that were qualified and disqualified can be found below:
Disqualified
The five companies that were disqualified are:
CNOOCIG (China)
National Iranian Drilling Company (Iran)
Circle Oil PLC (Ireland)
MOISSS (UAE)
Ophir (UK)
Levantine Exploration (USA)
Operators
In total 12 of the 14 companies that had bidded to be operators, meaning they lead the three-member consortiums, were qualified.
Brazil
Petrobras
Denmark
Maersk
France
Total
Italy
ENI International
Japan
INPEX
Malaysia
Petronas
Netherlands
Shell E&P
Norway
Statoil
Spain
Repsol
USA
Anadarko
Chevron
Exxon Mobile
Non-operators
In total 34 companies were pre-qualified as non-operators
Australia
Santos
Austria
OMV
Canada
Suncor
Croatia
INA
France
GDF Suez
Hungary
MOL Group E&P
India
Cairn India
ONGC
Ireland
Petroceltic
Italy
Edison International
Japan
JAPEX
JX Nippon
Mitsui
Kuwait
KUFPEC
Lebanon
CC Energy
Russia
Lukoil
Novatec/GPB Global Resources
Rosneft
South Korea
KNOC
KOGAS
Thailand
PTT
Turkey
TPAO Turkish Petroleum
UAE
Crescent/Apex Gas
Crescent Petroleum
Dana Gas
Dragon Oil
Mubadala
UK
Cairn Energy
Dana Petroleum
Genel Energy
Heritage Oil
SOCO
USA
GeoPark/Petroleb
Marathon
