This year saw the translation of international oil companies’ interest in the Eastern Mediterranean—following the discovery of Zohr, in Egypt, in 2015—into concrete projects, and the confirmation of the region’s potential, with a new and promising discovery in Cyprus. Egypt received its final liquified natural gas (LNG) shipment in September and is aspiring to become…
How far can Lebanon go with transparency measures in its oil and gas sector?
Last year, Lebanon signed two contracts to explore potential oil and gas resources in its offshore waters. It took the authorities nearly four years to close the country’s first offshore licensing round, with the two contracts awarded to a consortium of companies—France’s Total, Italy’s ENI, and Russia’s Novatek—for two blocks, one in Lebanon’s northern waters…
Lebanon’s second licensing round
Preparations for the launching of Lebanon’s second offshore oil and gas licensing round have begun. The regulator, the Lebanese Petroleum Administration (LPA), has published a tentative timeline for the tender, which will be officially launched at the end of 2018. The process, including the pre-qualification phase, will extend over a period of one year. The…
Aphrodite’s blues
As the final preparations for the May 8 trilateral summit between the heads of state of Cyprus, Israel, and Greece were being laid out—the fourth such summit in just over two years, with so far, more words than actions—news broke that Cyprus and Israel might resort to international arbitration to resolve a dispute over Aphrodite,…
Don’t get caught up in the hype
It is tempting for resource-poor countries to overestimate the promise of newly discovered hydrocarbon resources, particularly in times of need. Cyprus’ experience after the discovery of the Aphrodite gas field in late 2011 is revealing. Back then, during a time of economic crisis, many placed unrealistic expectations on this potential offshore wealth, hoping it would…
The petroleum legislative framework for Lebanon
Now that Lebanon has signed the first two exploration and production agreements (EPAs) for offshore oil and gas, companies will prepare the groundwork to start drilling at the beginning of 2019. This achievement is a long time coming. The first oil-related legislation, the Offshore Petroleum Resources Law, was enacted in 2010; the sector’s regulator, the…
Troubled waters
A comment made by Israeli Defense Minister Avigdor Lieberman at a Tel Aviv conference on January 31 sparked outrage in Lebanon, bringing the issue of the maritime border dispute between Lebanon and Israel back into the spotlight and catching Washington’s attention once again. The Obama administration started mediating between Lebanon and Israel to help contain…
The saga of Lebanon’s first licensing round
At the end of 2017, politics once again threatened the completion of Lebanon’s first offshore oil and gas licensing round. More than four years ago, former Prime Minister Najib Miqati resigned the very day his cabinet was set to discuss two decrees needed to open the bid round. Those decrees finally passed in January 2017,…
Lebanon’s oil & gas sector
Lebanon is finally stepping into the exploration phase. The Council of Ministers approved the awarding of exploration and productions licenses mid-December to a consortium made of France’s Total, Italy’s Eni and Russia’s Novatek. Contracts are expected to be signed in January 2018. Given the context that surrounded the organization of Lebanon’s first offshore licensing…
Strengthen our environmental protections
As Lebanon gears up to explore for offshore oil and gas resources, it is critical that environmental protection is a front and center priority. Oil and gas development activities have high environmental risks that could impact Lebanese communities living along the coast, as well as businesses working in the fishery, tourism, and shipping sectors. To…
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