Splitting the spoils

When most people think of oil or gas discoveries, money is the first thing to spring to mind. Industry insiders, however, know that newfound resources often come hand-in-hand with ownership disputes since subsurface deposits predate the lines humankind has drawn above them. With this in mind, Lebanon and Cyprus are currently in talks aimed at preempting future disagreements over possibly shared underwater hydrocarbon reserves, officials from each country announced in late May. Neither will know if reserves exist — let alone whether or not said reserves are shared — until drilling begins, but talking now could help boost investor confidence down the road, particularly for Lebanon. Drilling is still a pipedream in Lebanon as international oil companies cannot bid for rights to explore — and, they hope, produce — until the government approves decrees on block delineation and a model contract. Cyprus, on the other hand, in January signed exploration