Consortium Wins Exploration Rights Off Lebanon

Consortium Wins Exploration Rights Off Lebanon
MEDITERRANEAN SEA, ISRAEL – MARCH 28: In this handout image provided by Albatross, The Tamar drilling natural gas production platform is seen some 25 kilometers West of the Ashkelon shore on March 28, 2013 in Israel. The offshore Tamar drilling site which was originally dispatched from a shipyard in Texas at the end of last year is due to start producing natural gas next week. Over the past few years Israel has suffered from a shortage in natural gas, but with the new platform that weighs 34,000 tons and will be mainly operated by Israelis, the US company Nobel Energy which owns a 36% stake in Tamar, hopes to change Israel’s energy situation as well as the economy as a whole. (Photo Photo by Albatross via Getty Images)

Lebanon awarded offshore concessions to a consortium of Total, Eni, and Novatek to explore in its territorial waters, Bloomberg reports.

The companies received preliminary licenses for blocks 4 and 9, according to the news agency. The concessions are the first of their kind granted by Lebanon.

The companies have a month to complete and submit paperwork and then contracts will be signed, Wissam Chbat of the Lebanese Petroleum Administration told Bloomberg.

The government expects drilling to begin in 2019, the news agency reports. Complicating the issue, however, is that block 9 lies in territorial waters also claimed by Israel.

Neighboring Israel, Cyprus, and Egypt have all made significant natural gas discoveries in their territorial waters that have bolstered international interest in further exploration.

This fall, Lebanon’s National Assembly approved a framework to tax oil and natural gas revenues.

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