The government will receive at 55% of natural gas revenues from discoveries made off the Lebanese coast, the Minister of Energy and Water, Cesar Abi Khalil, said, the Daily Star reports.
“On the commercial level, the government’s cut was based on nine different scenarios. Block four, for example, the government’s share ranged between 55% to 71%, and this is in line with the international average. As for block nine, the state’s share was from 55% to 63%,” the minister stated.
Lebanon awarded two blocks—four and nine—to an international consortium earlier this month for exploration and development, Bloomberg previously reported. Drilling is expected to begin in 2019.
Some of Lebanon’s neighbors—Israel, Egypt, and Cyprus—have discovered large natural gas deposits in their territorial waters. The Lebanese government is hoping to follow in their footsteps with its own natural gas discoveries.
Some have estimated that Lebanon could have up to $600 billion worth of natural gas in its territorial waters, according to the Daily Star.