Oil and gas exploration work in Lebanon, which witnessed the signing of a new agreement today, Sunday, January 29 (2023), is preparing to start within a few days.
The CEO of the French company Total Energy, Patrick Pouyanné, said that his company is keen to start work on offshore block 9 as soon as possible, with the start of evaluation in early February 2023, and the start of drilling wells in the third quarter of the year, according to what was reported by Reuters. .
With the aim of launching oil and gas exploration work in Lebanon on the specified dates, Pouyanne announced that a ship would arrive in Lebanese waters on February 6; For an environmental survey in block 9.
The two amending annexes to the exploration and production agreements in Blocks 4 and 9 were signed, after Qatar Energy Company entered into a partnership with the Italian company Eni and the French Total Energy, according to a press release published by the official website of the Lebanese government, which was seen by the specialized energy platform.
Oil and gas in Lebanon
The signing of the agreement was witnessed by the Lebanese Prime Minister Najib Mikati, who held a session of talks before the signing, with the Minister of State for Energy Affairs, the Managing Director and CEO of Qatar Energy Saad bin Sherida Al-Kaabi, the CEO of Total Energy Patrick Pouyanne, and the CEO of Eni Claudio Descalzi, in the presence of Lebanese Energy Minister Walid Fayyad.
Prime Minister Najib Mikati spoke about the opportunities for oil and gas exploration in Lebanon, and the strategic importance this represents for his country.
He expressed his happiness at the step of signing the agreement, and the joining of Qatar Energy Company to the alliance, which will soon begin exploration for oil and gas in Lebanon.
He said, “The start of the process of exploration and petroleum activities in Lebanese waters will have a positive impact in the short and medium term on creating opportunities for Lebanese companies interested in the services sector in the field of petroleum, and it will provide job opportunities for Lebanese youth, especially for workers in the technical field.”
He continued, “When commercial quantities are discovered, this discovery will be developed at the required speed with the supply of natural gas to the Lebanese market – especially the electricity plants, which will contribute to the growth of the local economy.”
He said: “The entry of Qatar Energy Company and its acquisition of 30% of the exploration and production agreements in Blocks 4 and 9 constitutes an important and exceptional event in the exploration and production of oil in the Lebanese offshore waters, due to Qatar Energy’s global prestige and experience in the gas industry.”
According to Najib Mikati’s statements, Total Energy (the operator that owns a 35% stake, in addition to Eni, which owns the same percentage) will start drilling in offshore block No. 9, after completing environmental surveys and operations related to drilling and launching logistical activities from the port of Beirut.
Marine exploration in Lebanon
Oil and gas exploration in Lebanon receives great attention, especially with regard to marine activities, since the signing of the border demarcation agreement with Israel, last year (2022).
Lebanese Prime Minister Najib Mikati thanked the US administration and its representative, Amos Hochstein, for his efforts to complete the agreement to demarcate the southern Lebanese borders, expressing his hope for good results in oil and gas exploration in Lebanon, according to what he wrote in a tweet on his Twitter account.
1/3 Prime Minister Najib Mikati once again thanked the American administration for the efforts it made to achieve the agreement to demarcate the southern Lebanese borders.
And on the occasion of the signing of “the two amending annexes to the Exploration and Production Agreements in Blocks 4 and 9, …#Council of Ministers #NajibMikati @usembassybeirut– Presidency of the Council of Ministers 🇱🇧 (@grandserail) January 29, 2023
He said, “The consortium of companies operating in Blocks 4 and 9 will contribute to advancing investments in the Lebanese energy sector, which is a long-term investment that the Lebanese state will support with good governance and absolute transparency.”
He added that the consortium of these internationally renowned companies enhances investment confidence in his country, despite the difficult circumstances it is going through, and “puts Lebanon’s future on the oil map in the Levantine basin of the Mediterranean.”
Mikati said, “Lebanon’s geographical location will enable it to play a pivotal role, in addition to friendly countries in the region, in supplying gas to Europe, and it also encourages international companies to participate in the second licensing round for offshore blocks offered for bidding.”
He stressed that “Qatari investment in the energy sector constitutes a strategic partnership between Beirut and Doha, and opens the way for a future for Arab and Gulf investments in particular, for the benefit of Lebanon and its Arab brothers.”
The graphic below shows a map of the oil and gas blocks in Lebanon, based on what was monitored by the energy platform, and the data of the OAPEC gas expert, Engineer Wael Hamed Abdel Moati:
Optimism about exploration work
For his part, Claudio Descalzi, CEO of the Italian company Eni, said that oil and gas exploration in Lebanon provides a huge opportunity for the country, at a time when the world is facing a major energy shortage.
He added, during the press conference that followed the signing of the agreement, that from a geological point of view, there is positivity about upcoming work, especially with regard to exploration work in Block 9, expressing his hope that this optimism will turn into reality.
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