Lebanon to restart oil and gas bidding round

Lebanon to restart oil and gas bidding round

Lebanon will recommence its first oil and gas licensing round following a three-year hold up according to the country’s energy minister.

The new cabinet, sitting for the first time since being formed in December, passed two decrees last week defining blocks and specifying conditions for production and exploration tenders and contracts.

Lebanon will make available five offshore blocks for exploration and production in this round and will hold another pre-qualification round for companies interested in bidding, Minister of Energy and Water Cesar Abou Khalil said.

The Lebanese government estimates there are significant reserves in its part of the Mediterranean gas field. It predicts, with a probability of 50%, it has 96 trillion cubic feet of natural gas reserves and 865 million barrels of oil offshore.

Abou Khalil said barring any complications the contracts for exploration could be signed within nine months and there could be drilling activity within a year and a half as  a lot of the preparatory work gas been completed.