LEBANON: Energy Minister Gebran Bassil says Lebanon foresees beginning licensing for oil exploration in 2012

Record ID: 344022

  • Title: LEBANON: Energy Minister Gebran Bassil says Lebanon foresees beginning licensing for oil exploration in 2012
  • Date: 22nd August 2010
  • Summary: BEIRUT, LEBANON (AUGUST 19, 2010) (REUTERS) OIL MINISTER GEBRAN BASSIL DURING MEETING AT THE MINISTRY JOURNALISTS GATHERING FOR NEWS CONFERENCE, PICTURE OF LEBANESE PRESIDENT MICHEL SULEIMAN ON THE WALL JOURNALISTS AND OFFICIALS DURING NEWS CONFERENCE WITH OIL MINISTER GEBRAN BASSIL (SOUNDBITE) (Arabic) LEBANESE ENERGY MINISTER GEBRAN BASSIL, SAYING: "We will share t
  • Embargoed: 6th September 2010 13:00
  • Keywords:
  • Location: Lebanon
  • Country: Lebanon
  • Topics: Energy
  • Reuters ID: LVAA9FCAZPNDDW4QE8NH58QUXXOH
  • Story Text: Lebanon hopes to launch a licensing round for offshore gas exploration at the beginning of 2012, the energy minister said on Thursday (August 19), two days after parliament unanimously ratified a long-awaited energy law.
    Bassil told a news conference the law would operate on the principle of "production-sharing".
    "We will share the profits with the companies, since Lebanon does not have the financial capability or the experience that companies that do this kind of work might have, and we will divide the profits. Secondly, we will create a sovereign fund for the financial returns and this has been finalised. The money that comes in from this sector will not enter into the public finances directly because it might produce negative consequences such as inflation which happened with other countries."
    Lebanon has said it has identified reserves that have promising quantities of natural gas, according to seismic surveys in 2006-2007.
    "If we move with the necessary speed, and there are no political hurdles, then in early 2012 the licensing round can start," Gebran Bassil said.
    Bassil called the law a "big achievement" for Lebanon, which had dithered for years over the legislation. Politicians were finally spurred into action by fears that Israel may encroach on Lebanese waters when drilling for gas in the Mediterranean.
    Lebanon has stopped short of accusing Israel of violating its territory, but the mistrust between the two countries -- which were embroiled in a deadly border clash earlier this month -- has exacerbated Lebanese fears.
    Even though Lebanon has passed the law, it still has a long road ahead to catch up with the Israelis. It has to identify blocs, supply data to interested investors, select bidders and have companies start exploration work, while the Israelis already have firms drilling for gas.
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