Lebanon, amidst its severest economic crisis and in the midst of the Gaza war since October 2023, may be distant from realizing any benefits from potential oil and gas discoveries in the Levant Basin.
The impact of the Gaza war on Lebanon resonates across various sectors, notably the energy sector, which is already grappling with a severe crisis on multiple fronts.
The ongoing war between Israel and Hamas in Gaza poses significant security risks to energy operations in the Eastern Mediterranean.
This conflict dampens prospects for deeper collaboration in the natural gas sectors of Israel, Egypt, Cyprus, and Lebanon for exports beyond the region, particularly if the fear of escalation beyond Gaza materializes.
The future consequences of a conflict escalation with Israel remain uncertain, but it is evident that a new war would devastate Lebanon’s energy sector further.
Meanwhile, the Lebanese cabinet approved the licensing of Blocks 8 and 10 for a consortium comprising Total Energies, Eni, and Qatar Energy on January 12.
However, the Energy Ministry’s conditions, including increased financial participation from Lebanon, seismic surveys in Block 8, and shortened exploration and drilling timelines, are being reviewed by the consortium.
An interview at Houna Beirut with Wissam Chbat, a board member of the Lebanese Petroleum Association (LPA), expressed optimism about the exploration plans:
“The timing was unfavorable for drilling in Block No. 9, and its outcome remains unchanged regardless of local or regional conditions.”
“The drilling schedule/milestone will be received by LPA in February 2024, with the companies considered to have fulfilled their contractual obligations by May 2025.”
“We cannot afford to wait for events to unfold and risk missing out on current opportunities. Our goal is to expedite the exploration phase.”
However, the future of exploration is uncertain, and significant work lies ahead, with much time to pass before any outcomes are assured.
