Lebanon has signed a new offshore gas exploration agreement with a consortium led by TotalEnergies, Eni and QatarEnergy for its offshore Block 8, as the cash-strapped country presses ahead with efforts to revive its stalled hydrocarbons sector despite past drilling disappointments.
Under the deal, the consortium will conduct a 3D seismic survey covering about 1,200 square kilometres, a key preparatory step ahead of drilling a potential exploration well during the second phase of the licence, said Gaby Daaboul, chairman of the Lebanese Petroleum Administration.
Lebanon is also preparing to launch a fourth offshore licensing round, as it seeks to attract more international oil companies to its remaining open blocks, Energy Minister Joseph Saddi said.
The Energy Ministry and Petroleum Administration are working on amendments to the fiscal and contractual terms, which are expected to be submitted to the cabinet within weeks.
Officials stressed that the outcome in Block 9, which is also operated by TotalEnergies, did not undermine the broader exploration programme. Mr Saddi confirmed that an official technical report from the Block 9 well had been delivered to the ministry and the petroleum regulator, and a summary would be made publicly available soon.
Lebanon’s offshore gas ambitions regained momentum after a 2022 US-brokered maritime border agreement with Israel removed a major obstacle to exploration. But progress has been slow and any commercial discovery would still take years to translate into production and revenues.
Beirut has been looking at opportunities to reduce its dependence on highly polluting fuel oil for electricity generation. Last month, Lebanon signed a preliminary agreement with Egypt to import natural gas to ease electricity shortages and reduce its reliance on high-cost fuel oil imports, officials said.
