Lebanon risks losing oil and gas investments over licensing delaysStaff writer ▼ | June 2, 2015
Energy and Water Minister Arthur Nazarian warned over that international oil companies could lose interest in bidding for oil and gas exploration in Lebanon if the government fails to speed up licensing procedures.
Energy business Energy and Water Minister Arthur Nazarian warned:
The government has yet to issue two decrees that would pave the way for the first licensing round for offshore gas exploration in Lebanon’s exclusive economic zone.
“We could lose all this interest [by international oil companies] if we continue to delay and postpone the issuance of the two decrees required to launch the licensing round for oil and gas exploration,” he told participants.
The first licensing round was postponed last August for the fifth time due to political disagreements over the decrees pertaining to the designation of blocks that would be open for bidding and the terms of a draft on the Exploration and Production Agreement.
Nazarian said he expected explorations works to take off relatively quickly once the licensing round takes place, mainly owning to the large quantity of data already available to international companies interested in investing in Lebanon.
Industry sources have warned that some international companies that prequalified for the first licensing round were re-evaluating the situation in light of the repeated delays as a result of the government’s failure to issue the two decrees.
Out of the 52 companies that applied for prequalification, 46 were accepted and of those 12 can bid as operators and 34 as non-operators. ■