Israeli companies have announced two important natural gas finds in
the past 18 months that may hold 24 trillion cubic feet of gas, but the offshore
discoveries are a potential source of friction between Israel, Lebanon and Greek
Cyprus. Lebanese officials say the gas may extend into their waters, urging
their own prospecting
Natural gas discoveries off Israel have sparked a debate with Lebanon
over potential resources in the eastern Mediterranean and prompted Greek Cyprus
to seek clarification on maritime boundaries.
Noble Energy and Israeli companies controlled by billionaire Isaac
Tshuva have announced two finds in the past 18 months that may hold 24 trillion
cubic feet of gas, more than twice the U.K.’s gas reserves. Greek Cyprus is
seeking clarification on water borders as Lebanon officials have said the gas
may extend into its waters and urged its own
prospecting.
“We’re engaged in an ongoing dialogue with Cyprus in order to reach
an agreement based on international practice and good neighborly relations,”
said Yigal Palmor, a spokesman at Israel’s Foreign Ministry. “As for Lebanon,
they don’t even acknowledge that they should talk directly with us, so their
claims are not based on good faith.”
The dispute adds to tension for Israel, already criticized for the
raid on a ship carrying aid to the Gaza strip. Israel and Lebanon are
technically at war and have no diplomatic relations. Israel, which is seeking to
wean itself off oil and coal imports from as far away as Mexico and Norway and
has bought gas from Egypt in the past decade, has said the finds may allow it to
start exporting gas.
“We will not allow Israel or any company working for Israeli
interests to take any amount of our gas that is falling in our zone,” Lebanon
Energy Minister Gebran Bassil said by telephone on June 17, adding that it
warned Noble not to work close to its economic zone. “It’s the responsibility on
the one hand of the Israeli government and on the other hand of
Noble.”
Bassil said the government and lawmakers “should move quickly on
starting the exploration of offshore gas.”
“We’re in touch with Israel regarding the demarcation of the
exclusive economic zone,” a Greek Cyprus Foreign Ministry official, who declined
to be named, said by telephone. “There has been no agreement so far as there is
no appropriate legal framework in Israel.”
The finds, Leviathan and Tamar, lie about 130 kilometers (81 miles)
and 90 kilometers, respectively, off Israel, according to Israel’s National
Infrastructure Ministry. Delek Drilling-LP, one of the fields’ partners, said on
June 15, in response to reports, that the licenses are in waters where Israel
has authority.
The Leviathan prospect is owned 39.7 percent by Noble, 15 percent by
Ratio Oil Exploration 1992 LP, 22.7 percent by Delek Drilling-LP and 22.7
percent by Avner Oil & Gas Ltd.
A coastal state is entitled to explore for oil and gas in its
economic zone, which extends 200 nautical miles (370 kilometers), according to
the United Nations Convention on the Law of the Sea. A halfway point is used
when the distance between countries is less than 400 nautical miles. Haifa, in
northern Israel, is about 148 nautical miles from Cyprus, which is located north
of Leviathan.
Lebanon’s claim may be complex because its border with Israel is
indented, making it harder to establish where Israel’s sea boundary ends and
Lebanese waters begin, said Robbie Sable, a professor of international law at
Jerusalem’s Hebrew University. Cyprus is “a more straightforward case” since the
licenses are closer to Israel, there’s very “little to dispute” between the two
countries, he said.
Legal disputes between states over the maritime zones where gas is
located usually begin with negotiations, said Norman Martinez, a lecturer at the
International Maritime Law Institute. When negotiations fail, the parties may
agree to other means of settlement such as arbitration, he said. Most end up in
the international court of justice, he said.
Israel has a signed agreement with Jordan on the border in the Gulf
of Eilat, and has unwritten agreements with Egypt and the Palestinian Authority.
There’s no such agreement with Lebanon. In cases of dispute, it is usual
practice to hand the decision to arbitrators, which are listed by the UN
Convention on the Law of the Sea of 1982. Israel
is not a signatory to the convention.