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Lebanon: Will Hold First Auction of Offshore Energy Licenses in Jan

Lebanon: Will Hold First Auction of Offshore Energy Licenses in Jan
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Πεμ, 5 Δεκεμβρίου 2013 - 17:44
Lebanon plans to go ahead with its first auction of oil and natural gas licenses in its Mediterranean coastal waters next month, despite the government's failure to vote on decrees needed to start the bidding process, Energy Minister Gebran Bassil said Thursday
Lebanon plans to go ahead with its first auction of oil and natural gas licenses in its Mediterranean coastal waters next month, despite the government's failure to vote on decrees needed to start the bidding process, Energy Minister Gebran Bassil said Thursday

The country has already deferred the licensing round from Nov. 4 to Dec. 10, and then Jan. 10, after the cabinet failed to approve two decrees, but Mr. Bassil said on his Twitter page that the auction will go ahead regardless of the political bickering that has yet to be resolved.

"We are determined to complete all the procedures on time...the tender will inevitably happen," he said.

 Lebanon has already short-listed 46 international oil firms to bid in the licensing round.

ExxonMobil Corp. (XOM) and Chevron Corp. (CVX) of the U.S. , France 's Total SA (TOT), Norway 's Statoil ASA (STO), Anglo-Dutch multinational Royal Dutch Shell PLC (RDSA) and Italy 's Eni SpA (E) are among 12 firms that pre-qualified as operators, according to Lebanon 's Petroleum Administration.

The administration also short-listed 34 firms as non-operators, including Korea National Oil Corp., Russia 's OAO Rosneft (ROSN.RS) and Japan 's Inpex Corp. (1605.TO).

Lebanon, which passed an oil law in 2010 and formed a petroleum board last year, is opening prospects for exploration in the hope that sizeable discoveries will help it cut high levels of government debt and meet domestic power demands. Geophysical data covering the exploration area in the eastern Mediterranean indicate the region contains several trillion cubic feet of natural gas.

The tiny Mediterranean country faces economic and fiscal challenges that are contributing to its mounting public debt. Insecurity relating to threats from across its borders with Syria and Israel , as well as internal political instability that could jeopardize foreign investments and tourism, have contributed to the country's hardship.

By the end of July last year, Lebanon 's gross public debt stood at $55.4 billion, or 136.4% of gross domestic product, according to the Association of Banks in Lebanon .

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