Page 10 - MEOG Week 45

MEOG ProJeCts & ComPanies MEOG
Drilling kit arrives in Beirut ahead of exploration kick-off
Lebanon
LEBANON’S Water and Energy minister this week said that work was ongoing ahead of the beginning of drilling in offshore Block 4.
Speaking to local state media during a tour of the port of Beirut to inspect drilling equipment that has arrived for the work, Nada Boustani said: “I assure the Lebanese that preparations for the drilling of the first oil well in Block 4 [are] very close. We will receive additional equipment and a drilling vessel which will enable us to start our work.”
The exploratory work will be carried out by a consortium of French super-major total, Eni of Italy and Russian firm Novatek, which was awarded the concession along with Block 9 in February 2018.
The latter block lies in a maritime zone con- tested by neighbouring Israel and the poten- tial for exploratory drilling there has been the cause of increased friction between Beirut and Jerusalem.
Block 9 overlaps with an 890-square km tri- angle of territory disputed with Israel and amid uproar from Lebanon’s southern neighbour, total previously said that it would seek to drill as far from the offending area as possible.
Boustani said that the drillship that would be used for the first well was currently operating in Egypt. It is due to arrive in Lebanese waters in December or January.
January 2020 is also the deadline for bids in Lebanon’s five-block second licensing round, which Boustani launched in April.
In December 2018, the LPA announced that a recommendation of four blocks had been sub- mitted to Cabinet for inclusion in the second round. Blocks 1, 8 and 10 were those unawarded
in the first round, while Block 5 was to be newly included and Block 2 was also belatedly added to the final Cabinet-approved list. The Lebanese Exclusive Economic Zone (EEZ) is delineated into 10 concession areas.
In contrast to the first bid round, the prequali- fication and bidding stages have been combined, with a deadline for submissions set at January 31, 2020.
The first bid round closed last year, with some disappointment, as only the aforementioned consortium had submitted offers for blocks.
Like Block 9, Blocks 8 and 10 lie in the south of the EEZ within the area of contention with Israel and are also likely to provoke objections from tel Aviv, as with the awarded licence.
Block 5 covers uncontested territory to the north of Block 8, while Blocks 1 and 2 are in the north of the EEZ and include portions of a 400-square km area disputed with neighbouring Syria. All three southern blocks were previously deemed prospective primarily for gas, while Block 1 was marketed as more likely to yield oil.
Considering the political issues affecting Lebanon and the rampant corruption that has provoked major public backlash, it would be something of a surprise if the ongoing auction were any more successful than the first.
Boustani was at pains to prove such concerns about the oil and gas exploration as unfounded, saying she “did not detect any lack of transpar- ency from the Lebanese government in this field”.
Neighbouring Israel has struggled to attract bids from major players despite development work having already begun on major fields that include tamar, Leviathan and Karish.™
Boustani inspected drilling equipment that had arrived at Beirut Port.
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w w w . N E W S B A S E . c o m Week 45 13•November•2019