Page 10 - MEOG Week 50 2022

MEOG PROJECTS & COMPANIES MEOG

IOCs to drill Lebanese well in 2023

LEBANON FRENCH super-major TotalEnergies Zone (EEZ)], the border area isn’t extensively
announced this week that it and Italian partner covered by 3D surveys […] the Qana prospect
Eni are laying the groundwork for the drilling happens to be located in the only spot on the
of a well in Block 9 offshore Lebanon. The news border covered by 3D surveys. If we extend the
was shared by the company following a meeting coverage, will we find additional prospects? It’s
between its CEO and chairman Patrick Pouy- possible.”
anne and Lebanese caretaker energy minister Block 9 was awarded to a consortium of
Walid Fayad in Paris. TotalEnergies (40%) and Eni (40%) and Russia’s
According to the company’s statement, the Novatek (20%) in 2018 along with Block 4 to the
two officials discussed the French firm’s explo- north-east.
ration efforts in Lebanon and Pouyanne said The group drilled their first well in Block 4
that the teams in charge of Block 9 operations in early 2020 but reported that no commercial
had been mobilised, adding that a bids had been discovery had been made. With around 7-9% of
sought for a drilling rig, with a unit to be chosen Block 9 overlapping with a triangle of territory
during Q1. disputed with Israel, which condemned any
“Pre-orders have also been placed with sup- efforts to explore the concession, TotalEnergies
pliers for equipment required,” the company said the consortium would seek to drill as far
added, noting that environmental studies will from the offending area as possible, but work in
be completed by the end of June with a view to the licence remained suspended.
drilling a well in Block 9 in collaboration with Novatek withdrew from the consortium in
the Lebanese Petroleum Authority (LPA) and August, with Lebanese Energy Minister Walid
Eni “as soon as possible in 2023”. The target of Fayad saying the firm had cited “economic and
the well is presumed to the Qana deposit, about financial [issues and] political risks” as its rea-
which little is known. sons for pulling out”.
TotalEnergies agreed a deal with Beirut in In June, the LPA extended the deadline for
October regarding the development of Block 9 the bid round from June 15 until December
in parallel with agreement between Lebanon and 15 and the maritime breakthrough may finally
Israel that resolved their long-running dispute bring some success.
around the demarcation of a shared maritime The original bidding deadline was January 31,
border despite technically remaining at war with 2020 and this was extended first to April 30, then
each other. June 1 amid the coronavirus (COVID-19) pan-
Lebanon’s President Michel Aoun announced demic and falling oil and gas prices. The deadline
that the talks had come to “a positive end”, call- was then moved to the end of 2021, with the pro-
ing the agreement an “historic achievement”. cess relaunched in December 2021 with a view to
The deal sees Beirut regain an 860-square km closing this summer.
offshore area. The government said that it had extended the
The new border will run, for the most part, auction “based on the recommendation of the
along the Line 23 demarcation, south of the Hof LPA.” It added that the delay was “necessary to
Line, named after the proposed by US envoy allow additional companies not currently oper-
Frederic Hof in 2012. ating in the Lebanese offshore to prepare their
During negotiations, Lebanon pushed hard files and studies and participate in the second
for the Line 29 to be adopted, though this was licensing round, thus allowing an acceptable
never likely to be acceptable, particularly as level of competition among international oil and
it would have posed major challenges to the gas companies.”
development of the Karish gas field, where Lon- Middle East Oil & Gas (MEOG) understands
don-listed Energean recently hooked up a float- that no bids were submitted, which should per-
ing production storage and offloading (FPSO) haps come as little surprise given the country’s
unit. ongoing political and economic woes in addition
Meanwhile, the deal sees Israel retain full to the maritime border dispute.
control over Karish, and Lebanon keep owner- The second bid round comprises blocks 1, 2,
ship of the Qana deposit. 3, 5, 6, 7, 8 and 10. Blocks 1, 8 and 10 were those
The majority of Qana is located in waters not awarded in the first round between February
recognised as Lebanese by the Hof proposal, and November 2017, while blocks 2 and 5 were
and forms part of the Block 9 concession. Mona added to the final cabinet-approved list later,
Sukkarieh, energy and political risk consultant at with blocks 3, 6 and 7 added in late 2021.
Middle East Strategic Perspectives said: “Unlike The Lebanese EEZ is delineated into 10 con-
the rest of the Lebanese [Exclusive Economic cession areas.™

P10 www. NEWSBASE .com Week 50 14•December•2022