The Oil for Development programme in Lebanon
While the petroleum sector is in an early phase of development, 2017 witnessed a series of milestones for the oil and gas sector in Lebanon.
Two decrees related to block delineation, the tender protocol and the model exploration and production agreement were approved.
After carrying out necessary evaluations, Lebanon accepted two offers on blocks 4 and 9, and the Council of Ministers approved the signature of the Exploration and Production Agreements. Lebanon is therefore finally entering the exploration phase.
OfD support to Lebanon started in 2006. The second phase of the programme began in January 2015 and the third phase commenced with the signing of new agreements in 2018.
Key achievements 2017
Enhanced legal and regulatory framework:
- Three decrees were drafted related to i) registration, mortgaging and transfer of petroleum rights, ii) disclosure of contracts, iii) safety zones. These are importants steps towards completing an appropriate supervisory framework for monitoring and supervising petroleum exploration and production activities in Lebanon.
Increased institutional capacity:
- The Lebanese Petroleum Administration (LPA) carried out its first licensing round. While OfD was not directly involved in the actual licensing process, the Programme has provided capacity development to the LPA since its inception, and has supported the development of the licensing strategy.
- LPA was equipped with software tools to conduct in-house assessments of the Lebanese hydrocarbon potential incorporating knowledge and data acquired from the exploration activities. This will contribute to informed decision-making in future licensing rounds.
Increased transparency and accountability:
- A delegation from the Parliament of Lebanon understook a study tour to Norway. The purpose was to deepen their understanding of the petroleum sector while drawing on the Norwegian experience in resource, revenue, safety and environmental management. Particular attention was given to providing participants with a clear understanding of a realistic timeframe associated with the petroleum value chain, including key milestones for the licensing and exploration phases.