OIL AND GAS

The offshore Oil and Gas sector represents the biggest potential for project cargoes in Lebanon noting that no energy related projects are yet in place in the country. Once the exploration and drilling start offshore, there will be a lot of potential for project cargo type of activities, catering for the offshore oil and gas industry.

GOVERNMENT DELAY
The process of issuing the drilling tenders and awarding contracts is on halt by reasons related to outstanding laws in Lebanon.
Local speculation anticipate the political delays would be resolved some times in the year 2015.

BID ROUND UPDATE
The Minister of Energy and Water, Arthur Nazarian, issued decision number 3 dated 8 August 2014, announcing that the deadline to submit bids for the first licensing round has been extended from 14 August 2014, to a maximum period of six months from the date of the adoption of the two decrees related to block delineation, and the tender protocol and the model exploration and production agreement (EPA).

LICENSING TIMETABLE
Pre-Qualification for the First License round is closed.
Pre-Qualification                             February – April 2013     (CONCLUDED)
Submission of Applications             up to (6) months              (PENDING – this shall count from the date two relevant decrees are adopted by the government)
Bid Evaluation                               up to (2) months
Award                                           up to (4) months

 

Pre-qualified – Right-Holders Operators
Pre-qualified – Right-Holders Non-Operators
·         Applicants>>>>38 Companies
·         Qualified>>>>>34 Companies
·         Applicants>>>>16 Companies
·         Qualified>>>>>12 Companies