TotalEnergies, Eni, and QatarEnergy alliance: Commitment to...

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In the afternoon of last Monday, the Ministry of Energy and Water announced the conclusion of the application submission period for the second licensing round dedicated to gas exploration in Lebanese waters.

The Ministry received bids for Blocks 8 and 10, with both bids coming from the coalition of TotalEnergies and Eni, along with QatarEnergy. It's worth noting that this alliance had previously won bids for Blocks 4 and 9 in the first licensing round.

Following the Energy Ministry's announcement of the application deadline, objections were raised, questioning why the Ministry did not leave the application submission window open until the initial drilling results for Block 9, expected by the end of October, to attract more competitive offers and improve the terms for the Lebanese state.

In response to these objections, sources familiar with the matter emphasize the positive aspects of the situation. Firstly, the interest of the alliance in Blocks 8 and 10, which are adjacent to Block 9, increases the possibility of additional discoveries in these blocks if commercial quantities of gas are found in Block 9 and specifically in the Qana field.

These sources confirm that if discoveries are made in Block 9, the Ministry will be able to improve the financial and technical conditions for the Lebanese state through negotiations with the alliance.

This undermines the theory that the Ministry should have extended the application submission deadline. In case the Ministry does not reach a positive outcome through negotiations, it can choose not to bind the project to the mentioned alliance.

If no commercial discoveries are made in the potential Qana field, the Lebanese state will have obtained two additional offers for Blocks 8 and 10 that can be studied.

In the end, the participation of the TotalEnergies, Eni, and QatarEnergy alliance in the second licensing round demonstrates their strong commitment to exploration and offshore production in Lebanon.

LBCI sources confirmed that the Energy Ministry will be informed by October 22nd about the alliance's final decision on whether to continue work in Block 4 or not.

Based on the drilling results in Block 9, the Ministry will choose the appropriate timing to launch the third licensing round to attract additional companies to Lebanese waters.