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Total to explore gas in sea after Lebanon-Israel maritime deal

Gas production would be based on the Lebanese side, but Israel would be compensated for gas extracted from its side of the line, under a separately signed deal between Total and Israel, the company says.

Reuters

Lebanon hopes that future gas discoveries will help it pull itself out of the worst financial crisis in the country's modern history.

French oil giant Total says it would soon launch exploration activities in search for gas in the Mediterranean Sea off Lebanon’s coast, following last month’s Lebanon-Israel deal on their maritime border.

According to a statement on Tuesday, TotalEnergies and its partner, Italy’s ENI, signed with Israel a “Framework Agreement" to implement the US -mediated border agreement reached last month. Lebanon and Israel have been formally at war since Israel’s foundation in 1948.

The border deal envisages that the disputed waters would be divided along a line straddling the “Qana” natural gas field in the Mediterranean.

Total said gas production would be based on the Lebanese side, in the Block 9, but Israel would be compensated for gas extracted from its side of the line, under a separately signed deal between Total and Israel.

The company's statement said TotalEnergies would have 60 percent stake in the operation and ENI the rest.

“TotalEnergies, as the operator of block 9, is proud to be associated with the peaceful definition of a maritime border between Israel and Lebanon,” said TotalEnergies CEO Patrick Pouyanné.

“By bringing our expertise in offshore exploration, we will respond to the request of both countries to assess the materiality of hydrocarbon resources and production potential in this area,” Pouyanne added.

Economic advantage

The exploration was expected to start next year. Lebanon hopes that future gas discoveries will help the small Mideast nation pull itself out of the worst economic and financial crisis in the country's modern history.

Lebanese officials have said the maritime border agreement does not represent any form of normalization of relations between the two countries.

Lebanon approved licenses in 2017 for an international consortium including Total, ENI and Russia’s Novatek to move forward with offshore oil and gas development for two of the 10 blocks in the Mediterranean.

Novatek recently withdrew and Lebanese officials, including Energy Minister Walid Fayad, have said that Qatar is interested in filling that gap.