Sources following the details of the oil exploration file confirmed to "Nidaa Al-Watan" that "Qatar Energy" has obtained the best commercial terms upon joining a coalition with the French company "Total" and the Italian company "Eni." This pertains to the agreements for exploring and producing gas in blocks 4 and 9 in the Lebanese territorial waters and the exclusive economic zone. Sources noted that the delay in announcing "Qatar Energy's" membership in the coalition was due to awaiting the finalization of those terms and scenarios for profit-sharing related to the quantities that may be discovered, as well as the reserves that could be relatively confirmed after the outcomes of exploratory drilling are released, especially since drilling is not expected to begin before the start of next fall.
In related news, sources stated that "the Qataris are well aware of how influential Lebanese operate and how shares will be requested from various parties. They left this pending until the initial results are out to determine the next steps with their French and Italian partners." It was highlighted that there are several clauses to be executed, the most notable being support companies that will be established on land for labor and logistical services. In this context, there is a clause to use 80% of the national workforce, which politicians will exploit for employment, in addition to other preferential percentages for Lebanese services and goods used.
Regarding the circulating figures about reserves, some overly optimistic estimates exceed 3 trillion cubic feet of gas in the three fields of "Qana, Eastern Sidon, and Western Sidon" in the southern sector of the Lebanese exclusive economic zone. These sources expressed their astonishment at this determination before drilling and exploration have commenced, especially since anticipated results in this regard will not emerge before 2024.
On another note, MTV reported that Lebanon is just days away from the first date in a busy schedule concerning the oil and gas exploration process in the Lebanese territorial waters. With Qatar officially joining the coalition that will soon start exploration, a series of important dates and observations related to the operational aspect of this file have emerged.
University professor and energy affairs specialist Dr. Charbel Skaff spoke about the first anticipated date in the busy schedule for 2023, stating: "The environmental survey vessel is expected to arrive on February 6, and its mission is to clarify the sea floor and soil as well as to photograph the seabed to identify sensitive sites that assist in determining the well's location." He indicated, via MTV, that "this survey will be the basis for the environmental impact study that will pave the way for drilling the well, and the study will be submitted to the Ministry of Environment for approval, as part of the drilling license application."
Skaff continued, stating, "The drilling license is linked to the Ministry of Energy and the Oil Sector Management Authority, and the license includes the location, shape, depth, and geological data of the well. After obtaining the license, the drilling ship is signaled to commence operations." He explained that "the contract with the drilling ship will be within a tender conducted by Total, which includes five companies, and upon the tender's resolution, the start time for drilling will be determined."
But what about the logistics preparations? Skaff responded: "There is a crucial role for many concerned ministries in facilitating the drilling process. For instance, Total has a logistical base at the Port of Beirut, where equipment arrives before being sent to the drilling site." He pointed out an important observation concerning human resources: "Unfortunately, with the start of the crisis in Lebanon, many trained personnel have migrated, and there is a need to retrain new staff and support the budget of the Oil Sector Authority to accompany all activities in this sector." He continued, saying, "The positive aspect is Norway's agreement to renew the agreement for one year, through which it will provide support to the state and its departments and train personnel to accompany the exploration process."
It is noted that the initial drilling date is expected to be in September or October, and the budget allocated is 115 million dollars, of which 100 million is for direct drilling. The daily drilling cost for the ship is estimated at about 300,000 dollars. In comparison, the cost of drilling the first well is 68 million dollars. Will 2023 bring good tidings for Lebanon from the sea? Only time will tell.
