Lebanese Prime Minister Najib Mikati announced the entry of "Qatar Energy Company" as a partner with "Total Energy" of France and "Eni" of Italy, within the agreement to explore and produce gas in the Lebanese territorial waters.
Qatar joined, on Sunday, during an official ceremony in Beirut, as a partner to the French companies Total Energy and the Italian company ENI, in the framework of a consortium to explore for oil and gas in the Lebanese maritime border waters with Israel.
After two years of US mediation, Lebanon and Israel reached last October an agreement to demarcate the maritime borders between them, which they unanimously described as "historic", and would allow the two countries to explore for gas and oil in a disputed area of their territorial waters.
And the Lebanese government presidency stated in a statement on Sunday, following a ceremony held at the Government Houses in Beirut, about "the signing of the amending annexes to the exploration and production agreements in blocks 4 and 9, on the occasion of the entry of Qatar Energy as a partner with the French company Total Energy and the Italian company Eni."
The move came months after the Russian company Novatek announced its withdrawal from the coalition that was formed in 2018.
Thus, Qatar Energy Company became a partner in the consortium of companies that owns the petroleum rights in Blocks 4 and 9 in the Lebanese offshore waters, and holds 30% against 35% in favor of the French company and 35% in favor of the Italian company.
And block number 9, where the Qana field is located, part of which is located outside the territorial waters, will constitute a major area for exploration that will be undertaken by the three companies.
Caretaker Prime Minister Najib Mikati said during the signing ceremony, "The consortium of these internationally renowned companies enhances investment confidence in Lebanon, despite the difficult circumstances it is going through, and puts Lebanon in the future on the oil map in the eastern basin of the Mediterranean."
Caretaker Energy Minister Walid Fayyad, Minister of State for Energy Affairs and CEO of Qatar Energy Saad bin Sherida Al Kaabi, CEO of Total Group Patrick Pouyanne and CEO of Eni Claudio Descalzi signed the two annexes to the agreement, in the presence of the ambassadors of Qatar, France and Italy.
Fayyad hoped that the signing would constitute "the beginning of a new phase that contributes to consolidating Lebanon's position on the oil map in the region, enhances its role as an investment destination, and opens a window of hope for the next stage."
An opportunity to support economic development in Lebanon
In a speech delivered after the signing, the Qatari energy minister referred to "many elements that make these agreements important for Lebanon, as well as for Qatar Energy," as they "came in the wake of reaching a maritime border demarcation agreement" with Israel.
"This important agreement gives us an opportunity to support Lebanon's economic development at this critical juncture," he added.
within a year
The CEO of the Total Group said that the exploration process in the Qana field should be completed "within the next twelve months."
He said, "The rig must arrive at the site before the end of the third quarter" of this year, explaining, "It is not an easy well, which will cost us about $100 million," expressing his hope that a gas discovery could be announced within a year.
Lebanon appears to be far behind the efforts of Israel, which has been investing for years in the Karish field.
Last November, the French and Italian companies signed a framework agreement with Israel regarding the Qana field.
Lebanon divided the exclusive economic zone into ten squares, and Block 9 forms part of the disputed area with Israel.
Under the border demarcation agreement, Lebanon will obtain all exploration and exploitation rights in the Qana field, but analysts believe that it will take years before Beirut enters the exploration stage.