Republic of Lebanon
On 16-10-2024, the Bid Opening and Evaluation Committee, established by Decision No. 2 from the minutes of the Board of Directors of the Lebanese Petroleum Administration (LPA) No. 30/2024, convened to evaluate the bids submitted for the tender referenced above. The committee confirmed the receipt of three bids and proceeded to open and evaluate them in accordance with the Request for Proposal (RfP Reference: RFP 1-P dated 12/9/2024).
The committee administratively accepted the bids and then evaluated the technical and commercial proposals based on the criteria set forth in the tender document. SLB, represented by Eastern Echo FZE, was identified as the provisional winning bidder, achieving the highest score of 65.48 out of 100 followed by scores of 62.628 and 56.992 out of 100 for the two other bidders.
Consequently, the LPA has decided to provisionally award the contract to . SLB, represented by Eastern Echo FZE , triggering the commencement of the 10-day standstill period starting from the publication of this announcement on the LPA website.
Click here to download the Bids Assessment Report.
The Lebanese Petroleum Administration (LPA) successfully hosted an online IMO Training Course on Oil Pollution Preparedness, Response and Cooperation, Level 3 (Strategic) from August 13 - 15, 2024. The course, organized by the Regional Marine Pollution Emergency Response Centre for the Mediterranean Sea (REMPEC) in cooperation with the International Maritime Organization (IMO), aimed to enhance Lebanon's capabilities in managing large-scale offshore oil spill incidents.
Twenty-one participants from 14 different Lebanese governmental institutions attended the three-day event, which covered crucial topics such as international legal frameworks, oil spill response strategies, incident management systems, and liability and compensation issues.
Key achievements of the training include:
Enhanced knowledge of oil spill preparedness and response
Improved understanding of Lebanon's current state of readiness
Opportunities for inter-agency cooperation and exchange
The course featured lectures, practical exercises, and a tabletop simulation to provide senior managers and administrators with comprehensive insights into managing oil spills of national significance.
This training marks an important step in Lebanon's ongoing efforts to strengthen its national offshore oil spill response capabilities and fulfill its commitments under international conventions such as the OPRC 1990.
Please click here for more information.
The Minister of Energy and Water has issued a decision regarding Lebanon’s Third Offshore Licensing Round, extending the submission deadline for Applications until March 17, 2025. Decision No. 15 D/M, dated June 24, 2024, outlines procedures for International Oil Companies (IOCs) wishing to participate in this licensing round.
Click here to download the Minister's Decision.
As per the provisions of Law no. 84/2018 (Enhancing Transparency in the Petroleum Sector), the Lebanese Petroleum Administration – Ministry of Energy and Water, publishes the lists of the employees and services companies (Contractors – Subcontractors) and their Beneficial Owners during the execution of drilling activities related to the Exploration Well(Qana 31/1) in block 9 Offshore Lebanon. Noting that the lists has been submitted by the Operator TotalEnergies Block 9 on April 26th 2024.
Click here to download the list.
A new decree (Decree no. 12931 dated 18/1/2024) was issued in the Lebanese Official Gazette (issue no. 4 dated 25/01/2024), amending some articles 7, 20, 27 and Paragraph 1 of Article 36 of the Exploration and Production Agreement Model and Article 14 of the Tender Protocol to participate in the Lebanese Offshore Licensing Rounds, issued by Decree no 9095 dated 29/04/2022.
Article 3 of this decree stipulates that the Tender Protocol related to the Second Licensing Round Offshore Lebanon, issued by Decree no. 9095 dated 29/04/2022, shall be applicable to participate in any licensing rounds launched by the Council of Ministers.
Article 4 of this decree also stipulates that the Model of the Exploration and Production Agreement and its Annexes issued by Decree no. 43/2017 and amended by Decrees no. 4918/2019 and no. 9095/2022 and the amending decree =no. 12931 dated 18/01/2024 shall be adopted to participate in any licensing rounds launched by the Council of Ministers.
The Lebanese Petroleum Administration has compiled a consolidated version of the Exploration and Production Agreement Model that includes all amendments to the Articles of the Agreement and its Annexes.
Click here to download the consolidated version of the Exploration and Production Agreement Model - Annexes
Click here to download the Tender Protocol to participate in the Third Offshore Licensing Round.
The Lebanese Petroleum Administration - Ministry of Energy and Water issued the following statement:
After the completion of the drilling activities related to the Exploration Well Qana 31/1 at the drilling site in Block no. 9 Offshore Lebanon by the operator Total Energies, and after the completion of the data acquisition and collection of samples resulting from the drilling activities on Sunday night – Monday (15-16 October 2023), and while waiting for the detailed technical report being prepared by Total Energies, and in compliance with the principles of transparency that the Ministry and the Petroleum Administration have always followed, clarifying the following is a must :
The choice of the well location in the unexplored Qana Basin aimed to provide answers to two essential questions for the future of exploration operations in the Lebanese offshore:
1- Confirmation or denial of the existence of reservoirs and their quality, specific to the Lebanese offshore, in a geological layer where reservoirs have not yet been discovered in the Levantine Basin.
2- The extent of similarity and extension of the geological layers in which gas discoveries have been recorded in the Sea of occupied Palestine with their counterparts in the Lebanese offshore and the confirmation or denial of the existence of gas reservoirs and their quality.
Through drilling, the targeted layers were penetrated and the presence of a reservoir of good quality containing gas was confirmed in the geological layer where reservoirs have not yet been discovered in the Levantine Basin. The discovery of this reservoir in the Qana Basin requires an extensive study for a deeper understanding that allows the mapping of this type of reservoir in the Qana Basin, along Block 9 and the surrounding blocks in order to determine the locations of reservoirs that can contain hydrocarbons in commercial quantities.
The extension of the geological layers in which gas discoveries were recorded in the Sea of occupied Palestine to the Lebanese offshore was also confirmed, and the presence of reservoirs of very good quality, which contained traces of gas at the site where the well was drilled, was confirmed. In the coming months, the focus would be on using the data acquired and samples collected from inside the well for more accurate modeling of the Qana Basin in order to determine the geographical extent of the reservoirs discovered within it and in the surrounding areas and raise the success rate to achieve future gas discoveries in the Qana Basin and the surrounding areas, which extend over several marine blocks.
Although there was no hydrocarbons discovery as a result of the drilling of this well, the data and samples obtained from inside the well will constitute new hope and positive data for the continuation of exploration operations in Block 9 and other blocks, especially those surrounding Block 9, as it gives additional impetus to exploration in the Lebanese offshore.
On October 22, 2023, the First Exploration period in Block 4 Offshore Lebanon ended in accordance with the applicable laws and the Exploration and Production Agreement related to this block, as the Rights Holders did not enter the second Exploration Period and relinquished the entire Block 4.
Block 4 is therefore no longer covered by any Exclusive Petroleum Right to conduct exploration activities and can be re-offered for award in any subsequent licensing round.
TotalEnergies conducted a second Environmental Baseline Survey in Block 9 offshore Lebanon in February 2023 following the first EBS conducted in 2019. Click here to watch the video for more information.
On 29/1/2023, Lebanon celebrated the entry of Qatar Energy Company as a Right Holder non-operator in blocks 4 and 9 in the Lebanese Offshore, by joining the consortium of Right Holders companies that own petroleum rights in these two blocks, along with the French company Total Energies and the Italian company Eni.
During the ceremony, it was announced the signing of the two amending addenda to the Exploration and Production Agreements (in blocks 4 and 9), in which the participation interests are distributed as follows: /35%/ (thirty-five percent) for TotalEnergies, /35%/ (thirty-five percent) For Eni and /30%/ (thirty percent) for Qatar Energy.
The ceremony, which was held at the Ministry of Energy and Water and at the Grand Serail (the headquarters of the Prime Minister), was attended by the Minister of Energy and Water representing the Lebanese State and Minister of State for Energy Affairs of the State of Qatar, the CEO of Qatar Energy Mr. Saad Sherida Al-Kaabi, the CEO of Total Energies Mr. Patrick Pouyanné, the CEO of Eni Mr. Claudio Descalzi, the ambassadors of the consortium countries and members of the Board of Directors of the Lebanese Petroleum Administration.
Click here to view the full proceedings of the ceremony announcing the signing of the two amend amending addenda to the Exploration and Production Agreements.
Pursuant to Articles 9 and 10 of Law no. 84/2018 (Enhancing Transparency in the Petroleum Sector) requiring the Lebanese Petroleum Administration the disclosure of any information regarding the award of Petroleum Licenses, the transfer of Petroleum Licenses, or the Assignment of Petroleum Licenses to qualified companies, in addition to the disclosure of the information and procedure regarding the registration in the Petroleum Register, particularly the disclosure of beneficial owner(s) of licensed petroleum companies, as well as information related to the identification and replacement of the Operator, and information concerning each assignment or transfer of Petroleum Rights according to Article 70 of Law no. 132/2010 (Offshore Petroleum Resources), the Petroleum Administration discloses the following:
• Firstly: The Forced Assignment of the previous Right Holder “Novatek Lebanon SAL” of its participating interests in the Exploration and Production Agreements.
Following the withdrawal of the former Right Holder Non-Operator “Novatek Lebanon SAL” from the Exploration and Production Agreements in Blocks 4 & 9 Offshore Lebanon, the Minister of Energy and Water exercised the Forced Assignment provisions stipulated in Article 36.2 of both Agreements, based on the Petroleum Administration’s recommendation no. 6/2022 in this regard, and that under the Minsters’ decisions no. 11 D/M dated 13/9/2022 and no.12 D/M dated 13/10/2022 (published on the Petroleum Administration’s Website).
Thus, the 20% (twenty percent) Participating Interests of the previous Right Holder (Novatek Lebanon SAL) in both agreements, have been transferred to the Lebanese State on 13/10/2022.
• Secondly: The Assignment of the Right Holder-Operator “TotalEnergies EP Liban SAL” to the French company “DAJA 215” (Simple Joint-Stock Company).
According to the provisions of Article 70 of Law no.132/2010 (OPRL), and according to the provisions of Article 34.2 of the Exploration and Production Agreement in Block 9, the Council of Ministers approved through an Exceptional Approval from the President of the Republic and the Prime Minister the Assignment of the Participating Interest (40%)of the Right Holder Operator “TotalEnergies EP Liban SAL” to the French Company “DAJA 215” (Simple Joint-Stock Company) which has acquired its qualification from the Lebanese Petroleum Administration.
The change of Operator in Block 9 Pursuant to the provisions of Article 20 of Law no.132/2010 (OPRL), was also approved, to become “DAJA 215” as the new Right Holder Operator in this Block following the aforementioned assignment by the previous Operator.
• Thirdly: The temporary Assignment from the Lebanese State, as a Right Holder Non-Operator of its participating Interests in the Exploration and Production Agreements in Blocks 4 and 9, to the French Company “DAJA 216” (Simple Joint-Stock Company).
According to the provisions of Article 70 of Law no.132/2010, and according to the provisions of Article 34.3 of the Exploration and Production Agreement in Blocks 4 and 9, The Council of Ministers approved through the Exceptional Approval the assignment of The Lebanese State’s participating Interests as a Right Holder Non-Operator in the Exploration and Production Agreements in Blocks 4 and 9 (twenty percent in each agreement) to the qualified company “DAJA 216” on a temporary basis, so that the company, and within three months of the Exceptional Approval, assigns these participating Interests to qualified oil and gas/energy company/companies as per the provisions of Article 70 of Law no.132/2010.
This ratification is conditioned on the fact that the two participating interests are due to the ownership of the Lebanese State in case “DAJA 216” did not assign its participating Interests, as mentioned above, to a qualified global company which its object to conduct Petroleum Activities, and that is within three months of the date of ratification of the assignment to the State.
In case “DAJA 216” charges any amounts from the ceding company/companies for this assignment or achieves benefits of all kinds through inter-agreements, these amounts must then be repaid and all the benefits reimbursed to the Lebanese State.
For the sole purpose of assignment, the Rights Holders in Block 9 are exempted from the obligations mentioned in Article 34.3(b) of the Exploration and Production Agreement in Block 9 since the Minimum Work Commitment for the first Exploration Period, which consists of drilling one exploration well, has not yet been fulfilled due to the previous situation on the border area.
• Fourthly: “DAJA 215” and “DAJA 216” are indirectly wholly owned by the initial Right Holder in Blocks 4 and 9 “TotalEnergies SE” (previously “Total SA” – refer to the Minster of Energy and Water decision no.2 D/M dated 14/10/2021, published in the Official Gazette and on the Petroleum Administration’s website).
Click here to download the Minister’s Decision No. 11/2022
Click here to download the Minister's Decision No. 12/2022
