TotalEnergies to Begin Gas Exploration in Lebanon Waters

In an announcement on Tuesday, French company TotalEnergies revealed that they have secured a contract to commence gas drilling and exploration activities in the waters near Lebanon, a country grappling with a severe crisis.

According to the group, TotalEnergies, alongside partners Eni and QatarEnergy, has finalized a solid agreement with Transocean to secure a drilling rig for the exploration well on Block 9 offshore Lebanon. The drilling is set to commence at the earliest opportunity in 2023.

TotalEnergies emphasized that this is an important new milestone in the preparation for the operations.

The announcement follows the signing in October of a landmark maritime border agreement between Lebanon and Israel that opens up lucrative offshore gas fields for the eastern Mediterranean neighbours.

Beirut divided its exclusive economic zone at sea into 10 blocks, and Block 9 was part of the area disputed with Israel.

Block 9 contains the so-called Qana field or Sidon reservoir.

There are still no proven gas reserves in the field that straddles the maritime border, but a 2012 seismic study by the British firm Spectrum estimated recoverable gas reserves in Lebanon at 25.4 trillion cubic feet.

Lebanese officials have announced higher estimates.

Many politicians in Lebanon have pinned hopes of a way out of crisis on gas exploration, but analysts have said Beirut, which is in deep financial crisis, cannot count on gas alone to bail it out.

In January, the Lebanese government had said that Qatar entered a consortium with Italy’s Eni and TotalEnergies to explore for offshore gas in waters near Israel.

The deal saw the gas-rich Gulf country’s state-run QatarEnergy receive a minority 30 percent stake in two blocks of Lebanon’s exclusive economic zone, Lebanese caretaker Prime Minister Najib Mikati had said at the time.

Eni and TotalEnergies will both retain 35 percent shares in the blocks after Russia’s Novatek relinquished its minority stake in 2022.

Lebanon has been caught in an economic quagmire that has locked people out of their bank savings and plunged many into poverty. This crisis has been described by the World Bank as one of the worst in modern history.