emerging markets
will be identified. Further studies will then assess technically and economically recoverable reserves,” added Zahabi.
POTHOLES IN THE ROAD
Delays and setbacks in recent years have blighted efforts to develop Lebanon’s nascent energy sector, largely reflecting an amplification of the type of political instability that has periodically characterized the small Mediterranean country. The return of factionalism among the country’s largest political groupings has prevented the election by parliament of a new president since 2014, and also the introduction by cabinet of two crucial legislative decrees relating to the delineation of 10 offshore blocks and composition of awarded contracts that are required to advance oil and gas exploration. Political priorities have understandably also shifted towards managing the unprecedented wave of displaced refugees into
Lebanon from neighboring war torn Syria. “Lebanon is suffering from the political vacuum caused by the absence of a president. The security situation created in the aftermath of the Syrian Civil War has also caused severe disturbances. Lebanon’s oil and gas efforts, while of extreme importance, have been put on hold,” said Karen Ayat, co-founder of the Lebanese Oil and Gas Initiative, or LOGI, an independent non-governmental organization seeking to help the country maximize the economic and social benefits of its hydrocarbon wealth. “Lebanon’s first licensing round has been pending the issuance of two important pieces of legislations … (which) will decide on block delineation … and govern the tender process. They must be passed by the cabinet before any contract is awarded to oil and gas companies,” she said. The exploration hiatus has been all the more frustrating given consider-
able earlier legislative progress towards eventual gas production, with the government having launched a prequalification round for exploration in spring 2013, from which 12 companies successfully qualified to bid as operators, and another 34 firms prequalified as non-operator partners. Recent months, however, have witnessed encouraging progress towards ending the deadlock that has so far prevented agreement within the cabinet to passing the two energy sector decrees. Hopes are that a preliminary agreement between rival political groupings last July will expedite pending legislation and advance the election of a new president.
IMPROVED POLITICAL OUTLOOK
The drive to kick-start exploration of Lebanese waters reflects a combination of greater domestic political cohesion, as
BUILT ON PARTNERSHIPS • 6 Laydown Yards, Rail & Highway Accessible • Three Class 1 Rail Carriers • Heavy Lift Capabilities • Dockside Rail & Storage
Moving America’s Energy
connect with us: portofcc.com
24 BREAKBULK MAGAZINE www.breakbulk.com
ISSUE 5 / 2016