Oil and Gas in LebanonOil and Gas in Lebanon

Image retrieved from http://www.georgessassine.com/oil-gas-resource-curse-and-corruption/

Republic of Lebanon

• Located on the eastern coast of the Mediterranean Sea

• Total Area: 10,452 sq. km• Population: over 4 million inhabitants • Capital: Beirut • Shoreline extends 210 kilometers from

north to south• Bordered

– North and East by Syria– South by Occupied Territories/

Palestine– West by the Mediterranean Sea

Located on the eastern coast of the Mediterranean Sea

Total Area: 10,452 sq. km

Population: over 4 million inhabitants

Capital: Beirut

Shoreline extends 210 kilometers from north to south

Bordered North and East by SyriaSouth by Occupied Territories/ PalestineWest by the Mediterranean Sea

Located on the eastern coast of the Mediterranean Sea

Total Area: 10,452 sq. km

Population: over 4 million inhabitants

Capital: Beirut

Shoreline extends 210 kilometers from north to south

Bordered North and East by SyriaSouth by Occupied Territories/ PalestineWest by the Mediterranean Sea

Image retrieved from http://www.lebanon-exploration.com/

Petroleum Exploration 1930-2012

Onshore

1930s: Dubertret extensively described the geology of Lebanon

1940s: Onshore Exploration started

1975: exploration Licenses canceled by government

Offshore

1990s: Geological seismic surveys were conducted strongly suggesting the presence of oil and gas deposit.

2012: Expected first licensing round for offshore oil and gas exploration

Onshore Exploration

1947 Iraq Petroleum Company (IPC) drilled a well in Terbol (depth: 3065 m) Iraq Petroleum Company (IPC) drilled a well in Terbol (depth: 3065 m)

1953 Well in Yuhmor (depth: 2672 m)Well in Yuhmor (depth: 2672 m)

1960

1963

1975

Well in Al-Qaa (depth: 2557 m), Adloun (depth: 2150 m) & YuhmorWell in Al-Qaa (depth: 2557 m), Adloun (depth: 2150 m) & Yuhmor

Well drilled in Tell-Znoub (depth: 1421 m) & Sohmor (Depth:1423 m)Well drilled in Tell-Znoub (depth: 1421 m) & Sohmor (Depth:1423 m)

Exploration Licenses cancelled by the government Exploration Licenses cancelled by the government

1947 – 1963: Seven exploratory wells have been drilled

1967 Aabrine (depth: 620 m)Aabrine (depth: 620 m)

Refineries : Tripoli & Zahrani

Tripoli RefineryTripoli Oil Installations

(TOI)

Crude oil transport from Iraq toLebanon through the Iraq

Petroleum Company (IPC)

Present: storage purposes only

Zahrani RefineryMediterranean Refining

Company

Crude oil transport from SaudiArabia to Zahrani through TapelineCompany

Present: storage area for petroleumproducts

First pipeline builtFirst pipeline built

1934 1940 1983-1985 1989

33 storage tanks destroyed33 storage tanks destroyed

First refining activityFirst refining activity Refinery operations stoppedRefinery operations stopped

{

1945 1952 1975 1982 1986 1989

Caltex & Mobile-agreement with Lebanese GovernmentCaltex & Mobile-agreement with Lebanese Government

First refining activityFirst refining activity

Refinery activities stoppedRefinery activities stopped

Refinery damaged and closedRefinery damaged and closed

The Government took over the facilities

The Government took over the facilities

Offshore Exploration

2000 Spectrum performs a 2-D seismic survey to gather data of the Lebanese offshore

2006- PGS performs 2-D and 3-D seismic survey data of the Lebanese offshore

2012-

2011

2010

Spectrum performs a 3-D seismic survey to gather data of the Lebanese offshore

Offshore Petroleum Resources Law

Lebanon's Cabinet Approves Petroleum Administration Decrees 2012

Delineation of the boundaries of the exclusive economic zone of Lebanon sent to the United Nations

2012? Expected first licensing round for offshore gas exploration

1993 GecoPrakla Performs a 2-D seismic survey to gather data Offshore Tripoli

Public Policy

البحرية المياه في البترولية الموارد قانونرقم في - 132قانون 24/8/2010صادر

العدد الرسمية الجريدة في نشره بتاريخ - 41تم 2010أيلول 2الصادرة

البحث أجل من الشركات مع للتعاقد العامة األحكاموالغاز النفط عن والتنقيب

رقم في - 5039مرسوم 9/4/1994صادر

: البترول قطاع إدارة هيئة تحدد 64مرسوم مادةوالمسؤوليات المهام

, السفير 2012آذار 30جريدة

Governance Issues

Lebanese policy makers should examine lessons from the success andfailure of other countries

Policy threats

• Corruption• Poor implementation• Unequal distribution of

oil revenues• Volatility of oil prices• Non-diversification of the

economy• Environmental risk

Corruption prevention

• Public Extraction contracts• Monitor and disclose

extraction figures• Ratify international

standards or treaties• Implement anti-bribery

codes (implementation of the regulations in the home countries of oil company operating in Lebanon)

Levant Basin located in the East Mediterranean region involve different countries including •Gaza, •Occupied Territories/Israel,•Lebanon, •Egypt, •Cyprus, •Syria, and •Turkey

Maritime boundary disputes will prevent Lebanon from exploring part of its oil and gas resources

Maritime Border Disputes

Legal Framework• Demarcate maritime

border with Cyprus and Syria• Resolve maritime

border disputes with

Israel

                                                                                                                                                                                                                                                                                                                                                                                                                                  

Lebanese Israeli Disputes

Both countries are at war• No Direct negotiation• No joint development agreement

Israel has not signed the UN Law ofthe Sea

• Lebanon can not force Israel to resolve maritime dispute through an international tribunal

Remaining Option: Third Party mediation e.g. The United Nations

Lebanon developed it own‘Delineation of the boundaries of the exclusive economic zone of

Lebanon’and sent it to The United Nations on October 2011

Image retrieved from http://www6.almanar.com.lb/english/adetails.php?eid=21366&frid=23&seccatid=14&cid=23&fromval=1

Maritime Legal Frameworks

Oct. 2011 Delineation of the boundaries of the exclusive economic zone of LebanonOct. 2011 Delineation of the boundaries of the exclusive economic zone of Lebanon

LebanonLebanon

Feb. 2011 - Ratified the delimitation of the EEZ with Israel by LawDec. 2010 - Delimitation agreement of the EEZ with Israel Jan. 2007 - Delimitation agreement of the EEZ with LebanonMar. 2003 - Ratified the delimitation of the EEZ with Arab Republic of Egypt by Law Feb. 2003 - Delimitation agreement of the EEZ with Arab Republic of Egypt

Feb. 2011 - Ratified the delimitation of the EEZ with Israel by LawDec. 2010 - Delimitation agreement of the EEZ with Israel Jan. 2007 - Delimitation agreement of the EEZ with LebanonMar. 2003 - Ratified the delimitation of the EEZ with Arab Republic of Egypt by Law Feb. 2003 - Delimitation agreement of the EEZ with Arab Republic of Egypt

CyprusCyprus

Exploration and Licensing

Lebanon Exploration: Ministry of Energy and Water - Lebanon

Lebanon 1st License Round•Legal and Fiscal Documents:

– Offshore Petroleum Law

•Data: Data Room

– Technical data

•Flyer: Description and Letter of invitation for exploration companies

Lebanon International Petroleum Exploration Forum (LIPE)

•LIPE 2012 (3/4/5 July 2012) For details, check brochure and flyer

•LIPE 2011 (29/30 July 2011)– Companies attending the

Forum – Post show summary for a

briefing– Booklet for details– Presentations available for

download

Events 2011-2012

• Lebanon Oil, Gas & Energy Conference 2012: Organized by Arabcom Group. An annual meeting place for International and regional oil, gas, and energy industry

• Role of natural gas in Lebanon’s future energy mix: The Third International Workshop organized by Munib and Angela Masri Institute of Energy and Natural Resources at the American University of Beirut. (April 2012) 

• Geopolitics of  oil and gas in Lebanon in the Near East a conference held at the Holy Spirit University of Kaslik (USEK). (March 2011)

• Lebanon International Petroleum Exploration Forum (LIPE)• LIPE 2012 (3/4/5 July 2012) 

For details, check brochure and flyer

• LIPE 2011 (29/30 July 2011)Read the Post show summary for a briefing, check the booklet for details, and click on presentations to download documents

– لبنان في النفطية الطاقة حول التكنولوجيا و للعلوم االمريكية الجامعة في    2011 مؤتمرالنفطية لبنان طاقة

“Oil and Gas in Lebanon” Guide

• This PPT is just a brief presentation on Lebanese petroleum exploration and related issues.

• Check the “Oil and Gas in Lebanon” guide* for more on exploration history, prospective offshore exploration, geo-petroleum issues, petroleum law, licensing, maritime laws and disputes, and other issues.

* Use the tabs at the top of the guide to navigate through the different pages of this guide.

References

“Lebanon 1st Licensing Round.” Lebanon International Petroleum Exploration Forum. Ministry of

Water and Energy. 2012.

Lebanon Exploration. Lebanon International Petroleum Exploration Forum. Ministry of Water and

Energy. 2011.

Sassine, Georges P. “Resolving Lebanon’s Maritime Border Disputes.” A New Vision for Lebanon.

George Sassine. 12 Dec. 2011.

Sulayman, Walid F. “Demand and Supply Prospects for Major Petroleum Products in Lebanon.”

Master

Thesis. American University of Beirut. 1972.

Wählisch, Martin. “Israel-Lebanon Offshore Oil & Gas Dispute – Rules of International Maritime

Law.”

ASIL Insights 15.31 2011: n. pages

. 21 2012نيسان . حقوله؟, لبنان يكسب هل والغاز النفط على الصراع عصام السفيرخليفة

Thank You