BEIRUT: Lebanon on Friday signed a gas exploration deal for Block 8 with a consortium comprising France’s TotalEnergies, Qatar Energy and Italy’s Eni, in a ceremony held at the Prime Minister’s Office and attended by Prime Minister Nawaf Salam.

According to Gaby Daaboul, board member at the Lebanese Petroleum Administration, the agreement stipulates that the consortium will carry out a 3D seismic survey in Block 8, which spans 1,200 sq. km, in preparation for exploratory drilling based on analysis of the survey data.

In 2023, Lebanon marked the resumption of oil and gas exploration in its territorial waters, as a consortium that included Qatar Energy drilled an exploratory well in Block 9.

However, all activities were halted, ostensibly due to the lack of oil or gas. The companies’ cessation of operations coincided with the outbreak of hostilities between Israel and Hezbollah.

Earlier hopes were dashed when gas was not found in Block 4, leaving many Lebanese disappointed.

Lebanese Minister of Energy and Water Joe Saddi, who signed the agreement on behalf of the state, described the move as “a confirmation of the consortium’s commitment to continue exploration activities in Lebanon despite all challenges, and a reflection of continued confidence in the petroleum potential of Lebanese territorial waters.

“We look forward to the consortium coordinating and promptly implementing the 3D seismic survey campaign. This will enhance geological and technical understanding of Block 8 and allow for a more accurate assessment of the opportunities available,” the minister said.

He announced the preparation of a file for launching the fourth licensing round, aiming at attracting international companies to invest in open offshore blocks and boost exploration and production activity in Lebanon.

Asked whether there are guarantees that the consortium operating in Block 8 will provide Lebanon with an official technical report, Saddi explained that “for Block 9, an official report was submitted to the Ministry and the Petroleum Sector Administration.” 

He noted that oil companies do not spend tens of millions of dollars without expecting results.

“No oil was found in the Block 9 drilling area, but a full report is available. This highlights the importance of the seismic survey in Block 8 to understand the block’s detailed geology, which will guide future exploration,” he said.

Saddi stressed that regional and domestic stability will be key to accelerating the exploration process.

The agreement was signed by Romain de La Martiniere, managing director of Total Lebanon, on behalf of Total Energies; Ali Abdulla Al-Mana, head of exploration at Qatar Energy; and Andrea Cozzi, managing director for Eni’s Lebanon division.

“Lebanon looks forward to continuing its exploration efforts by promoting non-obligatory blocks, with the aim of intensifying exploration activities and achieving a commercial discovery that will boost the national economy and support sustainable development,” Daaboul said.

Lebanon’s offshore oil and gas exploration centers on 10 blocks in its exclusive economic zone, with Blocks 4, 8, 9, and 10 most relevant near the maritime border with Israel.

A 2022 US-brokered maritime border agreement resolved a long dispute, granting Israel full control of the Karish field while assigning Qana Prospect (Block 9) to Lebanon. However, Israel is poised to receive royalties from any future production there.

Lebanon is racing against time to resume exploration after Total’s 2023 drilling in Block 4 yielded negative results, prompting the company to return the block to the Lebanese state. Meanwhile, Israel began commercial production in the area roughly four months later.

Although the company was expected to resume drilling in Block 4 from a different location, it chose to return the block to the Lebanese state, where it will later be included among the blocks offered for exploration.

In 2018, Lebanon signed its first exploration contracts with three companies — Total, Eni, and Russia’s Novatek — to search for oil and gas in two blocks within its territorial waters, Blocks 4 and 9. Of the 10 blocks Lebanon has designated for oil and gas exploration, three are located in its exclusive economic zone.

Lebanese citizens are pinning their hopes on the exploration, anticipating the discovery of oil wells to help revive the struggling economy.