First Licensing Round Updates
Lebanon reached an important milestone on the 12th of October 2017 which was the deadline set for prequalified companies to submit their bids on the open blocks within the country’s first offshore licensing round.
Three companies forming one consortium participated in the current bid round submitted one bid on block 4 and one bid on block 9. These companies are Total S.A, Eni International BV and JSC Novatek.
The evaluation of the technical and commercial offers took place according to the methodology outlined in the tender protocol published in Decree 43/2017.
Click here to download Decree 43: Tender Protocol (TP) and Exploration and Production Agreement (EPA).
Click here to download the Bidding Process presentation.
Upon the results of the evaluation process, the Lebanese Petroleum Administration (LPA) submitted to the Minister of Energy and Water an evaluation report.
On the 29th of November 2017, the Minister of Energy and Water H.E. Cesar Abi Khalil together with the LPA’s board members concluded a three-day technical negotiations process with the consortium formed of Total, Eni and Novatek. On the 12th of October 2017 the consortium had presented two offers on blocks 4 and 9 in Lebanon’s Exclusive Economic Zone.
The technical negotiations tackled clarifications on the work programme in the goal to ensure a successful exploration phase while safeguarding Lebanon’s national interests.
The technical negotiations are part of the bids evaluation procedure outlined in the Tender Protocol which follows a quantitative assessment in which the total grade is composed of the commercial mark weighing 70% and is non-negotiable, and the technical mark weighs 30%.
In this regard, the Minister presented the LPA’s bids evaluation report together with the negotiation report and the resulting recommendation to the Council of Ministers for approval.
On December 14, 2017, the Council of Ministers approved the awards of two exclusive petroleum licenses for exploration and production in blocks 4 and 9 for the consortium composed of Total S.A, Eni International BV and JSC Novatek.
The exploration phase will start upon the approval of the exploration plan and will last up to five years with the possibility of having a one-year extension. The ultimate goal of the exploration phase is to strike a commercial discovery, hence the awarded consortium is committed to implement an exploration programme based on the petroleum industry highest standards and practices.
Click here to download Annex 2 of Decree 43: Exploration and Production Agreement (EPA).