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European Union Partnership

European Union (E.U.) Partnership – Protection and Sustainable Development of Maritime Resources in Lebanon Pro Mare:

About the E.U.’s technical assistance to support the Government of Lebanon’s preparations in exploiting and producing offshore prospective oil and gas resources:
Seismic surveys carried out since the 1990s have indicated the likely presence of offshore hydrocarbon accumulations in the Eastern Mediterranean. Hydrocarbon resources in Lebanon will therefore possibly be affected by exploration and potential oil extraction activities in the future. The Lebanese authorities put a strong emphasis on the opportunity of efficiently and effectively using such resources while underlining the need to avoid any environmental damage or pollution to the marine and coastal biodiversity. The Government of Lebanon is therefore in need of a comprehensive and environmental friendly legislative framework as well as an efficient organisational structure for exploring and producing oil and gas in its Exclusive Economic Zone. The Lebanese Petroleum Administration and other Lebanese authorities will be supported in developing operational strategies and policies and in ensuring sound governance and transparency measures in relation to the management and regulation of Lebanon's offshore oil and gas resources.

To enhance the protection and sustainable development of Lebanon’s maritime resources this partnership will provide a technical assistance (30 months' duration) to the Lebanese Petroleum Administration (LPA) and to the Ministry of Energy and Water (MoEW). The technical assistance will provide the beneficiary institutions with expertise on the following subjects:

1. Organizational and functional capabilities (including technical issues): Through a pragmatic approach, the project will strategically review the LPA’s organizational and functional capabilities, the processes and procedures within the LPA, and other functional options for the LPA.

2. Strategic, policy and economic capabilities: The project will support the development of relevant policies, strategies, analytical studies and tools such as strategies for licensing, development of the upstream industry, development of specific guidelines and procedures, preparation of technical studies in relation to Health, Safety and Environment (HSE), local content, gas use. Moreover, the project aims to conduct analytical work in relation to the petroleum valuation, petroleum activities cost audit procedures, marketing and economic intelligence, national economic impact modelling on energy use options, monetization of petroleum resources and contractual expertise for procurement contracts and petroleum sales agreements. Furthermore, the project will provide recommendations addressing revenue management and the establishment and operation of a Sovereign Wealth Fund (SWF).

3. Governance, transparency and accountability enhancement: As transparency is an important issue on the maritime resources related programme in Lebanon, as well as neighbouring countries, and given the national and international NGO’s interest in Lebanon’s offshore activities, governance and transparency will form the third component of the project. A transparent state control and regulation mechanisms are crucial in attracting long term commitments from international oil and gas companies. The project will thus elaborate on the development of the LPA’s responsibilities including reservoir stewardship, economic exploitation, environmental safety, financial regulation and revenue management.

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