PRUDENT PETROLEUM ACTIVITIES AND SUSTAINABILITY
The petroleum industry has two main highly important yet highly uncertain factors being prices and resources – both volatile. Accordingly, to optimise resource extraction and realise the potential of Lebanon’s offshore hydrocarbon resources, development and production must be done in a prudent and safe manner so to ensure the petroleum sector is efficiently and sustainably developed.
The Offshore Petroleum Resources Law (OPRL) stipulates that production should take place in such a way that optimal reservoir recovery is achieved so to limit petroleum waste, maximize the economic benefits and recover the full value of the prospective resources while ensuring that environmental, health and safety standards are in check.
Technical solutions and sound economic principles would ensure that the optimisation of reservoir recovery contribute to achieving prudent production.
Technical solutions include the utilization of enhanced oil recovery techniques to increase the amount of petroleum products that can be extracted from a reservoir. Also, the existing legislation in Lebanon prohibits flaring and venting unless necessarily required for safety purposes.
Economically, one of the roles of the LPA is to monitor costs for cost recovery purposes, and to monitor day to day operations and audit right holders’ accounting and financial procedures to make sure they are consistent with the provisions of the Exploration and Production Agreement.
Therefore, although the petroleum industry needs to have a continuous focus on cost efficiency, it is also the responsibility of all involved parties to keep costs at acceptable levels without jeopardizing the environment, and quality, health and safety standards.
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