Prequalification

To participate in the Second Offshore Licensing Round (SOLR), Individual Companies must join together in consortiums of at least three Individual Companies (each such consortium an “Applicant”) and shall submit a Licensing Round Application to seek prequalification (as Right Holder – Operator or Right Holder – Non Operator) and to obtain an Exploration and Production Agreement.

Prequalified Applicants only are eligible to obtain Exploration and Production Agreements based on the provisions and conditions set in the updated Tender Protocol (TP).

Each Exploration and Production Agreement shall be awarded to an Applicant composed of no fewer than three (3) prequalified companies of which one prequalified as a Right Holder-Operator holding a minimum of thirty five percent (35%) participating interest and two, each of which prequalified as Right Holder – Operator or a Right Holder – Non Operator holding a minimum of ten percent (10%) participating interest.

The pre-qualification criteria are defined on the basis of legal, financial, technical and QHSE eligibility requirements, in accordance with Exhibit 3D contained within the TP:

• Legal criteria and relevant data and documents, as set forth in Schedule A to Exhibit 3D
• Financial criteria and relevant data and documents, as set forth in Schedule B to Exhibit 3D
• Technical criteria and relevant data and documents, as set forth in Schedule C to Exhibit 3D
• Quality, Health, Safety and Environment (“QHSE”) criteria, and relevant data and documents as set forth in Schedule D to Exhibit 3D.

Right Holder-Operator Key Prequalification Criteria

• Legal : Joint Stock Company conducting Petroleum Activities
• Financial: Total assets of USD 10 Billion
• Technical: Evidence of operatorship:
  • With established experience in exploration drilling in water depths in excess of Three Hundred meters (300 m)
  • With an approved field development plan in water depths in excess of Three Hundred meters (300 m) by a competent authority
  • With at least one offshore field in the production phase
• QHSE:
  • A description of the Quality, Health, Safety and Environment Management System(s) (QHSEMS), or equivalent (with scope applicable to offshore exploration and production) including the management system arrangements for high risks and major accidents.
  • Evidence of established and implemented QHSE Management System(s) (with scope applicable to offshore exploration and production) i.e. valid QHSE certification(s) according to best international industry practice (such as ISO 9001, ISO 14001, OHSAS 18001 etc.) and/or audit reports.

Right Holder Non-Operator Key Prequalification Criteria

• Legal: Joint Stock Company conducting Petroleum Activities
• Financial: Total Assets of USD 500 Million
• Technical: Having experience in petroleum production
• QHSE:
  • A description of the Quality, Health, Safety and Environment Management System(s) (QHSEMS), or equivalent (with scope applicable to petroleum production).
  • Evidence of established and implemented QHSE Management System(s) (with scope applicable to petroleum production) i.e. valid QHSE certification(s) according to best international industry practice and/or audit reports.

In addition to the prequalification materials, administrative materials should be provided as further described in section 5.7 of the updated TP.

Questions & Requests for Clarification
Individual Companies may submit to the LPA questions and requests for clarification regarding the SOLR, including the pre-qualification requirements generally or as applied to the particular circumstances of the Individual Company.

All such questions and requests may be submitted to the LPA by e-mail to olr3@lpa.gov.lb up until two (2) weeks prior to the Closing Date.

LPA will publish written responses to questions and requests for clarification via the LPA website at www.lpa.gov.lb. The LPA may edit questions and responses for clarity, to protect confidential information, or to combine duplicative questions.

Individual Companies that have joined together as an Applicant are requested to aggregate their questions in order to minimize the number of submissions by any given Applicant.

Preliminary Evaluation
Individual Companies may also request a preliminary evaluation of whether the Individual Company satisfies one or more of the pre-qualification requirements. Individual companies requesting a preliminary evaluation will be answered individually on a confidential basis. Any preliminary evaluation provided by the LPA shall be considered non-binding, and shall be without prejudice to the right of the LPA to reach a contrary determination at any time.