Managing oil wealth

Cabinet issues guidelines for appointing petroleum sector regulator

The Cabinet adopted on April 7 a decree outlining the legal framework to establish a regulatory body to manage and monitor the country’s oil sector.

In August 2010, Parliament adopted a law to control the management of off-shore petroleum resources . The law called for the establishment of the ‘Petroleum Regulatory Authority’. 

The Authority will enjoy financial and administrative autonomy, but it will operate under the supervision of the Minister of Energy and Water. According to the decree, the Authority’s Board of Directors will comprise six fulltime members appointed for six-year terms each, renewable once. 

The Authority will be responsible for conducting studies to promote the prospects of petroleum resources in Lebanon. It will be in charge of drafting terms and conditions booklets, tenders, and agreements required for all oil-related activities. It will also prepare reports on the eligibility of companies bidding for oil-related contracts. 

The Authority will also undertake negotiations with bidders, upon the approval of the Minister of Energy and Water.

The Petroleum Regulatory Authority will also include six specialized units: Strategic planning, technical affairs and engineering, geology and geophysics, legal Affairs, economic and financial affairs, and quality, health, safety, and environment (QHSE).

Reported by Hanadi Chami