Oil regulator appointed

First licensing round expected by early 2013

The Cabinet has finally appointed a committee for managing the country’s oil and gas. The Board of Directors of the Petroleum Regulatory Authority (PRA) comprises six members heading its six units: Walid Nasr (strategic planning), Naser Hoteit (technical affairs and engineering), Wissam Shbat (geology and geophysics), Gabi Daaboul (legal affairs), Wissam al-Zahabi (economic and financial affairs), and Assem Abu Ibrahim, (quality, health, safety, and environment).

The appointment of the PRA is the last legislative step needed for launching bids for drilling rights. The first licensing round is expected to be launched by early 2013.

The PRA will be conducting studies to promote the prospection of petroleum resources. 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 PRA will enjoy financial and administrative autonomy, but will operate under the supervision of the Minister of Energy and Water. The PRA’s board is appointed for a six-year term, renewable once.

UK-based oil and gas services provider Spectrum, which has recently completed its 3D seismic survey of offshore oil, said the southwest area of the coast, covering some 3,000 square kilometers, has over 25 trillion cubic feet of gas.

Several international companies have expressed their interest in applying for drilling rights. 26 companies have bought surveys of the offshore area.