Cooperation with Cyprus to speed up oil production

Huge oil reserves in exclusive economic zone

Lebanon and Cyprus will cooperate on the exploitation of offshore oil and gas reserves. The two countries share a maritime border in the exclusive economic zone where these new resources were recently discovered.

Roudi Baroudi, secretary general of the World Energy Council - Lebanon, said bilateral cooperation for the development of joint resources would be favorable for Lebanon. He said the country could benefit from the services of the exploration contractors Cyprus has already delegated to the extraction blocks adjacent to its maritime borders.

Cyprus has repeatedly urged Lebanon to ratify a bilateral delineation agreement signed in 2007. The agreement, already ratified by Cyprus, has been held up by Parliament due to a dispute with Israel over maritime borders.

According to experts, the country's offshore oil and gas reserves exceed those in the Cyprus zone. British firm Spectrum has estimated gas reserves in the Southern part of the country's territorial waters alone at more than 25 trillion cubic feet. Offshore gas reserves in Cypriot territorial waters make up only around 12 trillion cubic feet.

Cooperation with Cyprus may also involve joint production licenses. “This would allow Lebanon to use the Cypriot export pipeline to Europe, as well as Cyprus’ upcoming gas liquefying station,” Baroudi said.

The Cabinet plans to launch the official bids for drilling rights on May 2. It will invite interested companies to apply for a prequalification round in early February.