Oil bidding round postponed again

Firms could withdraw due to delayed decrees

The Ministry of Energy and Water decided to postpone the bidding round by oil and gas companies prequalified for the exploration and production (E&P) agreement. The round was postponed for one month until January 10, 2014.

Minister Gebran Bassil urged President Michel Sleiman and Caretaker Prime Minister Najib Mikati to hold an extraordinary session in order to ratify the decrees related to the demarcation of maritime blocks and the exploration and production (E&P) contracts.

Both decrees are needed to start the licensing round. The Ministry had previously extended the deadline of the licensing round from November to December 2013.

46 international companies had prequalified for the bidding process. The Ministry fears that the continued delays in ratifying the decrees might drive firms to eventually withdraw their bids.