Oil &Gas licensing round postponed

Some companies withdrew from bidding process

The Ministry of Energy and Water announced the postponement of the bidding round for international oil and gas consortiums that were prequalified for the exploration and production (E&P) agreement. The new deadline has been extended to April 10, 2014.

Two decrees related to the demarcation of maritime blocks and the E&P contracts are needed to be ratified by the Council of Ministers before the licensing round is held.

The Ministry expressed its understanding about the withdrawal of some firms from the tendering process, as they feared taking high investment risks.

“We understand that time is short and today we are giving a final deadline of three months but this is the last time we postpone the round,” Gebran Bassil, Minister of Energy and Water, said.

This was the third adjournment of the bidding round. The Ministry had moved the round’s deadline from December 2013 to January 10, 2014 and before that from November 2013.

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