Bassil Ministry - Red Flags

The two decrees related to Oil & Gas sitting on the desk of politicians in Lebanon will not pass the hurdles, for the benefit of the National Interest is greater. And the few months-delay now is much more promising than the future sorrow onto the people of Lebanon. Here is why and the questions are:

  • On what basis did the Ministry of Energy partition the Offshore Lebanon to 10 Blocks?
  • Why is Lebanon getting 4% in Royalty on Natural Gas Production while the average (worldwide) is 10 to 15%?
  • In Lebanon's Oil & Gas Laws, where is the definition of the Working Interest (WI) to the country?
  • How could Oil & Gas operation(s) in Lebanon be negotiated with the International Oil Companies (IOCs) in the absence of the National Oil & Gas Company?
  • How could 52 International Companies be technically and financially evaluated in just 3 weeks and by which government entity?
  • How could any IOC with experience to drill only in 500meters deep-water be qualified in Lebanon as an Operator when the requirement Offshore is between 800 to 1750+ meters?
  • Have the Oil & Gas Blocks in Lebanon already been divided among the warlords according to Sectarianism?
  • Why would a Minister sign a contract with a foreign company to do "Aerial Surveys" onshore when the Geology and Seismic are not even complete nor done properly?
- Click HERE for the list of qualified International Oil Companies;

- For the Delineation options on Offshore Lebanon to 16 or 18 Blocks and for the keys to successful negotiation with the IOC, please contact: fuad@petroservint.com

Why the increase in number of Blocks Offshore would be more lucrative to Lebanon!

More Blocks means:

  • More International Oil Companies (IOCs) to operate and, therefore, invest in Lebanon
  • Increase in the Revenues to Lebanon
  • Employ more indigenous personnel
  • Allow for competition which will translate to better technology used by the IOCs to improve Oil & Gas production
  • Prolong the continuity of Oil & Gas production in Lebanon.
  • Give ways to better understand the Geological Settings and would help maximize the HydroCarbon potentials.
  • Solution: One way is to partition the Offshore to 16 Blocks. Carefully award 10 of them to International Oil Companies (IOCs) over time: Four (4) Blocks to IOCs in year 2014, two (2) Blocks in 2015, and four (4) Blocks in 2016. The remaining six (6) Blocks would be retained by the government of Lebanon and possibly be explored by its National Oil Company. For a copy of the map on the suggested 16 Blocks, based on Geo-Science as defined by our Senior Exploration Petroleum Geologists, please contact: fuad@petroservint.com


Foundation of the Oil & Gas Industry

Six main pillars to the foundation of an Oil & Gas Industry in any country, why not in Lebanon?

The assessment and research study on this subject are done in-house, at PetroServ, and have been the result of due diligence in the process vested to help Lebanon be on track to make the leap into our industry. Our effort has been productive and it is our conviction now that the commencement and continuity of the Petroleum industry in Lebanon would need to be developed and based on:

  • The unquestionable commitment by the country's Leadership.
  • Petroleum Ministry to be governed by carefully selected individuals.
  • Establish Sovereign and Independent National Oil & Gas Company (NOC) and be managed by professionals.
  • Highly qualified staff (not necessarily based on sectarianism) to form the Petroleum Directorate (or PA).
  • Public awareness to introduce the Oil & Gas Culture.
  • Political stability and Security to encourage international companies invest in Lebanon, for years to come.

However, despite the progress by the present Energy & Water Ministry to attain a commanding but unfinished volume of Seismic Data, it is still unfortunate to say that the basic six pillars (to establish the industry) are missing and that are required to move forward with the first bidding-round on the 10 (or maybe 20) Blocks Offshore Lebanon. Consequently, the country is not ready or even mature to engage in the Exploration and Drilling Deep Ocean Wildcat(s) that are costly and highly complex!