Oil Exploration Activities Start in Lebanon's Block 9

Total, Eni and Qatar Energy launched Tuesday exploration activities in Block 9 in Lebanon, paving the way for the start of drilling operations within a few days.

The Lebanese News Agency quoted a statement by the company as saying that the drilling rig has been stationed since August 16 in block No. 9, and it is scheduled to start drilling the exploration well within days, which enables companies to evaluate hydrocarbon resources and production potential in this region.

Total is the operator of block 9 in Lebanese waters with a 35% stake, along with Eni, which also has 35%, and Qatar Energy, which has 30%. Lebanon’s share, in the event of a discovery, ranges between 54% and 63%, after deducting operational and capital costs.

In October 2022, Lebanon and Israel concluded a historic agreement mediated by the United States to demarcate their long-disputed maritime borders. Most of Area 9 is located in Lebanese waters, but part of it lies south of the newly demarcated border with Israel.

The first licensing round in Lebanon in 2017 saw a consortium including Total, Eni and the Russian Novatek win a license to explore in offshore blocks 4 and 9, but Novatek withdrew last September, leaving its share in the hands of the Lebanese government to leave the room for Qatar Energy, last January to acquire a 30% stake.

Since October 2019, Lebanon has been suffering from a stifling economic crisis that is considered one of the worst in the world, as the value of the lira fell against the dollar by more than 90%. Beirut is counting on oil revenues to revive the country's ailing economy.