Technical assistance to support the Government of Lebanon's preparation of exploiting and producing offshore oil and gas resources

• Budget: € 1,999,687
• Location: Lebanon
• Date of project: October 2016 – September 2019
• Implementing Partner: GFA-led consortium (GFA Consulting Group, Projekt Consult, Geological Survey of Denmark and Greenland GEUS, and ELARD)

Because of the country’s very limited electricity generation capacity, Lebanon has always and still relies on imports for its national energy consumption. Energy spending therefore accounts for a significant proportion of the country’s GDP and has been one of the main contributors to the country’s disproportionate indebtedness and budget deficit. 

However, this may begin to change as exploration of potential offshore oil and gas resources is underway. The first offshore oil and gas licensing round in Lebanon’s history was relaunched in January 2017. A year later, Lebanon's first two agreements for offshore oil and gas exploration and production were signed with a consortium of energy companies including Total, Eni and Novatek, to cover two maritime blocs now commonly known as blocs 4 and 9. Lebanon is placing high hopes in the local production of offshore oil and gas which could provide easy access to energy and boost national income. That said, the volume of oil and gas reserves, if any, remains unknown and difficult to estimate until full explorations have taken place. Moreover, even upon starting the extraction of any resources, it will take at least seven to ten years for Lebanon to begin generating revenues from the sale of oil and gas. 

Meanwhile, civil society representatives and organisations have raised a number of red flags mainly related to the legislative framework, transparency in the asset and revenue management, and environmental risks in the sector.

In the context of addressing environmental risks, and in line with the European Union’s vision to help sustain a healthy environment in Lebanon, the European Union is committed to supporting the country in successfully preparing for the exploration and production of offshore oil and gas resources, while protecting and preserving the surrounding marine environment and coastal areas.