Lebanon approves key gas, oil drilling decrees off shores

BEIRUT (AP) — Lebanon’s new government has issued key decrees to prepare the way for oil and gas extraction off its coast, after more than two years of political deadlock had stymied previous efforts.

The decrees, which came on Wednesday, authorize regulators to divide the offshore areas into blocks for drilling and exploration and to issue tenders.

Earlier this decade, geologists discovered a bonanza of gas reserves off the coasts of Lebanon and Israel, sparking a frenzy of development on the Israeli side to tap into the fields.

Lebanon’s government, beset by infighting and corruption, made only marginal progress toward that goal.

A portion of the reserves lies in territory disputed by the two countries.

The Lebanese terror group Hezbollah has issued numerous threats warning Israel not to tap into Lebanon’s gas reserves.

Two months ago, Israel formally invited bids for 24 new oil-and-gas exploration licenses off its Mediterranean coast, the first offer in four years.

The government hopes the new blocks turn up discoveries comparable to the Tamar and Leviathan natural gas fields found off its coast in recent years.

Israel hopes the Leviathan field will eventually allow it to become a gas exporter, which could provide it with additional leverage in the region.

Israel’s Tamar field, discovered in 2009 and which began production in 2013, has estimated reserves of up to 238 billion cubic meters (8.4 trillion cubic feet).

Leviathan, discovered in 2010 and set to begin production in 2019, is estimated to hold 18.9 trillion cubic feet (535 billion cubic meters) of natural gas, along with 34.1 million barrels of condensate.

Licenses for both are held by a US-led consortium in an arrangement that was initially opposed by Israeli antitrust authorities and struck down by the Supreme Court.

It was eventually approved only after the terms were revised and the consortium’s lead partner, US firm Noble Energy, agreed to reduce its 36 percent holding in Tamar to 25 percent so it was no longer the largest shareholder.

Noble’s Israeli partner Delek pledged to sell its 31 percent Tamar holding.