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Wissam Chbat ...first licensing round on track.

Lebanon on target with first licensing round

BEIRUT, April 11, 2017

Lebanon is on target with its first licensing round and oil and gas companies still have a big appetite for investing in the country, Wissam Chbat, chairman of the board of the Lebanese Petroleum Administration (LPA), has said.
 
In an interview published on the website of the 3rd Lebanon International Oil & Gas Summit (LIOG 2017), Chbat discussed the progress that has been achieved by his administration, particularly in terms of the promotional strategy adopted by the LPA, which ended up by attracting nine new companies to apply for pre-qualification, in addition to the 46 companies that were previously pre-qualified in 2013.   

The road map to the first licensing round will start with a second pre-qualification round for both operators and non operators interested in exploration and production contracts. The pre-qualification exercise was set to be concluded by March 31. Prequalified companies will then submit their bids by September 15, and the signature of the EPAs will start in November.

He explained the role of the Lebanese government in managing the extraction of the expected hydrocarbon resources offshore Lebanon, according to a well structured production sharing model, as stipulated by the exploration and production agreement (EPA).

The agreement showcases a certain partnership between the winning consortiums and the government of Lebanon where the latter will not be involved in the operational decision making process, but will be able to control activities through three layers of governance.

The promotional strategy of the LPA has shown to be quite successful, raising additional interest by the industry to invest in the Lebanese petroleum sector, he said.

Chbat indicated that the LPA has adopted two main tools - de-risking investments through making (geologic) data available prior to any commitment with the (Lebanese) state; and relying heavily on local, regional and international forums and exhibitions to also promote Lebanon. For example, The Lebanon International Oil & Gas Summit (LIOG) has been one of such events, since its inaugural edition in 2012, he said.

Chbat also emphasised the fact that Lebanon is committed to transparency in its oil and gas activities, and that has been a very important factor in creating confidence and in attracting international investors.

The 3rd Lebanon International Oil & Gas Summit (LIOG 2017) will be held on May 9 and 10 at Hilton Beirut Habtoor Grand hotel in Beirut. - TradeArabia News Service




Tags: Oil | lebanon | licensing |

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