TotalEnergies SE announced on Tuesday a contract to start exploration in Block 9 offshore Lebanon “as soon as possible in 2023”.
The deal that contracts driller Transocean Ltd follows last year’s treaty between Lebanon and Israel that demarcated their maritime border, around which Block 9 is located. The dispute resolution negotiated by the US and signed by the Mediterranean neighbors in October 2022 waives any Israeli right to develop hydrocarbon deposits in block 9 after the promoters’ remuneration.
“According to the announced schedule, TotalEnergies, in agreement with its partners ENI and QatarEnergy, has signed a firm contract with Transocean to hire the drilling rig that will drill an exploration well in Block 9 in the Lebanon Sea, as soon as possible in 2023,” said the Frenchman. the multinational giant said in a press release. “With the mobilization of the teams, this is a new key step in the preparation of operations.”
A consortium initially formed by TotalEnergies, Italy’s Eni SPA and Russia’s PAO NOVATEK won the exploration and production rights for Beirut Blocks 9 and 4, as TotalEnergies announced in 2018. The development rights now belong to TotalEnergies with a 35 percent stake, state-controlled Eni with also 35 percent and QatarEnergy after an agreement to transfer 30 percent to the Qatari state corporation, as TotalEnergies announced on January 29.
Paving the way for the partners to start drilling in Block 9 was a pact signed by Eni and TotalEnergies with the Israeli government “to implement the agreement on the maritime border,” TotalEnergies said on November 15, 2022.
The delimitation agreement stated that no Israeli or Lebanese corporation would have any rights to explore and exploit Block 9.
“The parties understand that there is a currently unknown commercially viable hydrocarbon prospect that exists at least partially in the area that the parties understand to be Lebanon Block 9, and at least partially in the area that the parties understand to be Israel’s Block 72,” read the text of the agreement.
“The parties agree that the relevant legal entity to hold the Lebanese rights to explore and exploit hydrocarbon resources in Block 9 of Lebanon (Block 9 Operator) shall consist of one or more reputable international corporations that are not subject to international sanctions, that do not impede the continuity of US facilitation, and that are not Israeli or Lebanese corporations,” he added. “These criteria will also apply to the selection of successors or replacements for these corporations.”
Although the treaty gave Lebanon the rights to develop Block 9, it entitles Israel to compensation from the operator.
The two countries also agreed: “If the perspective is drilled [the area comprising Lebanon’s Block 9 and Israel’s Block 72] is needed south of the MBL [maritime boundary line]the holidays [Lebanon and Israel] they expect the operator of Block 9 to seek consent from the parties prior to drilling and Israel will not unreasonably withhold such consent for drilling conducted in accordance with the terms of this agreement.”
TotalEnergies announced its agreement with Israel: “Following the signing of this Framework Agreement, Block 9 partners will begin exploration of an already identified prospect that could extend to both Block 9 and Israeli waters south of the newly established Maritime Boundary Line”. .
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