TotalEnergies says drilling in Block 9 offshore Lebanon will start in the third quarter
BEIRUT, 29 january (Reuters) – TotalEnergies ( TTEF.PA ) aims to start work “as soon as possible” in Block 9 offshore Lebanon, with appraisals to begin early next month and drilling to begin in the third quarter of 2023. Patrick Pouyanne, CEO of the company, said this on Sunday.
Pouyanne, with QatarEnergy and Eni ( ENI.MI ) in two offshore blocks known as Blocks 4 and 9 off the coast of Lebanon for oil and gas spoke at a joint press conference in Beirut after signing a tripartite consortium agreement for intelligence.
After months of negotiations, QatarEnergy took a 30% stake in the consortium, giving TotalEnergies and Eni 35% each.
Lebanon hopes the discoveries will help it overcome a devastating economic crisis that has cost the local currency more than 97% of its value, eroded the country’s foreign reserves and left towns and cities without electricity.
Pouyanne said a vessel will arrive in Lebanese waters on February 6 to carry out an environmental survey in block 9 and “we plan to drill in the third quarter of the year”.
Claudio Descalzi, CEO of Eni, said exploration is a “big opportunity” for Lebanon. offer can do because the world is big gas faces a shortage.
“I am positive from a geological point of view” about the discovery in Lebanon’s block 9, Descalzi told reporters.
“We have to hope and pray that it is real and tangible,” he said.
Pouyanne and Saad al-Kaabi, Qatar’s energy minister and CEO of QatarEnergy, said they discussed possible coordination on renewable energy in Lebanon.
In 2017, TotalEnergies, Eni and Russia’s Novatek consortium won exploration bids in Lebanon’s first licensing round.
Novatek exited in September 2022, leaving its stake in the hands of the Lebanese government. The following month, Lebanon and Israel agreed to a landmark United States-brokered deal to demarcate their long-disputed maritime borders.
Block 9 is adjacent to the newly designated border with Israel. According to the agreement, if discoveries are made in an area south of that border, they will also be used by the consortium on behalf of Lebanon, but with a royalty system established for Israel.
Total and Israel have a separate agreement for any proceeds from it.
Pouyanne said the maritime boundary agreement ended the “deadlock” facing exploration activities in Block 9.
Reporting by Maya Gebeily; Written by: Mahmud Murad; Edited by Alison Williams
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2023-01-30 03:13:18
Source – reuters
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