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3. Allocation of Blocks 8 and 10: Beirut Awaits Total's Response to Its Conditions

During its session on January 12, the Cabinet discreetly approved the conditional allocation of Blocks 8 and 10 to the consortium consisting of Total-Energies, Eni, and Qatar Energy. This decision was taken after unsuccessful negotiations led by the Petroleum Sector Administration to amend the two offers submitted by the consortium for the exploration and extraction of oil and gas in the two blocks.
While the Cabinet gave the go-ahead for the allocation of the two blocks, a set of conditions outlined by the Ministry of Energy was included in its resolution. The government sought Total's approval before signing the agreement between the two parties, expected in the first half of February if everything goes well.

These conditions encompass adjusting Lebanon's financial stake, ranging from 56% to 62% in both offers, in addition to shortening the deadlines set by the consortium for completing seismic surveys in Block 8 and exploration and drilling operations in both Blocks 8 and 10.
Total is currently reviewing these conditions to decide whether to proceed with signing the agreement for both blocks or limit it to one. It is noteworthy that the Petroleum Sector Administration argues that the offers for Blocks 8 and 10 conflict with established terms but represent the only available offers.
Lebanon may proceed with signing the agreement with the consortium, even if the Lebanese conditions are rejected. However, according to well-informed sources, what was mentioned within both offers, especially in terms of extended exploration and drilling deadlines that would potentially reach up to 4 years, point to uncertainties related to Israel's considerations.

In the conditions outlined by the Cabinet, should the consortium discover quantities of oil and gas surpassing expectations, the Minister of Energy is required to engage in binding negotiations for an increased State share. Furthermore, Total is anticipated to conclude seismic surveys in Block 8 within three months of signing the agreement, completing the process within a year. Following this, a three-year exploration phase begins. Failure by the consortium to agree to this request results in the forfeiture of its rights in Block 8.
As for Block 10, the Cabinet required that the first well be drilled within one year of signing the agreement, with a potential six-month extension, contingent upon the decision of the Minister of Energy.
In light of the above, and under optimal conditions, drilling a new exploration well in Lebanese waters will not be possible before 2026 at the earliest, despite Total's surveys pinpointing two potential reservoirs—one for gas and another for oil—in Block 10.