- 10:49
On Tuesday, the Ministry of Energy granted a license to the Norwegian-American company TGS to perform 3D seismic surveys in Gas Block No. 8, located in Lebanon's Exclusive Economic Zone (EEZ) off the southern coast. This block, positioned near Blocks 9 and 10, adjacent to the Israeli maritime border, holds potential for attracting investors if its geological prospects prove promising.
The license granted by the ministry allows TGS to conduct a comprehensive 3D seismic study spanning 1,300 square kilometers, making Block No. 8 the only block among Lebanon's ten offshore blocks to undergo such a survey for the first time.
In his address, caretaker Minister of Energy Walid Fayad described this development as a pivotal milestone in a new chapter for Lebanon, underlining the necessity of institutional reforms to secure stability. Fayad emphasized the ministry's commitment to advancing key sectors, particularly oil and gas, as engines for economic growth over the medium and long term.
He highlighted TGS’s position as a leading international geophysical survey company, bolstered by its merger with PGS earlier this year and its acquisition of Spectrum in 2019. Both PGS and Spectrum had previously conducted government-sanctioned 3D seismic surveys from 2006 to 2013, covering nearly 80% of Lebanon’s EEZ, an area encompassing approximately 15,000 square kilometers.
Fayad underscored the strategic importance of this license, which focuses on Block No. 8, an area of 1,300 square kilometers excluded from previous 3D seismic studies. While the block lies close to the maritime boundary with Israel, it remains fully within Lebanon’s EEZ and outside the demarcated border agreement with its southern neighbor.
Highlighting the details of TGS’s proposal, caretaker Minister of Energy Walid Fayad noted that the company not only secures investment from entities interested in acquiring seismic data but also shares half of the survey costs and oversees data marketing. “We hope this initiative will draw the interest of international firms, including French and American companies, particularly with the ceasefire agreement fostering a potential phase of stability for Lebanon,” Fayad remarked.
The minister recalled that during the second licensing round, the consortium of TotalEnergies, Qatar Energy and Eni submitted a bid for Blocks No. 8 and 10. However, the offer did not align with the government’s terms, which emphasized shorter exploration timelines to accelerate economic returns and higher state shares in the case of commercial discoveries. Fayad stressed that if the consortium fails to meet these conditions, it will not be obligated to proceed with commitments to these blocks.
Expressing optimism, Fayad said he expects the consortium to fulfill the stipulated terms during this new phase, adding that the ongoing third licensing round aims to attract interest from leading international energy firms.
TGS Regional Representative Fawaz Murad emphasized Lebanon's potential, citing its extensive seismic data for its maritime zone, which includes 2D and 3D surveys previously acquired by TGS. He noted that the current commitment aims to enhance these datasets, providing the continuity of information essential for effective exploration. The upcoming survey will address geological data gaps in Block No. 8 and integrate findings with existing 3D marine seismic coverage.
The license’s significance lies in its adoption of a multi-client 3D seismic survey model, which expedites Block No. 8’s readiness for exploration. This approach mirrors the “drill-or-drop” mechanism employed in other blocks, such as Block No. 10, effectively reducing exploration timelines.
What Is a 3D Seismic Survey?
A 3D seismic survey is an advanced geophysical technique used to investigate subsurface formations. It enables oil and gas companies to assess an area’s hydrocarbon potential with greater precision, minimizing the risks and costs associated with complex drilling activities.
The survey involves generating artificial seismic waves that propagate through the subsurface and reflect back upon encountering various geological layers. These reflections are detected by specialized sensors: hydrophones for marine environments and geophones for land-based surveys. The captured data undergoes extensive processing to filter out noise and enhance clarity, resulting in high-resolution images of the subsurface.
Geologists and geophysicists interpret these images to pinpoint geological structures that may harbor hydrocarbons. This approach improves the accuracy of reserve estimates and helps assess exploration risks, significantly reducing the likelihood of drilling failures.
Comments