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TotalEnergies has officially ceased its drilling operations in Block 4, which is situated to the north of the Lebanese capital. This decision follows the suspension of exploration drilling activities in Block 9 and the submission of two exploration bids for Blocks 8 and 10 a few weeks earlier.
Five years after winning the bid to explore and potentially exploit hydrocarbon reserves in Block 4 of the Lebanese Exclusive Economic Zone (EEZ), the consortium led by TotalEnergies, comprising TotalEnergies, ENI and Novatek, which was later replaced by Qatar Energies, has decided to withdraw and cease its operations. According to the contract, the consortium had a deadline until midnight on October 22 to confirm whether to retain or relinquish the Block 4 license, as confirmed by insiders at TotalEnergies to This is Beirut. As per the aforementioned sources, the consortium has decided to cease its operations upon attaining the desired geological layer and has chosen not to proceed with further drilling. “[This decision] aligns with the company’s strategy.” Furthermore, their submitted bid in response to the Lebanese Petroleum Administration’s (LPA) tender for the exploration and exploitation of Blocks 8 and 10 within the EEZ is currently maintained.
Moreover, the exploration and exploitation rights in this block have been transferred to the Lebanese government, which intends to initiate a new tender for this purpose, according to a source from the Lebanese Petroleum Administration, as reported by This is Beirut. However, due to the region’s instability, a specific date has yet to be determined. As per the aforementioned source, the authority holds high hopes for Block 4’s potential and intends to explore additional areas through further drilling. The goal is to examine the geological strata of Block 4 and compare them with those discovered off the coast of Israel.
Nothing Unexpected
“This is not surprising, given the consortium’s lack of a work plan for the block. Consequently, it is entirely reasonable for them to withdraw, just as it is Lebanon’s right to reclaim control of this block,” as explained to This is Beirut by Laury Haytayan, an expert in Middle East and North Africa oil and gas.
“The consortium carried out the initial drilling in 2020, and the report indicated promising signs and results for subsequent exploratory activities. However, since 2020, there have been no concrete projects initiated for Block 4. Moreover, following the agreement on maritime borders with Israel, all attention shifted to Block 9,” she recalled before confirming that it was necessary to wait for both the consortium’s decision regarding Block 9 and the government’s decision concerning the bid for Blocks 8 and 10.
Conversely, the expert estimated that Lebanon is currently confronted with a more intricate challenge, particularly regarding the presence of the Italian company ENI, a consortium member, in Israel. ENI has obtained drilling rights for a block located in the southern region of that country. “Will this potentially have a negative impact on ENI’s presence in Lebanon? What will be the response of the Lebanese government, especially given the current circumstances?” she reflected.
First Bloc Under Exploration
Block 4 underwent initial exploration drilling among the ten blocks in Lebanese waters. Notably, the consortium headed by TotalEnergies was awarded the contract in response to the Lebanese authorities’ 2018 bidding process for the exploration and exploitation of hydrocarbon resources within Blocks 4 and 9 of the Lebanese Exclusive Economic Zone. In 2020, the consortium conducted the initial well drilling in Block 4, which revealed the existence of gas, although in economically insignificant quantities. That decision resulted in disputes with the Lebanese authorities, who expressed apprehensions regarding potential conspiracies.
The aforementioned well, which reached a depth of 4,076 meters, was drilled in April 2020 from the Tungsten Explorer drilling platform, chartered by the consortium. Located approximately 30 kilometers off the coast of Beirut in water depths of about 1,500 meters, the well uncovered traces of gas. Nonetheless, the drilling proved unsuccessful in locating the reservoir, which was the primary objective of the exploration.
The consortium’s withdrawal from Block 4 occurred following the conclusion of exploration drilling in Block 9 of the EEZ, which was launched on August 24. After reaching a depth of 3,905 meters, the drilling ended without discovering any signs of natural gas reserves. The consortium has until May 2025 to determine whether to continue or cease exploration activities in Block 9.
