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The Lebanese authorities overseeing the oil and gas sector now understand that Total-Energies, in partnership with Eni from Italy and Qatar Energy, is waiting for regional developments before fully committing to allocating oil blocks in Lebanon. Consequently, Total has offered various excuses for not signing the contracts for Blocks 8 and 10, according to the Council of Ministers’ decision on January 12 of this year. Despite granting the consortium a signing deadline of February 16, no agreement was reached. As a result, the Council of Ministers’ decision to allocate Blocks 8 and 10 is now void.
Total did not request an extension of the deadline from the Council of Ministers. However, behind the scenes, an agreement was struck between Total’s Chairman and CEO, Patrick Pouyanne, and Lebanon’s Caretaker Prime Minister, Najib Mikati. According to this agreement, Total would withhold any response regarding the allocation of Blocks 8 and 10 until the final drilling report for Block 9 is issued. The Lebanese side anticipates receiving this report in the first week of March.
Those involved in the oil and gas sector have clarified that they are not bound by any agreement between Total’s Chairman and the Caretaker Prime Minister. They underscored that the disagreement with the consortium originates from Total’s refusal to shorten the deadline for seismic surveys in Block 8 and drilling operations in Block 10.
While Total sought to prolong this process until 2027, the Lebanese side insisted on concluding the decision-making for seismic surveys within 3 months and reaching a verdict on drilling in Block 10 within a maximum period of one and a half years.
According to sources, the Ministry of Energy had made every effort to safeguard the interests of the consortium in the submitted two bids. Nevertheless, it remains unwavering in its commitment to Lebanon’s rights, particularly in expediting both the seismic survey and drilling processes.
Given Total’s failure to sign within the specified deadline set by Lebanon for the two allocation contracts of Blocks 8 and 10, the third round of licenses, initiated last December and concluding next July, now encompasses all blocks except Block 9, which remains under Total and its partners’ charge. The pivotal question remains: will Total present new bids or choose to exit the Lebanese sphere entirely?
