Lebanon acquires Russia’s Novatek’s stake in the exploration agreement

The Lebanese authorities inform the Russian company “Novatek” of its acquisition of its 20% share in the exploration and production agreements in blocks 4 and 9 in Lebanese offshore waters.

  • Lebanon acquires a stake
    Fayyad: The withdrawal will not affect the exploration and extraction of gas and oil from Lebanese waters

Today, Monday, the Lebanese authorities informed the Russian company, “Novatek”, of acquiring its 20% stake in the exploration and production agreements in blocks 4 and 9 in Lebanese offshore waters, after the Russian company announced its withdrawal earlier from the agreement.

The National News Agency reported that the Lebanese caretaker Energy Minister, Walid Fayyad, confirmed, in a statement, that this happened “following the withdrawal of the non-operating right holder Novatek Lebanon SAL from the exploration and production agreements relating to blocks 4 and 9 in Lebanese marine waters.”

He explained that the Lebanese government “informed the Russian company to implement the provisions of the compulsory waiver stipulated in Article 36.2 of the two agreements, based on the recommendation of the Petroleum Sector Administration,” and the decision “determined the percentage of the state’s participation in the two agreements as a result of this waiver, which amounts to 20%.”

The decision included entrusting the Petroleum Sector Administration “to manage this percentage of the state’s participation in each of the two agreements, and to work with the other right holders, after the enforcement of the compulsory waiver, to discuss the financial and operational arrangements related to the implementation of petroleum activities in blocks 4 and 9.”

And Novatek, the second largest gas producer in Russia, announced last month that it was withdrawing from the alliance that includes the French companies “Total” and the Italian “Eni”, where each company owns 40% away from the Russian share acquired by the Lebanese government.

The company attributed this to the situation in the wake of the US sanctions on Russia, and Lebanese Energy Minister Walid Fayyad stated that “the withdrawal will not affect the exploration and extraction of gas and oil from Lebanese waters.”

In a related context, Lebanese President Michel Aoun announced, earlier today, that “indirect negotiations to demarcate the maritime borders with the Israeli government are in their final stages, ensuring the country’s rights to explore for gas and oil.”

A few days ago, President Aoun said that “communications to complete the file of demarcation of the southern maritime borders have gone a long way, and there are technical details that are being studied for the interest of Lebanon, its rights and sovereignty,” stressing that “the completion of the demarcation will enable Lebanon to launch the process of oil and gas exploration, and will give The Lebanese economy is a positive impetus to begin to emerge from the crisis.

The article is in Arabic

Lebanon

Tags: Lebanon acquires Russias Novateks stake exploration agreement

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