On Jan. 4, Lebanon's new government passed two decrees concerning oil and gas exploration blocks, meaning a tender process for offshore reserves, stalled since 2013, can begin.
Lebanon estimates it has about 96 trillion cubic feet (Tcf) of natural gas reserves and 865 million barrels of oil offshore, but squabbling between parties has prevented it from kick-starting exploration and development of the sector.
"The two oil decrees have been decided in the first achievement for the government," Foreign Minister Gibran Bassil wrote on Twitter during the first meeting of the new cabinet under Prime Minister Saad Hariri.
Beirut hopes exploiting the hydrocarbon reserves will help tackle its large debt and chronic power shortages, which see most houses go without power or rely on expensive generators for many hours a day.
Exacerbated by regional tensions and the war in Syria, political paralysis left Lebanon without a president for more than two years. The government was unable to tackle long-pending economic and development issues such as garbage disposal, electricity, water, Internet and stock market privatization.
The country is also bearing the costs of hosting more than 1 million refugees from neighboring Syria's civil war.
Finally, in October 2016, Michel Aoun was elected president in a deal which saw Hariri became prime minister. In mid-December Hariri formed a cabinet of 30 ministers drawn from most sides of the country's political spectrum and all of its religious sects.
Jan. 4 was the first meeting of this new cabinet, which had in front of it a long list of overdue items, top of which were the oil decrees.
Recommended Reading
Pipeline Operator Magellan Says Permian Crude Flows to Houston Will Rise
2023-02-03 - A surge in U.S. oil exports has pushed more and more barrels of crude from the Permian basin of West Texas and New Mexico to the port of Corpus Christi, the top U.S. oil export hub.
Corpus Christi’s Port Set to Expand Oil-export Capacity
2023-03-07 - The Port of Corpus Christi next month will complete a project that expands overall export capacity by as much as 600,000 bbl/d.
Sempra on Track to FID Texas Port Arthur LNG Export Plant in Q1
2023-02-28 - Sempra Energy and U.S. construction firm Bechtel have an engineering, procurement and construction contract worth approximately $10.5 billion for the development of the Port Arthur LNG plant.
Alliance Resources’ Permian Royalty Acquisitions Set to Total More Than $150 Million
2023-02-01 - Alliance Resources said Jan. 30 it will purchase Permian oil and gas interests for $72.3 million on the heels of closing a separate $81 million deal.
Winter Storm, Outages Reduce Cenovus Refining Capacity
2023-01-09 - Refining operations in Texas, Illinois and Canada were affected by extreme cold and other challenges, according to Cenovus Energy.