US mediation on maritime border with Israel could help gas exploration: Lebanese Speaker

Dubai — The US is mediating between Lebanon and Israel on the demarcation of their maritime border, and a deal could help Lebanon explore for oil and gas in Blocks 8 and 9 in the Mediterranean, Lebanese House Speaker Nabih Berri was quoted as saying Oct. 1, by the state-run national news agency.

"The US is exerting maximum efforts in order to manage the negotiations and successfully conclude them as soon as possible," Berri said.

The conflict between Israel and Lebanon had prevented Beirut from starting exploration in Blocks 8 and 9, which lie in disputed waters.

"We welcome today's announcement by Israel and Lebanon on their agreement to begin discussions on the maritime boundary," US Secretary of State Mike Pompeo said on twitter. "This offers the potential for greater stability, security, and prosperity for citizens in both nations."

Gas exploration

Lebanon is hoping to find gas in the Mediterranean, where Israel, Cyprus and Egypt have discovered big fields that have turned around their fortunes.

However, political upheaval in Lebanon and the COVID-19 pandemic have delayed its plans.

In May, Lebanon postponed again its second offshore licensing round due to the impact of the epidemic on the oil and gas industry and the ensuing oil price crash, the energy and water ministry said in a statement.

The ministry didn't give a new date for the round but said it is expected to take place before the end of 2021.

Disappointing results

Lebanon had initially set the deadline for the submission of application for Jan 31, then pushed it to April 30, and then June 1. The second round includes blocks 1, 2, 5, 8 and 10 in the Mediterranean Sea.

Lebanon's first offshore exploration well drilled in Block 4 in April had disappointing initial results.

A drill group comprised of Eni, Novatek and Total had encountered small pockets of gas at the Byblos-1 well that indicated a petroleum system did indeed exist in the area, but that drilling had not detected a natural gas resource, former Energy Minister Raymond Ghajar said at the time.