LPA: Lebanon's Second Offshore Licensing Round
31 July, 2018

SECOND LICENSING ROUND: On the 17th of May 2018, the Council of Ministers (CoM) approved the recommendation of the LPA to undertake the preparations for a second offshore licensing round scheduled to be officially launched by the end of 2018.

Lebanon has successfully completed its first offshore licensing round that resulted in the award of two licenses in blocks 4 and 9 earlier this year. The aim of the second licensing round is to build on the results of the first licensing round and further accelerate exploration activities across the Lebanese Exclusive Economic Zone (EEZ) with the goal of achieving commercial discoveries.


PROCESS: The official launching of the bid round scheduled to take place by the end of 2018 will include the opening of some attractive blocks for a competitive and open tendering process.

According to the Offshore Petroleum Resources Law, companies willing to participate in the tendering process must be prequalified as either operators or non-operators. The prequalification requirements will be announced in due time and will cover legal, technical, commercial, quality, health, safety and environment aspects. A tentative four months duration will be reserved for interested companies to submit their prequalification applications.

Prequalified companies interested to participate in the licensing round are required to form consortia composed of at least three companies, one of them at least prequalified as operator. A Tender Protocol (TP) detailing the bid round conditions, the biddable items and the evaluation methodology will be posted in due time. Interested companies will be able to choose their partners and prepare their bids over a duration of at least six months. Once bids are submitted, the LPA will evaluate them and prepare a recommendation to the Minister of Energy and Water about the potentiality of licensing certain blocks.

Lebanon adopts a model Exploration and Production Agreement (EPA) that specifies the provisions governing the relation between the right-holders and the State. In particular, Lebanon adopts a production-sharing system with royalty and taxes. The model EPA issued for the first licensing round is accessible at the following link. The model EPA for the second licensing round will be posted in due time. Subject to the Council of Ministers approval, the Minister of Energy and Water will sign EPAs with the winning consortia on the awarded blocks.


TENTATIVE TIMELINES

 

From

To

Official Launching of Licensing Round and Announcement of Open Blocks

Late 2018

Submission of Prequalification Applications

January 2019

End of April 2019

Declaration of Prequalification Results

May 2019

Submission of Bids

May 2019

End of October 2019

Evaluation of Bids and CoM approval

November 2019

Signature of EPAs

December 2019


 

MEETING THE LPA

Interested companies may request meeting the LPA in Beirut or at the following scheduled events:

Event
Location
Dates
ONS Stavanger – Norway 27-31 August 2018
Gastech Barcelona – Spain 17-20 September 2018
Adipec Abu Dhabi – UAE 12-15 November 2018
Petex London – UK 27-29 November 2018


The LPA is planning to attend additional international events. The list will be updated accordingly in due time. To request a meeting with the LPA please send an email to the following address:
info@lpa.gov.lb.


PROSPECTIVITY: The Eastern Mediterranean region has produced some significant discoveries in recent years and is believed to still have massive hydrocarbon deposits to be discovered.

Such recent exploration successes have promoted the Lebanese government to acquire an extensive volume of 2D and 3D multi-client seismic data covering almost the entire Lebanese offshore acreage. This is a remarkable, probably unique situation, whereby such wealth of information has been made available even before the award of the first two exclusive petroleum licenses for exploration and production.

Using the available data, interested companies can learn more about the offshore hydrocarbon potential (up to the prospects’ level) and plan according to similar geological affinities with existing discoveries in the Eastern Mediterranean.

Petroleum Systems Offshore Lebanon: Basin modelling shows a strong potential for both biogenic and thermogenic systems offshore Lebanon. Recent studies reveal the potential for several gas-prone and oil-prone source rocks in the Levant basin. 3D thermal history and maturity modeling indicate that these source rocks, found from the Triassic to Miocene intervals, have reached maturity offshore Lebanon.

The study of the regional framework and the interpretation of seismic profiles, coupled with petroleum system modeling allows dividing the Lebanese offshore into three major geologic zones: Latakia Ridge, Deep Basin and the Margin. Each zone is characterized by specific structural and sedimentological features.

Key Aspects: Various traps are identified in each aforementioned zone with the margin holding promising stratigraphic traps, such as pinchouts with associated direct hydrocarbon indicators and perfectly symmetrical anticlinal structures (4-way dip closures) extending over the margin, transition zone and the Latakia ridge. Furthermore, the deep basin includes numerous shallow dip faulted anticlines (3-way and 4-way dip closures) analogous to those discovered in the Eastern Mediterranean.

In addition, seismic profiles indicate the presence of carbonate platforms and encouraging buildups of the same nature along the margin. Given the impact of recent giant carbonate discoveries in the Eastern Mediterranean, these build-ups constitute interesting targets for any future exploration activities. The above noted particularities offer an opportunity to explore a wide range of prospective targets offshore Lebanon from siliciclastic, calciclastic to bioclastic lithology.


VISITING THE DATA ROOM: The offshore Lebanese blocks are 80% covered by high-quality 3-dimensional seismic surveys and 100% covered by high-quality 2-dimensional seismic surveys.
A dedicated data room is available in the Ministry of Energy and Water offices in Lebanon for visitors to view all the available technical and seismic data. The data room contains technical reports, published papers, presentations, a dedicated GIS workstation and a dedicated seismic workstation. Additionally, the seismic data may also be viewed at Spectrum or PGS offices in the UK or Norway (other locations may be possible by special arrangement). Requests to visit the data room can be made via email to
datacenter@lpa.gov.lb.

Cogico SARL
  Oil & Gas, Fuel
  01 808150
Wardieh Holdings
  Oil & Gas, Fuel
  01 243476