Lebanese Ministry of Information
Speaker Nabih Berri Wednesday announced that the United Nations had expressed its willingness to help Lebanon demarcate its southern maritime border, which would open the door to oil and gas exploration in disputed zones off Lebanon’s coast.
During his weekly meeting with lawmakers, Berri said that the U.N. had informed Lebanon of its intention to sponsor the demarcation process. However, the Office of the United Nations Special Coordinator for Lebanon, led by Sigrid Kaag, could not confirm such a commitment when contacted by The Daily Star Wednesday evening.
Sources in the field also refused to comment at this stage because of the absence of official confirmation from the United Nations.
One expert said Berri’s statement came “as a surprise” and that the extent of the U.N.’s involvement was unclear from his remarks. The same source expressed doubts that a bilateral agreement between Lebanon and the U.N. would be sufficient to settle the matter, as Israel previously rejected international arbitration.
Lebanon has been vocal in demanding the U.N.’s assistance in designating Lebanon’s disputed maritime border with Israel, which has an average width of 7 kilometers. The Jewish state however opposes the involvement of external mediators in the matter.
Although Lebanon has no proven oil and gas reserves, both Israel and Cyprus have proven gas fields, indicating the probability that some reserves might also be found within the Lebanese borders.
Energy and Water Minister Cesar Abi Khalil said in May that the fact that a large number of companies submitted bids in a prequalification round for drilling licenses in Lebanese waters was also potentially a sign of the existence of commercially viable quantities of hydrocarbons.
According to the head of the Lebanese Petroleum Administration Wissam Chbat, the contested territorial waters between Lebanon and Israel will not deter major oil companies from exploring oil and gas in the blocks that were put up for bidding by the government. “This is one of the risks that can be mitigated,” Chbat said during a summit in May.
Lebanon and neighboring Cyprus have been negotiating a unitization agreement – a revenue-sharing plan for joint oil and gas fields – since 2013. Political risk analyst with the Middle East Strategic Perspectives Mona Sukkarieh said it is common for countries to agree a unitization accord ahead of exploration in order to clarify matters from the start.
A maritime border was agreed between Cyprus and Lebanon in 2007 but Lebanon’s Parliament never ratified the deal. Cyprus agreed its maritime borders with Israel in 2010 using the same southern point referenced in the deal with Lebanon.
As Sukkarieh explained in an interview with The Daily Star earlier this month, Lebanon had in the meantime established a committee to define Lebanon’s exclusive economic zone, which established a southernmost point that does not match that of the Cyprus-Israel maritime agreement.
Lebanon has since requested the U.N.’s help in demarcating the 870 square kilometers of water that lie along this contested border.
The main driver for oil and gas in Lebanon is for power generation for local consumption, heating and industry. However representatives of several companies have expressed hopes that hydrocarbon quantities will allow for exportation.
