Lebanon signed exploration and production agreement (EPA) contracts with a consortium of companies made up of Total, Eni and Novatek for two offshore blocks.
Earlier in December, the Lebanon Petroleum Administration awarded two exclusive petroleum licenses for the offshore Blocks 4 and 9 to the consortium. The start of the exploration phase, which will last for up to five years with a one year possible extension was contingent on signing of the EPAs.
The Minister of Energy and Water, Cesar Abi Khalil said the consortium, has submitted two executed E&PA along with guarantees for the execution of related petroleum activities, according to a statement by the Lebanon Petroleum Administration.
Abi Khalil added that the companies abided by the period to submit the agreements and the guarantees as prescribed in the tender protocol.
According to the provisions of the tender protocol allowing the right holders to establish wholly owned signing affiliates, the two EPAs were duly signed by Total E&P Liban s.a.l. (established in Lebanon and wholly owned by Total S.A.), Eni Lebanon B.V. (established in the Netherlands and wholly owned by Eni International B.V.), and Novatek Lebanon (established in Lebanon and wholly owned by JSC Novatek).
All the right holders provided their respective signing affiliates with Parent Company Guarantees in line with the provisions of the Tender Protocol, Abi Khalil said.