TotalEnergies proceeds with gas exploration plans in Lebanon

French oil giant TotalEnergies said on Monday that it will launch its drilling operations off the Lebanese coast in the first quarter of 2023, following the landmark maritime deal between Lebanon and Israel in October.

Energy Minister Walid Fayad met with a delegation from TotalEnergies to discuss those plans, the Lebanese government said.

Fayad and TotalEnergies chairman and CEO Patrick Pouyanne met at the company’s headquarters outside of Paris to discuss energy exploration plans in Lebanon’s Block 9 in the eastern Mediterranean Sea. The following are some takeaways from the meeting, according to a TotalEnergies press release:

• TotalEnergies expects to select a drilling rig in the first quarter of 2023. 
• The environmental studies phase of the project will be finalized by the end of June 2023. 
• TotalEnergies has placed preorders for equipment needed for the energy exploration. 
• The Block 9 energy exploration team will be based in Beirut.
• TotalEnergies and its partner, Italy’s Eni, plan to “complete the drilling as soon as possible in 2023."

Why it matters: Lebanon has been eyeing energy exploration in the eastern Mediterranean for years, but was held up by a maritime border dispute with neighboring Israel. In October, Israel and Lebanon reached a historic agreement on their sea border, brokered by the United States since Israel and Lebanon do not have formal relations. The agreement specified that Lebanon could drill in Block 9 and also reportedly stipulated that Israel is entitled to a percentage of Lebanon’s future energy profits from the area. 

Following the agreement, Lebanese President Michel Aoun asked TotalEnergies to start gas exploration “quickly.” 

TotalEnergies’ plans have been moving forward since then. Last month, TotalEnergies and Eni finalized a deal with Israel on Block 9. Their activities could extend into Israeli waters, the companies said at the time. 

TotalEnergies owns 60% of the block, while Eni owns the other 40%. 

Lebanon is experiencing an energy crisis and much of the population is without electricity for several hours a day, so the country would greatly benefit from developing its own gas supply. However, it will take years for the gas to be used to power Lebanon. Israel discovered natural gas off its coast in 2009, and only began producing in 2013. Lebanon, with its corruption, energy and infrastructure issues, could take take longer. 

Know more: TotalEnergies is heavily involved in the Middle East. Here are some notable regional developments involving TotalEnergies from the past few months:

• TotalEnergies increased its stake in Libya’s Waha oil field last month.
• Qatar and TotalEnergies revealed a new solar plant in October. 
• In September, TotalEnergies sold its stake in an oil field in Iraq’s Kurdistan Region due to the oil dispute between Kurdish and federal authorities.
• TotalEnergies signed an agreement in July with the Abu Dhabi National Oil Company to work together on carbon capture technology.