Oil and gas in Lebanon: shattered expectations

Abstract

The article is dedicated to the peculiarities of the oil and gas policy of the Lebanese Republic - one of the few countries in the Middle East that does not engage in hydrocarbon extraction. The issue of oil and gas production in Lebanon remains insufficiently studied, although certain aspects of Lebanon's oil and gas policy have been touched upon by Russian scholars in the context of the Lebanon-Israel multiyear maritime border dispute. The author examines Lebanon's attempts to discover oil and gas in the 20th and 21st centuries against the backdrop of the complex political and economic situation in the country, describes the procurement process, in which Russian companies were also involved, and addresses the legislative framework for hydrocarbon production and exploration. The article explores the prospects of significant hydrocarbon reserves in Lebanon, with special attention paid to exploration in the country's exclusive economic zone (EEZ). According to experts, Lebanon possesses substantial oil and gas potential, as evidenced by the discovery of significant gas deposits offshore Israel and Cyprus. However, initial drilling in Lebanon's EEZ did not confirm the presence of commercially viable hydrocarbon reserves. It is concluded that the unstable political situation in the country, as well as the dispute with Israel over maritime borders, significantly hindered exploratory drilling offshore Lebanon. The unsuccessful tender process in recent years indicates Beirut's insufficiently effective oil and gas policy. The author believes that even if confirmed oil and gas reserves are discovered, Lebanon's economic crisis cannot be resolved in the foreseeable future due to weak governance and a lack of developed infrastructure for hydrocarbon export.