In a press release published in the evening, the Ministry of Energy and Water announced that the Russian company Novatek was preparing to leave the consortium formed with the French giant Total and the Italian ENI. This consortium had won the first round of offshore hydrocarbon exploration and exploitation licenses ever launched by Lebanon and relating to blocks 4 and 9 of the Lebanese exclusive economic zone (EEZ). The contracts were signed with great fanfare in early 2018, but only one exploration well was dug, on Block 4, Block 9 being at the center of a dispute between Lebanon and Israel. The other 8 blocks of the EEZ were put into play during the reset of a second allocation round operated at the end of 2021.
In a note sent to the ministry, the content of which the latter reported, Novatek highlighted “economic and financial” reasons as well as “political risks”. Total and ENI are committed to continuing to perform their contract, according to the ministry. Novatek’s withdrawal will be effective from October 22.
The Russian company’s decision comes as negotiations between Lebanon and Israel over the maritime borders of their respective EEZs have not yet reached a conclusion and tensions between the West and Russia generated by the conflict between Moscow and Kyiv have had significant repercussions on many levels.
In a press release published in the evening, the Ministry of Energy and Water announced that the Russian company Novatek was preparing to leave the consortium formed with the French giant Total and the Italian ENI. This consortium had won the first round of offshore hydrocarbon exploration and exploitation licenses ever launched by Lebanon and…