Up to $240 million investment in Lebanon oil and gas exploration during the first five year

The oil and gas consortium, formed of Total, ENI, and Novatek, will invest an estimated amount of $40 million for the drilling of each exploration well. The consortium will drill a total of four wells over the five-year exploration phase, two in each block.

Walid Nasr, Chairman of the Lebanese Petroleum Administration, said: “The Ministry of Energy and Water (MoEW) agreed with the consortium to drill a fifth well if it finds a confirmed discovery in block 4.”

This brings total investments in all five wells to  around $240 million.

Nasr said that drilling in the first exploratory phase will be in both blocks 4 and 9 but the consortium will start with block 4 because they have more data about potential discoveries. The total governmental take from block 4 ranges from between 64 and 71 percent and in block 9 from between 55 and 63 percent of total net profit.

The consortium will also pay $40 million per well as guarantees once the Exploration and Production Agreement with the Ministry is signed next month.

Reported by Lebanon Opportunities