Credit Libanais Estimates of Leanon Hydrocarbon Reserves




A report about Lebanon’s potential oil and gas wealth prepared by Credit Libanais Economic Research Unit said the economic benefits of these commodities would be enormous.The report, which was based on the studies carried out by Spectrum and other firms which conducted an offshore 3-D seismic survey, believes that Lebanon could gross over $100 billion in revenues over the next 20 years if the estimates of potential resources turn out to be correct.“We assume that the government’s revenues from the exploitation of oil and gas will mainly stem from a 15 percent corporate income tax, a 60 percent profit share on hydrocarbon production, a royalty fee of 4 percent on gas production, and royalty fees ranging between 5 percent and 12 percent on oil production (average of 8.5 percent adopted),” the report said.“We expect the government’s revenues from oil & gas production to stand at $3.58 billion during the first year of production (2020) before increasing steadily over the 20-year horizon following the launching of hydrocarbon extraction, reaching $8.15 billion during the 20th year (2039). Consequently, we expect the government’s deficit to shed 5.64 percentage points during the first year of extraction and settle at 4.36 percent of nominal GDP, with this gap dropping to 4.36 percentage points during the last year of extraction,” the report projected.