TotalEnergies SE and its partners in Block 9 have signed an agreement with the Lebanese government to enter the adjacent Block 8 around the Israeli-Lebanese maritime border.
“Although the drilling of the Qana well on Block 9 did not give positive results, we remain committed to pursue our exploration activities in Lebanon”, TotalEnergies chair and chief executive Patrick Pouyanné said in a statement on the company’s website.
France’s TotalEnergies is to own 35 percent in Block 8 as operator. Italy’s state-backed Eni SpA would get 35 percent. QatarEnergy would hold 30 percent.
“The consortium’s initial work program on Block 8 consists of the acquisition of a 1,200 km2 [463.32 square miles] 3D seismic survey, in order to further assess the area’s exploration potential”, TotalEnergies said.
Block 8 sits about 70 kilometers (43.5 miles) off the southern coast of Lebanon in waters about 1,700-2,100 meters (6,889.76 feet) deep, according to a separate statement by QatarEnergy.
About three years ago TotalEnergies contracted Transocean Ltd to start drilling in Block 9, as announced by the block operator May 2, 2023. TotalEnergies launched exploration after Lebanon and Israel agreed to delineate their maritime border, around which Block 9 lies. Under the treaty brokered by the United States and signed by the Mediterranean neighbors October 2022, Israel agreed not to develop hydrocarbon deposits in Block 9 in exchange for remuneration by developers.
The treaty stated no Israeli or Lebanese corporation shall hold exploration and exploitation rights in Block 9.
“The parties understand that there is a hydrocarbon prospect of currently unknown commercial viability that exists at least partially in the area the parties understand to be Lebanon’s Block 9, and at least partially in the area the parties understand to be Israel’s Block 72”, read the agreement, as shared by the websites of the Israeli parliament and the United Nations Mediation Support Unit.
“The parties agree that the relevant legal entity to hold any Lebanese rights to exploration and exploitation of hydrocarbon resources in Lebanon’s Block 9 (Block 9 operator) shall consist of one or more reputable, international corporations that are not subject to international sanctions, that would not hinder U.S. continued facilitation and that are not Israeli or Lebanese corporations”, it added. “These criteria shall also apply to the selection of any successors or replacements of those corporations”.
The neighbors also agreed, “If drilling of the prospect [the area comprising Block 9 and Block 72] is necessary south of the MBL [maritime boundary line], the parties expect the Block 9 operator to request the consent of the parties in advance of drilling and Israel will not unreasonably withhold such consent for drilling conducted in accordance with the terms of this agreement”.
On November 15, 2022, TotalEnergies announced it had signed, along with Eni, a deal with the Israeli government “to implement the agreement on maritime boundary”.
On January 29, 2023, TotalEnergies confirmed QatarEnergy had acquired the 30 percent stake of Russia’s PAO NOVATEK in Block 9.
To contact the author, email jov.onsat@rigzone.com
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