Caretaker Energy Minister Gebran Bassil was quoted by The Daily Star as saying, "The energy minister is authorized to extend the bidding period [for a duration of time] equal to the time lost, if the two decrees are not issued by the Cabinet before Sept. 2."
The decrees, which demarcate the 10 offshore exploration blocks and forms a revenue-sharing model, have to be passed by the Cabinet before any contracts are awarded.
Around 46 international energy firms have prequalified in the beginning of April to bid for offshore hydrocarbon exploration contracts in the country.
Bassil said that there will be a consultation phase until September, where the prequalified companies can discuss with the government on the blocks which they are interested in bidding.
The minister said that during the first phase, all the blocks will be open for bidding, while the Petroleum Administration will reduce the number of blocks and ultimately award only four blocks.
Petroleum Administration head Assem Abou Ibrahim was quoted by the publication as saying that the government has limited the first round to four blocks to improve the state’s position in future negotiations with oil and gas firms.
Seismic surveys have showed high prospects of oil discoveries off Lebanon’s coast, which were estimated to be around 145 million barrels of oil, in addition to natural gas.
