Why the second oil exploration license course?

If the spread of the Corona virus did not affect exploration in Block No. 4, then it is a decision that will affect the second licensing cycle, specified on June 1, to “compel” oil and gas exploration in five blocks in the Lebanese Sea. According to data from the Ministry of Energy, it will be difficult for interested companies to submit their files manually, as stipulated in the conditions book, given the difficulty of transportation and the conditions of the approved stone in most countries. Therefore, the first item on the agenda of the Council of Ministers, to be held tomorrow at the Republican Palace, includes a proposal by the Ministry of Energy to modify some articles in the conditions book. The amendment would allow the Petroleum Administration to receive offers and open them electronically. For this purpose, a specialized and secure electronic platform (virtual data room) has been prepared, so that each interested company receives a password that allows them to access the platform and download their technical and financial files successively, taking into account that according to With the results of each stage, the password is delivered to eligible companies. The proposed amendment also provides for winning companies to return and submit their files manually when conditions allow.

But is it okay to continue releasing the second cycle of licenses in these circumstances? Specialized sources conclude that many factors lead to the belief that it is not in Lebanon’s current interest to run the licensing cycle, in order to avoid the possibility of not attracting companies or due to the possibility of making unfair offers against Lebanon. The most prominent of these factors are:
– The collapse of oil prices, which contributed to the reduction of large companies in their investment budgets, thus threatening the failure of the tender.
The exploration process in Block No. 4 has been completed, and the excavated well has been dry.

The Cabinet allows applications to be submitted electronically to participate in oil exploration.

The spread of the crown contributed to the stagnation of world economies.
Contrary to this view, and against the belief that the postponement may be beneficial, and may later lead to better offers, the Ministry of Energy considers that any further delay will be a declaration of the non-seriousness of the Lebanese state , especially after the tender was postponed twice.
Energy Minister Raymond Ghajar says a risk analysis was conducted, and the ministry, as well as the Petroleum Management Authority, are aware of the negative factors, but in turn it should be noted that many companies bought the data, and it may be theirs that prepared your files and, therefore, the cancellation will cause damage to one of them.
According to the ministry, several experts on the subject were consulted, including Norwegian experts, and it was a consensus that the tender should continue, to avoid the negative impact on Lebanon’s reputation. In addition, global forecasts indicate that prices will witness a significant increase, which will return companies to the investment path.
However, fear is still the possibility of advancing a company, for example. Then, you can control the fate of exploration in the block you win, and most importantly, it will be in a position to impose its financial conditions in Lebanon. As for the worst, according to workers in the sector, it is within their guarantee to obtain the contract and wait for favorable conditions, which can last for years, to begin exploration. Disregarding the Lebanese interest.