The deal inked in Beirut brings Qatar into Lebanon's gas exploration market three months after Lebanon and Israel signed a U.S.-mediated maritime border agreement ending a yearslong dispute. Qatar Energy is replacing a Russian company that withdrew from the Lebanese market in September.
The companies did not find viable amounts of oil or gas in block No. 4 north of Beirut, and drilling in block No. 9 in the south has been repeatedly postponed because of the dispute with Israel.The agreement was signed by Saad Sherida al-Kaabi, Qatar's Energy Minister; his Lebanese counterpart Walid Fayad; Claudio Descalzi, the CEO of Italy's state-run energy company, ENI, and TotalEnergies CEO Patrick Pouyanne.
Back in 2017, Total and ENI each got 40 per cent stakes in the blocs while Novatek got 20 per cent. Under the deal signed Sunday, Qatar Energy will take the 20 per cent stake of Novatek in addition to 5 per cent each from ENI and Total leaving the Arab company with a stake of 30 per cent. Total and ENI will have 35 per cent stakes each.
Cash-strapped Lebanon hopes that future gas discoveries will help the small Mideast nation pull itself out of the worst economic and financial crisis in the country's modern history.