Lebanese offshore oil and gas licensing round continues despite political crisis

In this Nov. 6, 2017 photo, vehicles moves on a street in Beirut, Lebanon. (AP)
Updated 11 November 2017
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Lebanese offshore oil and gas licensing round continues despite political crisis

BEIRUT: Lebanon’s Energy Minister on Friday called on companies bidding in its first round of licensing to explore for oil and gas in its Mediterranean waters to begin technical discussions, suggesting the process would continue despite the political crisis.
Prime Minister Saad Hariri resigned in a speech from Saudi Arabia last Saturday and has yet to return to the country, sparking a political crisis.
President Aoun has said he will not accept Hariri’s resignation until he returns to the country, while the Lebanese authorities have said they consider the government to still be legitimate.
Energy and Water Minister Cesar Abi Khalil said on Twitter that he signed a document on Friday calling on companies who sub-mitted bids for the offshore license blocks “to negotiate the technical proposals.”
Lebanon sits on the Levant Basin in the eastern Mediterranean where a number of big subsea gas fields have been discovered since 2009, including the Leviathan and Tamar fields situated in Israeli waters near to the disputed marine border with Lebanon.
Lebanon re-launched the tendering competition for the exploration and production rights in January after a three-year delay due to political paralysis.
However, a consortium made up of France’s Total, Italy’s ENI and Russia’s Novatek, made the only offer in the tendering process which closed on Oct. 12, with bids for two of the blocks.
The Lebanese Petroleum Administration has said it will evaluate bids for the offshore blocks and present them to the energy minister by Nov. 13. Final approval will then be sought from Lebanon’s council of ministers.
— REUTERS


OPEC, Russia rebuff Trump’s call for immediate boost to oil output

Updated 23 September 2018
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OPEC, Russia rebuff Trump’s call for immediate boost to oil output

ALGIERS: OPEC’s leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump’s calls for action to cool the market.
“I do not influence prices,” Saudi Energy Minister Khalid Al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost.
Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices.
The price rally mainly stemmed from a decline in oil exports from OPEC member Iran due to fresh US sanctions.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!” Trump wrote on Twitter.
Falih said Saudi Arabia had spare capacity to increase oil output but no such move was needed at the moment.
“My information is that the markets are adequately supplied. I don’t know of any refiner in the world who is looking for oil and is not able to get it,” Falih said.
However, he signalled Saudi Arabia stood ready to increase supply if Iran’s output fell: “Whatever takes place between now and the end of the year in terms of supply changes will be addressed.”
Russian Energy Minister Alexander Novak said no immediate output increase was necessary, although he believed a trade war between China and the United States as well as US sanctions on Iran were creating new challenges for oil markets.
Oman’s Oil Minister Mohammed bin Hamad Al-Rumhy and Kuwaiti counterpart Bakhit Al-Rashidi told reporters after Sunday’s talks that producers had agreed they needed to focus on reaching 100 percent compliance with production cuts agreed in June.
That effectively means compensating for falling Iranian production. Al-Rumhy said the exact mechanism for doing so had not been discussed.
The statement from Trump, meanwhile, was not his first criticism of OPEC.
Higher gasoline prices for US consumers could create a political headache for Republican Trump before mid-term congressional elections in November.
Iran, OPEC’s third-largest producer, has accused Trump of orchestrating the oil price rally by imposing sanctions on Tehran and accused its regional arch-rival Saudi Arabia of bowing to US pressure.
On Sunday, Iranian Oil Minister Bijan Zanganeh said Trump’s tweet “was the biggest insult to Washington’s allies in the Middle East.”
OPEC OUTPUT FALLS AGAIN
Seeking to reverse a downturn in oil prices that began in 2014, OPEC, Russia and other allies decided in late 2016 to reduce supply by some 1.8 million barrels per day (bpd).
In June this year, however, after months of cutting by more than their pact had called for, largely due to involuntary reductions from Venezuela and other producers, they agreed to boost output by returning to 100 percent compliance.
That equates to an increase of about 1 million bpd, but latest data show they are some way from achieving that target.
In August, OPEC and its allies cut production by 600,000 bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the US sanctions deadline.
Iran told OPEC its production had been steady in August at 3.8 million bpd. OPEC’s own estimates, according to its secondary sources such as researchers and ship-trackers, put Iranian output at 3.58 million bpd.
Falih said returning to 100 percent compliance was the main objective and should be achieved in the next two-three months.
Although he refrained from specifying how that could be done, Saudi Arabia is the only oil producer with significant spare capacity.
“We have the consensus that we need to offset reductions and achieve 100 percent compliance, which means we can produce significantly more than we are producing today if there is demand,” Falih said.
“The biggest issue is not with the producing countries, it’s with the refiners, it’s with the demand. We in Saudi Arabia have not seen demand for any additional barrel that we did not produce.”
OPEC also decided on Sunday to adjust the dates of its next meeting to Dec. 6-7 from the earlier-agreed Dec. 3.
The joint OPEC/non-OPEC ministerial monitoring committee will next meet on Nov. 11 in Abu Dhabi.