Lebanese Cabinet approves licenses for oil drilling

Lebanon’s Oil Minister Cesar Abi Khalil is seen at the presidential palace in Baabda, Lebanon December 14, 2017. (Reuters)
Updated 14 December 2017

Lebanese Cabinet approves licenses for oil drilling

BEIRUT: Lebanon’s information minister says the Cabinet has approved licenses for three international companies to carry out exploratory drilling off the Lebanese coast.
Melhem Riachi told reporters after a government meeting on Thursday that all Cabinet members approved the move and said “this is a great wealth for Lebanon.”
The licenses will allow Italy’s Eni, France’s Total and Russia’s Novatek that bid for two of Lebanon’s 10 offshore blocks to determine whether oil and gas exist in the area.
Oil Minister Cesar Abi Khalil tweeted “congratulations to Lebanon for the approval of the oil license and Lebanon’s entering the oil countries club.”


Libyan state oil firm warns against export blockade

Updated 18 January 2020

Libyan state oil firm warns against export blockade

  • The NOC issued a statement saying it “strongly condemns calls to blockade oil ports ahead of the Berlin Conference on Sunday”
  • Tribes close to eastern Libya-based military strongman Khalifa Haftar had called for a blockade of coastal oil export terminals

TRIPOLI: Libya’s National Oil Company warned Friday against threats to block oil exports, the war-torn country’s main income source, two days before a Berlin conference aimed at relaunching a peace process.
Tribes close to eastern Libya-based military strongman Khalifa Haftar had called for a blockade of coastal oil export terminals to protest a Turkish intervention against Haftar in the country’s grinding conflict.
The NOC later issued a statement saying it “strongly condemns calls to blockade oil ports ahead of the Berlin Conference on Sunday.”
Turkey has backed the Tripoli-based Government of National Accord as it faces an offensive by Haftar’s forces to seize the capital from what he calls “terrorists” supporting the GNA.
After months of combat, which has killed more than 2,000 people, a cease-fire came into effect Sunday backed by both Ankara and Moscow, which is accused of supporting Haftar.
However, after Turkey deployed troops to support the United Nations-recognized GNA, tribes close to Haftar threatened to close down the “oil crescent” — a string of export hubs along Libya’s northeastern coast under Haftar’s control since 2016.
His troops have also mobilized to block any counter-attack on the oil crescent, the conduit for the majority of Libya’s crude exports.
“The closure of the fields and the terminals is purely a popular decision. It is the people who decided this,” spokesman for pro-Haftar forces Ahmad Al-Mismari told Al-Hadath television late Friday.
The tribes also called for the “immediate” closure of the Mellitah, Brega and Misrata pipelines.
The head of the eastern Zouaya tribe told AFP that blocking exports would “dry up the sources of funding for terrorism via oil revenues.”
NOC chairman Moustafa Sanalla said the oil and gas sector is “vital” for the Libyan economy, as it is the “single source of income for the Libyan people.”
“The oil and the oil facilities belong to the Libyan people. They are not cards to be played to solve political matters,” he added.
“Shutting down oil exports and production will have far-reaching and predictable consequences.”
The oil-rich North African state has been in turmoil since a 2011 NATO-backed uprising that overthrew and killed dictator Muammar Qaddafi.
Its oil sector, which brings in almost all of the state’s revenues, has frequently been the target of attacks.
Sanalla said the consequences of exports and production being shut down for an extended period could be devastating.
“We face collapse of the exchange rate, a huge and unsustainable increase in the national deficit, the departure of foreign contractors, and the loss of future production, which may take years to restore,” he said.
“This is like setting fire to your own house.”