Lebanese Oil still unexplored due to politics
Guest Post – News stating that oil has been found in Lebanon spread like wildfire two years ago. Seismic scans in the Eastern Mediterranean Sea revealed the existence of vast oil reserves off the coasts of the country. It was a celebratory moment for Lebanon, whose economy suffered from debt and power outages. However, it would seem that a brighter future with oil remains out of reach, as the Lebanese government still hasn’t given the go signal for exploration.
Exploration for oil has been delayed for two years because the government is still in the process of approving two pieces of legislation. Experts have no clue why it’s taking a long time to approve the legislation since the details have long been settled. The delays are causing distress to some oil and gas companies and are making them wonder if they’ll ever do business with the Lebanese. “One reason for this is the governance of the sector,” said Ali Berro. “Another might have to do with the international crisis of petroleum products. But given the long-term investment, some companies that have excess reserves might be still looking to invest.”
Despite falling oil prices in the past several months, the oil and gas sector remains a strong industry. Proof of that is the expansion of some oil and gas companies in order to support their growing operations. Unaoil, an oil and gas field service provider, opened a support hub in North Rumalia last year in order to provide maintenance and rotating equipment support service to its clients in the Middle East. Experts are saying that Lebanon has no real reason why it should keep delaying explorations since the oil and gas industry would clearly be able to help boost the country’s economy. Lebanon’s neighbor Israel had a completely different reaction when it discovered oil 80 miles off its coastline in the Mediterranean Sea. When it was able to discover a cylinder of rock containing oil, it immediately hired the services of a Shell scientist for extraction. Last year, Israel was already looking for partners in order to help the country pump more gas from the ground.
Citizens of Lebanon have expressed their dismay at the delay of oil exploration due of politics, and there seems to be no clear explanation from the government as to why it’s taking a long time for the legislation to be approved.
Image Credits: Executive Magazine
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