Exploratory drilling for Lebanese offshore gas is set to begin on Thursday, raising expectations that export revenues could rescue the desperate country from economic ruin and its citizens from penury.
Since 2019, Lebanon’s currency has lost 98 per cent if its value and 80 per cent of the population exists below the poverty line.
Caretaker energy minister Walid Fayad called this a “historic day” and said the results of the drilling would be known after 67 days.
Interim public works minister Ali Hamie said: “This is survival. Hopefully before the end of the year there will be positive results and Lebanon becomes an energy producer. This offers a glimmer of hope.”
Experts have warned, however, that commercial exploitation could take three-to-five years.
France’s Total Energies has formed a partnership with Italy’s ENI and Qatar’s state oil company to explore the Qana field. Mr Fayad said, they have also “expressed an interest in the blocks surrounding [Qana]”.
After a decade of wrangling over maritime borders, last October the US brokered an agreement with Israel granting Lebanon the exclusive right to exploit the potentially lucrative Qana field, which lies partly in Israeli territorial waters, in exchange for compensation. This amounted to a landmark deal as the two countries remain in a state of war and their disputed land border has remained tense.
The latest flare-up followed Israel’s construction of a fence on the northern Lebanese side of the cross-border village of Ghajar, prompting Lebanon to accuse Israel of annexing the whole of Ghajar. Israeli defence minister Yoav Gallant and Hizbollah head Hassan Nasrallah responded by threatening to send each other’s country “back to the Stone Age” if the other escalates violence.
While the political elite has remained deadlocked over the election of a new president to replace Michel Aoun, who retired 10 months ago, the Lebanese assets and passport of ex-central bank governor Riad Salameh have been seized.
International auditors have charged him with diverting commissions for the sale of bank assets to personal accounts. Interpol has issued international arrest warrants for Mr Salameh.
Countrywide, conditions continue to deteriorate. Last week electricity was cut briefly when Lebanon’s two power plants stopped operating due to non-payment of bills. Three ships loaded with fuel for the plants remain offshore until lines of credit have been opened. Last month inflation was 251 per cent. Essential medications are not imported because of a lack of foreign currency.
Despite the crisis, the tourism ministry expects 2.2 million visitors this year. Wealthy Lebanese go to nightclubs, bars, restaurants, and resorts while 42 per cent of their compatriots go hungry, according to Save the Children.
