Lebanon in Another Offshore Round Delay

OE Staff
Monday, April 6, 2020

Lebanon has postponed the deadline for submissions of applications for its second offshore licensing round once again.

Lebanon had in January postponed the deadline from January 31 to April 30 to allow international firms more time to pursue administrative, technical and financial preparations for the round.

However, in an update last Friday, the Lebanese Petroleum Administration announced the deadline would be further pushed back "given the implications of the spread of Coronavirus (COVID-19) worldwide" and "due to the fact that it is no longer possible for international companies [...] to meet the previously set deadline."

Thus, the deadline for submission of Lebanon's second offshore licensing round applications has been postponed until June 1, 2020.

According to a report by GlobalData, recent budget cuts by exploration and production companies, which include sharp reductions to exploration capital, will significantly limit the amount of exploration budget available for licensing round acquisitions, at least in the short term.




Global Data said that throughout this period of uncertainty, licensing rounds are likely to be extended or deferred as governments prioritize managing the domestic impact of the virus or wait for investment conditions to improve. 

Several countries, including Bangladesh, Brazil, India, Liberia, South Sudan, and Thailand, have already announced changes to licensing round activities and others will likely follow, Global Data said.

Toya Latham, Upstream Fiscal Analyst at GlobalData comments: "The number of deepwater licenses awarded as part of bid rounds is also likely to be subdued in the short term. With the largest discoveries of last year located mostly in deepwater settings, deepwater acreage offers potentially lucrative opportunities for E&P companies. However, deepwater projects often require more capital and have longer payback periods compared to onshore and shallow water projects, and therefore deepwater acreage is likely to be less attractive in the current investment climate."

Following the stabilization of the oil price, there is likely to be a period of lag before the number of new awards secured through licensing rounds increase.

Latham continues: "Companies with less exposure to the oil price through limited or hedged production, which have available capital in the current environment, are likely to be well-positioned for rounds held following the oil price stabilization and may be in an advantageous situation to capitalize on reduced service costs for exploration activities."


Categories: Energy Middle East Activity Regulations

Related Stories

Woodside to Shed Some Trinidad and Tobago Assets for $206M

EnerMech Names APAC Regional Chief

Woodside Inks Long-Term LNG Supply Deal with China Resources

ORE Catapult and Japan’s FLOWRA to Jointly Advance Floating Wind

Marine Masters Secures Wellhead Platforms Installation Job Off India

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

ADNOC Secures LNG Supply Deal with India's BPCL

Malaysia's Petronas Plans Job Cuts

ADES’ Fourth Suspended Jack-Up Rig Gets Work Offshore Thailand

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

Current News

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com