Up to $240 million investment in oil and gas in first five year. Drilling to begin in block 4

Up to $240 million investment
in oil and gas in first five year
Drilling to begin in block 4
Share on Facebook     Share on LinkedIn        
WatsApp
The oil and gas consortium, formed of Total, ENI, and Novatek, will invest an estimated amount of $40 million for the construction of each exploratory well. The consortium will construct a total of four wells over the five-year exploration phase.

Walid Nasr, Chairman of the Lebanese Petroleum Administration, said: “The Ministry of Energy and Water (MoEW) agreed with the consortium to build a fifth contingency well if it finds a confirmed discovery in the first well.”

This brings total investments in all five wells to $240 million.

Nasr said that drilling in the first exploratory phase will be in both blocks 4 and 9 but the consortium will start with block 4 because they have more data about potential discoveries. The total governmental take from block 4 ranges from between 64 and 71 percent and in block 9 from between 55 and 63 percent of total net profit.

The consortium will also pay $40 million per well as guarantees once the Exploration and Production Agreement with the Ministry is signed next month.
Reported by Yassmine Alieh
Share on Facebook     Share on LinkedIn        
WatsApp
Date Posted: Dec 22, 2017