Oil and Gas Prospects in Lebanon1st Licensing Round: Strategy & Program

Arab Economic Forum9-10 May 2013

Assem Abou Ibrahim – President & Head of QHSE Dept.

Arab Economic Forum 9-10 May 2013

Lebanon’s O&G Sector Development

Early Exploration

Seismic Acquisition

Contract Activity

Bid Round Exploration Production

2010 2011 2012 2013

Offshore Petroleum Resources Law

PA Decree

PA Appointment

2014 2019 2049

Arab Economic Forum 9-10 May 2013

O&G Sector Governance

Petroleum Administration appointed on

04 December 2013

Arab Economic Forum 9-10 May 2013

Licensing Strategy - Inputs

Licensing Strategy

Sustainability

Economic Growth

Legal System

Organizational Capacity

Risks

Scope & Frequency of

Bid

Bidding Conditions

Arab Economic Forum 9-10 May 20135

2D and 3D Offshore Seismic Coverage

Ongoing acquisition * 2D : 8,800 L-Km 3D : 10,000 Km2

2D : 5,200 L-Km 3D : 5,145* Km2

INTERPRETED

INTERPRETED

BEIN

G INTERPRETED (O

CT-2013)

2D : 1,650 L-Km Planned in Q2 2013 (BasinSpan)

Arab Economic Forum 9-10 May 2013

Block Delineation

Arab Economic Forum 9-10 May 2013

Pre-Qualification Criteria

Legal• Joint stock company

conducting Petroleum Activities

Financial• Total assets of USD 10

Billion

Technical• Operatorship of at

least one petroleum development in water depths in excess of 500m

QHSE• QHSE policy

statement(s)• Established &

implemented QHSEMS

RIGHT HOLDER - OPERATOR

Legal

• Joint stock company conducting Petroleum Activities

Financial

• Total assets of USD 500 Million

Technical

• Having an established petroleum production

QHSE

• QHSE policy statement(s)

• Established & implemented QHSEMS

RIGHT HOLDER – NON-OPERATORS

Arab Economic Forum 9-10 May 2013

Pre-Qualified Companies

Category Applicants Qualified

Right Holder - Operator 16 12

Right Holder – Non-Operator 38 34

Arab Economic Forum 9-10 May 2013

1st Licensing Round - Adopted Strategy

Allow RHs to Nominate preferred Blocks from the 10 offered blocks

1EPA subject to Consultation

2 Consortium / RH-Operator to set Priority for blocks to bid on

3

MEW/PA Define blocks open for bidding (not less than 5 blocks)

4 Pre-qualified RH to enter into up to 3 different Consortiums

5Consortium to bid on up to 5 blocks open for bid

6

Arab Economic Forum 9-10 May 2013

1st Licensing Round - Adopted Strategy

RH to participate in 1 Consortium only per block

7 Min. 3 bids per block to allow negotiations

8

MEW to award up to 4 blocks per round

9 Consortium / Operator can be awarded max. 2 blocks/round

10

Arab Economic Forum 9-10 May 2013

Timeline

Q4 - 2012 Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014Q4 - 2012 Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014

Approval of 1st Round Plan27-12-2012

Open Pre-qualification15-02-2013

Companies Comment on EPA

01-06-2013

List of Pre-qualified companies18-04-2013

Open Bid Round

02-05-2013

Companies Nominate Blocks

15-06-2013

EPA Workshop with Companies17/18-06-2013

Define Blocks Open for Bid30-06-2013

Close Pre-qualification28-03-2013

Receipt of Application Fees

31-07-2013

Close Bid Round

04-11-2013

Bid Evaluation Results

Jan 2014

Negotiations & Award

Feb-Mar 2014

Thank You