In its drive to transform Lebanon into an oil and/or gas producing country, the Ministry of Energy and Water is currently working on establishing appropriate and comprehensive petroleum regulations within the framework of existing Lebanese legislation including, most notably, the recently enacted Hydrocarbon (Offshore) Law number 132/2010 (the “2010 Offshore Law”).
The 2010 Offshore Law provides only a general outline of the shape of the Lebanese Hydrocarbon industry and no more than a high level view of relevant structural and operational matters. The authority to draw the details thereof is delegated to the Government to be issued in the form of Government decrees. A total of 28 decrees are envisaged and have an extensive scope that ranges from setting out the terms and conditions for the participation in licensing rounds; the conditions for the award of exploration licences; the content of licensing applications; the procedures for the award of production licences; the rules related to any petroleum sale; Health and Safety regulations; etc.