Mineral development is a high-risk, long-term and large-capital investment endeavor; as such, it should form part of an overall legal and economic strategy.
Regulation of petroleum development in all its aspects before starting exploration and exploitation activities is crucial for the protection of the national interests and natural resources in a country.
Experiences of oil producing countries show that there is always a challenge for the host government to strike a balance between attracting the international oil companies and efficiently regulating their activities.
The Lebanese government worked thoroughly to build a strong legal regime to govern and regulate offshore hydrocarbon activities. With the Offshore Petroleum Resources Law, the Petroleum Activities Regulations and the Lebanese Exploration and Production Agreement, Lebanon has taken major steps toward developing a reliable oil and gas sector in accordance with international standards. Whether Lebanon will be able to control its mineral resources and protect its national interests through these legal instruments and how the government will maximize its revenues through the EPA are the real challenge.