Introduction
The latest hydrocarbon developments indicate that Lebanon is well on the way to becoming a key player in the Middle Eastern oil and gas industry.
2012 ended with the nomination of the board of directors of the Petroleum Administration Authority (PAA), entrusted with the administration of the petroleum sector. This has led to major progress ahead of the launch of the first offshore oil and gas licensing round, which was officially announced in February 2013. Moreover, the recent discovery of an oil reservoir in Lebanon's northern exclusive economic zone has stirred investors' optimism.
Petroleum Administration Authority finally operational
The long-awaited Decree 9438 on the nomination of the PAA's board of directors was finally adopted and published in the Official Gazette on December 4 2012. Pursuant to Article 10 of the Offshore Petroleum Resources Law (132/2010), the Cabinet approved the six PAA board members in charge of the following six administrative units, each with specific missions:
The board was appointed for a six-year term, with an annual rotating presidency.
The appointment of the PAA board constitutes a cornerstone in the preparations for the first licensing round (for further details on the PAA's prerogatives please see "Understanding the Offshore Petroleum Resources Law").
Pre-qualification round officially launched
According to the law, before launching the licensing round, the PAA must conduct a pre-qualification round for all joint stock petroleum companies in order to determine eligibility to participate in the licensing round, where such pre-qualified companies will bid for an exploration and production agreement with the government.