
The caretaker Energy and Water Minister, Walid Fayad. (Credit: Archive photo NNA)
"The petroleum and gas dossier is politicized in Lebanon. One can see a confluence between the geopolitical situation and Total's approach in continuing work in Lebanon," caretaker Energy and Water Minister Walid Fayad highlighted in comments reported by LBCI and reiterated by Lebanon's National News Agency (NNA) on Friday.
Fayad pointed out that Total's exploration activities in Lebanese offshore fields were interrupted when the war in Lebanon broke out, but he accused the company of "failing to meet its contractual obligations." He also asserted that the petroleum and gas dossier in Lebanon "only progresses when circumstances are favorable for foreign countries."
Prohibiting Total from continuing its activities
A consortium comprising TotalEnergies, Italy’s Eni, and QatarEnergy is the only entity to have acquired exploration and exploitation licenses for two of Lebanon's 10 Exclusive Economic Zone (EEZ) blocks. The group conducted two drillings, both of which yielded inconclusive results. In 2020, a well drilled in Block 4, off Batroun in northern Lebanon, revealed insufficient traces of gas, while no findings were made in Block 9, located at the southern border with Israel.
"Total demands a guarantee for Block 4, but the executive management of the company does not specify whether it will provide the report we are asking for. I have therefore submitted a request to the Cabinet to terminate the agreement with the company or to cancel its oil rights, meaning to prohibit Total from continuing its activities," said Fayad.
And he added: 'Total is a global company, headquartered in France. Its decisions are linked to French politics and President Emmanuel Macron has the power to pressure TotalEnergies or coordinate with the company."
Fayad also suggested that priority should be given "to smaller specialized companies," without specifying which ones.
Twelve hours of electricity daily
On the electricity sector, Fayad confirmed that power supply will increase to "approximately 12 hours per day starting next March," up from the current range of 9 to 10 hours per day. He also acknowledged the rising electricity bills due to the high cost of fuel oil. "Improvement in supply is now linked to the ability to secure additional fuel oil. Electricity of Lebanon (EDL) has not received the necessary support for this purpose' and the public electricity provider has between $500 and $600 million due to bill collections from Lebanese citizens."
President Michel Aoun met with his French counterpart at the Baabda Presidential Palace and discussed the offshore hydrocarbons dossier during the Macron's one-day visit to Lebanon. Aoun urged Macron to encourage TotalEnergies to "resume" exploration activities in Lebanon's offshore oil blocks. The exploration of Block 9, which had been stalled due to a border dispute with Israel, resumed in 2023 after an agreement was reached between the two countries in October 2022 to resolve their maritime border disputes.
This article was originally published in French in L'Orient Le-Jour.