Lebanon Extends Offshore Oil and Gas Bidding Amid Regional Tensions

Lebanon's energy ministry has extended the deadline for companies to bid for offshore oil and gas exploration rights to March 2025, citing regional and international developments. Originally set for July 2024, the extension aims to attract more interest and ensure economic stability amid ongoing hostilities between Israel and Hezbollah.

Lebanon's energy ministry has extended a deadline for companies to bid for exploration rights for offshore oil and gas fields in its third licensing round until March next year, the Lebanese Petroleum Administration said on Monday.

The government originally set a deadline of July 3, 2024 for bidding in the licensing round for nine maritime blocks, which was launched in January. The Lebanese Petroleum Administration said the deadline had been extended to March 17, 2025 to provide enough time to monitor "accelerating regional and international developments," find ways of attracting more interest from companies and "work towards achieving economic stability."

The statement did not mention the ongoing hostilities between the Israeli military and Lebanese armed group Hezbollah, which have been trading fire for more than eight months in parallel with the Gaza war. An industry source told Reuters that the exchanges of fire had been a major factor in the decision to extend the deadline.

Lebanon has extended previous licensing rounds repeatedly, in some cases because there had been no applications. Lebanon formally delineated its maritime border with Israel in October 2022 after years of U.S.-mediated talks. It had hoped this would pave the way for an influx of bids for oil and gas exploration in its waters.

But the recent border conflict has resurrected fears that a full-scale war could break out, and Hezbollah chief Sayyed Hassan Nasrallah made threats about the Mediterranean in a recent speech.

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