The appearance of a new drilling rig on the Mediterranean horizon was good news for Beirut last summer. It was proof that long-time political foes Israel and Lebanon could agree on one thing: the potential of possible gas discoveries under the sea.
After some lengthy US-mediated negotiations over territorial boundaries, an energy consortium including Total Energies, Eni and Qatar Energy began drilling in an area known as Block 9 in August.
This was a rare piece of good news for the country’s embattled economy. Four years into one of the worst economic crises in its history, Lebanon’s energy sector is hanging on by a thread. The discovery of new gas fields would be a strong lure to attract foreign capital back into the country.
“If we can deliver an energy success story, proving that Electricité du Liban is able to honour its payments under the power purchase agreements, then we will see more investors come,” Carol Ayat, head of large corporates and specialized lending at Bank Audi tells Euromoney.
Indeed,
