A senior energy source involved in the talks over the Israel-Lebanon maritime border agreement has told “Globes” that according to estimates and analyses of data from the geological survey the Sidon-Qana gas field could contain nearly 100 billion cubic meters of natural gas, making it a highly profitable endeavor.
Under the terms of the marine border agreement signed between Israel and Lebanon yesterday, Israel agreed to the original Lebanese demand of line 23 for the border and has transferred 860 square meters of the Mediterranean to the Lebanese exclusive economic zone (EEZ), which includes much of the Sidon-Qana field.
The Sidon-Qana field will be managed by Lebanon with French energy major TotalEnergies as the operator in partnership with Italian energy major Eni. Under the agreement signed yesterday with Lebanon, Israel will be entitled to 17% of the royalties from the gas field and an agreement on the matter will be signed with TotalEnergies. Israel would in theory have been entitled to triple the revenue had it not relinquished the 860 square meters of the Mediterranean in yesterday’s agreement.
The senior energy source told “Globes,” “Without this analysis, the companies led by Total would not have pressed for an agreement to be reached that allows the start of exploratory drilling.”
If the Sidon-Qana field does indeed have 100 BCM, this would make it double the size of the Karish field, from which gas began flowing this week, but smaller than Tamar (223 BCM) and Leviathan (at least 470 BCM).
Regarding an agreement between Israel and TotalEnergies, there are disputes between the French energy major and Israel’s Ministry of National Infrastructures, Energy and Water Resources, the Accountant General and the Israel Tax Authority that are far from being settled.
The main dispute is over the calculation of the royalties that Jerusalem will receive from the Sidon-Qana field. Lebanon is not involved in this dispute, although its decision on how to collect tax on TotalEnergies’ profits will directly influence the amount of compensation that Israel will receive.
The second dispute is on the mechanism for calculating Israel’s share of the gas field and the gas produced. Without an agreement between Israel and TotalEnergies, the production process at the Sidon-Qana field will not be able to start.
“The agreement is good for Lebanon and also good for Hezbollah,” a Lebanese political source who is opposed to the Shiite terrorist organization told “Globes.” “Hezbollah is marketing the agreement as an Israel and US surrender to the demands it set.”
Here lies the political twist. Many believe that the controversial Israel-Lebanon maritime border agreement was not discussed for approval by the Attorney General and senior Ministry of Defense officials who preferred not to deal with the arguments against the agreement.
Published by Globes, Israel business news – en.globes.co.il – on October 28, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
