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Lebanon, Oil and Dividing up the Cake
Published in AL HAYAT on 13 - 03 - 2013

The petroleum services firm Spectrum launched its seismic operations on Lebanese territory during the visit of British Foreign Minister William Hague to Lebanon at the beginning of the month. The company had earlier carried out such operations in Lebanese coastal waters, and found that the region was very promising in terms of natural gas supplies. All of the findings of international oil companies up to now in the northeastern part of the Mediterranean indicate that there is a huge potential for oil as well as gas deposits. The only discovery of petroleum up to now has been in Israel, but at very low depths, and at a quantity limited to 600 million barrels of oil. Spectrum said the following about Lebanon: the more the seismic exploration in its territorial waters progresses – from north to south, and not just in the south – the more there are huge possibilities for oil discoveries.
For political reasons, Lebanon has been late in showing concern with the topic, because every government decision is either paralyzed, or takes years to implement. But the possibility that considerable quantities of oil and gas exist for this small country have altered the calculations of international firms. For several years, companies such as Total and Shell and others have been unconcerned with Lebanon, because they believed that the country was not promising in this regard. But for decades, Lebanese geologist Ziad Beydoun would tell officials that they should search for oil and gas, especially because companies came to possess modern exploration methods, which could be relied upon to go even further in oil exploration. The late Ghassan Tueni once told Al-Hayat that when he was minister of energy, he told the Lebanese president at the time that there were foreign companies interested in oil exploration in Lebanon, and that they were relying on Beydoun's expertise in geology. The answer was, “Forget it for now, because it will bring political problems." Tueni concluded that it was forbidden for Lebanon to try and dig for oil when international companies were interested in exploration in Syria. This was a disappointment for Beydoun, who enjoyed respect in international oil circles, because of his geological expertise in the Middle East.
Lebanon has been tardy in this regard but today a true opportunity exists, because companies are truly interested in exploration. Total, BP, Shell and others are prepared to take part in the tendering process that the Lebanese government will launch next month.
However, the political problem in Lebanon is a huge hurdle because there has been a lack of transparency, but not corruption, in the sector for a long time. The entire political class wants to divide up the wealth in this area. Each side has its share of the current oil distribution network, and they will all have their groups behind any new contracts. This is the curse of Lebanon, but the country is not alone in the Arab world in this regard. Iraq and Syria are also examples of corruption in this sector. The bribes and corruption in the oil sector are publicly known and corruption in Syria takes place via the participation of Rami Makhlouf and the Assad family in every economic sector in the country; this has destroyed Syria and was one of the reasons for the uprising there.
Lebanon will now join the club of oil states and there is fear, as with everything in the country, that it will be an additional pretext for profound political disputes. The Lebanese, who suffer daily from electricity cuts, have become fed up with such wrangling. We are hearing some silly comments these days, such as that the shortfall in electricity production is due to one million Syrian refugees in Lebanon. These shameful statements, which are being made against a people that his suffering from a regime that is killing it, are unacceptable.
In the end, the government of Lebanon is paralyzed and is failing to take decisions in any area. There is a sharp split between the Lebanese and their politicians. The Lebanese have become fed up with their disputes, and people want to live dignified and safe lives. However, they wonder about their country's future and what will happen after the Syrian regime falls, and when and how it will fall. But the timing is drawing near for the petroleum bidding process. It will take place in April and this sector should be assigned considerable importance for a country that urgently needs this resource; Lebanon must save the money it spends on importing the fuel that it needs. Certainly, if the possibilities of gas and oil are verified, the pillars of the government will rush to make progress in this area, because the entire political class wants its piece of the cake.
However, the Arab uprisings that are underway in the Middle East should be a warning to the political class, namely that it is not isolated from a social revolt by a people that can no longer tolerate disputes, corruption and the lack of the minimum requirements of electricity. The energy sector in Lebanon could turn into a new front in the war between political rivals, due to the deep hatred and political division in the country. This is also due to the dominance of an armed political party that operates under the banner of resistance and in servitude to Iran, and has total influence over others, as it controls vital national facilities such as the airport and the Port of Beirut. The question at present, in the wake of this week's visit by an American energy official, is the following: Can Lebanon create an energy sector that is promising for future generations, without being torn up in the battle over the cake?


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