NNA - Minister of Energy and Water Walid Fayyad asserted that the TotalEnergies delegation that visited him yesterday expressed its full commitment to start, as soon as possible, and in conjunction with the completion of the agreement to demarcate the southern maritime borders, gas exploration work in the Qana field, and that the timetable will be expedited.  

Minister Fayyad also considered that the achievement that has been achieved is not related to the demarcation of the southern maritime borders and the preservation of the Lebanese rights in geography, but also in the commitment to the exploration and the commencement of its work. 

The Energy Minister revealed that the field has been opened for the rest of the companies and countries interested in the oil sector to participate in this framework through the second licensing cycle.

In this context, Minister Fayyad described "the moment" as historic, which is the culmination of President Michel Aoun's well-known march in defending Lebanon's rights, sovereignty and stability over the past decades.

Minister Fayyad's positions came after meeting President Aoun, and briefing him on the atmosphere of the TotalEnergies delegation's visit to him yesterday.  

During the meeting, Minister Fayyad congratulated President Aoun on the completion of the demarcation of the southern maritime borders.

Statement:

After the meeting, Minister Fayyad said:

“I was honored to meet the President of the Republic, at my request, to congratulate him on the historic moment, which is the culmination of his well-known march in defending Lebanon’s rights, sovereignty and stability over the decades, which is consolidated today by reaching an agreement imposed by the unity of the Lebanese ranks and the support that the President obtained from all Lebanese sides, especially the Speaker of Parliament, Prime Minister and all the parties who stood united behind His Excellency the President and his leadership to reach this agreement in its final form, which was approved by Lebanon. We are waiting for the approval of the other party, so that it can take root. This comes as a culmination of this march and success in placing Lebanon, for the final time, on the map of oil production in the Middle East region, in order to contribute to two things: First: developing itself economically and satisfying its need for gas, God willing, in the coming years for energy and industry purposes, and economic contribution through the export of gas and all the investments entrusted to this issue, therefore, I wanted to congratulate His Excellency the President and Lebanon as a whole on this achievement, and we are waiting for the decisive moments for things to clear once and for all.

I also briefed the president on the visit made by the delegation of the "TotalEnergies" company, which is responsible for the consortium excavating in southern Lebanon, especially the Qana field, Block 9 and Block 4 as well. 

The delegation expressed its full commitment to start as soon as possible in conjunction with the completion of the agreement in the exploration work, and that the timetable will be expedited and accelerated as required by the national interest, the interest of the region and the global economy, and here we are talking about a number of months to complete the necessary preparations for the exploration work after the completion of the agreement”.

On this occasion, it is good to recall that the historic achievement is not only to demarcate the borders and preserve the Lebanese rights in geography through demarcation of the line, but rather it is an achievement in the commitment to exploration and carrying out its work in Qana, consolidating an equation that represents Lebanon's need to discover gas in return.

This is pivotal and necessary and is an integral part of the agreement. We will follow up in the next stage the implementation mechanisms, including dealing with "Total" and with international and interested foreign partners because now it will open the way for the rest of the companies and countries interested in the oil sector to participate”.

Questions & Answers:

Question: What are the main terms of the agreement with Total?

Answer: “The agreement with the company under the Exploration Law and the contract concluded with it, i.e. the agreement for exploration, and production of gas, constitutes a kind of partnership between the Lebanese state and the consortium through which the Lebanese state has the largest share of production in exchange for a slightly smaller share for the consortium, and all shares are specified in the existing agreement and must. The company must now implement it.  After the political issues were resolved, starting tomorrow, the executive preparations for the agreement, especially in Block No. 9, were expressed by the members of the delegation yesterday”.

Asked about Iranian oil, Minister Fayyad replied, “Here we are talking about fuel that constitutes the need of the Electricité du Liban to produce cheaper energy for the Lebanese and at the same time it will be a gift from Iran.  

We obtained from the Ministry of Foreign Affairs assurances about moving forward with this file, and instructions from the Prime Minister to follow up on it. We are in the process of drafting a detailed agreement for the donation on the fuel specifications to ensure it is suitable for our stations. When the agreement is prepared, there is a possibility of its implementation, and the Iranian side is preparing the details about it”.

Asked about the controversy surrounding the electricity tariff, the Energy Minister replied, “There is no controversy. There is false news, but rather consider it sabotage and talk about the implementation of the new tariff with a retroactive effect. This matter is a complete and detailed error. Since the beginning of the spring or summer, we have developed a plan to secure electricity at a lower cost by purchasing fuel, and we have calculated the cost to be related to the price of fuel, so it became clear to us that we can secure the electric current at a price of 27 cents, provided that the first half and up to one hundred kilowatts an hour at a reduced price equals ten cents, which allows people to have electricity up to 100 kilowatt-hours for less than 500,000 liras, as a fixed portion. At the same time, we said that when fuel and electricity are secured, the tariff will be able to cover the cost of fuel.  

This is what we drew according to the plan, and then the Electricity Corporation adopted it through a decision from its board of directors, in which it requested the approval of the Minister of Energy, and we gave it to it.  

The Prime Minister will implement this tariff starting from the month of November. This is the path that we are taking, but we want the technical readiness of the Electricity Corporation to be able to proceed in this matter. My main concern now is to secure fuel from different sources, and with regard to Iraqi fuel, the Council of Ministers has taken a decision to renew it. It is expected that the new shipment of Iraqi fuel will arrive in early November, which will provide approximately two or three hours of electricity, because the cost of gas oil has become more expensive globally, and we add to that what we can bring with the Iranian gift. I will also have a visit to Algeria on the 18th of next month, at the invitation of the Algerian Minister of Oil, to discuss mechanisms of cooperation and build a strategic relationship. We will turn an old page punctuated by impurities, for the interest of Lebanon and Algeria, the big brotherly country in the world of oil and gas”. ----Presidency Press Office

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