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The Lebanese State has put in place a legislative framework tailored for the petroleum sector. This legislative framework consists of laws, decrees and decisions that cover all the phases of the petroleum value chain such as Reconnaissance, Exploration and Appraisal, Development and Production, and Decommissioning. This framework includes clear and transparent rules and criteria to prequalify companies to be eligible to hold petroleum rights.

Laws
  • Law no. 132/2010: Offshore Petroleum Resources Law

    The OPRL has set the pillars of the petroleum sector legislative framework. This law was issued by the Parliament on 24 August 2010. It stipulates the rules and provisions related to the sector and to petroleum activities. One of the most important rules set by the law is the production sharing regime combined with the royalty, the collection of petroleum revenues in a sovereign wealth fund, the competitive bidding, the grant of a petroleum license through Exploration and Production Agreement, and the provisions related to Health, Safety and Environment.
    Click here to download the official version and here to download the unofficial English translation.

  • Law no. 57/2017: Tax Provisions Related to Petroleum Activities in Accordance with Law 132/2010

    The Law for Tax Provisions related to petroleum activities (Law no. 57/2017) includes articles that determine income tax on petroleum activities and on the salaries and remunerations of personnel and workers in the petroleum sector. The law also covers the stamp duty fee on Exploration and Production Agreements, the Value Added Tax (VAT), the custom fees on equipment, machines and tools used in petroleum activities as well as exemptions from such fees. The law allows Right Holders to establish in Lebanon a signing company of the EPA which is wholly owned by a Right Holder.
    Click here to download the official version and here to download the unofficial English translation.

  • Law no. 84/2018: Enhancing Transparency in the Petroleum Sector

    The Law enhancing Transparency in the Petroleum Sector is a specific law that imposes transparency in the petroleum sector through the whole value chain from exploration until decommissioning.
    Click here to download the official version and here to download the unofficial English translation.

Decrees
  • Decree no. 9882/2013: Pre-qualification of Companies to Participate in Petroleum Activities Licensing Rounds (Cancelled)

    After the launching of the First Offshore Licensing Round, the Decree no. 9882/2013 (Pre-qualification of Companies to Participate in Petroleum Activities Licensing Rounds) has been issued. The decree included pre-qualification criteria on the basis of legal, financial, technical and QHSE requirements and the companies willing to pre-qualify to participate in the licensing round shall fulfill these criteria. 
    In 2019, this decree has been cancelled and its provisions have been merged with the provisions of the Tender Protocol related to the Second Licensing Round and issued by Decree no. 4918/2019 after the amendment of some of the provisions issued by the Decree no. 9882/2013.
    Click here to download the official version and here to download the unofficial English translation.

  • Decree no. 10289/2013: Petroleum Activities Regulations (PAR)

    The PAR has been issued in 2013, it consists of 27 implementation decrees of the OPRL and it includes legal, technical, Quality, Health, Safety and Environmental (QHSE) and financial provisions.
    Click here to download the official version and here to download the unofficial English translation.

  • Decree no. 42/2017: Block Delineation Decree

    This decree divides the Lebanese Offshore and the Exclusive Economic Zone determined by the Decree no. 6644/2011 into 10 blocks with specified coordinates for each block.
    Click here to download.

  • Decree no. 43/2017: Tender Protocol to Participate in Licensing Rounds and the Model Exploration and Production Agreement (Amended by Decree no. 4918/2019)

    This decree includes the Tender Protocol to participate in licensing rounds and The Model Exploration and Production Agreement with its annexes. The Tender Protocol which constitutes Annex 1 of this Decree covers all the provisions related to the conditions of participation in the First Licensing Round as well as the administrative, financial, technical and legal requirements for the submission of Applications, the process of evaluation of Applications by the LPA, the submission of the evaluation report to the Minister of Energy and Water, the negotiations with Provisional Winners and the submission of the negotiations’ results to the Council of Ministers in order for the COM to take the appropriate decision about the award of blocks open for bidding.

    The Model Exploration and Production Agreement includes the provisions related to all phases of Petroleum Activities. The EPA extends over the exploration, appraisal, development and production phases up until decommissioning and it also covers other provisions related to the Government Take as determined by the bid, assignment and mortgage of petroleum rights, early termination of the EPA, force majeure and arbitration.

    This Decree has been amended by the Decree no. 4918/2019 related to the Second Licensing Round.
    Click here to download.

  • Decree no. 1137/2017 (Amending Annex 3 of the Tender Protocol Issued through Decree no. 43/2017)

    Since a second Pre-qualification Round has been organized for companies willing to participate in the First Licensing Round after its completion in 2017, it was necessary to amend the list of pre-qualified companies previously mentioned in Annex 3 of the Tender Protocol issued by Decree no. 43/2017.
    Click here to download.

  • Decree no. 1177/2017 (Amending Decree no. 10289/2013)

    In the light of changes that occurred between the date of issuance of the PAR and the first licensing round in 2017, it was necessary to amend the articles of the PAR related to the valuation of crude oil and to the valuation of petroleum other than crude oil.
    Click here to download.

  • Decree no. 4685/2019

    The last paragraph of article 4 of the Law no. 57/2017 stipulates that the details of implementation of the paragraph related to interests due on the portion of loans and debt which exceeds 60% (sixty percent) of the Recoverable Costs balance that is approved by the Petroleum Administration shall be issued by decree upon the suggestion of the Minister of Finance.

    This decree determines the details of implementation of the provisions related to interests due on the loans and debt of Right Holders and Operators. The following are not considered as allowable tax-deductible: Interests due on the portion of loans and debt which exceeds one and a half times (150%) the related equity in the case of thin capitalization; Interests due on the portion of loans and debt which exceeds 60% (sixty percent) of the Recoverable Costs balance that is approved by the Petroleum Administration.
    Click here to download.

  • Decree no. 4918/2019: Amending Some Articles and the Annexes of Decree 43/2017

    Pursuant to the Council of Ministers’ Decision no. 61 dated 16/5/2018 and mandating the Minister of Energy and Water and the Lebanese Petroleum Administration to prepare for the launch of the Second Offshore Licensing Round, and in order to implement this decision, the necessary procedures have been prepared to launch the Second Licensing Round, in accordance with the provisions of Law No. 132/2010 (Offshore Petroleum Resources Law) and its implementation decrees. Furthermore, updated procedures that are compatible with the provisions of the above-mentioned law, have been adopted to pre-qualify companies and to grant exploration and production agreements in a manner that aims to secure a balanced share of petroleum revenues for the Lebanese state.

    These procedures necessitated to move the provisions of Decree 9882/2013 (Pre-qualification of Companies to Participate in Petroleum Activities Licensing Rounds) to the first part of the proposed new Tender Protocol (Tender Protocol for Pre-qualification of Applicants and the Award of Exploration and Production Agreements), where the Pre-qualification Applications of companies are submitted in one package with the Licensing Round Application, but in two separate envelopes. Only the Licensing Round Applications of pre-qualified companies will be evaluated.

    Accordingly, and pursuant to Decree 4918/2019, Decree 43/2017 has been amended in terms of adopting a new Tender Protocol, amending some articles and annexes of the Model Exploration and Production Agreement, and canceling Decree 9882/2013 (Pre-qualification of Companies to participate in Licensing Rounds), since pre-qualification has become a part of the bid procedures.
    Click here to download.

     

  • Decree on Registration, Mortgaging and Transfer of Petroleum Rights (Under Preparation)

    The Decree on Registration, Mortgaging and Transfer of Petroleum Rights stipulates the creation of a Petroleum Register to record awarded Petroleum Rights and any changes or mortgages related to these Petroleum Rights. The Petroleum Register secures the rights of the Right Holders, establishes notoriety towards third parties (other than the State and the Right Holders) and transparency regarding the specified Registrable Petroleum Rights.

    The information of the Petroleum Register is publicly available, including electronically via internet, and any natural or legal Person may request a printout certificate from the Petroleum Register.

    The provisions of this decree go beyond Right Holders and their affiliates and wholly-owned affiliates to cover Beneficial Owners and Politically Exposed Persons who own shares and rights in these companies.

  • Decree on Contracts Disclosure (Under Preparation)

    The Decree on Contracts Disclosure aims to complete the legislative framework related to transparency in the petroleum sector. This decree sets the principle of disclosing contracts between Right Holders and Contractors and between Right Holders and Subcontractors.

Minister's Decisions
The Minister of Energy and Water takes decisions within the frame of the execution and supervision and monitoring of petroleum activities as well as the implementation of provisions stipulated in the Exploration and Production Agreement. Such decisions issued by the Minister are published in the Official Gazette and on the LPA website or disclosed subject to the type of the decision. You can hereby check the main decisions taken by the Minister of Energy and Water since the launch of the first licensing round until the present date.
  • Decision no. 2 d/m Dated 13/02/2013: Companies’ Pre-qualification Round
  • Decision no. 1 d/m Dated 26/01/2017: Completion of the first licensing round in the Lebanese Offshore
  • Decision no. 6 d/m Dated 28/07/2017: Conditions of accepting guarantees related to the first licensing round in Euro and US Dollar
  • Decision no. 9 d/m Dated 03/09/2017: Extension of the deadline of submission of applications for the Lebanese Offshore first licensing round
  • Decision no. 15 d/m Dated 29/01/2018: Approval of signature of the Exploration and Production Agreements for Blocks 4 and 9 of the Lebanese Offshore by the Signing Affiliates Wholly-owned by Right Holders
  • Decision no. 18 d/m Dated 09/03/2018: Appointment of the State Representative at the Management Committees related to Blocks 4 and 9 of the Lebanese Offshore
  • Decision no. 19 d/m Dated 27/03/2018: Publication of the Exploration and Production Agreements for Blocks 4 and 9 of the Lebanese Offshore on the LPA website
  • Decision no. 21 d/m Dated 28/05/2018: Approval of the Exploration Plans for Blocks 4 and 9 of the Lebanese Offshore
  • Decision no. 1 d/m Dated 10/06/2019: The launching of Lebanon’s Second Offshore Licensing Round and determination of some related procedures
  • Decision no. 6 d/m Dated 28/01/2019: Conditions of accepting guarantees related to the second licensing round in Euro and US Dollar
  • Decision no. 9 d/m Dated 12/12/2019: License of drilling an exploration well in block 4 of the Lebanese Offshore
  • Decision no. 10 d/m Dated 10/01/2020

    Postponing the deadline of submission of Lebanon’s Second Offshore Licensing Round Applications and amending some articles of the Decision no. 1/M Dated 10/06/2019 and published in the Official Gazette issuance no. 30 Dated 13/06/2019
    Click here to download.

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