Around the World in 50 Minutes: The MENA Region Prof. Dr. Nayla Comair-Obeid CIArb President

Around the World in 50 Minutes: The MENA Region Oil and Gas Exploration in Lebanon: A Roadmap Challenges to the Lebanese extraction industry Treaty protection Update on the MENA Region: 2014 – present

Oil and Gas in Lebanon: A Roadmap

Oil and Gas in Lebanon: A Roadmap Timeline 2010 First discoveries in the Levantine basin Offshore Petroleum Resources Law 2012 First seismic studies Lebanese Petroleum Administration established 2013 First pre-qualification round 2013 – January 2017 Stalled process 2017 Re-opening: Second pre-qualification round

Oil and Gas in Lebanon: A Roadmap 2017 and beyond 28 April 2017: Initially planned date for the announcement of pre-qualified companies 15 Sept 2017: Closing submission for tenders 15 Nov 2017: Signing of Exploration and Production Agreements Five-year exploration phase Mid 2020’s: Production to commence

Oil and Gas in Lebanon: A Roadmap The Legal Framework 2010 Offshore Petroleum Resources Law Tender Protocol Exploration and Production Agreement (EPA) Regulations: PAR

Oil and Gas in Lebanon: A Roadmap Exploration and Production Agreement (EPA) Parties Consortium of three Right Holders Duration Five-year exploration phase and 25-year production phase Revenue sharing scheme Royalties of 4% on gas and 5-12% on oil Cost recovery as determined by tender Profits as determined by tender

Oil and Gas in Lebanon: A Roadmap EPA (cont’d) Minimum performance requirements Local content requirements Stabilization clause Protection against changes in law Dispute Resolution Expert determination and ICC arbitration

The Lebanese setting for treaty protection

Treaty protection The Lebanese treaty protection and arbitration regime encompasses: 52 BITs The ICSID Convention and New York Convention on the enforcement of arbitral awards BIT standard protections and specific provisions on compensation for losses due to: war armed conflict other situations involving civil unrest

Update on the MENA Region: 2014 – present

The MENA Region: 2014 – present 2015: Iranian Petroleum Contract (IPC) model 2016: Discovery of extensive Egyptian hydrocarbon resources in Zohr and Nooros fields 2017: Aramco public offering

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