Lebanon, Israel take step toward claiming big oil, gas deposits
Lebanon and Israel dispute their maritime boundary in the eastern Mediterranean, which contains some 8.5 percent of the world's oil and gas under the seabed.
The United States has proposed a boundary between Lebanon and Israel's maritime economic zones to help end a lingering dispute over rival claims and open up oil and gas exploration in the eastern Mediterranean.
If the idea is accepted by both sides, it will reduce the risk of renewed conflict between the two enemy states and hasten Lebanon’s efforts to begin tapping the billions of dollars of natural gas estimated to be lying beneath the seabed.
The proposal, which was submitted to both countries recently, is a compromise on the overlapping exclusive economic zone (EEZ) boundaries individually submitted by Lebanon and Israel, which left 330 square miles in dispute.
There are major economic interests at stake. The US Geological Survey estimated in March 2010 that the Levantine Basin, which includes the territorial waters of Lebanon, Israel, Syria, and Cyprus, could hold as much as 1.7 billion barrels of recoverable oil and 122 trillion cubic feet of gas. The estimated gas deposit represents about 8.5 percent of known global total deposits, according to an assessment by USGS in June.
“The US has offered some ideas and the parties have them under careful consideration,” said a source familiar with the US proposal who would only discuss the subject under condition of anonymity. “Both sides appear to be interested in an equitable solution, which sums up what international law requires in resolving disputes of this nature.”
The US has been mediating a solution between Lebanon and Israel since mid-2011, partly to neutralize another potential trigger for war, partly to allow both countries to peacefully exploit the fossil fuel wealth beneath the seabed of the eastern Mediterranean, and partly in the hope that US oil companies can secure exploitation contracts.
Surveys conducted off the Lebanese coast have confirmed Lebanon’s untapped oil and gas wealth.