OIL AND GAS REVENUE MANAGEMENT - CASE OF LEBANON

Abstract

In this study, we will discuss in detail the prospective oil and gas resources present in the Lebanese offshore from a technical, contractual, financial, and managerial perspective. The discussion will commence with a technical exploratory assessment of the oil and gas resources to determine the potential size of this sector based on available data. Then, we will shift our discussion to the various contractual frameworks that could be signed between the Lebanese government and international oil companies, such as concessions, production sharing agreements, and service contracts. We will also discuss the Lebanese Offshore Petroleum Resources Law and the terms of the production sharing agreement that the LPA, MOEW and the consortium signed for the awarded blocks in the Lebanese offshore. Based on the parameters mentioned in the contract, we will estimate Lebanon’s total share of oil and gas and determine Lebanon’s estimated total revenues from this sector. Finally, we will discuss an optimal revenue distribution for three managerial alternatives – sovereign wealth funds, infrastructure investments, and debt servicing – in ways that would boost economic growth, enhance the livelihoods of citizens, and benefit future generations.