FT: Beirut set to move on gas contracts

Lebanon is due to take a long-awaited step towards awarding contracts for exploration of its offshore gas reserves this month, but questions are being raised about readiness of the turbulent country for the process.

The reserves, which have been estimated at perhaps 25tn cubic feet according to Lebanon’s Daily Star, could have a transformative effect on the country’s debt-ridden public finances.

The pre-qualification process for interested companies was supposed to start on February 1 after months of delays, though the council of ministers has not yet issued the relevant decree.

When it eventually does, it will in theory initiate a bidding timetable insulated from the bickering and volatility of Lebanese politics and should see contracts being awarded in March next year. But analysts warn many complex, politically sensitive decisions still lie ahead.  MORE