Analysis Warns Lebanon of Imperilling Gas Bonanza

Lebanon's political and sectarian rivalries, along with its maritime dispute with Israel, could hamper the country's drive to exploit large natural gas fields in the eastern Mediterranean, a new study warns.

A report by Oxford Analytica cautioned that corruption endemic among Lebanon's political class is likely to cloud the country's effort to develop extensive gas production and relieve a massive national debt.

UPI notes that the government last week announced the debt has risen to $58 billion (€44.5bn), more than 135% of its annual gross domestic product. 

"Communal rivalries risk impeding its progress," Oxford Analytica observes. "Sectarian groups dominate the political system and infighting could represent a major hurdle to oil and gas production if a zero-sum mentality ensues."

The political divisions were exemplified in the prolonged deliberations to appoint a Petroleum Authority to supervise and regulate the planned energy industry.

It took months of squabbling between Muslim and Christian sects before the six-member body was named in late 2012, with, Oxford Analytica observed, "appointments based on the need to appease member of each confessional group rather than on merit."

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