Decree No.43 of 2017 including the Tender Protocol (TP) related to the offshore licensing round, and the Exploration and Production Agreement (EPA).

This Decree consisting of 4 articles provides for the tendering rules for oil and gas exploration and production in Lebanon. The TP constitutes Annex 1 of the Decree and defines the final terms and conditions of the First Offshore Licensing Round for Hydrocarbon Exploration that prequalified companies must abide by. It includes the indicative timetable for the rest of the Licensing Round; the conditions for participation together with the application details; value of the bid bond to be presented to the Ministry of Energy by the winning applicant; instructions to applicants, including submission and validity of applications, payment of the retrieval fee and costs and expenses to be borne. The application needs also a Technical Proposal (with the proposed Minimum Work Commitment and the indicative US dollar amounts) and a Commercial Proposal (with the commercial terms open to bid).
Annex 2 contains the Exploration and Production Agreement (EPA), the contract between the State and international or Lebanese oil companies, providing the companies with the right to explore for, develop and produce oil and gas reservoirs offshore in Lebanon’s Exclusive Economic Zone. The purpose of the EPA is to regulate the legal and contractual relationship between the State and the Right Holders. It establishes that at least three companies have to sign the EPA at all times and explains in details procedures and timing of the exploration phase before the approval by the Council of Ministers. The Right Holder has to submit an Appraisal Plan including the Appraisal Activities. Such activities have to be in accordance with Best International Petroleum Industry Standards, not harmful to health, safety or the environment (Art.17 deals with these issues in details). The Right Holders shall maintain records of all income, receivables, costs, expenses and credits connected or related to the Petroleum Activities performed and the Minister, the Petroleum Administration and other competent State authorities shall have the right to audit and inspect these records.