In a significant move to address its profound economic turmoil, the Lebanese government has finalised a major agreement with a consortium of international energy giants to explore for natural gas in a contentious offshore zone bordering Israel.
A Deal Forged in Crisis
The deal, signed on Friday 9 January 2026 at the government headquarters in Beirut, grants exploration rights for Block 8, an offshore area in the Mediterranean Sea off southern Lebanon. Energy Minister Joe Saddi represented Lebanon, with officials from France's TotalEnergies, Italy's ENI, and Qatar Energy signing for the consortium.
This agreement is a direct consequence of the 2022 maritime border accord between Lebanon and Israel, which resolved a long-standing dispute. For cash-strapped Lebanon, mired in what the World Bank calls one of the worst modern economic crises, the hope is that commercial gas discoveries could provide a vital financial lifeline.
A History of Challenges and New Focus
Lebanon's journey towards offshore energy development has been fraught with delays and geopolitical tension. Initial licenses were granted in 2017 to TotalEnergies, ENI, and Russia's Novatek for two blocks. However, exploration yielded disappointing results in one block, while work in another was repeatedly postponed due to the border dispute with Israel.
The consortium's composition changed in January 2023 when Qatar Energy replaced Novatek. Under the revised terms, Qatar Energy acquired a 30% total stake, while TotalEnergies and ENI now each hold 35%.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, affirmed the group's commitment, stating they would now focus efforts on Block 8 in close cooperation with Lebanese authorities. The initial work will involve a substantial 1,200-square kilometre (463 square mile) 3D seismic survey to assess the area's potential.
Geopolitical Context and Future Hopes
The signing occurs against a complex regional backdrop. The 2022 border deal paved the way, but tensions flared again after 8 October 2023, when Hezbollah launched rockets at Israel in solidarity with Hamas, leading to a 14-month conflict that weakened the militant group.
Despite previous exploration efforts, including an offshore drilling rig deployed in August 2023 that did not yield positive results, Lebanese authorities and their international partners remain determined. The government views the responsible development of potential hydrocarbon resources in its territorial waters as a cornerstone strategy for national economic recovery.
The success of this new venture in Block 8 is now a focal point for a nation desperate for a path out of financial collapse.
