05 August 2010
BEIRUT: The joint parliamentary committees have postponed discussions on the oil law until August 12 amid indications that deputies are deeply divided over who should run the sovereign fund.
Energy and Water Minister Jebran Bassil, who drafted the original law, told reporters after the meeting that there are a few issues that need to be ironed out before voting on it at Parliament.
Apart from the sovereign fund, some of the deputies are at loggerheads over the proposed regulatory authority which will manage the oil wealth.
Oil became a hot subject after Israel started oil exploration off the Lebanese coast and some factions feared that Tel Aviv may seize oil from Lebanese territorial waters if the government failed to pass the oil draft law quickly.
Bassil suggested that some parties in Lebanon may try to shelve the discussion on oil law under different pretexts.
“I hope we won’t return to square one on the issue of the oil law,” Bassil said.
News reports said there were talks of a hidden struggle between the Energy Ministry and Finance Ministry over the issue of sovereign fund.
“Some have asked why the government refused to send the maps of the Lebanese territorial waters to the committee so they can be studied before approving the oil law in the Parliament,” Assafir newspaper said.
It added that some ministers want quick action to foil any attempt by Israel to start drilling for oil in Lebanese waters.
But some deputies feel confident that the joint committees will endorse the oil draft law on August 12 and then submit it to parliament on August 17 for final approval.
Speaker of the House Nabih Berri is eager to pass the oil law before the end of August in order to spoil any plans by the Israelis to extend drilling in Lebanese waters.
Bassil fully supports Berri’s call and insists on removing all hurdles before the law.
Future Bloc Parliament member Mohammad Qabani said that committees will review the technical details of the oil law and determine the actual Lebanese territorial waters.
The MP added that it was important to look at the technical details of the oil law before approving it.
It is not clear how long it will take for Lebanon to start oil exploration and drilling off the coast but most experts agree that this is a very long process and could take at least eight to 10 years before the country could benefit from the new wealth.
Once the bill becomes law, Bassil will invite companies to submit their offers to drill for oil off the coast.
The government has to decide if the foreign firms will take a share of the oil they discover off the Lebanese coast or if they will instead take a fee for their work.
It is estimated that Lebanon may be sitting on $1 trillion of oil and gas reserves but this has not yet been confirmed by companies. – The Daily Star
Copyright The Daily Star 2010.
