- TotalEnergies (35%, operator), Eni (35%) and QatarEnergy (30%) signed a contract on January 9, 2026 to explore and potentially develop Lebanon’s offshore Block 8 after government ratification.
- Phase one is a 1,200 km² 3D seismic survey over the deepwater block about 70 km off southern Lebanon, with a well to follow if results warrant.
- The deal comes after the non-commercial Qana well in Block 9, but the consortium and Lebanon say they remain committed to long-term offshore exploration.
- Lebanon hopes the project attracts investment and supports energy security, though concerns persist over terms, transparency, timing, and regional risk.
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The recent agreement granting TotalEnergies, Eni, and QatarEnergy exploration and exploitation rights for Lebanon’s Block 8 represents a significant development in the country’s upstream oil and gas sector. The contract, signed January 9, 2026, comes after Lebanon‐s ratification (in October 2025) of the deal by its Cabinet, indicating political consensus sufficient to overcome past delays.
Block 8’s geography and geological risk profile are substantial. Located approximately 70 km off the southern coast, the block lies in deepwater (1,700-2,100 m), which raises technical challenges and high capital costs. The first phase—1,200 km² of 3D seismic survey—is designed to reduce subsurface uncertainty. This data will guide any decisions to drill, a well that, per the contract, would follow within two years post-survey.
The failed Qana well in neighboring Block 9 (2023) looms large: it had no commercially viable find, yet the consortium argues this does not deter its long-term commitment. This consistency is likely necessary both for credibility with investors and to support Lebanon’s urgent energy needs. But the Qana failure, combined with Lebanon’s economic crisis and history of contractual delays, might increase risk premium perceived by financiers.
Lebanon stands to gain from this deal across multiple dimensions. Economically, any successful discovery could help alleviate the fiscal and balance‐of‐payments pressures arising from its currency collapse, depleted foreign reserves, and power deficits. Strategically, it enhances energy sovereignty and infrastructure planning (e.g., via proposed floating storage/regasification units or FSRUs).
However, several open questions remain: what are the fiscal terms (royalties, profit sharing, local content requirements)? How timely will the survey and drilling phases be implemented? Can the government ensure transparency and mitigate risk of regulatory or political interference? Also, how will security risks from regional tensions—especially involving Hezbollah and border disputes—be managed? And will the global energy transition affect the attractiveness of assets discovered late into development?
For TotalEnergies, Eni, and QatarEnergy, this venture offers an opportunity to build on regional infrastructure experience, spread geological risk via a diversified offshore portfolio, and project resilience even when prior wells have underperformed. Success would hinge on balancing capital discipline with responsiveness to Lebanon’s challenging environment—economic, political, and technical. Investors should monitor early milestones, including seismic acquisition quality, regulatory approvals, local procurement, and risk mitigation.
Supporting Notes
- TotalEnergies and partners Eni and QatarEnergy signed the Block 8 agreement on January 9, 2026, earning exploration and exploitation rights offshore Lebanon. TotalEnergies will operate with a 35% stake; Eni 35%; QatarEnergy 30%.
- Block 8 lies about 70 km off Lebanon’s southern coast in deepwater with water depths of approximately 1,700-2,100 meters.
- Initial work involves a 1,200 square kilometer 3D seismic survey; drilling of a well will follow depending on results, within the timeline specified in the contract (survey Phase 1, then up to two years to drill).
- The Qana well in Block 9 did not yield commercially viable results in 2023, yet leaders reaffirmed commitment to exploration in Block 8 despite that setback.
- The deal was ratified by Lebanon’s government in late 2025, after Cabinet approval, signaling institutional backing despite political controversy over contract terms and criticism about Lebanese negotiating leverage.
- The agreement forms part of broader Lebanese strategy to leverage newly stabilized maritime borders (e.g., with Israel in 2022, and with Cyprus later) to attract upstream investment for economic recovery.