Lebanon Passes Oil Tax Law Ahead of First Energy-Rights Auction
(Bloomberg) -- Lebanon’s parliament approved a law to tax revenue from oil operations, weeks before its first sale of offshore energy exploration rights to interested companies like Total SA and Exxon Mobil Corp.
Lawmakers approved the petroleum tax law in a vote on Tuesday, the state National News Agency reported. The law is a cornerstone for prospective bidders in the planned auction of rights to five offshore areas, Wissam Zahabi, a member of the Lebanese Petroleum Administration, said earlier this month.
Authorities extended the bidding deadline to Oct. 12 from Sept. 15 to give companies more time to understand the tax law and organize their bids, Zahabi said then. The draft law called for a 20 percent income tax, along with a stamp-duty fee fixed at 5 million Lebanese pounds ($3,311). NNA didn’t specify if parliament amended the draft law before adopting it.
Lebanon is seeking to develop its energy assets after lagging behind Cyprus, Egypt and Israel in exploring for oil and natural gas in the eastern Mediterranean. Exxon Mobil, Chevron Corp., Royal Dutch Shell Plc and Eni SpA are among 46 companies that qualified in 2013 to bid to operate blocks. Suncor Energy Inc., Rosneft PJSC and Qatar Petroleum are among others that qualified to bid as non-operators, according to the energy ministry’s website.
Lebanon, which is struggling with power shortages and hosting more than a million refugees, needs revenue to reduce its public debt. The energy auctions have been delayed due to internal political disputes since 2013.
To contact the reporters on this story: Dana Khraiche in Beirut at dkhraiche@bloomberg.net; Fatma Abusief in Dubai at fabusief@bloomberg.net. To contact the editors responsible for this story: Nayla Razzouk at nrazzouk2@bloomberg.net Bruce Stanley.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension