Lebanon and Cyprus signed a long-awaited maritime demarcation deal on Wednesday, paving the way for potential exploration of offshore gas fields and energy cooperation in the Mediterranean.
Lebanese President Joseph Aoun and Cypriot President Nikos Christodoulides signed the agreement at Lebanon's presidential palace, telling reporters it would signal deeper cooperation between Lebanon, European Union-member Cyprus and the broader EU.
"This is a historic agreement, concluding an issue pending for many years and we now look forward to what our countries can jointly create," Christodoulides said.
DEAL COULD BOOST INVESTOR INTEREST
Cyprus and Lebanon had reached a preliminary deal mapping out their offshore maritime zones in 2007, but there were delays in its ratification by the Lebanese parliament.
Lebanon's cabinet endorsed the deal last month and Lebanese Energy Minister Joseph Saddi then visited Cyprus to discuss energy cooperation, including possibly drawing electricity from Cyprus to alleviate Lebanon's shortages.
Saddi said that Lebanon had asked the World Bank to conduct a "pre-feasibility study" on whether interconnectivity with Cyprus would be economically viable and what resulting tariffs could be.
Christodoulides said the agreement would boost prospects of cooperation on energy and infrastructure.
"It also offers the requisite legal and economic certainty, and ultimately the security, to potential investors while boosting efforts by both countries to develop energy programmes," he said.
Lebanon hopes offshore gas and oil discoveries could help generate state revenues and economic activity to reverse a 2019 financial collapse that worsened longstanding power shortages but has yet to find commercially viable stores of gas.
There have yet to be any commercially viable finds in any of Lebanon's offshore blocks. Saddi said Wednesday's deal created the type of conditions that could "attract investors".
Lebanon and Israel delineated their maritime borders in 2022 under a U.S.-brokered deal.
Wednesday's deal leaves neighbouring Syria as the final country with which Lebanon has yet to delineate its sea border.
In an apparent reference to Damascus, Aoun told reporters Lebanon was extending "a clear and honest invitation to complete this maritime understanding with all those who want cooperation with us".
