Wealth Under The Mediterranean Sea

The US Geological Survey published a report in 2010 estimating a 122 trillion cubic feet (TCF) which is about 3455 billion cubic meters of gas and 1.7bn barrels of oil off the coast of Israel, the Gaza Strip, Cyprus, Syria and Lebanon.

This discovery could potentially have benefits in Lebanon, with the domestic gas supply. It would levitate the daily power cuts. With this finding, it is going to creates a much bigger impact. Increasing revenues including the GDP, opening new opportunity for investors around the world.

One region where the gas has been discovered is Aphrodite. The reservoir is located midway between Cyprus and Israel which has raised some issues. Cyprus and Israel are requesting an international arbitration to decide on that disputed natural gas reservoir at Aphrodite.

In 2010 both countries signed a delineation agreement, but they have not resolved how to exploit the gas reservoir straddling in between.

Per estimated from the Israelis 7-10 BCM is available, while Cypriot estimated their section to be at 100 BCM owned by Yitzhak Tshuva-controlled Delek Group.

In the absence of the fully executed agreement, Israel is refusing Cyprus to develop Aphrodite because a small part of the share from Yishai prospect is on that side.

Negotiations have been going on for years, but no agreement has been reached. The international arbitrator will rule what percentages Cyprus and Israel will receive, based on the figures provided by both sides. All companies from both sides will meet in the hope to reach an understanding. If they cannot come to resolution an appointed arbitrator will be intercede.

Meanwhile the Levant Basin could potentially secure independency to Israel. It could also elevate Israel as an importer of nature gas.

Currently Israel is importing gas from Egypt via a pipeline in the Sinai region. However, with the instability of the region attacks have been disrupting the supplies.

This is something we need to continue to watch in the hope a resolution with the help of the international arbitrator the region could become a new player on gas importers.