Lebanon and Cyprus have signed a maritime demarcation deal, paving the way for energy cooperation between the two countries, including exploration of offshore gas fields in the Mediterranean.
The deal was signed at Lebanon’s presidential palace on Wednesday, with Cypriot President Nikos Christodoulides telling reporters it signals deeper cooperation between the two countries and the broader EU.
Lebanon and Cyprus had agreed to a preliminary mapping deal in 2007, but did not advance on the matter due to delays in its ratification by the Lebanese parliament. Lebanon and Israel signed a similar deal in 2022, with the agreement brokered by the Biden administration.
“This is a historical agreement, concluding an issue pending for many years and now look forward to what our countries can jointly create,” Christodoulides said.
Cyprus and Lebanon both share the Levant Basin Province, an offshore geological area in the eastern Mediterranean Sea and home to the Leviathan, Tamar and Aphrodite fields.
Rich in hydrocarbon deposits, the basin extends across the waters of several countries, including Israel, Syria, Egypt, and Turkey. A 2010 USGS study estimated the basin holds ~1.7 billion barrels of oil and 122 trillion cubic feet (Tcf) of gas. Lebanon in particular will be hoping that gas discoveries could help reverse the country’s economic crisis.
While exploration has been attempted before with limited results in some areas, future activity depends on seismic surveys in other blocks and the outcome of the upcoming Third Offshore Licensing Round. Exploration work was previously carried out in Block 4, north of Beirut, by TotalEnergies Lebanon, which did not yield promising results. TotalEnergies (NYSE:TTE) has expressed potential interest in Block 8, but this requires further seismic surveys, meaning drilling would not begin for several years.
Cyprus, on the other hand, has been luckier: ExxonMobil (NYSE:XOM) and QatarEnergy discovered a new gas reservoir in Block 10 in July 2025, named Pegasus-1. Preliminary estimates suggest this could add a significant amount to Cyprus’s reserves, with some analysts suggesting it holds 3.2 trillion cubic feet of recoverable gas. Cyprus has confirmed several other gas fields, including Aphrodite and the Glaucus field (which is near the new Pegasus discovery).
The Cronos field in Block 6, discovered in 2022, is another significant find. The country is actively working on development plans, including agreements with Egypt to potentially transport gas via subsea pipeline to be liquefied and exported.
By Alex Kimani for Oilprice.com
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