Israel and Lebanon reach 'historic' deal on gas fields, says report

Israel said it reached “an historical agreement” with Lebanon after both sides approved the latest draft of a US-brokered deal that settles a maritime border dispute in a gas-rich part of the Mediterranean Sea.

The accord could pave the way for both countries to ramp up offshore gas production, including Israeli exports to Europe, which is desperate for more supplies after Russia cut flows after invading Ukraine. 

Israeli Prime Minister Yair Lapid said in a statement that the agreement will “inject billions into Israel’s economy,” while a tweet from the Lebanese president’s office said that it “preserves its rights to its natural wealth.” 

Under the deal, Israel should be able to begin extracting natural gas from the offshore Karish field, without threats of attacks by Hezbollah, the Iranian-sponsored Lebanese militant group. It would also ensure that Lebanon, through a TotalEnergies SE-led consortium, can start exploring the Kana field, and pay royalties to drill in the sections in Israel’s 

territory. 

Lebanon’s energy minister said he would meet representatives of TotalEnergies on Tuesday. 

The Israeli security cabinet of select ministers will convene to discuss the agreement on Wednesday, followed by a special meeting of the government, the Israeli prime minister’s office said. 

Israel has said gas production from Karish in the eastern Mediterranean will enable it to increase exports, including to Europe. 

Prices of the fuel have soared this year since Russia’s invasion of Ukraine. London-listed Energean Plc, set to operate Karish, plans to begin production within the next few weeks, a company spokesperson said.