PUBLISHED BY THE LOWY INTERPRETER — [By Rodger Shanahan] — There has been little to cheer about of late in terms of positive developments towards peace in the Middle East. But this week, the news came from an unexpected source – relations between Lebanon and Israel. An agreement demarcating a maritime boundary between the two countries allows for the exploitation of gas and oil fields below the waters of the Mediterranean. A decade in the making, this important agreement, when ratified, holds the potential to lead Lebanon out of its economic misery. It also could establish a blueprint for negotiations that may lead to further reductions in tension between the two countries. It is right to treat the good news with some caution though. So many things could diminish the potentially positive outcomes contained in the agreement.
First, and perhaps most importantly, the agreement is by no means a panacea for Lebanon’s economic ills, which are so systemic that no potential windfall from Mediterranean oil and gas is likely to alleviate them. The degree to which servicing personal patronage networks, rather than pursuing the national interest, remains the focus of many Lebanese politicians is best illustrated by the government’s unwillingness to undertake the necessary reforms negotiated with the International Monetary Fund despite the country facing its worst economic crisis since the civil war.
Another reason for not bringing out the party whistles just yet is the fact that any potential windfall from offshore oil and gas deposits for Lebanon is both uncertain and, if viable, would be years away from realisation. And one of the potential gas fields (Qana Prospect) lies across the agreed maritime boundary (Line 23 in the map) and the remuneration for Israel’s share of the profits from the field will be decided between the commercial operator of the field (exploiting the field on behalf of the Lebanese government) and the Israeli government.