1. Oil and Gas Prospects in Lebanon 1 st Licensing Round: Strategy & Program Arab Economic Forum 9-10 May 2013 Assem Abou Ibrahim – President & Head of QHSE Dept.

2. Arab Economic Forum 9-10 May 2013 Lebanon’s O&G Sector Development Early Exploration Seismic Acquisition Contract Activity Bid Round ExplorationProduction 2010201120122013 Offshore Petroleum Resources Law PA Decree PA Appointment 201420192049

3. Arab Economic Forum 9-10 May 2013 O&G Sector Governance Petroleum Administration appointed on 04 December 2013

4. Arab Economic Forum 9-10 May 2013 Licensing Strategy - Inputs Licensing Strategy Sustainability Economic Growth Legal System Organizational Capacity Risks Scope & Frequency of Bid Bidding Conditions

5. Arab Economic Forum 9-10 May 2013 2D and 3D Offshore Seismic Coverage 5 Ongoing acquisition *  2D : 8,800 L-Km  3D : 10,000 Km2  2D : 5,200 L-Km  3D : 5,145* Km2 INTERPRETED BEING INTERPRETED (OCT-2013)  2D : 1,650 L-Km Planned in Q2 2013 (BasinSpan)

6. Arab Economic Forum 9-10 May 2013 Block Delineation

7. Arab Economic Forum 9-10 May 2013 Pre-Qualification Criteria Legal Joint stock company conducting Petroleum Activities Financial Total assets of USD 10 Billion Technical Operatorship of at least one petroleum development in water depths in excess of 500m QHSE QHSE policy statement(s) Established & implemented QHSEMS RIGHT HOLDER - OPERATOR Legal Joint stock company conducting Petroleum Activities Financial Total assets of USD 500 Million Technical Having an established petroleum production QHSE QHSE policy statement(s) Established & implemented QHSEMS RIGHT HOLDER – NON-OPERATORS

8. Arab Economic Forum 9-10 May 2013 Pre-Qualified Companies CategoryApplicantsQualified Right Holder - Operator1612 Right Holder – Non-Operator3834

9. Arab Economic Forum 9-10 May 2013 1 st Licensing Round - Adopted Strategy Allow RHs to Nominate preferred Blocks from the 10 offered blocks 1 EPA subject to Consultation 2 Consortium / RH-Operator to set Priority for blocks to bid on 3 MEW/PA Define blocks open for bidding (not less than 5 blocks) 4 Pre-qualified RH to enter into up to 3 different Consortiums 5 Consortium to bid on up to 5 blocks open for bid 6

10. Arab Economic Forum 9-10 May 2013 1 st Licensing Round - Adopted Strategy RH to participate in 1 Consortium only per block 7 Min. 3 bids per block to allow negotiations 8 MEW to award up to 4 blocks per round 9 Consortium / Operator can be awarded max. 2 blocks/round 10

11. Arab Economic Forum 9-10 May 2013 Timeline Q4 - 2012Q1 - 2013Q2 - 2013Q3 - 2013Q4 - 2013Q1 - 2014Q4 - 2012Q1 - 2013Q2 - 2013Q3 - 2013Q4 - 2013Q1 - 2014 Approval of 1 st Round Plan 27-12-2012 Open Pre- qualification 15-02-2013 Companies Comment on EPA 01-06-2013 List of Pre-qualified companies 18-04-2013 Open Bid Round 02-05-2013 Companies Nominate Blocks 15-06-2013 EPA Workshop with Companies 17/18-06-2013 Define Blocks Open for Bid 30-06-2013 Close Pre- qualification 28-03-2013 Receipt of Application Fees 31-07-2013 Close Bid Round 04-11-2013 Bid Evaluation Results Jan 2014 Negotiations & Award Feb-Mar 2014

12. Thank You