Lebanon, Cyprus sign maritime demarcation deal, paving way for possible energy exploration

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BEIRUT/NICOSIA (Reuters) -Lebanon and Cyprus signed a long-awaited maritime demarcation deal on Wednesday, paving the way for potential exploration of offshore gas fields and energy cooperation in the Mediterranean.

Lebanese President Joseph Aoun and Cypriot President Nikos Christodoulides signed the agreement at Lebanon’s presidential palace and told reporters it would signal deeper cooperation between Lebanon, European Union-member Cyprus and the broader EU.

“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 had reached a preliminary deal mapping out their offshore maritime zones in 2007, but there were delays in its ratification by the Lebanese parliament.

Lebanese Energy Minister Joseph Saddi visited Cyprus last month to discuss energy cooperation, after the Lebanese cabinet endorsed a deal defining the two countries’ sea borders.

Lebanon and Israel delineated their maritime borders in 2022 under a U.S.-brokered deal.

Wednesday’s deal leaves neighbouring Syria as the final country with which Lebanon has yet to delineate its sea border.

Lebanon hopes offshore gas and oil discoveries could help generate state revenues and economic activity to reverse a 2019 financial collapse that worsened longstanding power shortages.

There have yet to be any commercially viable finds in any of Lebanon’s offshore blocks.

(Reporting by Ahmed Elimam, Michele Kambas and Maya Gebeily. Editing by Alex Richardson and Mark Potter)