Israel, Lebanon to sign maritime border deal that unlocks gas riches

Lebanon and Israel were Thursday set to sign a maritime border agreement that paves the way for lucrative offshore gas extraction by the neighbors which remain technically at war.

The U.S.-brokered deal, hailed by President Joe Biden as a "historic breakthrough", comes as Western powers clamor to open up new gas production and reduce vulnerability to supply cuts from Russia. 

The agreement was set to be finalized at a time when Lebanon seeks to extract itself from what the World Bank calls one of the worst economic crises in modern world history.

The expected signing also comes as Israeli Prime Minister Yair Lapid seeks to lock in a major achievement days ahead of a general election on November 1.

It is due to be signed at the headquarters of the United Nations Interim Force in Lebanon in the border town of Naqoura, in the presence of U.S. mediator Amos Hochstein and the U.N.'s special coordinator for Lebanon Joanna Wronecka.

Lebanon -- which has fought a series of wars with Israel -- will not allow its delegation to be in the same room as the Israeli side, and the two parties will not even sign the same piece of paper. 

"The agreement... will take the form of two exchanges of letters, one between Lebanon and the United States, and one between Israel and the United States," said Stephane Dujarric, spokesman for the U.N. Secretary General. 

Rafic Chelala, a spokesman for the Lebanese presidency, confirmed that the Lebanese delegation "will not ... meet the Israeli delegation". 

Lapid had confirmed on Monday that Israel would sign the "historic" deal, after an Israeli court the previous day rejected petitions demanding the approval of parliament. 

- Global energy crunch -

The planned signing comes as political parties in Israel -- including Lapid's centrist Yesh Atid party - jockey for position in what will be the fifth general election in less than four years.

Veteran right-winger and longtime premier Benjamin Netanyahu has his sights set on a comeback in the election, and he dismissed the maritime deal as an "illegal ploy" early this month.

Israel on Tuesday gave London-listed Energean permission to begin producing gas from Karish, an offshore field at the heart of the border agreement. 

Lebanon meanwhile will have full rights to operate and explore the so-called Qana or Sidon reservoir, parts of which fall in Israel's territorial waters, with the Jewish state receiving some revenues.

With the demand for gas rising worldwide because of an energy crisis sparked by Russia's invasion of Ukraine, Lebanon hopes that an offshore discovery would ease its financial and economic crisis.

But analysts caution that it will take time for production to start in Lebanese waters, meaning no quick return for a country that is desperately short of foreign exchange reserves. 

Exploration has so far only been tentative -- a 2012 seismic study of a limited offshore area by the British firm Spectrum estimated recoverable gas reserves in Lebanon at 25.4 trillion cubic feet, although authorities in Lebanon have announced higher estimates. 

The deal could not have been signed without the consent of Hezbollah, backed by Israel's arch nemesis Iran.

Hezbollah had threatened over the summer to attack Israel if Israel began extracting gas from the Karish field before reaching an agreement.

Israel and Hezbollah fought a 34-day war in 2006 and the Shiite movement is the only faction to have kept its weapons after the end of Lebanon's 1975-1990 civil war.