Steps Taken
Political measures taken in emerging countries are important when carefully thought-out, especially when small nations have an opportunity to build ongoing relations with powerful multinational companies. It seems that Gebran Bassil, the caretaker Minister of Energy and Water Resources of Lebanon, has been taking a lot of time to think through his steps as he makes his way through an entrenched and vociferous cabinet that refuses to budge even though competitive advantage is lost along the way. He stressed that the cabinet should support and encourage the oil march.
An American firm plans to conduct an airborne survey to research the oil and gas potential of Lebanon, after being given the full support of the caretaker minister. Bassil has encouraged the U.S. and other international firms, that have expressed their interest in conducting onshore oil surveys, in an effort to discover oil and gas both onshore and offshore. He has worked alongside the Vice President and General Manager of NEOS Geosolutions MENA, Frank Jreij who has signed an agreement with the ministry to establish “Cedar Oil,” a project that will survey 6,000 square kilometers over the northern part of the country.
Cedar Oil will reduce the time needed to examine the entire area. The survey intends to use six different sensors to survey parts of Lebanon’s geological layers. The data collected from the sensors is to quickly analyze and establish if the country has oil and gas onshore. Jreij said that analyzing the data collected from the plane’s sensors would be much quicker than conventional methods. Phase One takes up two months, while the data acquisition will be completed within seven months. Jreij estimated that the entire project would be completed within 18 months. The British-based Spectrum company began a 2-D seismic onshore survey of the Batroun region last year, and intends to complete the survey by the end of this year. The caretaker Energy Minister assured the cabinet and the country that the initial onshore survey was promising, though he did not provide any details. With this Bassil hoped to limit too many contradicting opinions, and stop the local politicians from obstructing the drive to tap the country’s oil and gas wealth.
1. Form small groups to discuss the problem.
2. Discuss whether the manner taken to address it was appropriate.
3. Arrive at a solution to the problem.
4. Discuss the group’s solution with the class.
5. What strategies should the company follow to enter the Lebanese market and gain the governmental contract?