Lebanon's joining oil-producing states' club will create thousands of jobs - experts

By Ayoub Khaddaj BEIRUT, March 26 (KUNA) -- Lebanon's joining of the club of oil-producing states will contribute to transforming its economy a productive one, and will create thousands of new jobs, said Lebanese experts Monday.
Lebanon's signing of two deals last month on the exploration of oil and gas in its waters has constituted to the beginning of the country's path to oil production, as the exploration work is expected to begin next year.
The oil sector followed by activities during the exploration and extraction will lead to big developments in Lebanon's economy, which will be transformed from an economic rent to a productive one, Jassem Ajaqah, an economic expert, told KUNA in a statement.
If oil revenues in Lebanon are associated with the gas extraction to be done within 9-10 years from now, Lebanon's economy can benefit from the oil sector through activities, which should pave the way for the extraction process, he said.
He referred to the sectors, which will benefit from the new industries, like land, air and navy transport, in addition to logistic services provided through oil-related industries.
The oil sector will help set up transformative industries due to the need of securing gas and oil refineries and petroleum industries, which are basic to establish heavy industries in Lebanon, he noted.
The law necessitates that 80 percent of employees are Lebanese, so this move will create more than 100,000 jobs in the next seven years, he made clear.
Meanwhile, Kamel Waznah, an economic expert, told KUNA in a similar statement that the oil and gas are promising sectors, if Lebanon sets up oil refineries and establish petrochemical factories, which require investments and new jobs.
"Extracting oil makes a fortune. Jobs associated with this process are limited, while setting up oil refineries and petrochemical factories provide thousands of new jobs," he told KUNA.
He pointed to preparations made in Lebanon on the economic, cultural and scientific levels to keep pace with the expected economic development.
Such preparations are associated with training of a number of Lebanese university students in the fields of engineering, geology, oil and petrochemical industries, he noted.
Waznah affirmed that there are positive atmospheres on this move, especially that Lebanon's gross public debt reached USD 79 billion and its annual deficit hit USD 4.8 billion.
Therefore, hopes are pinned on the oil and gas sectors, as some of revenues will be allocated for the public debt and a sovereign fund to be established soon, he revealed.
For his part, Fadi Jawad, CEO of a specialized training company, stressed the importance of training human resources to join the sectors of oil and gas.
He underlined the need to set a governmental plan, in collaboration with specialized companies, to nationalize jobs of the oil sector as soon as possible to allow gas and oil exploration companies to work at an accelerated pace.
He pointed out that the oil industry will secure a large number of new jobs in many departments like geology, maintenance, safety, operation monitoring and others. Lebanon signed its first-ever oil and gas contract with a consortium of Total, ENI and Novatek. The drilling is expected to start in 2019. (end) ayb.hm