Israel and Lebanon gas field talks on knife-edge

Israel and Lebanon gas field talks on knife-edge

By Yolande Knell

BBC News, Jerusalem

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As Europe frets over gas prices, Israel and Lebanon have reached a vital stage in indirect talks over natural gas fields in disputed offshore territory.

The neighbours, which see each other as enemy states, are reportedly closer than ever to reaching a deal.

If they play their cards right, there is the prize of tapping new and potential energy resources.

But a misstep could result in war, with the Lebanese militant group and party Hezbollah making new threats to Israel.

A triangle of turquoise Mediterranean waters is at the heart of the row over competing energy exploration rights. It contains part of the Karish gas field and part of Qana, a prospective gas field.

Israel maintains that Karish - licensed to London-listed company Energean - lies fully within its internationally recognised economic waters. Historically, Karish fell outside Lebanon's claimed boundary, but in recent years it has argued that the gas field falls partly within its territory.

In July, after an Energean production and storage vessel was sent to float above Karish, Hezbollah flew three unarmed reconnaissance drones towards it. They were shot down by the Israeli military.

Preliminary work for gas extraction is now due to start - an Israeli move that