Lebanon and Cyprus set maritime border

Lebanon and Cyprus signed a long‑awaited maritime demarcation agreement, formally delineating their exclusive economic zones and clearing a major legal obstacle to offshore hydrocarbon exploration between the two countries. The accord was signed in Beirut by Lebanese President Joseph Aoun and Cypriot President Nikos Christodoulides, who said the pact would deepen bilateral cooperation and strengthen ties with the European Union.

The deal resolves negotiations that began with a preliminary 2007 understanding but stalled for nearly two decades amid domestic ratification delays in Lebanon. It follows Lebanon’s 2022, U.S.‑brokered maritime delineation with Israel and leaves Syria as the only neighbouring state with which Lebanon has yet to finalize a sea border. Lebanese officials said the agreement is grounded in international maritime law and aimed at fostering regional stability and attracting investment.

For Lebanon, the pact carries urgent economic and political significance. Facing a severe financial collapse since 2019 and chronic energy shortages, the government views offshore gas and oil exploration as a potential source of state revenue and economic stimulus. Lebanese ministers and diplomats have highlighted the prospect that commercially viable hydrocarbon finds could help alleviate fiscal distress and address longstanding power problems. However, no commercially exploitable resources have yet been confirmed in Lebanon’s licensed offshore blocks, making potential gains contingent on successful exploration.

Cyprus views the agreement as an opportunity to extend its existing gas‑exploration activities into newly defined waters and to deepen energy ties with Beirut. Greek Cypriot officials described the accord as “historic,” noting it removes legal uncertainty that previously deterred investment and limited access to blocks near the bilateral boundary. Both governments emphasized the pact’s potential to unlock exploration contracts and joint projects by signaling clear legal rights over seabed resources.

Analysts say the demarcation is an important diplomatic milestone in a region long troubled by overlapping maritime claims. With maritime borders now settled between Lebanon and Cyprus, companies may move forward with seismic surveys, licensing rounds and exploratory drilling that were previously blocked by legal risk. Success in attracting foreign energy firms and in proving commercially viable reserves will determine how much the agreement can shift eastern Mediterranean energy dynamics and contribute to Lebanon’s recovery.