By: Reuters

Lebanon and Cyprus have signed a definitive maritime demarcation agreement, establishing their offshore boundaries in the Mediterranean and paving the way for potential energy cooperation and gas exploration.

The deal, signed by Presidents Nikos Christodoulides of Cyprus and Joseph Aoun of Lebanon, concludes a process that began with a preliminary agreement in 2007. Cypriot President Christodoulides described the agreement as historic, stating it would provide the legal and economic certainty needed to attract investors to both countries' energy programs.

A key area of discussion involves energy cooperation to alleviate Lebanon's severe power shortages. Lebanese Energy Minister Joseph Saddi revealed that Lebanon has requested the World Bank to conduct a pre-feasibility study on the viability of an electricity interconnection with Cyprus. This agreement leaves Syria as the only neighboring country with which Lebanon has yet to finalize a maritime border.