France Calls Draft Law on Oil Exploration in Overseas Territories

French Finance Minister Roland Lescure called a draft law proposing to allow offshore oil and gas exploration in its overseas territories "anachronistic" during a debate in the country's Senate on Thursday.

In a world first, France banned new oil and gas exploration and production licenses in 2017, hoping other nations would follow suit. But energy security fears following the loss of Russian gas, along with worries over increased reliance on U.S. liquefied natural gas have led senators to reconsider developing domestic resources.

"The government is not favourable to this proposal ... If we start drilling now, France will lose all international credibility regarding its climate commitments," said Lescure, whose portfolio includes energy.

France produces onshore oil, mostly in the Paris region, which covers just 1% of its annual consumption and must cease by 2040 under current laws.

Recent major discoveries in independent Guyana and Suriname — neighbours of French Guiana in South America — have reignited local interest in potential oil and gas findings.

(Reuters)