Thursday, October 10, 2019

Egypt reduces natural gas production amid lower demand - ENTERPRISE

Thursday, 10 October 2019

The Oil Ministry has reduced Egypt’s natural gas production to 6 bcf/d, from 7 bcf/d after lower domestic and international demand resulted in surplus production, an unnamed ministry source told the local press. 

It is expected that the production will gradually rise back to 7.5 bcf/d in this fiscal year.

Wednesday, October 9, 2019

Turkey’s Mediterranean Gas Plans Draw Fresh Criticism in Egypt - BLOOMBERG

October 8, 2019, 6:02 PM GMT+3Tarek El-Tablawy

Egypt, Cyprus and Greece on Tuesday renewed their condemnation of Turkey’s plans for oil and gas drilling in the eastern Mediterranean, with President Abdel-Fattah El-Sisi saying the move threatens to “destabilize the region.”

The Egyptian leader, speaking at a joint news conference with his Cypriot counterpart and Greece’s prime minister, said such “unilateral” plans could escalate regional tensions.

Cyprus has said Turkey’s exploration plans in the south of the divided island are illegal and a violation of its sovereign rights. Cyprus has an agreement with Total SA and Eni SpA for oil and natural gas exploration rights in Block 7 -- the area where Turkey wants to drill.

The meeting of the three leaders was the latest in a broader push by their countries to boost energy ties in the eastern Mediterranean.

Production at Shell’s Rashid and Burullus fields rises to 290 mcf/d in September - ENTERPRISE

Wednesday, 9 October 2019

Royal Dutch Shell’s natural gas output from the Rashid and West Nile Delta Burullus fields increased to 290 mcf/d in September from 220 mcf/d the previous month, an EGAS source told the local press. 


The company recently linked 80 mcf/d from a newly-developed well to the natural gas grid, offsetting the field’s natural depreciation. 

Shell aims to raise production to 320 mcf/d by the end of the fiscal year, the source said.

Tuesday, October 8, 2019

United Oil & Gas’ acquisition of Rockhopper Egypt on track to close by 4Q2019 - ENTERPRISE

Tuesday, 8 October 2019
United Oil & Gas’ acquisition of Rockhopper Egypt “progressing well”: Rockhopper Exploration’s sale of its Egypt business to Irish energy company United Oil & Gas is on track to be completed by the end of 4Q2019, Rockhopper said in a statement yesterday. Rockhopper and United had signed a USD 16 mn share purchase agreement in July, which would see the Irish company acquire a non-operating 22% interest in the onshore Abu Sennan oil concession, among other assets. The agreement “will be satisfied” once United makes a cash payment of at least USD 11 mn. BP had previously agreed to provide USD 8 mn to partially fund the acquisition after it entered an offtake agreement for United’s future oil and gas production.

Saturday, October 5, 2019

Redrawing Europe's energy map will fuel multifaceted benefits for Israel's future - JERUSALEM POST

OCTOBER 5, 2019 19:17 JESSE BOGNER 

As the recent drone attacks on Saudi oil facilities as well as ongoing US-Iran tensions threaten the stability of energy markets worldwide, the opposite trend is taking hold in Israel, a nation that has long grappled with the challenges of being surrounded by hostile oil-rich neighbors.

The once-unthinkable notion of Israeli gas exports to Egypt is on the verge of becoming a reality following an agreement reached this month that enables the East Mediterranean Gas Company to operate Europe Asia Pipeline Co.’s coastal terminal in Ashkelon. At the same time, the $7 billion Israeli-Greek-Cypriot EastMed pipeline has the potential to forge Israel’s presence as an energy provider to Europe.

Yet a different pipeline project which is rarely mentioned in the same breath as Israel carries a dual promise – propping up the Israeli economy while bolstering the Jewish state’s long-term security, with or without Israel’s direct participation in the initiative.

Though Israel has yet to sign onto the project, the Azerbaijan-led Southern Gas Corridor (SGC) should be squarely on the nation’s radar as it looks to expand its influence economically. SGC’s scope is staggering. Spanning 2,200 miles (3,540 km.) across seven countries and connecting three linked pipelines, the $41.5b. project will reshape the geopolitical landscape of European energy consumption.

Friday, October 4, 2019

Announcement by the Presidency of the Republic of Cyprus on the illegal activities of Turkey within Cyprus’ Exclusive Economic Zone - REPUBLIC OF CYPRUS

04-10-2019 08:45

The Government of the Republic of Cyprus strongly condemns Turkey’s new attempt to illegally conduct drilling operations in the south-west of the island, within Cyprus’ Exclusive Economic Zone (EEZ) and continental shelf. The new planned drilling, this time round in a duly licensed block, constitutes a further severe escalation of Turkey’s continued violations of the sovereign rights of the Republic of Cyprus under the UN Convention on the Law of the Sea as well as customary International Law.

In flagrant violation of international law, Turkey has chosen to conduct a drilling operation within offshore exploration Block 7, which was licensed by the Government of Cyprus to European companies, and lies within the EEZ/continental shelf of Cyprus, already delimited, in accordance with international law, between the relevant opposite coastal states, namely the Republic of Cyprus and the Arab Republic of Egypt, by means of the 2003 EEZ Delimitation Agreement. The hydrocarbons exploration and/or exploitation of the exploration Block 7 is an exclusive sovereign right of Cyprus and does not affect the rights of any third state, including Turkey.

Thursday, October 3, 2019

Israel to boost gas supply to Egypt by 34% after changes to landmark agreement - ENTERPRISE

Thursday, 3 October 2019

Israel to boost gas supply to Egypt: Dolphinus Holdings and the operators of Israel’s offshore natural gas fields Delek Drilling and Noble Energy have agreed to increase the supply of natural gas to Egypt by 34% to 85.3 bn cubic meters (bcm) under amendments to the landmark 2018 agreement, both Bloomberg and Reuters reported, citing an Israeli bourse statement.

What’s new? The value of the agreement is now USD 19.5 bn, up from USD 15 bn when the parties signed the original pact in February 2018. Exports from the Leviathan field will double to 60 bcm over 15 years and shipments from the Tamar field will fall to 25.3 bcm from 32 bcm. Gas shipments will begin flowing on 1 January 2020, through to 2034. The first three years will see a total of 2.1 bcm sold annually, before growing to 6.7 bcm a year after that. Oil Minister Tarek El Molla previously said the first shipment is on track to arrive by the end of the year.

Wednesday, October 2, 2019

Israel to increase natural gas exports to Egypt, companies say - REUTERS

OCTOBER 2, 2019 / 9:47 AM
Reporting by Tova Cohen and Ari Rabinovitch

(Reuters) - Israel will significantly increase the amount of natural gas it plans to export to Egypt under a landmark deal, energy companies in Israel said on Wednesday.

Partners in Israel’s Leviathan and Tamar offshore gas fields signed a deal last year to sell $15 billion worth of gas to a customer in Egypt in what Israeli officials called it the most significant deal to emerge since the neighbors made peace in 1979.

Under the amended agreement, the companies said the amount to be sold from the Leviathan field will nearly double to 60 billion cubic meters (bcm) of gas over 15 years. Exports from the nearby Tamar field will be reduced to 25.3 bcm from 32 bcm over the same period.

One source in the Israeli energy industry estimated the value of gas to be exported was now $19.5 billion — $14 billion coming from Leviathan and $5.5 billion from Tamar.

Texas-based Noble Energy, Israel’s Delek Drilling and Ratio Oil own Leviathan. Noble, Delek Drilling, Isramco and Tamar Petroleum are leading partners in the Tamar field.

Sunday, September 29, 2019

Israel Electric set to sign new Tamar gas deal - GLOBES

23 Sep, 2019 18:26
Amiram Barkat

The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months.

Israel Electric Corporation (IEC) is close to signing a new agreement with the owners of rights in the Tamar natural gas reservoir. The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months, after which the agreement with IEC will be renegotiated. In effect, the agreement renews the competition between the Tamar and Leviathan reservoirs, because it enables IEC to buy gas from Tamar at a lower price than it obtained from Leviathan. The agreement is also an achievement for the Public Utilities Authority (Electricity), because it improves the terms in comparison with the previous agreement between IEC and Tamar, which the Public Utilities Authority refused to approve.

Leviathan won out over Tamar in a tender published by IEC for the purchase of variable quantities of gas beyond the minimum that it is obligated to buy from Tamar. The holders of rights in the two reservoirs offer the same price - $4.79 per BTU, but IEC management preferred Leviathan to Tamar.

EGAS cancels third consecutive LNG tender - ENTERPRISE

Sunday, 29 September 2019

EGAS has canceled an LNG tender for six cargoes from the Idku gas liquefaction plant for loading between 5 October and 1 November, three market sources told Reuters without providing a reason. 

This is the third consecutive tender cancelled by the company. 

The tender canceled last month was due to low bids, sources told the newswire.

Friday, September 27, 2019

TANAP delivers 2.39 billion cubic meters of gas to Turkey as of August - DAILY SABAH

27.09.2019 
BARIŞ ERGIN

The amount of gas the Trans-Anatolian Natural Gas Pipeline (TANAP) has carried to Turkey has reached 2.39 billion cubic meters as of August, TANAP General Manager Saltuk Düzyol said.

"A total of 30%, corresponding to $450 million, of the revenue of $1.45 billion that will be generated when the total transmission capacity is reached, will belong to BOTAŞ [Turkish Petroleum Pipeline Corporation] every year. We predict that TANAP will reach a full transmission capacity of 16 billion cubic meters in two to three years," Düzyol told a group of journalists in Ankara yesterday.

The 1,850-kilometer TANAP forms the backbone of the Southern Gas Corridor, a project to increase and diversify European energy supply by bringing gas resources from the Caspian Sea: Shah Deniz 2 gas from Azerbaijan to Turkey and through Turkey to Europe markets.

Tuesday, September 24, 2019

Tamar partners in talks to amend Israel Electric gas deal - REUTERS

SEPTEMBER 24, 2019 / 3:05 PM

JERUSALEM (Reuters) - A number of partners in the Tamar natural gas field off Israel’s coast have offered utility Israel Electric (IEC) [ISECO.UL] a discount on a new gas supply deal.

The offer came from three of the six members of the group — Tamar Petroleum (TMRP.TA), Isramco Negev (ISRAp.TA) and Dor Gas Exploration, which own some 49% of the project, Tamar said in a regulatory statement in Tel Aviv.

Earlier this year, state-run IEC signed a gas supply deal with the Leviathan field, which is also off Israel’s Mediterranean coast and set to begin production later this year.

Tamar said it would give a total discount of $70 million.

Any changes to the deal would require approval by all the Tamar partners, including Noble Energy (NBL.N), Delek Drilling (DEDRp.TA) and Everest Infrastructure. Noble and Delek are also partners in Leviathan.

IEC declined to comment.

Numbers about natural gas activities in Egypt - EGYPT TODAY

Tue, Sep. 24, 2019

CAIRO – 24 September 2019: Egypt has put a number of gas fields on the map of production during the last period, which was reflected on the rates of gas production in September to hit 7.2 billion cubic feet per day.

The following are the most important figures that drew the map of natural gas activity in the last period:
  1. Launching an international tender for oil and gas exploration in 10 sectors in the Red sea.
  2. Signing Noor Marine Agreement, with investments of research and exploration amounting to about $85 million.
  3. The value of investments in the field of research, development and operation of natural gas activity reached about $3.7 billion during 2018/2019.
  4. Egypt's natural gas production has risen to unprecedented rates.

Sunday, September 22, 2019

EGAS Offers Six LNG Cargoes from Idku Plant - ENTERPRISE

Sunday, 22nd September 2019

Egyptian Natural Gas Holding Company (EGAS) has offered six Liquefied Natural Gas (LNG) loading cargoes from the Idku plant during the period between October to November 2019, Reuters quoted two industry sources saying.

The cargoes are offered on the basis of a Free-On-Board (FOB) for loading between October 5th, 2019 and November 1st, 2019.

EGAS was founded in Egypt in 2001, as an entity mandated to focus on the natural gas activities to organize and handle the activities of the natural gas resources of Egypt to add value to the Egyptian economy.

EGAS to sign 7 new gas exploration agreements with int’l companies in 4Q2019 - ENTERPRISE

Sunday, 22 September 2019

State-owned EGAS expects to sign seven new gas exploration agreements with international companies worth at least USD 712 mn during 4Q2019, Chairman Osama El Bakly said, according to a ministry statement. 

Companies will drill 23 exploratory wells under the terms of the agreement, he said, without naming the concessions or companies involved. 

El Bakly also said that Egypt’s natural gas production hit a record 7.2 bcf/d in September, up from 7 bcf/d at the end of June.

Friday, September 20, 2019

"Energean Power" FPSO hull construction, a 10-month journey in 90 seconds! - ENERGEAN OIL & GAS

Sep 20, 2019


The "Energean Power" FPSO floated out from the COSCO's shipyards, in Zhoushan, China in mid - September. An important milestone for the development of gas discoveries in the East Mediterranean, achieved also with a great HSE record: under TechnipFMC project management, more than 3 million man hours  with no Lost Time Injuries have been completed! See you soon at the Sembcorp Marine Admiralty Yard in Singapore!

Egyptian LNG to return to full operation - PETROLEUM ECONOMIST


Houston, 20 September 2019
Peter Ramsay

The 7.2mn t/yr Egyptian LNG (ELNG) facility will return to 100pc of nameplate capacity next month, the firm’s senior optimisation manager Tamer Abdelsalam told the Gastech conference in Houston. It is currently operating at 90pc capacity.

Full output is a far cry from the dark days of mid-2013 to mid-2019, when the volume of feed gas reaching the plant hovered at 13-15pc of design capacity. During that period, ELNG produced just 31mn m³ of LNG and exported 21 cargoes, bring in only $354mn in revenues, says Abdelsalam.

The return of ELNG, located at Idku, to full capacity may not, though, be followed swiftly by a full restart of Egypt’s other export terminal at Damietta. “That is for the government,” says Adelsalam. “They are taking the lead in negotiations around Damietta.”

Thursday, September 19, 2019

If Egypt Won’t Buy Israel’s Gas, Maybe Israeli Consumers Will - HAARETZ

Sep 19, 2019 5:03 AM
Ora Coren

If Israel is having trouble selling its natural gas overseas, maybe it will have better luck selling it to Israeli consumers.

That’s the reasoning behind a pilot project to hook up 15 new residential neighborhoods to the national gas pipeline network. Instead of having gas cylinders delivered by truck, homes would be connected by pipeline and gas could then be used for more things than cooking and heating.

The Energy Ministry, which is behind the project, faces a lot of skepticism from the local industry about the economic viability to households using more gas. The pilot, which will include subsidiaries to the tune of 80 million shekels ($22.7 million), aims to prove them wrong.

“There’s a lot of uncertainty about it, so the government is acting wisely and before it jumps into the deep waters of regulations it is examining for itself and for the gas distribution companies whether they can provide the service,” said one source involved in the project.

Ganope Discovers Three Oil Wells in FY 2019/20 - EGYPT OIL & GAS

Thursday, 19th September 2019

Ganoub El Wadi Petroleum Holding Company (Ganope) achieved three new oil discoveries at its oil fields, two of which were brought online at the oil fields of Eish AL Mallaha and Petro Mallaha during Fiscal Year (FY) 2019/20, a press release by the Ministry of Petroleum and Mineral Resources pointed out.

The three wells are being evaluated with investments reaching $20 million. The PGC had completed drilling the first well at the end of August. Still under evaluation, the third one, located at the Suez Gulf area and operated by Petrogulf Corporation (PGC) is the biggest of all.

Such statements came during a meeting between the Ganope Head Mohamed Abdel Azzim and Minister of Petroleum and Mineral Resources, Tarek El Molla, in the attendance of Aswan governor, Ahmad Ibrahim.

El Molla confirmed during the meeting that the coming period will witness an intensive activity in the research, Exploration and Production (E&P) in the Red Sea after International Oil Companies (IOCs) offers had been submitted and evaluated. This will be the first global bid for research and exploration for oil and gas in this region, which opens new horizons to attract more investments and achieve new discoveries.

Wednesday, September 18, 2019

Eni, Total join for another gas search license off Cyprus - THE WASHINGTON POST / ASSOCIATED PRESS

September 18 at 8:53 AM

NICOSIA, Cyprus — Energy companies Total of France and Italy’s Eni have teamed up to expand their search for natural gas off southern coast, signing a licensing agreement Wednesday.

Cypriot Energy Minister Georgios Lakkotrypis said the companies will have an equal share in a new block into which a gas deposit that Eni discovered in an adjacent block last year is believed to extend.

Lakkotrypis said Total also gains a 20-40% share in four of Eni’s concessions inside Cyprus’ exclusive economic zone. Korea’s Kogas is also a partner with a 20% share in three of the four concessions.

With Wednesday’s signing, Eni and Total now hold exploration licenses for seven of Cyprus’ 13 blocks. ExxonMobil and a partnership between Texas-based Noble Energy, Dutch Shell and Israeli Delek hold licenses for one block each.

The two companies are expected to drill six wells in their blocks over the next two years.

Tuesday, September 17, 2019

NEPCO signs gas supply agreements - THE JORDAN TIMES

Sep 17,2019

AMMAN — The National Electric Power Company (NEPCO) and the Jordanian-Egyptian FAJR for Natural Gas Transmission and Supply Company on Tuesday signed two agreements with two companies to provide them with natural gas.

The first agreement stipulates providing the Jordan Phosphate Mines Company (JPMC) with a daily supply of four million cubic feet of natural gas, while the other deal is an amendment to a gas provision agreement with the Nuqul Group, according to a statement by the Ministry of Energy.

Energy Minister Hala Zawati said that the ministry effortlessly work to reduce the costs of energy bills through encouraging local industries to shift to natural gas, as part of the government’s endeavours to help these industries reduce operational costs and increase their competitiveness in the local and international markets.

Zawati said that using natural gas will contribute to lowering the energy costs in factories by 25 to 55 per cent, depending on the type of the fuel replaced with the natural gas.

Monday, September 16, 2019

Ambassador Pyatt’s Remarks at ELIAMEP - U.S. EMBASSY IN ATHENS

September 16, 2019

Ambassador Pyatt: I will try to mirror my Cyprus counterpart and be brief so we have time for discussion.

Let me start by commending Thanos, ELIAMEP and Claudia and DEREE for putting this event together. This is a really important set of issues and I’m delighted to be able to have this prestigious audience, to have Ambassador Theodorou here, and also to have my new Israeli counterpart whom I look forward very much to working with in the months and years ahead.

I would also note, we’re meeting at a particularly busy time for the American Embassy in Greece. We had Secretary of Commerce Wilbur Ross here two weeks ago for a visit that highlighted the United States’ enthusiasm for the changes that are happening under the new Greek government and the investment and economic opportunities, the green light which we see in the decisions that are coming from Prime Minister Mitsotakis and his team.

Sinai Security Fears Snare Israel's Gas Exports to Egypt - HAARETZ

Tamar Petroleum's IPO back in July 2017 
Sep 16, 2019 3:13 AM
Eran Azran
  • Egypt says Israeli gas exports on track but cites low figures
  • Israel to begin gas exports to Egypt within months, energy minister says
  • Egypt praised for economic reforms, but millions of Egyptians barely survive
Investor anxieties over the Tamar natural gas field have deepened in recent days amid security concerns about the pipeline designated to deliver Israeli gas to Egypt.

The Wall Street Journal reported Thursday that delays in completing a key agreement to facilitate the exports were due to the tense security situation in Egypt’s Sinai Peninsula.

“There’s some infrastructure that needs to be repaired in that area. That’s part of the holdup for shipping the gas,” the paper quoted U.S. Deputy Energy Secretary Dan Brouillette as saying. “No one wants to send individuals into harm’s way.”

Sunday, September 15, 2019

Challenges to Israel’s gas exports - CYPRUS MAIL

September 15, 2019
Charles Ellinas

Since discovery of natural gas in its exclusive economic zone Israel has been dreaming of exports, riches and political influence. Massive political capital has been expended in this direction, but so far without results, apart from small exports to Jordan, and possibly Egypt, but not to global markets.

The giant gas-field Leviathan is expected to come on-stream by end-2019, with as much as 9-10 billion cubic metres/yr (bcm/yr) surplus gas available for export. Noble Energy and its partners have been considering all options to secure international buyers for this, but unsuccessfully.

The main challenge is commercial. Gas prices are low globally and even though they may rise after 2025, they are still expected to be at levels that challenge exports of gas from the East Med. For example, gas prices in Europe are currently just over $3/mmbtu (per about 1000 cubic feet) and are forecast to average $6-$6.50/mmbtu between 2020-2030. Political will is not sufficient to overcome price limitations, despite all the hype, either in Israel or in Cyprus.

East Med gas is mostly in deep water and deep reservoirs. This makes it expensive to develop. The lack of regional infrastructure also impacts the cost of exporting such gas.

Egypt’s Offshore Red Sea Oil & Gas exploration Bid Round closes today - ENERGY EGYPT

SEPTEMBER 15, 2019 AT 1:57 PM

The Red Sea oil and gas exploration tender ends today, with bids from major oil producers expected to be announced later. Shell, ExxonMobil, Statoil, Dragon Oil, Russian Rosneft and Total have all reportedly bidding for 10 oil and gas exploration blocks off the Red Sea coast under a new production sharing contract, which were tendered back in March by the South Valley Egyptian Petroleum Holding Company (Ganope), sources told Egypt Today on Thursday.

Ministry of Petroleum and Mineral Resources, represented by South Valley Egyptian Petroleum Holding Company (Ganope), will close receiving tenders for the 2019 international bidding in the Red Sea on Sunday, Sept. 15 before noon.

Sources at the petroleum sector told Egypt Today that companies applying to the tender included Shell, ExxonMobil, Statoil, Dragon Oil, Russian Rosneft and Total France.

Egypt’s position as regional gas export hub for East Med gets US support - ENTERPRISE

Sunday, 15 September 2019

Egypt’s position as regional gas export hub for East Med gets US support: US Deputy Energy Secretary Dan Brouillette met with Oil Minister Tarek El Molla on Thursday in Cairo to discuss moving forward with the US-Egypt Strategic Energy Dialogue — a bilateral cooperation initiative aimed at strengthening Egypt’s energy production, storage and distribution capacity. The project, which came out of an MoU signed during US Secretary of Energy Rick Perry’s visit in July, seeks to capitalize on Egypt’s position as the regional gas export hub for the East Mediterranean Gas Forum countries and hopes to attract new energy investments, said Brouillette. Following the meeting, Brouillette held a roundtable with a select few news outlets, including Enterprise, to discuss the initiative and Egypt’s role in the region’s energy. The Wall Street Journal also had the story.

Friday, September 13, 2019

ENERGY: Cyprus receives intense international interest for gas supply tender - FINANCIAL MIRROR

13 September, 2019

The first phase of Cyprus Gas Company’s (DEFA) tender process for the supply of liquefied natural gas (LNG) has triggered considerable interest from major international players such as Shell, BP, Eni and Total.

According to DEFA, 25 suppliers, among the most dominant in the global LNG market, are seeking to supply gas to Cyprus and have submitted the prerequisites to qualify for the next stages of bidding and negotiation.

“The intense market competition for LNG supplies confirms that the strategy to acquire an FSRU was a decision toward the right direction,” a DEFA statement said.

Bidders/suppliers participating in the next round of bidding and negotiating are; Gunvor International B.V. Amsterdam, Naturgy LNG Marketing, Centrica LNG, Endesa Energia, Cheniere Marketing International LLP, Equinor ASA, Novatek Gas & Power Asia Pte, Shell International Trading Middle East, Enel Global Trading, Eni Trading & Shipping, Total Gas & Power Asia Private, Osaka Gas Kabushiki Gaisha, Powerglobe LLC, Repsol LNG Holding, Petronas LNG, BP Gas Marketing, Vitol, B.B. Energy (ASIA), Mytilineos, Uniper Global Commodities SE, Marubeni Corporation, SONATRACH and Public Gas Corporation (DEPA), Eni (Gas & LNG Marketing and Power), Glencore Energy UK and Mitsui & Co.

Thursday, September 12, 2019

Strong results from initial Karish wells offshore Israel - OFFSHORE MAGAZINE

Sep 12th, 2019

ATHENS, Greece – Energean has issued updates (Results For Half Year Ended 30 June 2019
) on its development and exploration campaigns in the eastern Mediterranean Sea.

The main project is the Karish/Tanin gas development offshore Israel, where the drillship Stena DrillMAX recently completed drilling of two of the Karish Main wells.

In both cases, the outcome was positive, with a 45-m (147-ft) gross gas column encountered in the D-sands interval. Also, fluid samples from the main reservoir indicate a higher than foreseen condensate ratio.

Drilling of the final well in the program, Karish Main-01, is under way and this is expected to finish during 4Q. The three wells will deliver an initial 4.3 bcm of gas sales into the Israeli domestic market.

Later this year the FPSO hull is due to sail from China to Singapore.

In July, Israel’s Petroleum Council awarded Energean and Israel Opportunity – Energy Resource four new offshore licenses (55, 56, 61, and 62) for block D, 45 km (28 mi) from the coast.

Dana Gas could sell off its entire Egypt portfolio - ENTERPRISE

Thursday, 12 September 2019

The UAE’s Dana Gas has received offers from companies interested in buying its USD 500 mn Egypt portfolio, the company’s head of investor relations Mohammed Mubaideen told Mubasher. The company could potentially sell all of its assets in Egypt, depending on the offers it receives, Mubaideen said, adding that the deadline to receive offers is mid-November. The energy company currently produces 34k boe/d. Mubaideen said the Egyptian government has repaid the company USD 81 mn during the first half of the year and brought its arrears down to USD 117 mn. He reiterated that the reason behind the company’s exit is to focus on potentially more lucrative operations in Iraq.

Background: The Emirati company said in July it had hired financial advisors to study the possibility of selling down its Egypt asset portfolio. Unnamed sources told Reuters that the company hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale. The company had previously said it would abandon its Merak-1 well in the North Arish concession after failing to find commercial hydrocarbons, but that it plans to invest in drilling in the El Matareya concession in the Nile Delta.

First well from Baltim South West field linked to Egypt’s national grid - ENTERPRISE

Thursday, 12 September 2019

Italy’s Eni has linked the first well in its Baltim South West natural gas field to the national grid, an EGAS source said. 


The well has a production capacity of 50 mcf/d and is the first of six wells, which will bring the field’s total production to 500 mcf/d once developed during the current fiscal year.

Wednesday, September 11, 2019

Energy Security Key in Bolstered Cyprus-Egypt Ties - THE NEW YORK TIMES / ASSOCIATED PRESS

Sept. 11, 2019

NICOSIA, Cyprus — Cyprus' defense minister says the east Mediterranean island nation and neighbor Egypt are exchanging information to bolster security around an offshore search for natural gas as part of enhanced defense ties.

Savvas Angelides says the two neighbors' information-sharing extends to countering any extremist threats.

The Cypriot minister says defense ties are also being upgraded between Cyprus, Egypt and Greece as through joint military exercises and personnel exchanges.

Angelides was speaking Wednesday after escorting his counterpart, Lt. Gen. Mohamed Ahmed Zaki, to a meeting with Cypriot President Nicos Anastasiades.

Cyprus and Egypt share a sea border delineating their respective exclusive economic zones where each country is carrying out exploratory gas drilling.

Officials said a recent discovery of Egypt's Zohr gas field bodes well for more discoveries in Cypriot waters.

Israeli gas will arrive in Egypt before the end of the year -El Molla - ENTERPRISE

Wednesday, 11 September 2019

Egypt will begin receiving natural gas from Israel by the end of 2019, Oil Minister Tarek El Molla said in an interview at the World Energy Congress yesterday, according to Bloomberg. Israel will initially ship some 200 mn scf of gas per day, an amount that will increase to 500 mn scf/d at some point in 2020, he said. The import of Israeli gas comes as part of the landmark USD 15 bn agreement between Alaa Arafa-led Dolphinus Holdings, Delek Drilling, and Noble Energy, which was signed last year.

Multilateralism to blame for delays? El Molla said that the multilateral nature of the gas export arrangement was the main reason for the process taking longer than planned, but insisted that export plans remain on track, according to Reuters. Trial shipments were originally supposed to come in March, with commercial sales beginning by the end of June. Another potential spanner in the works surfaced in May when Thailand’s PPT Energy — a stakeholder in the Egypt-Israel EMG gas pipeline — filed a USD 1 bn lawsuit against Egypt for failing to meet gas deliveries after 2011.

Monday, September 9, 2019

More US companies will join Cyprus gas exploitation, says Ambassador - IN CYPRUS / CNA

September 5, 2019 at 4:19pm
Annie Charalambous (edited by)

More US energy companies will operate in Cyprus to help extract rich natural gas resources, joining ExxonMobil and Noble Energy.

This is what US Ambassador Judith Garber told a business dinner in Nicosia on Wednesday.

“We are proud that two American companies – ExxonMobil and Noble Energy – are participating in this game-changing development…I firmly believe other U.S. companies in the energy sector will join them, as Cyprus transitions from discovery of energy resources to the hard task of bringing those resources to market,” she also said.

She then stressed that the discovery of hydrocarbons in the EEZ of Cyprus offers “great promise and responsibility”.

“We hope, such resources promote prosperity in the entire Eastern Mediterranean region and help to diversify Europe’s energy supply,” she added.

Pipeline operator EMG signs terminal deal for Israel-Egypt gas exports - REUTERS

SEPTEMBER 8, 2019 / 11:18 AM

JERUSALEM (Reuters) - The East Mediterranean Gas (EMG) pipeline operator signed a deal to use a terminal belonging to Israel’s Europe Asia Pipeline Company (EAPC) for the export of natural gas to Egypt, the companies said on Sunday.

The pipeline arrangement was one of the final hurdles before Israel could begin selling gas to Egypt in a landmark $15 billion export deal.

The gas, produced from fields in the eastern Mediterranean, will be supplied via EMG’s subsea pipeline that connects the Israeli coastal city of Ashkelon and El-Arish in Egypt’s Sinai peninsula. But first the gas must pass through state-run EAPC’s terminal in Ashkelon.

Sunday, September 8, 2019

ENPEDCo, EGPC ink agreements for Western Desert oil and gas exploration - ENTERPRISE

Sunday, 8 September 2019

The Egyptian National Petroleum for Exploration and Development Company (ENPEDCo) and the EGPC signed two agreements to explore oil and gas in the Western Desert last week, the Oil Ministry said in a statement. 

The companies intend to invest at least USD 4 mn to drill four exploratory wells in the Abu Sennan and Ras Qattara concessions.

Saturday, September 7, 2019

Gas sector a catalyst for further cooperation between Lebanon and Egypt - EXECUTIVE MAGAZINE

Nada Boustani, Lebanon's Energy Minister
August 7, 2019
Mona Sukkarieh

The first six months of 2019 saw an unusual series of meetings between Lebanese and Egyptian officials, with energy cooperation at the core of these discussions. If memory serves well, the frequency is unprecedented.

The option of resuming gas imports from Egypt was discussed extensively, especially during the first meetings of 2019. Lebanon previously imported natural gas from Egypt in 2010 via the Arab Gas Pipeline (AGP) to generate electricity. But supplies were interrupted after a few months with various reasons touted (such as Egypt’s inability to pursue exports because production was barely enough to meet local demand, instability in Egypt, and attacks against the pipeline). With the formation of a new government on January 31, Lebanese officials explored the possibility of quickly resuming imports as they scrambled to find solutions to the problems plaguing the electricity sector. The dire state of Lebanon’s power sector and the burden it places on the economy propelled it to the forefront of the government’s reform agenda. Government officials examined the option of importing gas by pipeline from Egypt to generate electricity—in addition to the possibility of buying electricity from Jordan in exchange for water—as among the possible solutions that they thought could be implemented quickly.

Wednesday, September 4, 2019

Production platform for Leviathan, Israel’s largest gas field, to arrive in days - THE TIMES OF ISRAEL

SEPTEMBER 4, 2019 : 2:17 pm
SHOSHANNA SOLOMON

The production platform for the massive Leviathan natural gas field will be arriving in Israel within days, ahead of the start of production for the nation’s largest energy project later this year.

The production decks, comprising five units, are expected to arrive off the Israeli coast in the coming days on four barges, the partners in the field said on Wednesday.


A large offshore crane vessel — the world’s largest — will also be arriving to install the topside decks of the Leviathan platform, which will be set up 10 kilometers off the coast, at a water depth of 86 meters.
The topside decks are the surface decks of the platform, including all the equipment for drilling, production and processing, a helipad, work areas, and living quarters for those who will work on the rig. Setting up the decks will take some four weeks, the statement said.

Tuesday, September 3, 2019

Qarun drills 10 exploratory wells in Western Desert - ENTERPRISE

Tuesday, 3 September 2019

Qarun Petroleum, a joint venture between Apache and the Egyptian General Petroleum Company, has drilled 10 exploratory wells in the Western Desert, producing a combined 5k bbl/d, the Oil Ministry said in a statement yesterday. 

This will account for 16% of the company’s total production. 

The company is now considering investing USD 237 mn during FY2019-2020 in further development projects.

Total: 20-25% chance of success on Lebanon first exploratory well - LEBANON GAS NEWS

03.SEPT.2019

Total is the lead company in a consortium that won contracts in 2017 to explore for oil and gas in Lebanon’s maritime block’s 4 and 9. The other two companies are ENI and Novatek.

The consortium is contractually obliged to drill a minimum of two exploratory wells per block, starting with Block 4, where the first drill location has been set off the coast of Beirut.

What are the chances of drilling before the end of 2019?

Monday, September 2, 2019

Egypt Kuwait Holding’s NSCO begins production from second North Sinai well - ENTERPRISE

Monday, 2 September 2019

Egypt Kuwait Holding’s (EKH) NSCO Investments started production from its second North Sinai natural gas well on 29 August with an output of 20 mcf/d, the company said in a press release.

The new well brings the company’s total production to 75 mcf/d, a 200% increase compared to the first six months of 2019.

The company is now drilling its third well, which it expects to complete during 4Q2019. EKH started production from its first North Sinai well in July.

Sunday, September 1, 2019

Cyprus runs the risk of being trapped into an expensive undertaking with gas deal - CYPRUS MAIL

September 1, 2019
Charles Ellinas

Gas alone will not reduce carbon emissions to the levels required by the EU. This would require a substantial increase in the share of renewables and biofuels in Cyprus energy mix

DEFA announced on 23 August its decision to award the tender for the construction of an LNG import terminal at Vasilikos. This will comprise a floating storage regasification unit (FSRU), a jetty for the mooring of the FSRU, pipelines, port and other facilities.

The winner is a consortium comprising China Petroleum Pipeline Engineering Co Ltd (CPPE), Aktor SA and Metron SA, Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Ltd.

Announcing its decision DEFA said “we believe that the future of the country is aligned with natural gas and we expect it to play a major role in the economic development of the country in years to come.

“The establishment of the natural gas market will boost the development of the whole energy and industry sectors of the Republic.”

EGAS cancels LNG tender for three cargoes due to low bids - ENTERPRISE

Sunday, 1 September 2019

EGAS has canceled an LNG tender for three cargoes from the Idku gas liquefaction plant near Alexandria, market sources told Reuters. 

The tender, which closed on 28 August, was canceled due to low bids, the sources said.

Friday, August 30, 2019

Zohr soars, Nour not sure - PETROLEUM ECONOMIST

30 August 2019
Gerald Butt

The super-giant Zohr gas field, in the Shorouk concession with at least 30tn ft3 of gas in place, keeps on breaking records. After first production was achieved in less than two-and-a-half years post-discovery, Italy's Eni now says that production has reached more than 2.7bn ft3/d (76.4mn m³/d)—five months ahead of plan.

A second 216km (134-mile) 30in pipeline connecting the offshore subsea production facilities to the onshore treatment plant just west of Port Said became operational in August. With this and the completion and optimisation of the plant treatment capacity, Eni says that, by end-2019, Zohr's potential production rate will reach 3.2bn ft3/d (90.6mn m³/d), up from the 2.7bn ft3/d plateau envisaged in the development plan.

Gas from Zohr already accounts for around one-third of Egypt's 6.5bn ft3/d output, and this extra production is enabling the resumption of LNG exports from the Idku plant—after a period when the country was forced to import LNG. The Damietta facility remains closed, pending the resolution of a dispute between the Egyptian government and operator Union Fenosa Gas, a joint venture between Eni and Spain's Naturgy.

Thursday, August 29, 2019

Superpowers Are Vying For Power In This New Oil & Gas Frontier - OIL PRICE

Aug 29, 2019, 3:00 PM CDT
Vanand Meliksetian

The Eastern Mediterranean has become a hotbed for tensions between regional and great powers due to the discovery of major energy deposits. The littoral states could potentially earn billions in gas exports while at the same time ensuring a level of energy security, which is rare to the region. However, the on-going activities create a level of complexity, which is an opportunity for countries such as the U.S. and Russia to exert influence.

Secretary of State Mike Pompeo has warned of "revisionist powers like Iran, Russia, and China trying to take major footholds in the East and West." The U.S. wishes to create an alliance of countries connected through multilateral interdependence. The backbone of the coalition is to be formed by Greece, Cyprus, and Israel.

The most critical driver for Washington’s assertiveness is Russia’s resurgence as a major force which can project power in the wider region. Moscow's relatively successful policy in the Middle East and its presence in the Eastern Mediterranean through its military intervention in Syria are making the U.S. wary of Russian influence.

Wednesday, August 28, 2019

Israeli Energy Exports Won’t Make Europe More Pro-Israel - FOREIGN POLICY

AUGUST 28, 2019, 6:57 AMCHARLES ELLINAS

The natural gas discovered in the Eastern Mediterranean is so expensive to bring to market that it might never reach European consumers, let alone change the policies of EU governments.

Ever since the discovery of the Leviathan gas field off the coast of Haifa, Israel has been dreaming of riches and political influence. A recent Foreign Policy article has taken this to the realms of the unimaginable—arguing that future European dependence on Israeli gas exports could both change the political views of European countries toward Israel and make the EU pro-Israel.

But the article overlooks a more basic question: Can Israeli gas ever make it to Europe or to global markets at a competitive price? With Leviathan about to come onstream, Israel, Noble Energy (as the operator), and its partners are looking for gas sales beyond this first phase of development. As much as 9-10 billion cubic meters per year of gas could be available for export. This is about the same amount as the Southern Gas Corridor pipeline from Azerbaijan to Italy that will be delivering 10 billion cubic meters per year to Europe by 2020.

Damietta liquefaction plant to reopen in 3Q2019? - ENTERPRISE

Wednesday, 28 August 2019

Deja vu: Damietta LNG plant to reopen in 3Q2019? The Damietta liquefaction plant will reopen by the end of 3Q2019 after being offline for the past six years, an unnamed oil industry source tells Youm7. The facility, which produces around 5 mn tonnes of liquefied natural gas per year when operational, has been closed amid a long-running dispute between the Egyptian government and operator Union Fenosa Gas (UFG).

We’ve heard this one before: An oil ministry source said back in February that the plant would reopen in April following an agreement with UFG. This was proved wrong just two days later when UFG publicly denied reaching a settlement. Then last month Eni (a joint partner in UFG with Union Fenosa) said that the facility should open “soon this year”, and another source claimed that the facility would be operating at full capacity by 4Q2019. For the latest claim to be realistic, there needs to be a resolution to the five-year UFG dispute within the next four weeks. Forgive us if we keep our eyebrows raised on this one.

Tuesday, August 27, 2019

DLA Piper advises Natural Gas Public Company of Cyprus on terminal - HYDROCARBON ENGINEERING

Tuesday, 27 August 2019 11:30

DLA Piper has advised the Natural Gas Public Company of Cyprus (DEFA) on its tender process for the selection of the contractor for the design, construction, procurement, commissioning, operation and maintenance of an offshore LNG import terminal and associated infrastructure, located in Vasilikos, Cyprus.

DEFA announced today the outcome of its tender process, selecting as the first ranked tenderer a consortium led by China Petroleum Pipeline Engineering Co. Ltd, and includes AKTOR S.A., Metron S.A., Hudong-Zhongua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Ltd. As per the terms of the announcement, the tender is for the next stage of the development of a natural gas market in Cyprus and that major companies involved in the European gas markets also participated in the tender process.

The DEFA Chairman, Symeon Kassianides, commented: “We are pleased to see the successful outcome of the process. Here at DEFA we believe that the future of the country is aligned with natural gas and we expect it to play a major role in the economic development of the country in years to come. The establishment of the natural gas market will boost the development of the whole energy and industry sectors of the Republic.”

Cyprus to adopt new strategy for exploiting Aphrodite gas by 2025 - FINANCIAL MIRROR

27 August, 2019

A multi-billion-dollar revised development and production plan for exploiting the Aphrodite gas field within six years is expected to be received by the government within days, said Energy Minister Giorgos Lakkotrypis.

According to the timeframes given by the consortium, the gas field is expected to produce natural gas by 2025.

Cyprus expects to earn $9.3 bln over 18 years from exploiting its Aphrodite gas field after Nicosia renegotiated the contract in June.

A re-working of the production contract ensures Nicosia receives an average yearly income of 520 million dollars over the lifespan of the gas field. The figures are based on the average price of oil being around $70 a barrel.

Previously the consortium - Texas-based Noble Energy, which is the operator, British-Dutch giant Shell and Israel’s Delek - had no obligation to stick to a timeline, now natural gas is expected to flow from Aphrodite and be pumped to Egypt via a pipeline.

Egypt's EGAS offers three LNG cargoes for September - sources - ZAWYA / REUTERS

Ships are docked in front of Suez Canal Authority in Port Said,
Egypt July 29, 2018.REUTERS, Amr Abdallah Dalsh
27 AUGUST, 2019Jessica Jaganathan, Reuters News

SINGAPORE - Egyptian Natural Gas Holding Co (EGAS) has offered three liquefied natural gas (LNG) cargoes for loading from the Idku plant in September, two industry sources said on Tuesday.

The cargoes are offered on a free-on-board (FOB) basis for loading over Sept. 9-11, Sept. 24-26 and Sept. 30 to Oct. 2, they said.

The tender closes on Aug. 28, they added.

Ratification of hydrocarbon licenses within August - ENERGY PRESS

27 AUG 2019

Four offshore hydrocarbon exploration and production licenses signed by three groups of investors for areas off Crete, in the Ionian Sea and west of the Peloponnese are expected to be ratified in Greek Parliament within the next few days, possibly before the end of August, energypress sources have informed.

These licenses are significant for the reputation of the recently elected conservative New Democracy party, keen to underline its willingness to cooperate in the energy sector and draw major investments to the country.

Oil majors are involved. France’s Total heads a consortium that includes US giant ExxonMobil and Hellenic Petroleum (ELPE) for the two licenses off Crete, south and southwest of the island.

ELPE has joined forces with Spain’s Repsol for a license in the Ionian Sea, while ELPE is the sole participant in the offshore license west of the Peloponnese.

Shell to drill Montu well at West Delta concession this month - ENTERPRISE

Tuesday, 27 August 2019

Shell is set to begin drilling at the Montu well in its West Delta deep marine concession in the Mediterranean Sea this month, the company said in a statement. 


The Discoverer India drillship will drill 6k meters below the water’s surface, setting a new record as the deepest well in Egypt. 

The well is estimated to have a reserve of 4.7 tcf of natural gas and will take five months to drill.