Wednesday, June 25, 2014

Cyprus Adopts a Comprehensive Strategy to Develop its Oil and Gas Sector | Natural Gas Europe

June 25th, 2014


Cyprus Adopts a Comprehensive Strategy to Develop its Oil and Gas Sector

Natural Gas Europe had the pleasure to meet with the Minister of Energy of Cyprus Yiorgos Lakkotrypis in his office in Nicosia to discuss the natural gas developments in Cyprus,. This article is the second of a series of articles related to the meeting with the Minister.
Recently hit by the financial crisis due to its banks exposure to Greek debt, Cyprus is implementing serious efforts to develop its oil and gas sector. Is the island solely dependent on its offshore riches to overcome its money problems? Will it succeed in finding sufficient amounts of hydrocarbon to incentivise major oil and gas companies, investors and neighbouring countries to participate in its path towards energy production? Does it have the right organs, tools and work forces to lead and direct the process? Is Cyprus dependent on the helping hand of its Eastern Mediterranean neighbours to become a net natural gas exporter?
Minister Lakkotrypis discusses Cyprus’ slow but certain path towards entering the offshore business. He notes that while it is important to move quickly enough to enter the natural gas market in time, hasty decisions are to be avoided. The hydrocarbon riches will certainly contribute in creating effective long term growth, he says. Cyprus is adopting a comprehensive strategy to stabilise the economy and allow it to prosper. Lakkotrypis adds that beyond developing its offshore reserves to generate revenue, Cyprus is working towards becoming a center for oil and gas expertise in the region. He stresses on the importance to build a long term knowledge-based economy around the oil and gas sector with specialised lawyers, accountants, auditors, technicians and engineers. He adds that when the sales of gas are long gone, the trained workforce would remain and continue to attract the professionals in the industry, to the benefit of Cyprus’ economy. Cyprus is a full member of the EU, enjoys a stable and transparent political system, implements EU law and offers a business friendly environment that is attractive to major oil and gas companies, elements that contribute in turning Cyprus into the Eastern Mediterranean energy hub it aspires to become.
Asked about the recent changes in Cyprus Hydrocarbon Company (CHC), Minister Yiorgos Lakkotrypis explains the reasons and the fundamentals behind the modification of the operations of CHC. Lakkotrypis told Natural Gas Europe that the Government of Cyprus has learned from the failure of its banking sector. The recent events of March 2013 revealed a lack of oversight and control over the banking sector that he says should not be repeated in the energy industry. Sufficient controls were introduced to the functions of CHC, that he considers to be the biggest company in Cyprus. The main idea was to appoint non executive members of the board of the CHC, implement control of the board of directors over the CEO, in addition to the control from the council of ministers and the monitoring of the company by the General Auditor.
Lakkotrypis adds that Cyprus maintains excellent diplomatic relationships with both Lebanon and Israel. He hopes Lebanon will move ahead with its first licensing round as soon as possible and overcome the political deadlock it is currently facing. Lakkotrypis reveals to Natural Gas Europe that Cyprus and Lebanon will very soon be conducting another series of talks around the unitization agreement on a date to be determined. He also comments that despite the fact Israel has not formulated its intention to participate in Cyprus’ onshore export LNG facility in Cyprus, discussions are ongoing and that Cyprus firmly believes that an LNG terminal on the island is the optimal way for the Eastern Mediterranean countries to export their natural gas finds to export markets.
Karen Ayat is an analyst focused on energy geopolitics.  Email Karen on ayat_karen@hotmail.com. Follow her on Twitter: @karenayat



Link to source: http://www.naturalgaseurope.com/cyprus-oil-and-gas-sector

Tuesday, June 24, 2014

Cypriot sources confirm CNOOC Delek, Noble talks | Globes

Cypriot sources confirm CNOOC Delek, Noble talks

gas oil Tamar

Representatives of China's CNOOC were in Cyprus last month for talks.


Cypriot sources have confirmed "Globes" report that energy giant China National Offshore Oil Corp. (CNOOC) is in talks to buy 30-40% of the Aphrodite gas field in Cyprus.

Noble Energy owns 70% of the rights of the field, which is in Cyprus's Block 12, and Delek Group Ltd. (TASE: DLEKG) energy exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling Limited Partnership (TASE: DEDR.L) own 15% each.
The Cypriot sources said that CNOOC representatives were in Cyprus last month for talks on the matter.
The Aphrodite field, which borders on Israel's Pelagic licenses, an area north of Leviathan, has an estimated 4.1 trillion cubic feet of natural gas, enough to justify developing a Floating Liquid Natural Gas (FLNG), which would allow the Chinese company to export gas to Chinese companies. But ultimately the Leviathan partners preferred Australian company Woodside Petroleum Ltd. (ASX: WPL) and its greater experience in FLNG projects.

Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014



Link to source: http://www.globes.co.il/en/article-cypriot-sources-confirm-cnooc-delek-noble-talks-1000948684

Πλωτή μονάδα για το Λεβιάθαν ετοιμάζει η Noble | SIGMA LIVE

Την ώρα που Κύπρος και Ισραήλ ακόμα ψάχνονται

Αντρέας Κωστουρής , 24 Ιούν. 2014

Πλωτή μονάδα διαδικασίας παραγωγής, αποθήκευσης και μεταφοράς φυσικού αερίου σε πλοία σχεδιάζει να αγοράσει η Noble, απόφαση που αναμένεται να παρθεί εντός του καλοκαιριού. Η αμερικανική εταιρεία προγραμματίζει την αγορά πλωτής μονάδας FPSO είτε από την εταιρεία SBM είτε από την BW Offshore. Την είδηση δημοσιεύει η έγκυρη εφημερίδα που εξειδικεύεται στην αγορά ενέργειας Upstream.

Η Noble θα εξασφαλίσει τη συγκεκριμένη πλωτή μονάδα για να καλύψει τις ανάγκες εξόρυξης, αποθήκευσης και εμπορίας κοιτασμάτων από το οικόπεδο Λεβιάθαν του Ισραήλ που βρίσκεται κοντά στο οικόπεδο 12 της κυπριακής ΑΟΖ.

Η εταιρεία BW φέρεται να έχει προβάδισμα στον εν λόγω διαγωνισμό σε σχέση με την SBM, ωστόσο καμία τελική απόφαση δεν έχει παρθεί, όπως αναφέρει η Upstream.

Η μονάδα FPSO που αρχικά χρησιμοποιούνταν στη βιομηχανία εξόρυξης πετρελαίου μεταφέρεται σταδιακά και στις διαδικασίες του φυσικού αερίου. Πάντως, οι πλωτές μονάδες, όπως οι προαναφερθείσες, είναι ιδιαίτερα ακριβές έως και ασύμφορες. Η χρησιμοποίησή τους γίνεται σε δύσκολες περιπτώσεις ή σε περιστάσεις μεγάλης ανάγκης. Κύριος λόγος που η Noble προχωρεί στην αγορά FPSO, είναι η στάση του Ισραήλ, το οποίο δεν έχει ακόμη ξεκαθαρίσει πλήρως τις προθέσεις του αναφορικά με τις ποσότητες φυσικού αερίου που διαθέτει.

Η μονάδα που θα αγοράσει η Noble θα έχει καθοριστικό ρόλο στην εκμετάλλευση 19 τρισ. κυβικών ποδών από το κοίτασμα του Λεβιάθαν, με ημερήσια παραγωγική δυνατότητα 1,6 δισ. κυβικών ποδών.

Στην πορεία για τη στεριά το φυσικό αέριο από το Λεβιάθαν θα περνά μέσω αγωγού σε σταθερή πλατφόρμα στα πιο ρηχά νερά της πόλης της Χάιφα στο Ισραήλ. Ωστόσο, αυτός καθώς και άλλοι ανάλογοι σχεδιασμοί αναφορικά με το φυσικό αέριο του Ισραήλ καθορίζονται από τις αποφάσεις των πολιτικών της γειτονικής χώρας, οι οποίοι εμφανίζονται μάλλον δυστακτικοί ή ανάποφάσιστοι.

Ερωτήματα που καλούνται να απαντήσουν αφορούν πού θα καταλήξει τελικώς ο αγωγός από την ΑΟΖ, σε ποιους θα πωληθεί το φυσικό αέριο και πού θα υλοποιείται η επεξεργασία του φυσικού αερίου. Για παράδειγμα αποτελεί κομβικής σημασίας ερώτημα για το Ισραήλ, εάν θα δημιουργήσει πλωτή ή χερσαία μονάδα επεξεργασίας του φυσικού αερίου. Το ρεπορτάζ της εφημερίδας Upstream τονίζει πως η μία επιλογή που υπάρχει αφορά στη δημιουργία χερσαίας μονάδας επεξεργασίας φυσικού αερίου περίπου 10 χιλιόμετρα μακριά από τη Λωρίδα της Γάζας. Μάλιστα όπως αναφέρει ενημερωμένη πηγή στην εφημερίδα: «Το ζήτημα στο Ισραήλ έχει αρχίσει να περιπλέκεται. Ωστόσο, η εγγύτητα της περιοχής σε μια ταραχώδη ζώνη μάλλον καθιστά επικίνδυνο το εγχείρημα. Την ίδια ώρα μια εταιρεία που ενεπλάκη και έπειτα αποχώρησε από τους σχεδιασμούς, η Woodside, έπαιξε τον δικό της ρόλο στις διαμορφούμενες εξελίξεις στο Ισραήλ».

«Η Woodside θα έφερνε αφενός τεχνογνωσία και αφετέρου ελπίδες για λήψη αποφάσεων για απαραίτητες επενδύσεις συμπεριλαμβανομένου και του τερματικού υγροποίησης φυσικού αερίου», τονίζει το ρεπορτάζ της Upstream.

Η αποχώρηση της Woodside από το Ισραήλ στις αρχές του 2014 αφήνει τη Noble αποκλειστικά με ισραηλινούς συνεργάτες στη χώρα, που είναι η Delek Drilling, η Avner Oil Exploration και η Ratio Oil Exploration.

Κύπρος: Αγωγός ή FPSO

Πάντως, οι εξελίξεις στο γειτονικό Ισραήλ επηρεάζουν και την Κύπρο, αφενός λόγω εγγύτητας και αφετέρου λόγω της εταιρείας Noble, με την οποία συνεργάζονται και οι δύο χώρες.

Η εταιρεία που κατέχει τα δικαιώματα ερευνών και εκμετάλλευσης του οικοπέδου 12, φαίνεται πως είναι αποφασισμένη να δώσει πνοή στους ενεργειακούς σχεδιασμούς της περιοχής, παρά την αργοπορία στη λήψη αποφάσεων τόσο από πλευράς Ισραήλ λόγω πολιτικής αναβλητικότητας, όσο και από πλευράς Κύπρου, λόγω μη επαρκών –μέχρι στιγμής- ποσοτήτων φυσικού αερίου.

Πάντως, η λύση του FPSO που προωθεί η Noble για το οικόπεδο Λεβιάθαν του Ισραήλ πιθανόν να δώσει τη λύση μεταφοράς του φυσικού αερίου από την κυπριακή ΑΟΖ προς τη στεριά της Κύπρου. Μεγάλο πρόβλημα της περιοχής αποτελούν τα βαθιά νερά, που δυσχεραίνουν τη μεταφορά φυσικού αερίου μέσω αγωγού. Οι πλωτές μονάδες, αν και δαπανηρές, αποτελούν πιο πρακτική λύση για τα βαθιά νερά της Μεσογείου.

Συνεργασία Ισραήλ-Κύπρου

Την ίδια ώρα η όποια πιθανή συνεργασία μεταξύ Κύπρου και Ισραήλ μόνο θετικά μπορεί να προσφέρει στις δύο πλευρές. Τόσο το κόστος το οποίο μπορεί να μοιραστεί για επενδύσεις όπως το τερματικό υγροποίησης, όσο και οι συνέργειες σε επίπεδο κοινών, ενεργειακών σχεδιασμών αποτελούν κοινό μέλλον για Κύπρο και Ισραήλ, όπως αναφέρουν ειδικοί επί θεμάτων ενέργειας. Παρόλα αυτά τα δύο κράτη δεν εξετάζουν αυτή τη στιγμή τέτοιας φύσης ζητήματα.

Ο ρόλος της Noble

Η αμερικανική εταιρεία ερευνών, εξόρυξης και εμπορίας φυσικού αερίου αποτελεί το συνδετικό κρίκο μεταξύ Κύπρου και Ισραήλ και δύναται να διαδραματίσει το δικό της ρόλο στους υπό διαμόρφωση ενεργειακούς σχεδιασμούς της ευρύτερης περιοχής.

Το εγγύς μέλλον θα ξεκαθαρίσει πολλά ζητήματα που αφορούν την αξιοποίηση του φυσικού αερίου τόσο από την Κύπρο όσο και από το Ισραήλ, σε επίπεδο επεξεργασίας (υγροποίησης ή συμπίεσης) αλλά και σε επίπεδο εμπορικής και εσωτερικής εκμετάλλευσης.

SOURCE

Monday, June 23, 2014

Cyprus' Minister of Energy Meets with Commissioner Oettinger During Brussels Visit | Natural Gas Europe

June 24th, 2014 

Cyprus' Minister of Energy Meets with Commissioner Oettinger During Brussels Visit

Natural Gas Europe had the pleasure to meet with the Minister of Energy of Cyprus Yiorgos Lakkotrypis in his office in Nicosia to discuss the natural gas developments in Cyprus, Cyprus' export options, its collaboration with its Eastern Mediterranean neighbours on energy matters, how the gas reserves can affect diplomacy and Cyprus' eventual contribution in strengthening Europe's energy security. This article is the first of a series of articles related to this meeting.
The minister of energy of the Republic of Cyprus Yiorgos Lakkotrypis travelled to Brussels on Monday 23 June to meet with the European Commissioner for energy Günther Oettinger. The purpose of the visit is to discuss Cyprus’ natural gas reserves and the potential contribution of Cyprus to Europe’s energy security.
In his office in Nicosia prior to departing for Brussels, Lakkotrypis told Natural Gas Europe that Cyprus is key to the EU for it can constitute an alternative source of natural gas to the EU and an alternative route.

When asked if it were a realistic assumption to suggest that Cypriot gas could be part of the solution to the EU, Lakkotrypis answered affirmatively. He insisted that the Eastern Mediterranean as a whole could play an important role in diversifying Europe’s sources of energy and energy routes.

Lakkotrypis added that while it is a fair argument that the Eastern Mediterranean’s current reserves are not sufficient to satisfy Europe’s natural gas needs, tapping into the region’s reserves in the future would allow Europe’s to move closer to its energy strategy. The EU has been committed for the past decade to diversifying its sources of energy. The Ukraine crisis has reminded Europe of the pressing need to take serious action towards strengthening its energy security and loosening Russia’s grip over its market.

Natural Gas Europe
asked Lakkotrypis if Cyprus will enter the export market in time to benefit from attractive gas prices before the entry of new players affects supply and pushes prices down. The minister answered that the Government of Cyprus has studied several scenarios involving LNG and pipeline options and has allocated a deadline for each possibility. ENI and Kogas will start drilling offshore Cyprus by the end of the summer. The results of their exploration activities will be key in determining the fate of the onshore LNG terminal in Vassilikos.

Lakkotrypis commented on the eventual collaboration between Israel, Cyprus and Turkey by saying that any sort of collaboration with Turkey has one prerequisite: a fair and sustainable solution to the Cyprus problem. When asked if Turkey can realise its energy hub ambition, Lakkotrypis added that Europe will most probably avoid making of Turkey another Ukraine and will seek to diversify its routes.


Karen Ayat is an analyst focused on energy geopolitics.  Email Karen on ayat_karen@hotmail.com. Follow her on Twitter: @karenayat


Link to source: http://www.naturalgaseurope.com/cypriot-minister-yiorgos-lakkotrypis-commissioner-oettinger?utm_content=buffer7693c&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

London event to showcase hydrocarbon blocks | Kathimerini

London event to showcase hydrocarbon blocks

The seismic data collected by the Nordic Explorer, the oceanographic research vessel of Norwegian company PGS, in the Ionian Sea comprised the basis for the plans regarding exploration of the region’s hydrocarbon reserves.
By Chryssa Liaggou

In cooperation with the Greek Embassy in London and the ESCP Europe Business School’s Research Center for Energy Management (RCEM), the government in Athens is preparing a major showcase event in the British capital next week to present the blocks to be conceded for hydrocarbon exploration in the Ionian Sea and south of Crete.

Invitations have been sent to over 500 representatives of oil companies, embassies and energy groups for the “Greece Offshore Licensing Round 2014” event on July 1 and 2, organized by Greece’s Environment and Energy Ministry with the support by the Greek Energy Forum, Natural Gas Europe and the ESCP Europe Business School. Up to a few days ago over 100 had already expressed an interest in attending, a figure which is expected to increase further by the deadline at the end of the month.

At the event Energy Minister Yiannis Maniatis, along with the ministry’s team for the ambitious project headed by Sofia Stamataki, the president of Hellenic Hydrocarbon Resources Management (EDEY), will present the first concessions for survey as well as utilization in Greece since 1996.

Sources have told Kathimerini that this first major round of concessions will include between 12 and 15 blocks. They are based on the interpretation of the seismic data collected by Norwegian company PGS Geo-Services. PGS has confirmed the original estimates concerning some interesting reserves in the Ionian Sea. The blocks are now ready on the map and according to the same sources have been formally recognized by a meeting on Wednesday between Maniatis and Deputy Prime Minister and Foreign Minister Evangelos Venizelos.

Some of the officials involved in the block-defining project described the process of drawing up the final details as particularly difficult as it took 50 parameters into account, the most important being the sea depth and the environmental conditions based on a strategic study by the Center for Planning and Economic Research (KEPE). This was necessary to avoid any environmentally sensitive areas as well as to adhere to agreements with neighboring countries such as that between Greece and Italy in 1977 concerning the two countries’ territorial waters in the Ionian.

A key parameter involved avoiding the creation particularly attractive blocks for concession in an effort to mix areas of high expectations with some of those seen to have a lower potential, for fear of having any remain unclaimed.

Another concern in securing investment interest was whether the barrier should be placed high, by setting criteria favoring oil industry giants, or allow small or medium-sized companies to participate in the tender too. The former idea was based on the fact that the seismic data have already been purchased by France’s Total and two more major companies, while there have also been repeated expressions of interest from firms such as ConocoPhillips, Statoil, BP, Shell, ExxonMobil, Chevron, Noble and others. According to the first idea, the tender should include a criterion on proven experience in a strong financial report. The other, however, means that if the major companies choose not to enter the process, Athens would have already have left out the smaller firms.

The winning idea will become clear once the terms of the tender are published in the Official Journal of the European Union, right after the presentation in London next month.



ekathimerini.com , Monday June 23, 2014 (22:23)  



Link to source: http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_23/06/2014_540789