Friday, December 19, 2014

Cyprus says initial Eni-Kogas offshore drilling finds no natural gas, more drilling to follow | Associated Press / Fox News

Cyprus says initial Eni-Kogas offshore drilling finds no natural gas, more drilling to follow

Cyprus' Energy Ministry says initial exploratory drilling by an Italian-Korean consortium off Cyprus' southern coast has failed to find significant quantities of gas.
The ministry said Friday that the SAIPEM 10000 rig belonging to the Eni-Kogas consortium drilled to a depth of 5,800 meters (19,000 feet) without success.
The ministry said new drilling will begin elsewhere inside an area, or block, where Cyprus has licensed the consortium to search for fossil fuels.
The consortium had identified six potential gas fields inside the block.
Cyprus has also licensed France's Total and U.S. firm Noble Energy to search for offshore gas.
Noble and Israel's Delek and Avner are partners in a Cypriot gas field that's estimated to contain between 3.6 trillion and 6 trillion cubic feet of gas.


Link to source: http://www.foxnews.com/world/2014/12/19/cyprus-says-initial-eni-kogas-offshore-drilling-finds-no-natural-gas-more/

Thursday, December 18, 2014

Israel makes new discovery off its coast | NATURAL GAS EUROPE


December 18th, 2014, 12:15am

Israel made another discovery off its coast. The newly discovered field, Royee, may hold up to 3.2 Tcf of natural gas according to a statement made by the Israeli partners in the field Ratio and Israel Opportunity who hold respectively 70%, and 10% stakes. The remaining 20% of the field are held by Edison. Royee is located about 150 kilometers offshore Israel close to its maritime borders with Cyprus and Egypt. The field’s size is yet to be confirmed, but current estimates suggest it is the third largest field discovered to date in Israeli waters after the Leviathan discovered by Noble Energy in 2010 and holding up to 22 Tcf of natural gas and the Tamar field discovered by Noble Energy in 2009 and holding up to 11 Tcf of natural gas. An exploration well is expected to begin in the year to come and will cost around USD 100 million.

Sunday, December 14, 2014

CYPRUS TO SUPPLY EGYPT WITH NATURAL GAS | Natural Gas Europe


December 14th, 2014

The recent discoveries of natural gas in the Levant basin, particularly in Israel and Cyprus, have triggered a series of discussions around the optimal ways of exploiting the hydrocarbon wealth of the Eastern Mediterranean. The complicated geopolitical landscape in this part of the world poses significant challenges and it is no certainty that the newly found wealth will be a catalyst for peace and prosperity. National consumption will be satisfied for decades to come, and the excess will also likely turn the Eastern Mediterranean countries into net natural gas exporters. Israel and Cyprus are currently studying several export options, including the East Med Pipeline project pitched to the EU and the LNG terminal in Vassilikos Cyprus which commercial viability depends on further exploratory successes in Cyprus’ Exclusive Economic Zones.
Regional deals between immediate neighbours are also shaping with both Israel and Cyprus having an interest in selling gas to their thirsty neighbours. Cyprus and Egypt are engaged in talks to supply Egypt’s LNG plant at the Damietta idle with natural gas from the Aphrodite field in Block 12 offshore Cyprus. Cyprus’ Aphrodite field was discovered in Cyprus’ Exclusive Economic Zone (EEZ) by Noble Energy in 2001 and is estimated to hold between 3.6 to 6 tcf of natural gas, with a mean of 5 tcf.
Egypt’s petroleum minister expressed to his Cypriot counterpart that Egypt will absorb as much gas as Cyprus can provide. Egypt is currently undergoing a severe energy crisis due to its growing consumption and a flat production. Cyprus is studying the optimal solution to export natural gas to Egypt, including a pipeline scenario. Cyprus’ Energy Minister Yiorgos Lakkotrypis also visited Jordan where he expressed to Jordanians officials the island’s intent to export gas to Jordan. The Kingdom has suffered tremendously from the disruption in the flow of Egyptian gas and is looking for a cheap and secure source of natural gas, including from Cyprus and Israel.
Israel is also eyeing Egypt and is exploring the possibility of using Egypt’s unused export facilities to access far-reaching export markets. The Tamar and Leviathan partners signed MOUs to export 7 bcm of natural gas to respectively Union Fenosa’s liquefying plant at Damietta and BG’s plant in Sinai.
Egypt has an increasingly important role in shaping the energy landscape of the region. A recent meeting between the ministers Lakkotrypis of Cyprus, Maniatis of Greece and Ismail of Egypt has reiterated Egypt’s role as a customer and a potential gas route for Israeli and Cypriot natural gas. The desire to build a close cooperation between the three countries was also the spirit of the Cairo Declaration signed following the meeting between Abdel-Fattah El Sisi, the President of the Arab Republic of Egypt, Nikos Anastasiades, the President of the Republic of Cyprus, and Antonis Samaras, the Prime Minister of the Hellenic Republic.
Despite the efforts to encourage regional collaboration, some political hurdles remain. A solution for divided Cyprus is yet to be found, and the discovery of natural gas off the island’s coast is not making the task any easier. Recent tensions between Cyprus and Turkey following Turkey’s decision to send an exploratory vessel offshore the island have led to skepticism around the possibility of a settlement. Regional deals between Israel and its Arab neighbours will also largely depend on the level of political sensitivities. Neighbouring Lebanon has delayed the launch of its first licensing round due to its political vacuum and a maritime border dispute between Lebanon and Israel is still pending. The hydrocarbon potential of the region is undeniable; but so are its complications.
Karen Ayat is an analyst and Associate Partner at Natural Gas Europe focused on energy geopolitics. She reads International Relations and Contemporary War at King's College London focusing on Natural Resources and Conflict. She holds an LLM in Commercial Law from City University London and a Bachelor of Laws from Université Saint Joseph in Beirut. Email Karen karen@minoils.com Follow her on Twitter: @karenayat

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