Friday, November 13, 2015

Cyprus-Israel-Greece energy meeting in January | in-business.com (Cyprus Weekly)


13/11/2015

A tripartite meeting between Cyprus, Israel and Greece to be held in Nicosia towards the end of January will again focus on energy cooperation.

This is what informed sources from Tel Aviv said on Friday after talks between Israeli Prime Minister Benjamin Netanyahu and visiting President Nicos Anastasiades.

Just before the high-level meeting, Netanyahu welcomed Anastasiades saying his country and Cyprus are very close in geography, in values, in interests and in spirit.

Netanyahu also said that he wanted to discuss with him the whole range of their relations.

“Everything. Trade, Energy, Tourism, visits of heads of states….Cyprus and Israel are sufficiently close and we can visit each other again and again. I am happy to see you again in a spirit of real friendship,” he also said.

Thursday, November 12, 2015

Eni in US$2 billion Egypt investment | OE Offshore Engineer

Eni in US$2 billion Egypt investment

Written by   Thursday, 12 November 2015 09:27
Italian giant Eni and the Egyptian Government entered into an agreement for three amendments for the IEOC concessions, both onshore and offshore Egypt that will see the Italian giant make an additional investment of more than US$2 billion in the next four years.
Image from ENI

The government granted Eni amendments for two offshore areas: North Port Said in the Mediterranean, and Baltim in partnership with BP, offshore Nile Delta. Eni also signed a new concession agreement with France’s ENGIE for Ashrafi in the Gulf of Suez.
“The agreements will lead to investment for more than $2 billion for the realization of projects to be implemented in the next four years and will contribute effectively to the increasing energy needs of Egyptian local demand,” Eni said in a statement. “Furthermore, they represent the positive conclusion of a first set of agreements that were defined in the heads of agreement (HoA) signed during the Egypt Economic Development Conference in Sharm El Sheikh last March.”
Three other agreements that were included in the HoA have been finalized, with approvals expected before year-end.
According to Eni, some of the activities envisaged are currently in the execution phase and one additional well in Baltim concession is already in production.
In October, Eni gained two licenses in the 2015 EGAS bid round, North El Hammad and North Ras El Esh, which are located in in the shallow waters of the Mediterranean Sea, facing the Nile Delta and located southwest of the Temsah area and west of the Baltim area, where the Italian giant operates existing fields and production facilities.
In August, Eni discovered Egypt’s largest gas field to date, the Zohr field, which could hold up to 30 Tcf of lean gas in place, or 5.5 billion boe, over approximately 100sq km.
The Zohr 1X NFW discovery well, located in the Shorouk Block (Block 9) at 4757ft (1450m) water depth, was drilled to a total depth of about 13,553ft (4131m) and hit 2067ft (630m) of hydrocarbon column in a carbonate sequence of Miocene age with excellent reservoir characteristics. Zohr’s structure has also a deeper Cretaceous upside that will be targeted in the future with a dedicated well, Eni said.
According to IHS Energy, Zohr has the potential to supply much of Egypt’s increasing domestic gas demand and will likely have an impact on regional gas commercialization plans. In addition, the technical, commercial, and strategic implications of Zohr is estimated to impact Egypt, the region and the industry, where Egypt’s access to monetization infrastructure will likely put it ahead of rivals if commercial terms are right.
In June, the Egyptian General Petroleum Corp. (EGPC) and Eni entered into a US$2 billion deal for exploration and development activities offshore Egypt.

Source: http://www.oedigital.com/component/k2/item/10850-eni-in-us-2-billion-egypt-investment

Anastasiades, Netanyahu to discuss gas sticking point | Cyprus Mail


NOVEMBER 12, 2015
Angelos Anastasiou

President Nicos Anastasiades’ visit to Israel on Friday, where he will meet with Prime Minister Benjamin Netanyahu, will focus on making progress in a long-standing effort to finalise a natural gas unitisation agreement between the two countries, which has been sought since 2010, Israeli media reported.

The Aphrodite gas reserve, located in block 12 of Cyprus exclusive economic zone (EEZ), extends slightly – by 1 per cent – into the Israeli EEZ, according to reports, and although Israel has no interest in exploiting its stake as it is financially unviable, a unitisation agreement is required to delineate the reserve’s monetisation terms.

According to Israeli online portal Globes, Israel’s view is that the agreement can be finalised when political obstacles to full exploitation of the region’s natural reserves have been overcome, with Cyprus at the epicentre of the strategy to transport gas to Turkey, and from there to Europe.

“The unitisation agreement between Israel and Cyprus will be signed if the internal political dispute in Cyprus is solved, and if gas from the countries can be exported to Turkey,” Institute for National Security Studies senior fellow and former Israeli ambassador to Jordan and the European Union Dr Oded Eran was quoted as saying by Globes.

Wednesday, November 11, 2015

An energy window of opportunity | Jerusalem Post

Photo credit: MARC ISRAEL SELLEM / THE JERUSALEM POST
How Israel’s natural gas finds can strengthen commercial and economic ties and bring peace between nations in the Middle East.
The story of Israel’s natural gas industry begins in the late 1990s. Dr. Eli Rosenberg, a geologist, identified the potential existence of a gas field some 30 km. west of Ashkelon.

At the end of 1999 the Noa-1 exploratory drilling site penetrated a sand layer rich in gas, opening up a new era in cultivating Israel’s natural resources.

Not that there weren’t previous attempts to do so.

SOCAR looks to buy stakes in Egyptian refineries | Hydrocarbon Processing

SOCAR looks to buy stakes in Egyptian refineries

"We would like to widen our activities in Egypt, particularly to buy stakes in refineries there and participate in Egypt's oil refining," SOCAR's president Rovnag Abdullayev told reporters.


Azerbaijan's state-run energy company SOCAR is interested in buying stakes in refineries in Egypt, according to a new report this week from Reuters.

"We would like to widen our activities in Egypt, particularly to buy stakes in refineries there and participate in Egypt's oil refining," SOCAR's president Rovnag Abdullayev told

reporters.

Abdullayev made his comments after his return from a recent trip to Egypt, where he discussed energy sector cooperation with Egyptian officials.

Azerbaijan is currently exporting about 1 MMtpy of oil and refined products to Egypt.

Source: http://www.hydrocarbonprocessing.com/Article/3505695/Latest-News/SOCAR-looks-to-buy-stakes-in-Egyptian-refineries.html

Anastasiades, Netanyahu To Discuss Unitization Agreement - NATURAL GAS EUROPE



November 11th, 2015

Cypriot President Nicos Anastasiades is set to arrive in Israel on Friday to meet with Israeli Prime Minister Benjamin Netanyahu to discuss the unitization agreement between the two countries,Globes business newspaper reported.

The two leaders met just a few weeks ago in Cyprus and though details of their meeting was not made public, it can be assumed it was centred around natural gas. This time however discussions are of a more urgent nature and likely part of Mr. Netanyahu's attempt to secure the approval of Israel's regulatory framework for its natural gas industry.

Over the coming weeks Mr. Netanyahu will have to convince Parliament's Economic Committee of the necessity of the regulatory framework, though he does not need its approval in order to sign it himself in his capacity as Minister of Economy.

Israel and Cyprus have yet to sign a unitization agreement that will resolve the differences and disagreements between the two countries, mainly concerning the distribution of natural gas deposits in the Aphrodite field in the Cypriot EEZ. According to assessments, approximately 1% of the natural gas from the Aphrodite field is in Israeli territorial waters. Hence the controversy over gas distribution.

EGYPT’S IMPORT SOLUTION: FSRUs | Egypt Oil & Gas

EGYPT’S IMPORT SOLUTION: FSRUs

Wednesday, 11th November 2015
By Nicholas Linn

The age of natural gas has come. Once considered a useless byproduct of drilling, natural gas was burned off during the course of oil production. But as oil has become scarcer and more difficult to access, natural gas has skyrocketed in value. Prized for its easy extraction, simple carbon structure, and clean-burning emissions, natural gas has become a natural choice.
Within Egypt, production of the fuel has increased dramatically over the past two decades. Starting in the mid-1990’s, the Egyptian government increasingly prioritized extraction of the gas, putting it to use as a way to generate electricity. Concessions in the Western Desert, Gulf of Suez, and Nile Delta were all developed to produce natural gas.
Egypt hasn’t been alone in this phenomenon; natural gas production is expected to increase globally by about 2% per year, with major markets demanding ever more of the stuff, especially the rapidly growing markets in East Asia. With many of those markets lacking the reserves necessary to supply their growth, LNG is the fastest growing subset of the behemoth industry.
The investment bank Goldman Sach’s states that the LNG industry is expected to grow by at least 5% per year. The report also underlined the importance of LNG as a commodity in its own right. While current prices for LNG are based solely on the price for oil—typically with a 6-9 month delay—the Goldman expects the newly-found importance to translate into its own commodity pricing.
Oil majors have seen the writing on the natural gas wall for years, in a recent press release BP CEO Bob Dudley noted the increasing importance of natural gas “Fossil fuels are projected to provide the majority of the world’s energy needs, meeting two-thirds of the increase in energy demand out to 2035. However, the mix will shift. Renewables and unconventional fossil fuels will take a larger share, along with gas, which is set to be the fastest-growing fossil fuel,” he said.
“[Gas] will meet as much of the increase in demand as coal and oil combined,” Dudley finished.
Egypt Growth
At approximately 85 million strong, Egypt’s population is massive, the third largest in Africa. Coupled with a birth rate of 1.6%, the current and future energy demands of the nation are massive. During the population boom of the last 20 years, the government ramped up construction of natural gas powered electricity stations. As Egyptian natural gas reserves were plentiful—around 70 tcf—and largely untapped, the arrangement was a cheap and efficient way to supply electricity. However, many of the fields that once supplied unlimited amounts of natural gas have since matured, with production falling off dramatically, especially in the tapped out fields in the Western Desert and Gulf of Suez.
With production dropping off and domestic demand rising, Egypt has been forced to end its once thriving gas exports. In 2012 Egypt stopped exporting gas to its neighbor Jordan, even though it was contracted to supply the nation with up to 240 bcm/d through 2019. Exports resumed briefly a year later, but with production continuing to decline, the country has quickly reversed its role as an energy exporter to become that of an importer.
There are two options for importing natural gas. Traditionally pipelines are built between countries, with a receiving terminal built at the point where Egypt could begin pumping imports directly into the national grid. However, the rise of LNG in recent years has overshadowed traditional pipeline networks. LNG changes the finance requirements of importing natural gas, as it has no need of expensive pipelines and no construction downtime. Importing LNG shipments are relatively easy, only requiring a way to turn the LNG back into a gas.
A Floating Storage Regasification Unit (FSRU) is the makes the importing and processing of LNG even more accessible to countries not accustomed to importing. FSRUs are generally considered a more attractive alternative to conventional onshore facilities for their lower up-front cost and the ability to bring capabilities online virtually immediately. The potential pitfall of course, is the significantly more expensive long-term cost. However, as former petroleum minister Sherif Ismail has stated publically, Egypt hopes to be weaned off of LNG imports by 2020.
This goal seems unlikely to be met, but Ismail has hedged his bets by adding the caveat that discontinuing LNG imports would happen only if there is no need for additional demand. The American Security project has deemed it “a goal unlikely to be achieved.”
The port of Ain Sokhna was selected for docking the FSRU, an ideal location both for its proximity to the Nile Delta area—including Cairo—and for its location directly next to major energy infrastructure.
The FSRU Choice
A bid round for the first FSRU in Egypt was held in early 2014. The market is quite a new one, and the first auction showed just how nascent the process can be. The Norwegian company Hoegh LNG won the tender, perhaps only as a result of the submitted price per Btu. The company proposed a regasification price of $.31 per Btu, significantly cheaper than other companies. A strong competitor was Qalaa Holdings. However, Qalaa’s price per Btu was originally a full $1. Even after the Egyptian government asked the firm to lower its price, the cost quoted was still higher than Hoegh’s, at $.45 per Btu. The Norwegian firm won out.
“We are very proud to have commenced commercial operations on our third FSRU in the last six months, which shows the strength and depth of our technical and operational expertise,” said Sveinung J.S. Støhle, President and CEO of Hoegh LNG. ”In addition, our project with EGAS is a prime example of the speed and flexibility an FSRU solution offers for importing LNG; the contract was signed only five months before commercial operations commenced.”
500m of gas is being processed daily by the Hough LNG FSRU. Then-EGPC head Tarek El Molla stated in March that the budget for the regasification ships would be approximately $60m a year, or $5m a month.
After commencing operation of the Hoegh ship, EGAS and the Petroleum Ministry decided that at least one additional FSRU would be needed. Another tender for the FSRU was held in mid-2015. The auction however, failed to attract bidders due to the complications of docking a second FSRU in the already-crowded port of Ain Sokhna.
“There is limited access to the industrial area now. There is only one place available and the first terminal is already there. It takes quite some time to access Ain Sokhna now as the port is too congested,” EGAS head Abdel Badie stated. “Technical difficulties will handicap [finding a port for a second terminal].”
While the possibilities of docking the vessel elsewhere were discussed—focusing particularly on the port of Abadiya in the Sinai—officials eventually decided that it would be wisest to try and accommodate the vessel in Ain Sokhna. Time is of the essence for the Egyptian state, and changing the location of the FSRU would be costly in both money and (especially) time.
Power outages have been largely tamed for ordinary citizens, but the gas shortage is having an outsized effect on industries such as cement, steel, and fertilizer production. Factories in these sectors have been working below capacity for quite some time, with some factories idled completely. Business owners have been hurting, and they have aggressively lobbied the government for more consistent access to natural gas. Immediately getting more gas into the national grid is a priority for the Sisi administration.
In August of 2015, EGAS announced that the carrier BW Gas would be providing a second FSRU to import LNG. The vessel would in fact join the first one in the port of Ain Sokhna. It is reported to have a capacity of 750 mcf/d, over than 30% more than the Hoegh unit. When announced, it was expected to be delivered by the end of September. However, the ship actually arrived in October. Reuters and other local news agencies have reported that the contract will run for five years. Norway-based BW Gas is a very large force in the international gas shipment industry, with a fleet of over 150 vessels and a history dating back to the 1950’s.
Egypt is reported to be considering another FSRU tender for the beginning of 2016, but this has yet to be stated publically. The head of EGAS, Abdel Badie, has said that the state will not pursue a fourth FSRU.
LNG Imports
The first LNG tender was to provide 75 LNG cargoes and was worth $2.2b. It was announced by EGAS in October 2014 and awarded to four firms in January. The deal cemented the delivery of at least four shipments per month to Ain Sokhna.
A month later, EGAS revealed that nearly half of the shipments would be provided by the Dutch trading conglomerate Trafigura. The company has agreed to deliver 33 cargoes from 2015 through 2016.
The other firms confirmed to have won contracts include Singapore’s Nobel Group—with 40 cargoes, BP with 16, and Netherland’s based energy firm Vitol.
There has been one additional LNG tender since the original in October 2014, the results of which have yet to be made public. The government has announced that it signed contracts for 55 cargoes of LNG during the auction, and that 7 major international firms are participating to supply those shipments. In addition to the companies listed above, the EGPC noted that Gas Natural, Shell, and PetroChina all have contracted to deliver LNG shipments.
Not all deals are negotiated solely through bid rounds however, some of them are business arrangements that occur outside that process. Qatar gave Egypt 5 shipments of LNG outright during the turmoil of 2013. That has proven especially true to nationalized firms such as Gazprom, which negotiated with EGAS for many months. Eventually the state-backed firm agreed to provide 35 cargoes, more than almost any other supplier. Another other major firm confirmed to be supplying Egypt is Algeria’s Sonatrach—with at least 6 cargoes expected in 2015, and an additional 6 currently under negotiatation for 2016.
Domestic Production
Egypt has recently made a series of high profile gas discoveries, most notably BP’s North Alexandria concession and Eni’s Zohr discovery in the Shorouk block. These have added greatly to the national reserves of natural gas, and in the future should help alleviate the need for LNG imports.
This is certainly the hope and plan of the Egyptian government, which is continuing plans to only import with FSRUs in the immediate future. Whether these domestic fields will actually live up to their outsized expectations is unclear, but even if they do, they’ll be unlikely to sustain the rapidly growing, energy hungry Egyptian population. It seems that FSRUs are here to stay.

Source: http://www.egyptoil-gas.com/features/egypts-import-solution-fsrus/

Tuesday, November 10, 2015

Israeli Expert: Additional Giant Gas Fields Offshore Israel Not Likely | Natural Gas Europe

image credit: haaretz.com
image credit: haaretz.com
November 10th, 2015

ISRAELI EXPERT: ADDITIONAL GIANT GAS FIELDS OFFSHORE ISRAEL NOT LIKELY

Tamar and Leviathan gas fields are probably the two first and last giant natural gas discoveries offshore Israel. This is the opinion of Yossi Langotsky, a prominent Israeli oil geologist who is regarded as the 'Father of deep water natural gas discoveries offshore Israel'.
In an interview with Natural Gas Europe, Mr. Langotsky (81), who for more than 5 decades was involved in oil and gas exploration in Israel and elsewhere, said: "The prospects of discovering another either Tamar or Leviathan in the Israeli waters is unfortunately very low. Future gas discoveries in the Israeli Mediterranean will be mainly in stratigraphic traps, whose potential rewards will be much smaller than the reserves which were found in Tamar and Leviathan Structural traps. The possible future stratigraphic traps capacity might be 100-400 bcm altogether and their discovery will be quite risky." 
The Tamar gas field, the first giant gas discovery offshore Israel is named after his granddaughter, and with a bit more luck Mr. Langotski would have been worth today about hundred million dollars. Following on the heels of Tamar giant discovery, in early 2009, Leviathan super giant field was discovered in 2010. Although Mr. Langotsky wasn’t involved in that discovery, his pioneering works and breakthrough ideas led to Tamar's discovery and to all other Structural Traps discoveries (1000 bcm). However Mr Langotsky doesn’t foresee additional giant discoveries in the Israeli waters. 
Yossi Langotsky
According to Mr. Langotsky, who for decades was trying to lure international oil exploration companies to participate in oil and gas exploration in Israel, those companies avoided Israel, mainly because of geopolitical reasons. The only company that he was successful in bringing to Israel's offshore waters was British Gas, which successfully applied for the first time various sophisticated subsurface techniques (Basin analysis, 3-D etc.) which led to the breakthrough discovery of the Tamar giant gas field.
Nowadays Mr. Langotsky is a critic of Israel's government policy regarding the future of the offshore gas discoveries. His main concern is regarding the decision to keep only 50% of Israel's proven gas reserves for domestic purposes, which will assure only but twenty years of Israel future gas consumption. All other reserves will be allowed, according to the Israeli government decision, to be exported out of the country. "This is a very irresponsible decision," says Mr. Langotsky. 
Mr. Langotsky fully supports John Hofemiester, the former President of Royal Dutch Shell, who has recommended the Israeli government "to prevent totally any gas export," in order to assure a 50 year period of energy security to the state of Israel. "Energy security is much more important than making money, especially to Israel whose future unknown risks should be taken seriously."
Another security issue that disturbs Mr. Langotsky is that until now the Israeli government was not decisive enough to force Tamar owners to install a second delivering pipeline to Isreali shores as a redundancy to the only existing pipeline.
Ya'acov Zalel


 Natural Gas Europe welcomes all viewpoints. Should you wish to provide an alternative perspective on the above article, please contact editor@minoils.com  

Source: http://www.naturalgaseurope.com/yossi-langotsky-low-chance-for-more-future-giant-gas-fields-offshore-israel-26256

Monday, November 9, 2015

Cypriot president praises ties on eve of Jordan visit | The Jordan Times

Cypriot president praises ties on eve of Jordan visit

By Samir Barhoum - Nov 09,2015 - Last updated at Nov 09,2015

NICOSIA — Cypriot President Nicos Anastasiades commended the good ties between his country and Jordan and said his visit to the Kingdom, which is scheduled to start today, will look into means of enhancing them.
In an interview with The Jordan Times and Al Rai in the Cypriot capital last week, the president said his talks in Amman with His Majesty King Abdullah will tackle regional developments and issues of mutual concern
(see text of interview).
Nicos Anastasiades hosted by King of Jordan Abdullah II
The president voiced hope that the opening of a Cypriot embassy in Amman in 2009 and the opening of a Jordanian embassy in Nicosia “in the near future” would help advance bilateral cooperation, noting that trade exchange between the two countries was on the rise, with a 40 per cent increase registered in 2015 compared to last year.
“But there is still more to be done.”
This is the reason, Anastasiades said, that he is bringing with him to Amman a business delegation to explore new opportunities of cooperation.
“I want to assure you that Jordan has a special place both in our regional priorities and in our broader foreign policy, and we will continue advancing our mutually beneficial relationship, to the benefit of our peoples,” noted Anastasiades, who emphasised that cooperation between the two “moderate” countries duing these tough regional times has become a must.
“Taking into consideration the current situation in the wider Middle East and the developments in the Arab world, the cooperation between two moderate countries like ours becomes even more important and imperative,” he said. 
“In a broader context, our two countries share the common objective of creating an environment conducive to lasting peace, stability and development in the region and beyond, in which Jordan is a factor of stability and has an essential role to play.”
Anastasiades praised Jordan’s role in dealing with the Syrian refugee problem and hosting around 1.5 million Syrians despite the economic burdens and the challenges it is facing.
He said his talks will also delve into the Kingdom’s ties with the European Union, reiterating “that Cyprus, as a true and sincere friend of Jordan, will continue to exercise a positive influence when Jordanian interests are discussed to ensure that the refugee influx does not jeopardise the development gains achieved in your country in recent years”.
In this context, the president said his country fully supports the establishment of the Mobility Partnership between Jordan and the EU, noting that the Cyprus problem will also be one of the subjects to be tackled in Amman.
“I will also inform about the Cyprus problem and the latest developments and convey my government’s sincere appreciation for Jordan’s principled position on the Cyprus issue, and its support for the termination of the Turkish occupation and the reunification of the country on the basis of the UN Security Council’s relevant resolutions.”
Anastasiades said he remains optimistic that an agreement will be reached between the two Cypriot communities in accordance with the pertinent UN resolutions and the EU acquis and based on former agreements between the two sides.
“I want to assure that I remain committed to tirelessly work towards finding a settlement and we shall succeed at the very end, I am sure, with the contribution of all stakeholders and all those involved,” he said.
Noting that the choice of a new Turkish Cypriot leader has improved the negotiations climate and led to some progress since May, he emphasised that significant challenges remain to be tackled by negotiators.
Turning to regional developments, the Cypriot president said the international community has failed to understand the complexities of the situation and called for comprehensively tackling root causes of the turmoil.
“It is not enough to take action against those individuals responsible for terrorist attacks. We should direct our efforts towards the enablers of terrorism,” he said.
“It is not enough to rescue people from sinking boats. We should direct our efforts against human traffickers.” Instead of only focusing on financial support to economic migrants, Anastasiades called for improving socioeconomic conditions in their home countries.
Tackling natural gas discoveries in Cypriot waters, the president said his government’s goal was to find the best ways to serve the interests of his people, while at the same time continuing talks with other countries on means to maximise the benefits.
Anastasiades said he views regional gas pipelines as the preferred monetisation option for these discoveries, particularly from the Aphrodite gas field south of the Mediterranean island.
Cypriot officials interviewed by The Jordan Times in Nicosia said their country now plans to export gas to Egypt to enable it to meet its domestic needs while also supplying gas to two liquefied natural gas plants based in the North African country for re-export purposes.
They said Jordan can be one of the importers of Cypriot gas, but that it was up to officials from both sides to discuss details of any such deals, mainly means of delivery.
They expressed optimism about more discoveries in Cypriot waters, noting that the exploration process “is only beginning”.
But the Cypriot president told The Jordan Times and Al Rai that he does not see gas revenues as the solution to economic problems, which Cyprus has been countering over the past years with great success.
“We don’t see natural gas revenues as the solution to economic problems.  We cannot afford to be short-sighted,” he said.
“We are currently considering the creation of the necessary mechanisms which will allow this and future generations of Cypriot citizens to benefit from the natural gas revenues.
Source: http://www.jordantimes.com/news/local/cypriot-president-praises-ties-eve-jordan-visit

Cyprus to reassess Exclusive Economic Zone | Famagusta Gazette

As regards the supply of Cypriot gas to the Egyptian market, the Minister noted that his recent visit to Cairo reaffirmed the necessity of Egypt for the Cypriot gas, both for the domestic market as well as for export and said that negotiations continue.

Monday, 09 November, 2015

The Ministry of Energy will proceed with a reassessment of Cyprus` Exclusive Economic Zone, before making any decisions for a third licensing round, Minister of Energy, Commerce, Industry and Tourism Yiorgos Lakkotrypis has said.

Presenting the Ministry`s 2016 budget before the House Committee for Finance, Lakkotrypris said that the discovery of the `Zohr` natural gas field in Egypt`s EEZ has created a new and more positive outlook for the Cypriot EEZ.

Lakkotrypis told MPs that the Ministry of Energy has asked its advisers for a reassessment of the Exclusive Economic Zone, following the discovery of the huge gas field `Zohr` in Egypt`s EEZ, and given the great interest demonstrated by companies which have seismographic data of the Cypriot EEZ.

As regards the supply of Cypriot gas to the Egyptian market, the Minister noted that his recent visit to Cairo reaffirmed the necessity of Egypt for the Cypriot gas, both for the domestic market as well as for export and said that negotiations continue.

Referring to the construction of a gas liquefaction terminal in Cyprus, he said that this is not a choice for now, given the existing quantities of the gas field Aphrodite. But he noted that the terminal could become a necessity in case more quantities are discovered. For now, he said, the only viable option are regional pipelines.

Regarding tourism, the Minister said that since the events in Sharm el-Sheikh, there is now interest for nine new flights per week from Russia to Cyprus, adding that there is also interest from the British market to begin flights in February.

Stressing the need for the tourist season to be extended and cover the period November – March, the Minister said that this year there has been an increase of 18% in tourist arrivals from England and an increase of 35% from Germany.

These positive developments, he said, are due to agreements made with major tour operators, as well as the fall in fuel prices and the exchange rate of the British pound in relation to euro.

The Minister said that according to estimations, tourist arrivals in 2016 from London will top one million.

Lakkotrypis also referred to the government`s plans for a casino, saying that on the 18th of December the procedure for expression of interest will close, while the licensing is expected in August/September 2016.

Regarding exports, he said that an increase of 15% was recorded in the first six months of 2015, despite the Russian embargo.

The Minister also referred to the Renewable Energy Sources, noting that their contribution to energy supply stands at 8,7%, noting that the goal is that it reaches 13%.

SOURCE

Total To Resume Activities Offshore Cyprus | Natural Gas Europe

November 09th, 2015

TOTAL TO RESUME ACTIVITIES OFFSHORE CYPRUS

France’s TOTAL has demonstrated a renewed interest in drilling for natural gas in Block 11 of Cyprus’ Exclusive Economic Zone despite previously postponing any further exploration activity in Cypriot waters, various media outlets have reported. 
In January 2015, the French giant announced that it was holding off any exploration activity in Cypriot waters as it had not identified any “drillable prospects.” However, it now plans to recommence its exploration in Block 11, reports say.
Though the company has not made an official announcement, TOTAL’s decision to resume its activities off Cyprus’ coast ahead of the expiration of its license in February 2016 could have been motivated by Eni’s giant discovery in Egyptian waters: the Zohr field, located in the Shorouk Block within Egypt’s exclusive economic zone is estimated to hold up to 30 Tcf of natural gas. The close proximity of the field to Cypriot waters has signaled that more gas could be found under Cyprus’ seabed.
Eni’s two drillings in Block 9 of Cyprus’ EEZ were unsuccessful. The Italian giant is however committed to pursuing its exploration activities offshore Cyprus, motivated by its great success in Egypt.
Eni’s CEO, Claudio Descalzi, also recently visited Israel where he met with Prime Minister Netanyahu and Israel’s minister of energy Yuval Steinitz to discuss potential investment opportunities in Israel and the possibility of joint export projects with Cyprus, Israel and Egypt. Netanyahu is promoting the approval of a natural gas framework that would allow the partners in the Leviathan and Tamar fields to move ahead with the development of the Leviathan field. Delays were caused by a dispute between the owners of the fields and the country’s competition regulator who accused the partners of constituting a monopoly that would distort competition in the market.
The region is experiencing a major shift with a renewed interest from international companies in Israel, Egypt and Cyprus. Noble Energy is also expected to take final investment decisions to approve at least one natural gas development in Israel by the end of the year. The Zohr field no doubt played the role of a catalyst; it remains uncertain how it will affect Egypt’s appetite to turn towards its neighbours for natural gas imports. The field is not expected to be developed before at least 2020 and Egypt may still need Israeli and Cypriot gas to solve its pressing energy crisis as an interim solution before its indigenous gas comes to market.
Karen Ayat is an analyst and Associate Partner at Natural Gas Europe focused on energy geopolitics. Karen is also a co-founder of the Lebanese Oil and Gas Initiative (LOGI). 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 

Source: http://www.naturalgaseurope.com/total-activities-offshore-cyprus-26202