Saturday, January 13, 2018

Introducing Zohr - EGYPT TODAY

Sat, Jan. 13, 2018
Doaa Farid 

CAIRO - 13 January 2018: Egypt officially started operations of the Mediterranean’s giant gas field Zohr last month, less than two and a half years since its discovery
and is currently producing 350 million cubic feet a day.

Development works of Zohr went faster than scheduled, as the initial plan was to start production in 2019. But the government is now expecting self-sufficiency of natural gas before the end of 2018, with gas production amounting to 6 billion cubic feet a day. The 350 million cubic feet per day output is the first result of a series of phases in the field. Minister of Petroleum and Mineral Resources Tarek El Molla announced in late December that the first phase of the project would be finalized in June 2018, when production will hit more than 1 billion cubic feet a day. Zohr gas is now pumped through the national grid, processed at the Ministry of Petroleum’s gas treatment plant in Port Said. The newly added production capacity pushed up Egypt’s natural gas production to 5.5 billion cubic feet per day, up from 5.1 billion.

Discovered in 2015 by Italian energy company Eni, Zohr gas field covers an area of 100 square meters with a depth of 1,450 meters. Investing around $10 billion in the project, Eni estimates a total output of approximately 30 trillion cubic feet of gas. The new field will help secure energy needs of a country that consumes around 6 billion cubic feet of gas a day, with 65% of them going toward the electricity sector.

Friday, January 12, 2018

Shell's Gaza Gas Field Sale Hits Problems - HART ENERGY / REUTERS



Friday, January 12, 2018 - 12:20pm

It may prove to be Royal Dutch Shell Plc's (NYSE: RDS.A) hardest sell. The Anglo-Dutch group is struggling to find a buyer for its gas field off the Gaza Strip, even among energy companies long used to dealing with projects fraught with political and security risks.

At least one European company has shown interest in the undeveloped Gaza Marine Field following a reconciliation deal in October between the two rival Palestinian factions, a source involved in the talks said.

But the firm's discussions over the field, located about 30 km (20 miles) off the Gaza coast, have ground to a halt since tensions in the wider region have taken a fresh turn for the worse, the source told Reuters.

"Until the political situation is resolved I really can't see anything happening here," he said.

Gaza Marine has long been seen as a golden opportunity for the cash-strapped Palestinian Authority to join the Mediterranean gas bonanza, providing a major source of income to reduce its reliance on foreign aid.

At Rome ‘Club Med’ summit, Greece gets a line on TAP gas to Italy - NEW EUROPE

JANUARY 12, 2018, 18:49 
Kostis Geropoulos

But East Med exports from Cyprus, Israel still pipe dream for now


As heads of state and government of Cyprus, France, Greece, Italy, Malta, Portugal and Spain, or so-called “Club Med,’ convened in Rome on January 10 for the fourth Summit of the Southern European Union countries, Cyprus President Nicos Anastasiades reportedly discussed energy issues with French President Emmanuel Macron and Italian Prime Minister Paolo Gentiloni. Currently, Italian energy major ENI and France’s Total are drilling for natural gas in Cyprus’ exclusive economic zone (EEZ). Also in Rome, Greek Prime Minister Alexis Tsipras and Gentiloni reportedly discussed energy cooperation. Greece and Italy are cooperating to bring Caspian gas to Europe via the Trans Adriatic Pipeline.

Connecting with the Trans Anatolian Pipeline (TANAP) at the Greek-Turkish border, TAP will cross Northern Greece, Albania and the Adriatic Sea before coming ashore in Southern Italy to connect to the Italian natural gas network.

Thursday, January 11, 2018

Why Turkey supports TurkStream, TANAP? - ANADOLU AGENCY

11.01.2018 
Murat Temizer

With TANAP and TurkStream, Turkey will gain spare capacity for extra gas imports from new sources and for future re-exports

ANKARA - Turkey's new supply sources with new TANAP and TurkStream natural gas pipelines will help supply security and help meet demand surges in line with the Turkish government's energy policy to diversify sources, according to the latest report of the Oxford Institute for Energy Studies (OIES) on Thursday.

The Gas Supply Changes in Turkey report written by Gulmira Rzayeva, a fellow in the OIES discerned that the Turkish government is in the process of making significant structural changes to the country’s energy sector and the country expects two natural gas pipeline projects to be operational in the near future.

Israeli bank eyes Energean gas field development project - KATHIMERINI /REUTERS

10.01.2018 : 20:36

Bank Hapoalim wants to take a more active role in Israel’s growing natural gas sector and hopes to lead funding for two offshore gas fields being developed by a Greek energy firm, a bank official said on Wednesday.

Greece’s Energean has said it expects to spend up to $1.5 billion to tap the Karish and Tanin fields, which are situated off Israel’s coast and have combined gas reserves estimated at 2.4 trillion cubic feet.

“Until today, Bank Hapoalim, and the local financing market in general, have given funds as part of a consortium, but never leading it,” said Itamar Furman, who manages the energy sector at Hapoalim, Israel’s biggest bank.

Egypt's gas transmission strategy - PETROLEUM ECONOMIST

10 January 2018
Gerald Butt

With natural gas from the super-giant Zohr field now flowing ashore, plans are in place to make distribution of the fuel more efficient and to expand wind power

For the Egyptian government, 20 December 2017 was a red-letter day. It was when Eni produced first gas from the Zohr field 190km (118 miles) from the coast. Zohr is by far the biggest natural gas discovery in the Eastern Mediterranean, with estimated reserves of 30 trillion cubic feet. The arrival of Zohr gas ashore—at an initial rate of 350m cubic feet a day, rising to 1.2bn cf/d under Phase 1—is a major factor in the Egyptian government's decision to phase out liquefied natural gas imports during the course of this year and prepare for the restart of exports.

But the priority for the Egyptian authorities is to make sure that domestic demand for gas is satisfied—in particular for power generation. Nothing is more calculated to stoke social unrest than lengthy power cuts in Cairo and other overcrowded cities during the stiflingly hot summer months.

Wednesday, January 10, 2018

Germany’s DEA eyes boosting investment in Egypt - EGYPT TODAY



Wed, Jan. 10, 2018

CAIRO – 10 January 2018: Germany’s DEA Group planned to pump more investments in Gulf of Suez and Disouq regions in Egypt, CEO of the group Maria Moraeus Hanssen said Wednesday.

In a meeting with Minister of Petroleum Tarek El-Molla, Hanssen stated that Egypt is now an attractive investment destination especially after latest gas production from new fields, such as Zohr giant field and North Alexandria concession.

Oil and gas services subject to the VAT - ENTERPRISE

Wednesday, 10 January 2018

The Finance Ministry will be applying the value-added tax on 20 petroleum services that had been subject to a sales tax, according to Al Mal. 

While E&P operations are still exempt from the VAT, ancillary goods and services provided to operations at rigs are not. 

The list sent to the Oil Ministry last week includes medical and social services, supplying sites with passenger cars and spare parts, prepaid mobile phone cards, alcoholic beverages and tobacco, sportswear and gear, accounting services, as well as tour organization and operation, among others.

Tuesday, January 9, 2018

Geopolitics cloud prospects for East Mediterranean gas finds - FINANCIAL TIMES / ENERGY EGYPT


January 9, 2018

Fields are attractively close to Europe but political risks make development complex.

When gas started flowing from the Zohr field last month it was an important step in Egypt’s drive for energy independence and signified that the eastern Mediterranean was finally establishing itself as a force in gas production.

Claudio Descalzi, chief executive of Eni, the Italian group leading the $12bn project, said Zohr would “completely transform Egypt’s energy landscape, allowing it to become self-sufficient and turn from an importer of gas into a future exporter”.

Zohr is the largest hydrocarbon discovery made in the Mediterranean and the hunt is on for more. Israel and Cyprus see similar potential to end dependency on energy imports and generate an economic windfall by exporting surplus supplies. Lebanon is also opening its waters to exploration.

Monday, January 8, 2018

BTE2 Well Adds 25 mscf/d to Natural Gas Production - EGYPT OIL & GAS


Monday, 8th January 2018

Egypt’s BTE2 Well, which is operated by Royal Dutch Shell’s Joint Venture in Egypt, Badr El Din Petroleum Company (BAPETCO), has started production phase on January 7th, increasing the country’s natural gas output by 25 million standard cubic feet per day (mscf/d), which is planned to be increased to 50mscf/d after completing the drilling of BTE1 Well, Badr 3 Wells’ Manager, Anton Artes, told Al-Ahram Gate.

Egypt could replace Qatar as the main supplier of LNG to the UAE and Oman - ENTERPRISE

Monday, 8 January 2018

Egypt could replace Qatar as the main supplier of LNG to the UAE and Oman once we reach self-sufficiency by the end of the year, The National’s Jennifer Gnana says

Egypt’s imports of LNG have declined as it increases domestic production, but demand in other countries in the region is expected to continue increasing as LNG “forms part of a critical mix in the drive towards cleaner energy in the GCC.” 

While Qatar currently supplies its Gulf neighbors with LNG through a pipeline, recent political fallout has pushed the region’s biggest consumers to look elsewhere to supply their consumption. 

Egypt, “which enjoys warmer political ties with the UAE and Saudi Arabia, could look to supply its regional neighbors,” particularly when it ramps up production from the Zohr gas field, Gnana says.

Sunday, January 7, 2018

Turkey will not risk actively disrupting Cyprus’ energy plan, Greek minister says - CYPRUS MAIL

The exclusive economic zones of Greece and Cyprus as per UNCLOS


January 7, 2018

Any attempt on the part of Turkey to foment a fait accompli in Cyprus’ maritime area would be irrational and Ankara would not take such a risk, according to Dimitris Vitsas, Greece’s Alternate Minister of National Defence.

In an interview with the Cyprus News Agency, Vitsas also said he does not expect Ankara “to risk a defeat”, when asked about the possible emergence of a Turkish drillship in the area, and Athens reaction to such a move.

A Turkish fait accompli in Cyprus’ maritime area would be irrational, Greek Minister tells CNA - CYPRUS NEWS AGENCY


CYPRUS/Nicosia 07/01/2018 11:12 
Antonios Gkildakis

Any attempt on the part of Turkey for a fait accompli in Cyprus’ maritime area would be irrational, says Dimitris Vitsas, Greece’s Alternate Minister of National Defence, while noting that cooperation between Athens and Nicosia takes all options into account.

In an interview with the Cyprus News Agency, Vitsas also says that he does not expected Ankara “to risk a defeat”, when asked about the possible emergence of a Turkish drillship in the area, and Athens’ reaction to such a move.

Speaking about efforts for a Cyprus settlement, the Greek government official says that the Turkish side must realize that stagnation does not lead anywhere.