Energean gas offer to Cyprus - CYPRUS MAIL

July 7 2018

Charles Ellinas

Greek oil and gas company Energean is seeking approval from the Cyprus government to build a pipeline from its Israeli offshore gas fields and import 0.5 to 1 billion cubic metres (bcm) of gas per year to the island, Reuters news agency reported this week.

Such a deal would help Cyprus meet its obligations to switch to cleaner energy such as natural gas and renewables by 2020 if it is to avoid hefty fines by the European Commission.

This is not the first time such an offer has been made. An article released by Cyprus News Agency in December 2017 said that Energean had made an informal approach to the government to develop and take Aphrodite gas by pipeline to the FPSO (Floating Production Storage and Offloading facility) it proposes to use to develop its Karish and Tanin gas fields in Israel, treat it and export it to Cyprus. The offer was not confirmed by the government.

Given that Energean is offering gas to its Israeli clients at less $4.50 per million btu (about 1000 cubic feet), such an offer could have been interesting and possibly compete with Cyprus’ liquified natural gas (LNG) import plans. With Aphrodite running the risk of remaining stranded due to the low global gas prices, it merited consideration. Unfortunately, it was not considered and the offer lapsed.

Energean ready to take Gaza Marine gas field stake if Israel, Palestinians agree - REUTERS

JULY 6, 2018 / 1:10 PM
Shadia Nasralla

LONDON (Reuters) - Greek oil and gas company Energean (ENOG.L) is ready to buy and operate a 45 percent stake in the offshore gas field Gaza Marine as soon as both the Israeli and Palestinian authorities give their green light, its Chief Executive said.

The field has long been seen as an opportunity for the cash-strapped Palestinian Authority to join the eastern Mediterranean gas bonanza, providing a major source of income to reduce its reliance on foreign aid and Israeli energy.

But Palestinian political disputes and conflict with Israel, as well as economic factors, have delayed plans to develop the field.

Energean chief executive Mathios Rigas told Reuters late on Thursday that the company was ready to buy the gas field stake “if that is something the host governments approve”. “We have proven we can get gas flowing quickly,” he said.

Natural Gas From Israel to Jordan in 2020 - ALBAWABA

July 6, 2018 - 07:30 GMT

Work is under way to construct a pipeline to transfer $10 billion worth of natural gas from Israel into Jordan, with supplies expected to begin in 2020, said a government official.

Contractors are currently working on building a 65-kilometre pipeline that stretches from the Kingdom’s borders with Israel in the north to Mafraq Governorate.

The pipeline, once completed, will be connected to the gas pipeline in Mafraq, and gas will later be distributed to the country's power plants for generation of electricity, Abdel Fattah Daradkeh, director general of the National Electric Power Company (NEPCO), told The Jordan Times in an interview this week.

“The pipeline will be completed by the end of 2019 and we were informed by Noble Energy that gas will start flowing to Jordan in early 2020,” the official added.

Work is also ongoing to build a pipeline on the Israeli side to transfer the gas to Jordan, he added.

Egypt is optimistic about new gas discoveries in the Mediterranean - THE ECONOMIST

Jul 5th 2018| CAIRO

Some think the new fields could turn Egypt into an energy hub

FIVE years ago the country that hopes to become a Mediterranean energy hub couldn’t even keep the lights on. When Abdel-Fattah al-Sisi took power in a coup in July 2013, Egypt was plagued by blackouts. Factories shut down. Surgeons operated by torchlight.

Egypt’s energy supply is still spotty. But on June 27th newspapers trumpeted the discovery of an enormous natural-gas field, called Noor, off the coast of North Sinai (see map). They billed it as the largest in the region. That title is already held by Egypt’s massive Zohr field, discovered in 2015, which is expected to change the country from a net importer to a net exporter of gas by next year.

Natural gas importer Defa calls Greek pipeline proposal unsolicited - CYPRUS MAIL

JULY 5, 2018

Elias Hazou 

The Natural Gas Public Company (Defa) on Thursday described as unsolicited a proposal it received from Greek company Energean to build a pipeline to Cyprus from Israeli offshore gas fields.

Defa chairman Simeon Kassianides said the proposal was not submitted as part of a call for tender.

Once the tender is called, he added, any interested company, Energean included, could submit their proposals.

By law, Defa is the sole importer of natural gas in Cyprus. It plans to issue a tender for natural gas imports in the near future.

Earlier in the day, Energean’s chief executive said the company is seeking approval from Cyprus for the Greek firm to build a pipeline from its Israeli offshore gas fields and import 0.5 to 1 billion cubic metres of gas a year to the island.

“We submitted a proposal to sell gas from the FPSO (Floating Production Storage and Offloading facility) to Cyprus. We sent it last week,” CEO Mathios Rigas told Reuters.

Energean, which listed on London’s main stock exchange this year, has committed $1.6bn to the Karish and Tanin fields which have potential reserves of 2.4 trillion cubic feet of natural gas and 32.8 million barrels of light oil and condensate.

Energean asks Cyprus for approval to import Israeli gas via new pipeline - REUTERS

JULY 5, 2018 / 6:24 PM

Reporting by Shadia Nasralla; Editing by Mark Potter

LONDON (Reuters) - Energean is seeking approval from Cyprus for the Greek oil and gas firm to build a pipeline from its Israeli offshore gas fields and import 0.5 to 1 billion cubic meters of gas a year to the island, Energean’s chief executive said on Thursday.

Energean, which listed on London’s main stock exchange this year, has committed $1.6 billion to the Karish and Tanin fields which have potential reserves of 2.4 trillion cubic feet of natural gas and 32.8 million barrels of light oil and condensate.

It estimates the five blocs it owns around Karish and Tanin contain an additional 5 trillion cubic feet of gas. It expects an external assessment over the coming weeks.

“We submitted a proposal to sell gas from the FPSO (Floating Production Storage and Offloading facility) to Cyprus. We sent it last week,” CEO Mathios Rigas told Reuters.

Israeli Supreme Court dismisses petition against the Karish-Tanin Development - ENERGEAN OIL & GAS

London, 5 July 2018

Energean Oil and Gas plc (LSE: ENOG), the independent oil and gas exploration and production company focused on the Eastern Mediterranean, announces that on 3 July 2018 the Israeli Supreme Court, sitting as the High Court of Justice, unanimously dismissed the petition filed on 14 September 2017 by two environmental groups against Energean and the Petroleum Commissioner, the Ministry of Energy, the Ministry of Environmental Protection and the Ministry of Finance, in connection with the Karish-Tanin Development.

These proceedings constituted the sole outstanding court proceedings against Energean in Israel. Energean is planning to deliver gas to the Israeli market from the Karish-Tanin Development in 2021, and is on track with its project milestones to achieve this timeline.

Bahr Essalam Phase 2 goes onstream offshore Libya - OFFSHORE MAGAZINE

JULY/05/2018

SAN DONATO MILANESE, Italy – Mellitah Oil & Gas, the joint venture between Eni and Libya’s NOC, has started production from the first well of the Bahr Essalam Phase 2 project in the Mediterranean Sea offshore Libya.

Start-up was three years after the final investment decision. Two further wells are due to enter production during the next few days. With a further seven set to come onstream by October.

Phase 2 will complete development of the country’s largest producing gas field, Eni said, increasing its production potential by 400 MMcf/d.

By October, the field’s total output should reach 1.1 bcf/d.

Bahr Essalam, 120 km (75 mi) northwest of Tripoli, contains more than 260 bcm of gas. This is delivered through the Sabratha platform to the onshore Mellitah treatment plant, with most of the supplies directed to Libya’s national network.

Jordan pipeline for Israeli gas set for completion by end of 2019 - WORLD OIL / BLOOMBERG

JULY/4/2018
Mohammad Tayseer, Yaacov Benmeleh

TEL AVIV (Bloomberg) -- A pipeline to transport $10 billion worth of natural gas over 15 years from Israel’s Leviathan field into Jordan will be completed by the end of 2019, according to the company buying the fuel.

Engineers building a 65-km (40-mi) pipeline from Jordan’s border with Israel northward across Mafraq province will finish their work on time to receive first gas from Leviathan at the start of 2020, Abdel Fattah Daradkeh, director general of Jordan’s National Electric Power Co., said in a phone interview. A section of pipeline to move gas from the offshore field through Israel to the border is also under construction, he said.

After years of legal and regulatory logjams, the companies developing Leviathan are making significant progress to honor multi-billion-dollar export deals. About 54% of the nearly $4-billion Leviathan project has been completed, the companies said this week. Jordan, with negligible energy resources of its own, would become Israel’s first buyer for gas from the Mediterranean reservoir.

Natgas market regulator to officially begin issuing import permits - ENTERPRISE

Thursday, 5 July 2018

Natgas market deregulation gets in full swing as regulator to officially begin issuing import permits: The board of directors of the new natural gas market regulator approved that it begin issuing and revoking licenses for private sector natural gas industry players, according to an Oil Ministry statement. The regulator — established under the Natural Gas Act, which deregulated the market and opened it up to the private sector — will begin its work “in the coming period,” according to the statement. Natural gas companies are currently gathering the necessary paperwork to submit their requests for a license to distribute natural gas, ministry sources said, Al Shorouk reports.

Energy Ministry announces winning bid for hydrocarbon exploration off Crete - ANA-MPA

Tuesday 3 July 2018, 17:03:13

The ministerial decision announcing the winning bid of Hellenic Petroleum (HELPE), Total and Exxon Mobil consortium for hydrocarbon research off western and northwestern Crete was made on Tuesday.

The areas concerned cover 19,868 sq.km and 20,058 sq.km, respectively.

The call for tenders went out in December 2017 following the consortium’s expression of interest, and the consortium held negotiations with the Hellenic Hydrocarbon Resources Management (HHRA) agency, which submitted its approval to Environment and Energy Minister George Stathakis last week.

Prior to the agreement's tabling in Parliament, it must go through reviews by the Court of Auditors, the signature of the leasing agreements with HHRA, and the approval of the minister. 

As HHRA head Yannis Bassias told the Athens-Macedonian News Agency, the finalist for hydrocarbon exploration in the Ionian Sea (HELPE-Repsol) will be submitted to the minister next week.

Petronas shortlisted for US$1.2 bil Lebanon FSRU job - THE EDGE MALAYSIA

July 03, 2018 16:00 pm +08

Jose Barrock

NATIONAL oil company Petroliam Nasional Bhd (Petronas) and 12 other international outfits have been shortlisted to develop three floating, storage and regasification units (FSRUs) in Lebanon.

News reports out of Lebanon and international shipping publications put the value of the contract to build the three FSRUs at about US$1.2 billion (RM4.81 billion), with the three ships slated to be moored at Beddawi, near Tripoli; Selaata, north of Beirut; and Zahrani, which is close to Tyre; as recommended by advisers Poten & Partners.

“Yes, Petronas has been shortlisted, but it [the bidding] is quite competitive. Some of the shortlisted companies are consortiums, which are technically very strong,” says an oil and gas (O&G) executive who is familiar with the bidding.

The consortiums prequalified include Japan’s Kawasaki, Norway’s K-Line and US’ Fluor; a partnership between Italy’s Eni and Qatar Petroleum International; a joint venture between Singapore’s BW, Dutch company Vitol with two Lebanese companies Almabani and Butec; another partnership involving US-based Excelerate with British Dutch Shell partnering Lebanese outfit BB Energy; another involving Norway’s Golar Power in partnership with Consolidated Contractors Company of Greece; the Phoenicia Energy Consortium; and lastly, France’s Total working with Norway’s Hoegh.

Egypt plans to pay USD 200-500 mn in arrears to oil producers by end-September. Will small players get any of it? - ENTERPRISE

Tuesday, 3 July 2018

Egypt to pay USD 200-500 mn in arrears to oil companies by the end of September: EGPC plans on paying USD 200-500 mn in arrears to oil producers by the end of September, EGPC sources say. EGPC is in talks with the government to arrange the financing, according to the sources. The Finance Ministry had reportedly agreed back in May to issue letters of assurance for two loans to the EGPC worth a combined USD 850 mn to repay IOCs. Sources had also previously said that a USD 200 mn payment would be made to IOCs in June. Egypt’s total arrears had been brought down to USD 2.1 bn as of February.

Will smaller players get any of it? Our friends in the industry noted that while the state’s backlog of payments to the industry is declining, that’s because large players including the global majors have been paid out at the expense of smaller local and regional fish.

Pyatt welcomes steps on Greek-Bulgarian gas pipeline - ANA-MPA / CAPITAL

Monday, 2 July 2018 - 18:50

US Ambassador Geoffrey Pyatt welcomed agreements that were signed last week regarding the construction of a natural gas pipeline between Greece and Bulgaria.

"An important and welcome development as we seek to enhance diversity of supply and routes in the European gas market. Also complements the Planned Alexandroupoli floating LNG storage and regasification unit," he said in a tweet.

Last week several agreements were signed in Sofia regarding the construction of the IGB gas pipeline linking the two countries.

A cooperation agreement was signed between IGB and TAP for connectivity of the two gas pipelines, while, a joint declaration was also signed between the shareholders in the project company for confirming a commitment to start its construction.

Additionally, a Memorandum of Understanding between the Bulgarian Energy Holding (BEH) and the European Investment Bank (EIB) was signed regarding the realization of the IGB project. The memorandum concerns securing preferential loan financing in connection with using the state guarantee of Bulgaria (expected 110 million euros) and is a key step in IGB’s realization.

US Drlling with a British Drill in Cyprus - PHILELEFTHEROS

2 July 2018

TEKMOR: Cypriot newspaper Phileleftheros reports that drilling in Cyprus' Block 10 by ExxonMobil will start mid-November & finish in March 2019 using a super modern UK-flagged drilling platform, owned by a London-HQ British company with a presence in Cyprus as well. In the mean time Maltese MedServ has reported an agreement for the provision of onshore logistics with a multinational that will be conducting exploration activities in Cyprus' EEZ.

Oil Ministry downplays suggestions that Noor field could be 3x Zohr - ENTERPRISE

Monday, 2 July 2018

Oil Ministry advises caution on reports of the size of the Noor field: Oil Minister Tarek El Molla pulled the brakes on reports on reserve figures on the Noor gas field off the coast of North Sinai. He tells Youm7 that the numbers being reported are not official and are not sanctioned by the Oil Ministry. The local and international press had caused a stir last week with reports that Italy’s Eni could unlock as much as 90 tcf of natural gas reserves from the Noor field, would make it about 3x the size of the supergiant Zohr gas field, if true. El Molla noted that the concession agreements for the field have yet to be ratified by the House of Representatives, so Eni would not have even started operations on the field yet.

A source in the industry tells that while the seismic studies are still in progress, drilling of the well won’t take place until later this year — and won’t reach its planned target depth before early January 2019. The source also points out that “on average, exploration wells have a success rate of around 20-25%,” calling it “absolutely extraordinary and extremely unlikely” that it would yield a mega-find on the scale suggested by the press last week.

Egypt issues final liquefied gas tender on road to self-sufficiency - THE ARAB WEEKLY

Sunday 01/JULY/2018Hassan Abdel Zaher

Egypt’s oil and gas sector is expected to receive $10 billion in investments in the next two years.

CAIRO - Egypt is close to reaching self-sufficiency in natural gas and resuming exports, which would end almost a decade of dependence on imports.

Egyptian Petroleum Minister Tarek el-Molla said Egypt’s latest liquefied natural gas tender for nine shipments of natural gas could be its last because local production would meet domestic demand and even allow for energy exports next year.

“I don’t think there will be more tenders beyond this. I think this is it,” Molla said. “Local production should cover our needs.”

Egypt would look to export natural gas to international markets almost a decade after halting exports due to increasing consumption, decreasing production and a lack of upgrade for Egypt’s natural gas fields. Natural gas finds, particularly in the eastern Mediterranean, have revamped Egypt’s energy plans.

President meets Total chief in Paris - CYPRUS MAIL

Anastasiades (L), Pouyanne (R)

July 1, 2018

Katy Turner

Total’s energy programme was discussed during a meeting in Paris between President Nicos Anastasiades and the general director of the company Patrick Pouyanne, during which he reiterated Total’s interest in increasing its presence in Cyprus.

Government Spokesman Prodromos Prodromou said during the meeting on Saturday evening “the company’s commitment to Cyprus was repeated”.

At the same time, the company “reconfirmed its increased interest in the EEZ of our country”.

Prodromou was in the meeting, as was Energy Minister Yiorgos Lakkotrypis.

In a tweet, Lakkotrypis said the company had expressed “intense interest in expanding its interests in Cyprus’ EEZ”.

Total and Italian company ENI are partners in blocks 11 and 6. An exploratory drilling carried out in early 2017 in Calypso target revealed a “promising discovery” but no data have been disclosed yet concerning the size of the reservoir size.