Cyprus presses on with FSRU despite pipeline proposalProposals for a pipeline linking - INTERFAX

The Vassiliko gas-fired power station in Cyprus

18 July 2018
Verity Ratcliffe

Cyprus is preparing to tender a contract for the supply of an FSRU to be moored at Vassiliko. Plans for the project are progressing despite a proposal to pipe gas to Cyprus from offshore Israel, according to an official at Cypriot state-owned utility DEFA.

Companies will be invited to submit bids within the next few weeks, Andreas Pentaliotis, gas officer at DEFA, told Interfax Natural Gas Daily. After the tender for the FSRU, DEFA will hold two tenders for LNG supply.

Israel offers Lebanon resolution to border dispute - INTERFAX

 7 June 2018

Israel made a proposal to Lebanon offering a resolution of a long-standing border dispute between the two countries, according to Lebanon’s Speaker Nabih Berri in a report published by Hezbollah’s Al-Manar news service.

The proposal covers onshore and offshore territory.

Total, Eni and Novatek hold a licence to explore Lebanon’s Block 9, part of which crosses the disputed area.

Israel’s proposal was delivered to Lebanon by a US delegation last week, said Berri.

Cyprus working extensively to export its natural gas to Egypt - ENERGY EGYPT / INTERAFX / CYPRUS MAIL

Nov 2 2017

Cyprus Hydrocarbon Company (CHC) is working “intensively” towards making gas exports to Egypt possible, General Manager Panos Kelamis told Cyprus Mail. “We want to clinch an agreement, because this would be an agreement for 15-20 years that will offer Cyprus the maximum … We definitely want to go to Egypt, but we have certainly looked at the scenarios of a great discovery and the synergies that will exist,” he says. Kelamis noted that negotiations are tough because “prices are currently low.”

Is Ukraine’s Naftogaz struggling to find investment banker to help it exit Egypt? - ENTERPRISE / INTERFAX

Wednesday, 21 June 2017

Naftogaz Ukrainy is reportedly having a tough time divesting its Egyptian assets after canceling “the second tender to provide investment banking services related to Naftogaz upstream assets in Egypt and search for potential buyers” as only one bid was submitted, Russia’s Interfax says. The news service claims “only E&Y LLC took part in the tender, while at the first tender France’s Lazard Frères showed its interest.” 

Naftogaz first announced intention to sell its Egyptian assets in March. Naftogaz is said to have two concessions in the Eastern Desert. We’re aware that citing a Russian source on anything Ukrainian (or vice versa) is fraught, but perhaps there’s an opportunity for someone enterprising enough to look into this.

Total to drill in Cyprus now services base ready - INTERFAX

The services base in Limassol, Cyprus, is ready for Total to use

16 June 2017
Verity Ratcliffe

Total’s services base in Limassol is ready for use, meaning the French major can now start exploring Block 11 offshore Cyprus. EDT Offshore, which won the contract to set up the onshore facility, expects to officially hand over the completed works on Friday. Total will be able to start work within weeks, EDT Offshore Operations Manager Mike Socratous told Interfax Natural Gas Daily.

Total’s plan to explore Block 11 has faced many hurdles [as] the government faced public opposition when it tried to build a services hub at Larnaca, forcing a relocation to Limassol.

Total signed a contract with EDT for its base in Limassol in October 2016, but the contract was immediately contested by two companies that hold contracts to operate the port.

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Zohr is just the beginning – Spectrum Geo - INTERFAX GLOBAL ENERGY

31 May 2017
Silvia Favasuli

The discovery of the Zohr gas field offshore Egypt has changed the industry’s understanding of the geology of the Mediterranean Sea, showing new potential for fossil fuel reservoirs in the basin, according to seismic data specialist Spectrum Geo.

Spectrum has collected and analysed 2D seismic data from the Mediterranean Basin in a search for carbonate reef build-ups similar to the one containing Zohr. 

The data shows that about five Zohr-like gas fields may be hiding in the Mediterranean, Karyna Rodriguez, vice president of geosciences at Spectrum Geo, told Interfax Natural Gas Daily.

Cyprus revives LNG import plans - INTERFAX

Cyprus’s Vasilikos gas-fired power station(J&P Group)

28 October 2016
Verity Ratcliffe

Cyprus is preparing to launch an independent study into importing LNG as Nicosia looks to revive plans for an LNG purchase tender.

State-owned Natural Gas Public Co. (DEFA) has invited consultants to submit bids to carry out the research. Up to 10 bids are expected from companies including Gaffney, Cline & Associates, KPMG, Wood Mackenzie, DEP Levant Oil & Gas, DNVGL, Arntzen de Besche and Genesis Oil and Gas.

"The objective of the study is, based on the analysis of the various options of LNG supplies, to identify and propose an option/project, an appropriate process and a timetable for the supply of gas to Cyprus [as soon as possible] and before 2020," the tender documents say.

Gazprom to finance offshore part of Turkish Stream - NATURAL GAS WORLD

October 12th, 2016 9:05amMurat Basboga

Russian gas giant Gazprom will finance the construction of the offshore part of the Turkish Stream project, Gazprom CEO Alexei Miller said, according to Interfax news agency. In an interview with Russia 24 TV, he said that the company would start construction of offshore portion of the pipeline to Turkey in 2018.

The onshore infrastructure that will supply the Turkish market, will be financed and constructed by Turkey's state owned pipeline company Botas. Two companies could form a joint venture on a parity basis, the report added.

Miller also said that Turkish Stream would not compete for European markets with Nord Stream 2, a pipeline project which will supply northern Europe.

Naftogaz increases oil and condensate production in Egypt by 20.7% in 2015 - INTERFAX

18:19, 07.10.2016

Naftogaz Ukrainy in 2015 increased production of oil and condensate by 20.7% compared to 2014, to 318,000 tonnes (2.33 million barrels).

According to a company consolidated report, posted on its website, commercial gas production was 192 million cubic meters, which is 4.8 times more than in 2014.

In general, since the launch of the project in Egypt in 2009 a total of 1.046 million tonnes of oil (7.686 million barrels) and 243 million cubic meters of gas was extracted, 49 wells were drilled, of which 37 were productive.

As of January 1, 2015 Ryder Scott had conducted an independent evaluation of hydrocarbon reserves/resources of the Naftogaz branch in Egypt, according to which total recoverable reserves (proven and probable - 2P) amounted to 1.132 million tonnes of oil (8.2 million barrels) and 599.6 million cubic meters of gas.

Egypt eyes Idku LNG restart following Shell deal - INTERFAX

By Rachel Williamson, 6 October 2016

Egypt is slowly moving closer to restarting LNG exports following a deal with Shell to raise the volume of gas sent to the Idku LNG plant.

Shell cut a deal with the Egyptian government in mid-September to send 3.54 million cubic metres per day to Idku from the company’s gas fields to compensate for some of the rising debt Cairo owes to it in receivables, according to a leak from the Ministry of Petroleum reported in the Egyptian media.

Shell would not confirm or deny reports that gas volumes to the terminal have already been increased, but people working for the country’s energy authorities say the negotiations suggest that Idku will begin operating more regularly soon.

Egypt leads drop in Middle East drilling activity - INTERFAX

By Verity Ratcliffe 22 September 2016 8:55 GMT

The number of rigs targeting gas in the Middle East fell to 94 in August from 102 in the previous month, led by declining activity in Egypt and Pakistan.

Russia’s belated Greek gambit - INTERFAX

Greece’s Alexis Tsipras, centre, and Russia’s Arkady Dvorkovich
at the trade fair in Thessaloniki. (PA)

By Paul Sampson 20 September 2016 12:03 GMT

Now that the Turkish Stream gas pipeline project is back on the agenda, Russia is making a push for a new "southern corridor" that would see its gas pumped across Greece to the Balkans and Central Europe.

During a visit to the Greek port town of Thessaloniki on 10 September to attend an international trade fair, Russian Energy Minister Alexander Novak and Deputy Prime Minister Arkady Dvorkovich pitched the idea of a new east-west pipeline network with Greece at its epicentre.

Russia’s master plan is to revive the Interconnector-Turkey-Greece-Italy (ITGI) project, devised in 2005 by Italy’s Edison – now a subsidiary of France’s EDF – and Greek state importer DEPA as a way of transporting gas from the Caspian to Italy.

Shell keeps Israeli gas producers guessing - INTERFAX

By Rachel Williamson 14 September 2016 9:49 GMT

Shell is holding talks with producers of Israeli gas on the possibility of supplying its Idku LNG plant in Egypt, but analysts say the Anglo-Dutch major is just testing the waters.

After Egypt signed a deal to buy gas from Cyprus at the end of August, Shell met representatives from Delek Group and Noble Energy. This was followed by a meeting with Delek in Cairo, according to three sources working for international gas producers.

The talks are a continuation of discussions that took place between BG Group and the Israeli companies over the four years before BG was taken over by Shell, according to Nati Birenboim, chief executive of energy consultancy Tamuz Group. They have discussed building a pipeline from the Tamar field and buying 105 billion cubic metres of gas over 15 years.

Israel to offer 24 blocks in first offshore round - INTERFAX

The 24 blocks on offer in Israel’s offshore licensing round.

By Verity Ratcliffe 24 August 2016 11:28 GMT

Israel is hoping to build on the hype surrounding exploration in the East Mediterranean with its first offshore licensing round. The Ministry of National Infrastructures, Energy and Water Resources (MIEWR), the government agency responsible for overseeing all petroleum-related activities in the country, intends to approach IOCs in September before the official launch of the round in November.

The areas in the licensing round offer high gas prospectivity, but IOCs may need convincing because of the geopolitical situation and the uncertainty surrounding possible routes to market for gas exports.

A total of 24 blocks, each covering up to 40,000 hectares, will be on offer. Israel’s Petroleum Council approved the delineation of the exploration blocks on 10 August. The government hopes the round will draw more IOCs to the country’s oil and gas sector while promoting competition and transparency.

IOCs have been invited to meet the Israeli minister of energy, Yuval Steinitz, at roadshows in London on 1 September and Singapore on 6 September. The ministry will hold an information session in Houston after that. Other dates may be added, according to IHS Energy, which is advising the government on the round. Public holidays are likely to stymie progress in October so the round will officially open in November.

Aphrodite in doubt as new acreage turns heads - INTERFAX

By Verity Ratcliffe 22 July 2016 12:23 GMT

The Aphrodite field is located in Block 12. Its development could be disrupted by new acreage on offer.

The development of Aphrodite, Cyprus’s biggest gas field to date, will continue to be stymied by the lack of a route to market for its gas and the hunt for much bigger discoveries, sources have told Interfax Natural Gas Daily.

Noble Energy, Delek Group and Shell (which merged with BG Group in February) are expected to submit offers on Friday in Cyprus’s third licensing round. Eni and Total, which also hold blocks in Cyprus’s offshore area, are also expected to submit bids.

The round has drawn interest from IOCs looking to secure acreage near Egypt’s massive Zohr discovery, which has been described as a game-changer for the East Mediterranean oil and gas industry.

All quiet on Egypt’s LNG export front until after 2020 - INTERFAX

A jetty at Egypt’s Idku LNG plant (BG Group)

By Rachel Williamson, 15 July 2016 9:26 GMT

Industry sources from inside and outside Egypt are confident the country can resume exporting LNG by the end of the decade. However, they have warned that the number of cargoes shipped from Idku will not rise out of single digits per year before then.

A source from Egypt’s Ministry of Energy, who wished to remain anonymous, said he expected LNG exports to resume after 2020.

He said occasional cargoes – such as the two sent this year from the only Idku train that remains operational – would continue, but they would not be regular.

Cyprus moves to block Israel-Turkey gas pipeline - INTERFAX

By Verity Ratcliffe, 7 July 2016 12:37 GMT

Israel and Turkey signed an agreement to normalise relations last week after a six-year diplomatic spat, raising hopes that Israeli gas could be exported to Turkey by pipeline. However, Cyprus has indicated it will block the construction of a Turkish pipeline that passes through its territory.

When asked about the project, Cypriot government spokesperson Nicos Christodoulides told reporters on Tuesday that Cyprus would oppose it because the country is under occupation by Turkish forces and the pipeline would serve Turkey.

The two parts of Cyprus would need to be unified for a pipeline to be approved, he added.

The island of Cyprus has been split into two parts – one consisting of Greek Cypriots and the [ethnically cleansed, formerly 90% majority Christian, 90% of properties owned by them] controlled by Turkish-Cypriots – since 1974, with the latter not recognised by the international community. The result is that the Republic of Cyprus does not have diplomatic relations with Turkey.

Eni’s Zohr sale causes concern for Cairo - INTERFAX

By Rachel Williamson 24 March 2016

Italy’s Eni has indicated it is looking to sell down its stake in its giant Zohr field in Egypt, a scenario that is causing concern among Egyptian stakeholders.

Eni Chief Executive Claudio Descalzi said on a conference call last week that Zohr was among assets the company was considering targeting for disposal. He said Eni had had to change its strategy for Zohr as the requirement to bring the start of production forward to 2017 had resulted in extra upfront capex costs in the form of another onshore processing facility.

Cyprus’s geology similar to Zohr area – minister - INTERFAX

By Verity Ratcliffe 18 March 2016 

Cypriot Energy Minister Yiorgos Lakkotrypis is optimistic about his country’s third licensing round. (PA) Cypriot Energy Minister Yiorgos Lakkotrypis is optimistic about his country’s third licensing round. (PA)

Cyprus’s imminent third licensing round will offer offshore acreage with similar geology to the area in which Egypt’s Zohr field was discovered, according to Yiorgos Lakkotrypis, Cyprus’s energy minister.

Lakkotrypis spoke to Natural Gas Daily about the country’s energy potential, developing the Aphrodite field and routes to market for Cypriot gas.

Is Turkey now Egypt’s rival for East Med gas? - INTERFAX

Rachel Williamson, 4 February 2016

East Mediterranean gas developers may end up prioritising exports to Turkey over other options, despite an agreement struck last week between Greece, Cyprus and Israel to look into the feasibility of a pipeline to Europe.

Alongside talk of a pipeline to Greece, much has been made of the possibility of exporting either Cypriot or Israeli gas to Egypt – either for domestic use or for further export as LNG. However, that option is beginning to look less favourable because of production timelines and the cost of transporting the gas. Consequently, momentum is now moving towards gas exports to Turkey.

Charles Ellinas, (note: former) chief executive of Cyprus National Hydrocarbons Co., told Natural Gas Daily that normalisation talks between Israel and Turkey were progressing and Israeli Prime Minister Benjamin Netanyahu was driving that process alongside Turkish President Recep Tayyip Erdogan.