Striking Politics When Drilling For Gas In Mediterranean - WORLDCRUNCH / LES ECHOS

2017-NOVEMBER-06
Anne Feitz

-Analysis-

PARIS — Drilling operations have begun off the coast of Cyprus despite Ankara's threats against the Cypriot government. And for French oil and gas multinational Total and its Italian partner, ENI, hopes for a huge payout are running high. As IHS Markit reported earlier this year, the "Onisiforos" operation, as it's known, is expected to be "one of the most critical wells drilled globally in 2017."

It will be several months before Total and ENI have a clear picture of what exactly the Onisiforos well will turn up. But they have reason to be optimistic given other recent natural gas discoveries in the area. Egypt's Zohr gas field, thought to be the biggest gas discovery in the Mediterranean, is only six kilometers away.

Bids on Lebanon offshore energy blocks close - REUTERS

OCTOBER 12, 2017 / 9:29 PM
Reporting by Angus McDowall & Lisa Barrington; editing by David Evans & Jonathan Oatis

BEIRUT (Reuters) - Lebanon’s Energy Minister Cesar Abi Khalil on Thursday said a tender had closed on a first round of offshore energy blocks, and told local media that two consortiums had submitted bids.

Partners in Israel's Tamar raise gas reserves estimate by 13 pct - REUTERS

Sun Jul 2, 2017 | 6:28am EDTReporting by Ari Rabinovitch; Editing by Tova Cohen

The partners in Israel's Tamar natural gas project said on Sunday the offshore field held 13 percent more gas than previously estimated.

An updated resource report indicated proved and probable reserves of 11.2 trillion cubic feet (318 billion cubic meters) of gas and 14.6 million barrels of condensate, up from 10 tcf of gas and 13 million barrels of condensate.

"The results of the well and the production data from the reservoir ... enabled the update of the reservoir model and the production forecasts," project stakeholder Delek Drilling said in a statement.

Tamar, which began production in 2013, is the primary natural gas supply for Israel and also exports to Jordan. So far it has produced more than 1 tcf.

Petrogress, Inc. Enters Into MOU to Acquire Interest in Cyprus Shipyard - PETROGRESS / MARKETWIRED

June 30, 2017 09:00 ET

Company Provides Bridge Financing and Commences Due Diligence

NEW YORK, NY--(Marketwired - Jun 30, 2017) - Petrogress, Inc. (OTC PINK: PGAS) announced today that it has entered into a Memorandum of Understanding with F & T Investments, Ltd., a Cyprus company. The parties have agreed to open a due diligence channel in furtherance of a future partnership or other combination to assist in a significant renovation of the F & T Shipyard in Limassol, Cyprus, and a joint facilities management and marketing agreement. In addition, Petrogress has provided F & T with interim financing to be credited against a possible capital financing arrangement.

F & T has managed operations of the Shipyard in the New Port of Limassol, the sole commercial port facility in Cyprus, for over 30 years, providing ship repair services, offshore rig construction, oil field services and shipyard support. The Shipyard is complete with a floating dry dock, private berthing facilities, machine shop and covered workspaces. F & T and Petrogress will study expansion of the Limassol Shipyard to significantly expand these facilities to provide services and support to the Aphrodite and Leviathan Gas Fields off the Cypriot and Israeli coasts, and other offshore development and production projects in the Cyprus Exclusive Economic Zone.

TOTAL to start drilling off Cyprus on July 14 - IN CYPRUS / CYPRUS WEEKLY

June 23, 2017

French energy giant TOTAL is expected to start exploratory drilling in block 11 of the Cyprus Exclusive Economic Zone on July 14.

Block 11 covers some 2,958 square kilometres and the drill site is 150 km off the coast of Cyprus.

Before any exploratory work begins, a 4400-metre diameter area around the site will be explored for objects of archaeological interest.

It has already received a positive environmental report stating that there are no endangered species or sensitive biotopes in the area and one state service after the other is issuing the relative licences required.

Cyprus is “potential pivot for gas development”, ENI International Affairs Director says - FAMAGUSTA GAZETTE / CYPRUS NEWS AGENCY

Active (May 2017) in Cyprus' EEZ

Friday, 12 May, 2017

Italian energy company ENI sees Cyprus as a “potential pivot for gas development” in the region, Lapo Pistelli, the company`s International Affairs Director, told a conference on Thursday, noting that should the Levantine region become a gas hub, “Cyprus is at the crossroads of every potential destination”.

The investment opportunities offered in Cyprus were discussed on Thursday at a special session on Cyprus’ economy, titled “Cyprus in the Eastern Mediterranean: Attractive investment opportunities within a secure business environment”, in the framework of the EBRD`s Annual Meeting, taking place in Nicosia.

Energy, Industry, Commerce and Tourism Minister, Yiorgos Lakkotrypis, noted Cyprus` energy potential as well as the investment opportunities offered in the tourism and hospitality sector of the island.

Pipelines and Pipedreams - ECFR

HOW THE EU CAN SUPPORT A REGIONAL GAS HUB IN THE EASTERN MEDITERRANEAN

Tareq Baconi

• Large natural gas discoveries in the eastern Mediterranean have raised hopes that the region could serve EU energy needs, helping it to fulfil its goals of energy diversification, security, and resilience.
• But there are commercial and political hurdles in the way. Cyprusʼs reserves are too small to be commercially viable and Israel needs a critical mass of buyers to begin full-scale production. Regional cooperation – either bilaterally or with Egypt – is the only way the two countries will be able to export.
• Egypt is the only country in the region that could export gas to Europe independently because of the size of its reserves and its existing export infrastructure. But energy sector reforms will be needed to secure investor confidence in this option.
• There are now two options for regional export: to build a pipeline that connects Israel and Cyprus to southern Europe, or to create a network of pipelines into Egypt, from which gas could be liquefied and exported.
• The EU should explore regional prospects by strengthening its energy diplomacy, developing more projects of common interest, working to resolve the Turkey-Cyprus dispute, and incentivising reforms in Egypt.

ECFR - PIPELINES AND PIPEDREAMS - TAREQ BACONI

Oil Majors See Huge Opportunity In Eastern Mediterranean - OIL PRICE / DRILLING INFO

Apr 20, 2017, 2:44 PM CDT
By Drilling Info

Quite suddenly, there is remarkable oil industry news to come out of the East Mediterranean region. If the plan is executed, in the space of seven years the balance of energy security in Western Europe will be radically changed. In geopolitical terms, this will be immense; when the planned Israel-Cyprus-Greece-Italy gas pipeline is built, European countries will be able to cut their ever-increasing dependence on Russian gas supplies.

The story of major gas discoveries in the East Mediterranean started in the shallow-water offshore Egypt, with Miocene Nile Delta discoveries progressively stepping out into deeper and deeper water. The first discovery was made by Phillips Petroleum in 1969, when it drilled the play-opening Abu Qir 1 NFW. It discovered gas in the Messinian Abu Madi sandstones. Subsequent exploration was led by the likes of AMOCO, BG, BP, Eni and Shell. There are now over 100 mainly gas and wet gas fields in the offshore Egyptian Nile Delta, with all production being piped onshore. The story continues to the present day, with recent large discoveries in the deeper Oligocene play, such as Salamat (2013) and Atoll (2015), alongside large Messinian discoveries including Nooros (2015) and Baltim South West (2016).

Cyprus begins signing EEZ energy contracts - IN CYPRUS / CYPRUS WEEKLY

Saad Sherida Al-Kaabi (L), Andrew Swiger (C), Yiorgos Lakkotrypis (R) 

April 5, 2017

Cypriot concessions covering exploration rights within the island’s Exclusive Economic Zone (EEZ) have been ratified with the signing of the first contracts with an energy firm consortium on Wednesday.

The signings will continue on Thursday too.

Last month, the cabinet approved contracts with France’s Total, Italy’s Eni, Exxon Mobil and Qatar Petroleum to explore for oil and gas in offshore areas south of the island. The consortium will officially sign the contracts with the Cypriot government for exploration rights for three offshore blocks off the south and south-western coast.

Welcoming the Senior Vice President of ExxonMobil Corporation, Andrew Swiger, the President and CEO of Qatar Petroleum, Saad Sherida Al-Kaabi, and their associates, Energy Minister Giorgos Lakkotrypis said that Wednesday’s signing ceremony concluded the 3rd licensing round.

Greece says East Med gas pipeline to Europe feasible - NEW EUROPE

MARCH 7, 2017, 15:25
Kostis Geropoulos

Project plans to connect Levantine Basin with Cyprus, Greece

DELPHI, Greece – A pipeline planned to transport natural gas from the recently discovered fields in Eastern Mediterranean to Europe is feasible and viable, the CEO of Greece’s Public Gas Corporation has said.

“There has been a lot of speculation over the past years, people talking of ‘Pharaonic’ projects. I was personally a bit hesitant. Now, we have conclusion of the studies that this pipeline is technically feasible, economically viable and commercially competitive,” Theodoros Kitsakos said, referring to the Eastern Mediterranean Pipeline (East Med).

Addressing an energy panel on the third day of the Delphi Economic Forum on March 4, Kitsakos displayed slides for the first time in public showing the technical feasibility of the East Med pipeline. “From a technical background all steps are quite feasible. There is only one small piece of less than 10 kilometres just before the island of Crete where the depth is quite high,” he said. “But technology has advanced so we can cover this also so the whole route is guaranteed,” he said.

Lebanon relaunches first oil and gas licensing round - REUTERS

Lebanon's Minister of Energy and Water, Cesar Abou Khalil
REUTERS/Mohamed Azakir

Thu Jan 26, 2017 | 9:58am EST

Reporting by Lisa Barrington; Editing by Susan Thomas and Susan Fenton

Lebanon relaunched its first oil and gas exploration and production licensing round after a three-year delay, its energy minister said on Thursday, kick-starting the development of a hydrocarbon industry stalled by national political paralysis.

Lebanon has opened five offshore blocks (1,4,8,9 and 10) for bidding in a first licensing round, Minister of Energy and Water Cesar Abou Khalil told a news conference.

EastMed pipeline commercially viable - CYPRUS MAIL / CNA

January 25, 2017

EastMed pipeline is commercially viable and technically feasible, according to a study presented in Brussels to the EU Directorate-General for Energy and the director generals of the Ministries of Energy of Cyprus, Greece, Israel and Italy.

According to the study conducted by EDISON, the estimated cost of EastMed is 6 billion dollars.

Relevant sources told CNA that after the presentation of the study, there was a discussion between the delegations of the four countries with the European Commission, in order to prepare the meeting of the Energy Ministers of the four countries and the EU Energy Commissioner Miguel Arias Cañete, scheduled for next May in Israel.

Moody's: Lebanese Government unlocks credit-positive oil and gas exploration - CPI FINANCIAL

Sunday 15, January 2017
Georgina Enzer

On 4 January, Lebanon’s (B2 negative) newly formed cabinet approved two decrees to start offshore oil and gas exploration by setting out both the exploration blocks that it will offer and the terms and conditions for exploration and production agreements.

The bidding round will commence within six months, with 14 companies pre-qualified, and authorities expect the exploration phase to last five years. The cabinet’s decision is credit positive for the government because it reflects improved government effectiveness and has the potential to improve the country’s fiscal and external positions.

Oil Majors Prepare For Mega Tender In Lebanese Levant Basin - OIL PRICE

Jan 09, 2017, 3:14 PM CST

Zainab Calcuttawala

After a four-year wait, the Lebanese cabinet has approved two oil and gas decrees on energy tax provisions and blocking last week – allowing offshore drilling ventures in 96 trillion cubic feet of natural gas reserves to begin brewing.

A massive licensing round, stalled in 2013 due to a lack of national unity on energy explorations issues, is set to begin in the country in the next few weeks, with the deadline for submitting bids set for mid-2017.

“Blocks will be opened according to the study carried out by the Petroleum Administration Committee (PAC), as well as according to the requirements of the Lebanese state,” Cezar Abi Khalil, the country’s Minister of Energy and Water Resources told the NNA, describing the new body that will delve into the extraction issues of national offshore production.

A multibillion-dollar natural gas boom may reunify Cyprus - CNBC

The drillship Pacific Khamsin on November 04, 2016 in Limassol,
Cyprus.  Athanasios Gioumpasis | Getty Images

8 January 2017
Nasos Koukakis, special to CNBC, CNBC.com

A potential energy boom in Cyprus could spur a deal to reunify the ethnically-divided island after more than 40 years. A breakthrough may come at a United Nations-brokered multilateral summit in Geneva this week.

The island nation has discovered offshore gas with estimated reserves of over 4 trillion cubic feet valued at over $50 billion. Last month, global energy giants including ExxonMobil, Total of France, Qatar Petroleum and Eni of Italy won licenses to explore and drill for oil and gas off the southern coast of Cyrpus.

An accord has never been closer, as the European Union eyes Cyprus as a future energy hub that would give Turkey and Europe access to gas deposits discovered in the eastern Mediterranean. This would allow Turkey and Europe to reduce reliance on Russia for the continent's energy needs.

TEKMOR Note: Our view is that the talks will not change the status quo. Prior the 1974 Turkish invasion the Turkish Cypriot minority lived all around the island comprising a majority in none of the six districts of Cyprus. The majority Christians (Greeks, Maronites, Armenians, Latins) still hold titles to circa 90% of all properties in the illegally occupied territory from a 19th century land registry set up by the British during the colonial era. This fact alone makes an artificial 'bizonality' too bitter a pill for the majority Christians to accept. Erdogan for his part will use Cyprus as an opporunity to bolster his nationalistic image ahead of the spring referendum to render him the absolute ruler of Turkey via the introduction of a new presidential system. The Turkish Cypriot minority's leaders for their part continue to interpret the charter in a segregationsit manner demanding a Muslim vote for anything to be approved at the federal level.    

East Med: Opening new horizons for natural gas in SE Europe - NEW EUROPE

08:06 NOVEMBER 28, 2016, 08:06
Harry Aposporis

The effort to produce natural gas from the major deposits of Eastern Mediterranean is now well underway, as Eni continues to develop the Zohr field in Egypt, Noble Energy advances Aphrodite in Cyprus and the Leviathan partners in Israel seek potential buyers. At the same time, Cyprus proceeds with its third licensing round, with its result expected to be announced before the end of this year.

Obviously, a crucial issue for the future of Eastern Mediterranean gas is its marketing and the way it is going to be transferred to major markets, like Europe. One of the most promising available solutions is the East Med pipeline, proposed by DEPA, an ambitious, but completely feasible project, which is expected to provide stability and unlock the precious resources of that region in the near future.

Lebanon's hydrocarbon bonanza just out of reach - BREAK BULK

November 11, 2016
By Mark Willis

Following the precipitous collapse in global energy markets over the last three years, an increasing volume of high cost hydrocarbon exploration projects once considered economically viable have been scaled down, put on hold, or canceled altogether.

Exploration projects requiring a breakeven point in excess of current oil and gas prices that have already succumbed to cost cutting among international oil companies include the Canadian oil sands, offshore drilling in the North Sea and Gulf of Mexico, and development of deep sea hydrocarbon reserves in the Arctic and West Africa.

Low gas prices clog pipeline projects, EastMed’s Leviathan - NEW EUROPE

NOVEMBER 4, 2016, 13:06
Kostis Geropoulos

ATHENS – Low gas prices have a limited effect on the planning of major pipeline projects, including plans to export gas from the East Mediterranean, DEPA CEO Theodoros Kitsakos said.

He was responding to a question from New Europe at a Russian-Greek forum in Athens on November 2 on whether low gas prices could affect the development of gas projects, including the EastMed pipeline.

“The decision whether the gas from the Levantine Basin will come to Europe via Cyprus and Turkey, which it is a political issue, or via EastMed from an offshore pipeline to Crete, Peloponnese and upwards, it does not have to do so much with the price of natural gas at Leviathan,” the head of the Public Gas Corporation of Greece said, adding that this is a long-term, strategic project.

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.

UPDATE 2-Noble's Cyprus gas drill at lower end of estimates | Reuters

Thu Oct 3, 2013 11:56am EDTMichele Kambas

• Cyprus gas find is third largest in Levantine Basin
• Reserves gross value three times Cyprus's GDP
• Authorities say committed to LNG terminal, want to avoid delays
• Discovery boon for financially troubled island

NICOSIA, Oct 3 (Reuters) - A landmark natural gas well off Cyprus has produced less than anticipated, potentially delaying investment in a liquefied natural gas plant and plans for export by 2020.

Cyprus and its exploration partners, Texas-based Noble Energy, on Thursday announced an around 5 trillion cubic feet (tcf) natural gas find, lowering the initial estimate of 7 tcf made in late 2011.