Aphrodite revenue sharing at 57.1% - 42.9% - KNEWS / KATHIMERINI CYPRUS

06 JUNE 2019 - 10:48

The revenue sharing formula is pegged to the price of oil

Cyprus media reported on Thursday that based on the revised agreement reached between the Ministry of Energy and the Noble - Shell - Delek consortium 57.1% of net revenues from the Aphrodite gas field will be received by the Republic of Cyprus and 42.9% by the firms developing the Block 12 reservoir.

The deal is expected to be approved by the Council of Ministers in July as the government is eager to move forward with the project.

The 5% reduction comes amid falling commodity prices and the considerable cost involved in developing an ultra-high depth well

Egypt’s USD 15 bn gas import agreement unlocked East Med to E&P majors - ENTERPRISE

Wednesday, 14 March 2018

Egypt’s Dolphinus Holding’s USD 15 bn agreement to import gas from Israel could have unlocked the East Mediterranean gas field for oil and gas majors who have long eyed the fields, according to the Wall Street Journal (paywall). “ExxonMobil, Shell, Total and others are planning to invest in exports and exploration in the Eastern Mediterranean. Their prospects were buoyed by a landmark contract last month between U.S., Israeli and Egyptian firms that breathed new life into the regional market.” Eni, which discovered Zohr, is trying to get in on Lebanon, while ExxonMobil is looking to be the latest entrant. As we noted on Monday, Shell is reportedly nearing a USD 25 bn agreement to bring gas from Israel and Cyprus to its liquefaction plants in Egypt. This comes despite political and hurdles that have traditionally kept these companies away from the region, with Turkey’s harassment of Cyprus and Lebanon-Israel disputes over areas being the latest of these. The piece somehow draws the connection between these discoveries and US diplomatic efforts to help bring regional powers, especially Israel and Egypt together.

Noble Energy announces execution of gas sales agreements for export of gas to Egypt - WORLD OIL

FEB/19/2018

HOUSTON -- Noble Energy, Inc., has announced that it has signed agreements to sell significant quantities of natural gas from Leviathan and Tamar fields to Dolphinus Holdings Limited to supply gas in Egypt. These agreements, one for natural gas from Leviathan and one for Tamar, each provide for total contract quantities of 1.15 Tcf of natural gas. The natural gas is anticipated to supply industrial and petrochemical customers, as well as future power generation in Egypt.

Sales volumes under the agreement associated with Leviathan field are anticipated to begin at a firm rate of approximately 350 MMcfd at the startup of the Leviathan project at the end of 2019. For the Tamar agreement, sales volumes are anticipated to begin at an interruptible rate of up to 350 MMcfd, dependent upon gas availability beyond existing customer obligations in Israel and Jordan. Noble Energy will have an option to convert the Tamar interruptible quantity to a firm-basis with a significant take or pay commitment. Both contracts are for a 10-year term.

Connecting the East Med - IN CYPRUS / CYPRUS WEEKLY

February 11, 2017
Spyros Papavassiliou

Constantinos Papalucas is a former Associate with the Environment and Natural Resources Program (ENRP) at Harvard University’s Belfer Center for Science and International Affairs where he focused on the issues surrounding the gas finds and the emerging energy hubs in the Eastern Mediterranean.

Asked about the state of the global market for gas and oil, Papalucas says that the world has enjoyed a period of low prices of oil, but also low prices of natural gas, because of the existence of oil-linked natural gas contracts.

In addition, since the end of 2014, the liquefied natural gas (LNG) market is in an oversupply mode, creating an LNG glut.

“The demand from the world’s three largest players – Japan, Korea and China, which make for 60% of the global LNG imports – declined,” says Papalucas, who has also served on the US House Energy and Commerce Committee.

Russian gas flows to Europe, Turkey surge 25% on year in H1 Jan - PLATTS

London (Platts)--17 Jan 2017 931 am EST/1431 GMTStuart Elliott, Edited by Alisdair Bowles

Russian gas flows to Europe and Turkey were already 25.5% higher year on year in the first 15 days of January, according to the latest Gazprom data, having hit an all-time high daily level on January 8.

The continued high flows in 2017 -- following record-breaking volumes last year -- come as cold weather across Europe, especially in the east, triggers increased demand for Gazprom gas.

Russian gas prices also remain competitive compared with European hubs -- the oil price rally of end-2016 will only filter through to oil-indexed gas contracts in the coming months -- so European buyers are thought to be maxing out their Russian gas purchases.

In a statement Monday, Gazprom said gas flows to what it calls the Far Abroad -- Europe and Turkey but not the ex-Soviet states -- were 25.5% higher than in the same period of 2016.