Tiran (foreground) and Sanafir (background) islands between Egypt's Sinai Peninsula and Saudi Arabia
July 9, 2019
Rami Galal
CAIRO — The issue of sovereignty over the two islands of Tiran and Sanafir in the Red Sea at the Strait of Tiran leading to the Gulf of Aqaba is once again making headlines in Egypt. The country had witnessed a wave of anger three years ago against the backdrop of the signing on April 8, 2016, by Egypt and Saudi Arabia of a maritime border demarcation agreement, under which Saudi Arabia gained sovereignty over the islands.
During a meeting with an Egyptian parliamentary delegation June 26, Red Sea Gov. Gen. Ahmed Abdullah revealed great gains for the Egyptian economy that are about to materialize as a result of the 2016 agreement. “A large number of people focused on the islands of Tiran and Sanafir and completely ignored the economic gains that the Egyptian citizen will gain,” he said.
According to Abdullah, Egypt has been able, after the agreement, to exploit the wealth in the Red Sea. He explained that the border demarcation agreement allows Egypt to drill in deep territorial waters because the International Law of the Sea defines territorial waters and economic waters as well as the equidistant line between countries. The International Law of the Sea does not determine the maritime borders between countries.
Mohamed Hammad Egyptian Minister of Petroleum Tarek el-Molla said Cairo would soon announce its first international bid for oil and gas exploration in the country’s Red Sea territory, as a step towards Egypt increasing its position among natural gas suppliers in the region.
Molla said the ministry carried out two seismic surveys in the Red Sea and southern Egypt that indicated “positive signs that encouraged us to submit tenders to international companies for the extraction of oil and gas in that virgin region.”
“This procedure would not have been possible without the delimitation of the maritime border with Saudi Arabia in April 2016. [The agreement] enabled Egypt to search and explore in this region for the first time,” Molla said.
The surveys were carried out by US companies TGS and Schlumberger at a cost of about $750 million.
Tenders for oil and gas exploration in the Red Sea were to have been announced last December but Molla said Egyptian officials decided to wait to better market the promising potential in the region.
Oilfield services company Schlumberger is set to complete seismic studies in the Gulf of Suez before the end of this year, a source tells Youm 7.
Norway’s TGS also expects to deliver final data in December this year after completing a 10,000-km 2D seismic surveyalong Egypt’s Red Sea border with Saudi Arabia.
Schlumberger and TGS-NOPEC are two of five firms that were awarded contracts for scans in the area last year.
Gas tanks at the desert road of Suez city north of Cairo (Reuters)
Sunday 06/MAY/2018
Ahmed Megahid
UAE investments in Egypt totalled $6.2 billion in 2017, up from $6 billion the previous year.
CAIRO - Having acquired a 10% stake in the Shorouk concession in Egypt’s gigantic Mediterranean Zohr gas field in March, the UAE-based investment fund Mubadala Petroleum is preparing to explore for oil and gas off Egypt’s Red Sea coast.
Egypt has finalised seismic research off the coast and is in the process of compiling a comprehensive study off the Red Sea coast before inviting oil and gas companies — perhaps by the end of the year — to bid for concessions in the area, which is expected to hold huge mineral reserves.
Mubadala CEO Bakheet al-Katheeri, after an April 25 meeting with Egyptian Petroleum Minister Tarek el-Molla, said the company was interested in long-term cooperation with Egypt regarding petroleum and gas.
Mubadala bought the 10% stake in the Shorouk concession from Italian state-owned Eni for $934 million. Katheeri confirmed that the company had expressed an interest in upgrading Egypt’s crude oil fields.
A string of news from the petroleum industry is worthy of your attention this morning, all stemming from the 9th Mediterranean Offshore Conference, which saw a number of IOCs on Tuesday — including Shell, Eni, and Edison — make commitments to expand and expedite their activities in Egypt:
EGAS and the Ganoub El Wadi Petroleum Holding Company (GANOPE) signed yesterday a USD 600 mn agreement to purchase an offshore drilling rig from Toyota Tsusho, according to an Oil Ministry statement. The rig will be used for oil and gas deepwater exploration in the Mediterranean, Gulf of Suez, and Red Sea.
Schlumberger announced it will invest USD 60 bn in a new data center in a bid to make industry information more accessible, according to Egypt GM Hussein El Ghazzawy. El Molla had signed two agreements with Schlumberger back in February, one each for the data center and a seismic survey of the Gulf of Suez.
HOUSTON -- Schlumberger today announced the award by Noble Energy of an engineering and supply contract for a 2,000-ton single-lift process module to be installed on the Leviathan platform in the Eastern Mediterranean.
The scope of the contract includes pre-treatment, salt removal and regeneration of monoethylene glycol (MEG) for re-injection in the subsea flowlines for hydrate inhibition. The Schlumberger PUREMEG reclamation and regeneration system is a proprietary technology that will be supplied as a single-lift module for installation on the production platform.
Reporting by Ehad Farouk; Writing by Sami Aboudi, editing by David Evans
CAIRO (Reuters) - Egypt has signed a deal with oilfield services company Schlumberger to conduct a seismic survey in the Gulf of Suez, the oil ministry said on Wednesday, part of efforts to encourage firms to invest in exploration work in the area.
The oil ministry announced an agreement with an international company on Monday to conduct a seismic survey of the Gulf of Suez to attract exploration investment, but did not identify the company and gave no details.
The deal, signed on the sidelines of an energy conference in Cairo, allows Schlumberger to start work on the survey.
ASKER, NORWAY (20 December 2017) - TGS-NOPEC Geophysical Company (TGS) and Schlumberger today announced a new 2D seismic project offshore Egypt.
The project will comprise acquisition of a 10,000 km 2D long-offset broadband multi-client seismic survey. Advanced new acquisition and imaging techniques will provide better illumination of complex subsalt structures. The project will integrate all legacy seismic and non-seismic data. Acquisition will commence mid-December and is expected to complete in late Q1 2018.
This project is part of an agreement entered with South Valley Egyptian Petroleum Holding Company (GANOPE) in which Schlumberger and TGS have a minimum 15-year period of exclusive multi-client rights in a ~70,000 km2 open area offshore the Egyptian Red Sea.
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.
Osama Farouk, vice chairperson for agreements and exploration at GANOPE, said that the value of the offers received by the company is estimated at $758m. The value has increased to $1bn, and two offers to collect data are expected to be merged.
The company is negotiating with PGS, CGG, KGS, Schlumberger, and Nageco companies. Discussions with them are being held every day about the offered data and technology.
CALGARY -- Packers Plus Energy Services worked with an operator in Egypt to complete a 6-stage StackFRAC system using the drillable closeable (DC) FracPORT sleeve in a short timeframe.
"Packers Plus' advanced manufacturing capabilities ensured the product was delivered and tested within three days, meeting the client's operational timeline and technical requirements," said Packers Plus President, Ian Bryant. "Not only was the client working in a short turnaround time, they were also interested in a closeable system that would simplify future operations."
HOUSTON -- OneSubsea, a Schlumberger company, has been awarded an engineering, procurement and construction contract totaling more than $170 million from Belayim Petroleum Company (Petrobel). OneSubsea will supply the subsea production systems for the first stage of Zohr field, located in the Shorouk Concession, offshore Egypt.
“Zohr is one of the largest gas fields discovered in the Mediterranean Sea to date, and is also the world’s second longest step-out, a distance greater than 150 km. This step-out will be enabled by OneSubsea controls systems with fiber-optic communications technology,” said Mike Garding, president, OneSubsea. “Our supplier-led approach to the field development, coupled with our FasTrac program capability, and our integrated offering that includes flow assurance, subsea production system and landing string capabilities, will help Petrobel meet their first gas commitment.”
The contracts with the company providing services to French energy giant Total, scheduled to drill for gas later this year, will be signed in July, Transport Minister Marios Demetriades said on Saturday.
According to Demetriades, at the moment there is a tender competition for companies to provide services to Total, which has agreed to relocate from Larnaca to Limassol port.
The government has been trying to convince the hydrocarbon companies, interested in drilling for natural gas off Cyprus, ENI, Noble and Total, to relocate to Limassol, after the Larnaca municipal council decided in February not to extend the stay of MedServ, the company providing support services to ENI and Total.
THE government’s scramble to offer Limassol as an alternative support hub to the energy giants turfed out of Larnaca, is too little too late as the damage to the island’s image has already been done, business leaders have told the Sunday Mail.
Larnaca municipality’s decision to reject a request to extend the operation of MedServ, a company providing oil and gas exploration support services out of the port, has angered those directly involved and caused widespread disappointment in the industry, even more so as the move was ‘respected’ by the government.
It has also led to the delay in French company Total’s exploratory drilling by three to four months, Energy Minister Giorgos Lakkotrypis said on Saturday.
IN A scramble to bring forward the operations of oilfield services behemoths Halliburton and Schlumberger in Aradippou, authorities here seem to have rewritten or even tossed out the rulebook, bending and sometimes outright sidestepping regulations.
The two companies have picked Cyprus for their base of operations in the east Mediterranean. At this stage, they will be working with ENI-KOGAS, currently drilling an exploratory gas well in offshore Block 9.
Halliburton won the contract for drilling, cementing and completion of the ENI wells. Schlumberger’s contract with ENI involves carrying out logging and testing. Some of its logging tools use radioactive sources. Schlumberger also needs storage space for shape charges.
Halliburton,
one of the world's largest oilfield services companies with operations
in more than 80 countries, has decided to set up a regional base in
Cyprus to cover the eastern Mediterranean, government officials said on
Friday.
Senior executives were received by
President Nicos Anastasiades in the presence of Energy Minister Yiorgos
Lakkotrypis, who welcomed the Houston, Texas-based company, in a tweet:
“Welcome @Halliburton. All the best servicing Exploration in #Cyprus
EEZ. Thanks for the confidence in our potential.”
Later, Lakkotrypis told reporters Halliburton “will provide supportive
services in the hydrocarbon exploration process within Cyprus’ Exclusive
Economic Zone (EEZ).”
He added that the presence of a company of that caliber in Cyprus
constitutes a vote of confidence in Cyprus and its prospects, for the
Cypriot economy, something which is much needed.
The Cypriot Energy minister further said that discussions with the
company had been ongoing for some time, adding that President
Anastasiades was personally involved.
He reiterated the government’s position that in the short term, growth
will come from this type of supportive activities. He further said that
there are other things in the pipeline which he hopes will be announced
soon.
Halliburton is one of many companies hoping to service the exploration
and production companies that have acquired licenses in the Cyprus
offshore gasfields, as well as in neighbouring Israel and Egypt.
Lebanon, too, is seeking to complete its first wave of bidding in order
to award exploration licenses within its own economic zone.
Pipe supply giant Weatherford has had a long presence in Cyprus, for
over a decade, servicing drilling and oil production companies in the
Middle East and Africa, while Schlumberger is also reportedly keen to
set up a base in Cyprus.
Last week, the oil-rig supply vessel, the CastorOne, operated by Italian
giant Eni, anchored at Limassol port on its way to Egyptian gasfields,
as Cyprus government officials are pondering over expansion plans at the
main ports of Larnaca an Limassol that are slated for privatisation
over the next four years.
“It’s a pleasure to be here in Cyprus today at the start of our
operation to support our customers in the country of Cyprus in the
ongoing efforts to hopefully produce oil and gas here in the
Mediterranean”, Halliburton’s Senior Vice President for Europe and the
Sub Saharan African Region Mark Richard.
He thanked the government of Cyprus so far “for their tremendous support
and hospitality in helping us to get started here in the country”.
“Hopefully this is the start of many good years to come”, he said.
Replying to a question, he said they are going to build a base of operations in Larnaca.
Asked how many people they expect to employ, he said that will depend
“on how much work we actually win from competitive tenders with our
customers but it will be considerable at one point in time”.
Sources have suggested that Halliburton is expected to complete the
construction of its facilities within the next two months. It is in
talks with universities which offer relevant courses in Cyprus.
The same sources say that another company which is active in the same
services sector, Schlumberger is also in talks with the government.
Potential customers include Noble Energy and its Israeli partners Delek
and Avner, that are operating in the first Cyprus offshore block 12, the
French Total and the Italian-Korean joint venture Eni-Kogas.
Oilfield services leaders to set up regional base in Cyprus
By Elias Hazou
Halliburton and Schlumberger, two of the world’s largest oilfield
services companies, have chosen Cyprus as their base of operations for
the eastern Mediterranean.
The Mail has learned that the two multinational corporations will sign the relevant agreements with the government this month.
The Halliburton agreement will likely be concluded the weekend after
the next (May 10 or 11), with Schlumberger putting ink on paper one or
two weeks later.
Gas expert Charles Ellinas, former executive chairman of the Cyprus
National Hydrocarbons Company, named the two companies when asked by the
Mail about local press reports suggesting two multinationals were about
to set up shop here.
He said Halliburton in particular have been looking to rent land for
their base of operations in the Aradippou/Larnaca area, close to the
Larnaca harbour and the airport.
Halliburton provides drilling services and gear for companies prospecting for hydrocarbons.
Their base in Cyprus will cover the entire East Mediterranean, which
is expected to become a hotbed of exploration activity in the years to
come.
“Halliburton estimates that over the next few years around 50 to 60
new wells are going to be drilled in the East Med. We’re talking about
Israel, Cyprus, and Lebanon. Supposing that drilling costs are anywhere
from $5bn to $7bn, should Halliburton get half those contracts, it’s
well worth it for them,” Ellinas said.
The island’s political stability is the chief reason why Schlumberger
and Halliburton have picked Cyprus as the location for their regional
base of operations.
“It makes more sense to set up shop here rather than, say, Lebanon or Egypt,” said Ellinas. “This is a big deal for us.”
Halliburton’s activities here would consist of storing their drilling gear and opening up offices.
“Once they’re up and running, they’d start bringing in their
equipment. In addition to storage space, the gear would have to be
serviced, the company would need supplies etc. This is where local
companies come in, providing support services.”
And, according to Ellinas, Halliburton, which operate in more than 80
countries, tend to set up management teams but then hire locals to do
the work.
Over the course of their operation here, the US corporation could thus hire and train hundreds of locals, he said.
Schlumberger, arguably the world’s largest oilfield services company,
has its principal offices located in Houston, Paris, and the Hague. In
the industry they are known as sub-surface specialists, and develop a
lot of the software used to analyse seismic data.
Ellinas sounded a note of caution, however: “We need to encourage oil
and gas companies by cutting down on the red tape. These companies may
be competing, but they’re also talking to one other. If one of them is
unhappy operating in Cyprus, word spreads.”
The Italian-Korean consortium ENI-KOGAS are expected to carry out
exploratory drilling in one of their Cypriot offshore licenses in the
second half of the year. Already at Larnaca harbour, space has been
allotted to Malta-based Medserv, oil and gas logistics specialists,
acting as subcontractors for ENI-KOGAS.
Medserv’s facilities in Larnaca could conceivably be used by
companies like Halliburton and Schlumberger in the future, said Ellinas.
Noble Energy meanwhile, intend to carry out additional drilling in their Block 12 concession later this year and/or in 2015.
In late 2011 theTexas-based outfit discovered gross mean resources of 5 trillion cubic feet of natural gas offshore Cyprus.
Halliburton,
one of the world's largest oilfield services companies with operations
in more than 80 countries, has decided to set up a regional base in
Cyprus to cover the eastern Mediterranean, government officials said on
Friday. 