Israel settles gas saga - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 29/05/2016

Israel has finally settled the long-running saga of the gas regulatory framework agreement with the gas companies.

It has also reached a deal with Egypt to settle the dispute that has arisen after the decision by the International Arbitration Court to award a $1.73-billion compensation to Israeli Electric Corporation against Egypt’s EGAS for discontinuing gas supplies in 2012.
But these do not necessarily mean that Leviathan gas will now be exported to Egypt. Such a deal also needs signed commercial gas sales agreements.

Leviathan partners sign $3b gas deal - GLOBES

29/05/2016, 16:15

Hedy Cohen

Leviathan will supply 13 BCM over 18 years to the IPM power plant in Be'er Tuvia.

The partners in the Leviathan natural gas reservoir today announced the signing of a gas supply agreement with the IPM company in Be'er Tuvia. The partnership will supply 13 BCM of gas to the power station slated for construction in the Be'er Tuvia industrial zone. The value of the 18-year agreement is estimated at $3 billion. The contract is the second for the partners, following a contract with Edeltech, owned by the Edelsberg family, last January.

What's in store for Lebanon's nascent oil, gas sector? - AL MONITOR

Men look at screens onboard a boat during a tour of areas believed
to have gas reserves off Lebanon's coast near Beirut, May 30, 2013
(photo by REUTERS/Mohammed Azakir)

There is a new debate brewing in the small circles that discuss the best governance practices for oil and gas in Lebanon. While the caveats made Fouad Makhzoumi sound reluctant, he picked a side. The owner of a pipeline design and manufacturing concern, Makhzoumi wears his political ambition on his sleeve. He has run for elected office before and lost, but seems to be gearing up for another battle.

Author Matt Nash, May 27, 2016

At a live broadcast of a May 26 forum focusing on Lebanon’s oil and gas potential, which he co-organized, Makhzoumi urged attendees and those watching at home to support the country’s oil and gas regulator. Makhzoumi admitted that he first assumed the regulator’s six-member board was staffed with political appointees beholden to the sectarian leaders that chose them. Visiting their offices to see them in action, however, convinced him they were doing serious work, he said. He added that it’s best to just stick with the system in place, which was established nearly six years ago, for now.

Russia-Greece Black Sea Gas Pipeline May Transit Turkey or Bulgaria - SPUTNIK NEWS

27.05.2016

New Russian Gas Pipeline to Greece May Go Through Bulgaria ATHENS (Sputnik) – The new Black Sea gas pipeline from Russia to Greece may pass through Turkey or Bulgaria, but Romania is not considered as an option, Russian Energy Minister Alexander Novak said Friday.

"Considering the agreement and the signed memorandum…various options might be considered, both through Turkey and through Bulgaria," Novak told reporters, adding that Romania is not considered an option.

"Significant" interest in Cyprus 3rd Round - Minister Lakkotrypis - NATURAL GAS EUROPE

Minister Lakkotrypis and Vice-President Sefcovic

May 26th, 2016

Yiorgos Lakkotrypis, the Republic of Cyprus Minister of Energy, Commerce, Industry and Tourism, told an event hosted by Natural Gas Europe in Brussels on May 25 that he sees strong interest from international oil companies (IOCs) in the country's recently launched offshore licensing round. The event was also addressed by the EU's energy union commissioner Maros Sefcovic.

Eni's discovery of the giant Zohr field offshore Egypt was significant for nearby Cyprus, the minister said. Zohr was based on carbonate structures and ancient reefs, and similar key structures had been identified around the Eratosthenes Seamount in Cyprus's exclusive economic zone.

Cyprus Energy Minister to address a Natural Gas Europe event in Brussels - FAMAGUSTA GAZETTE

Wednesday, 25 May, 2016

Cyprus Minister of Energy, Commerce, Industry and Tourism, Yiorgos Lakkotrypis departs for Brussels where he will be a key speaker in an event titled “Cyprus: A Key Player in the Eastern Mediterranean Region”organised by Natural Gas Europe on Wednesday.

EU Commission Vice President, Commissioner for the EU Energy Union Maros Sefcovic will also address the event. The event will be attended by high ranking hydrocarbon industry executives, as well as by EU member-state officials.

Russia’s Gazprom No Longer Interested in Israeli Gas Field Development - SPUTNIK NEWS

© Sputnik/ Ilya Pitalev

(Sputnik) — Russian energy giant Gazprom is no longer interested in participating in the development of Israel’s Leviathan gas field in the Mediterranean Sea, Russian media reported Wednesday, citing an unnamed Gazprom source.

According to the Vedomosti newspaper, the source did not specify why the company had decided to abandon the project. Gazprom is reportedly not considering any other projects in Israel at the moment.

In 2012, the company was in talks with Leviathan’s operating firms on buying a 30-percent stake in the development project. At the time, Total, ExxonMobil, ConocoPhillips, Chevron, Woodside Petroleum also wanted a part in the project, however Gazprom offered the largest sum.

Gas fueling new hope in Eastern Mediterranean - TRT WORLD

May 24, 2016, by Ertan Karpazli

Fueling new hope in the region, Eastern Mediterranean nations rush to get their share of a gas bonanza, but political and commercial issues between them leave the fate of the region in a state of uncertainty.

Israeli authorities approved a deal on May 22 aimed at speeding up the development of a mega offshore gas reservoir which could pave the way for supplying Europe with natural gas from the Eastern Mediterranean.

Progress in developing the Leviathan gas field stalled in late 2014 when Israel’s Antitrust Authority declared Texas-based firm Noble Energy and Israel’s Delek Group, which together own 85 percent of the field and were set to invest a total of $12.5 billion, part of an "illegal cartel."

Energean inks Prinos, Epsilon investment - OFFSHORE ENGINEER

Written by OE Staff Monday, 23 May 2016

Greek exploration and production firm Energean Oil & Gas has secured a US$75 million loan from the European Bank for Reconstruction and Development (EBRD) to support the company’s ongoing $200 million investment plan in the Prinos and Epsilon oil fields offshore northern Greece.

The Prinos and Epsilon oil field development project is the largest investment in the Greek upstream sector since the 1980s and includes drilling 15 wells and installing a satellite platform to the main Prinos offshore facilities.

Egypt's Gas Projects To Increase Production To 6Bcf Per Day By End-2019 - RIGZONE / REUTERS

Sunday, May 22, 2016

DAMIETTA, Egypt, May 22 (Reuters) - Egypt will increase its natural gas production to between 5.5 and 6 billion cubic feet per day by the end of 2019, Oil Minister Tarek El Molla said on Sunday, up from the current 3.9 bln cubic ft per day.

Once an energy exporter, Egypt has turned into a net importer because of declining oil and gas production and increasing consumption. It is trying to speed up production at recent discoveries to fill its energy gap as soon as possible.

Egypt currently has 12 natural gas field development projects underway worth a total of $33 billion in investment, Molla said, speaking at the inauguration of a fertilizer plant in the port city of Damietta.

Israeli cabinet approves new natural gas agreement - GLOBES

22/05/2016, Hedy Cohen

The new gas field development agreement has a stability clause, which is more flexible than the one struck down by the High Court.

The cabinet today approved by a large majority the natural gas plan with a new and more flexible stability clause. The only minister to vote against it was Minister of Environment Protection Avi Gabai. The new clause does not commit future governments. According to the cabinet resolution approved today, the government promises to act in favor of regulatory stability for 10 years in the gas sector, but does not guarantee that nothing will be changed in taxation, ownership of the reservoirs, and exports. In contrast to the previous stability clause, the government will not oppose private members' bills seeking to make such changes.

Circle Oil offers its stake in North West Gemsa field for sale - ENERGY EGYPT / POWER NEWS

May 21, 2016

Circle Oil Plc, the Irish incorporated oil and gas exploration, development and production company, is looking to sell its 40% stake in North West Gemsa field.

The concessions are operated by a joint production company PetroAmir, whose partners include: EGPC, Zhen Hua (NPIC – 50% working interest and operator); Circle Oil Egypt Limited (40% working interest); and SDX Energy (10% working interest).

The NW Gemsa exploration license, which was converted to Al Amir and Geyad development leases, and lies in the Gulf of Suez area, has been put on offer by the company and the closing date for receiving offers was May 10th, according to Geol. Hassan Hataba, General Manager of PetroAmir.

Geol. Hataba cited difficult economic conditions, like many other oil companies, as the reason for putting up its stake for sale. He added that while several factors, such as declining in oil prices, increasing expenses and the company’s obligations to banks were the reasons for considering the sale.

Noble drops Cyprus’ Block 12 - IN-CYPRUS.COM / CYPRUS WEEKLY

19/05/2016

Noble Energy said on Thursday it is giving up its rights to Cyprus’ offshore Block 12 but will retain its interest in the Aphrodite field.

Noble told Bloomberg news that when the third and final exploration period expires on May 23 the acreage outside of the Aphrodite development area will be released and returned to the government.

The writing was on the wall from October last year, when Noble announced it would postpone drilling an additional exploration well from October until May 2016, when the licence expires.

The Block 12 partners, Noble Energy, Delek Holdings and BG, now owned by Shell, are supposed to submit a development plan this month for the Aphrodite field, which holds an estimated 4.1 trillion cubic feet of natural gas.

Israel, Egypt Said Close to Accord on Natural Gas Dispute - BLOOMBERG

May 18, 2016
David Wainer, Yaacov Benmeleh, Jonathan Ferziger

Israel said willing to compromise on fine Egypt must pay
Damages have hurt progress on exporting Israeli gas to Egypt

Israel and Egypt are nearing a compromise that would sweep away a major obstacle to a multibillion-dollar natural gas deal.

Israel may agree to settle for half of the $1.73 billion fine Egypt was ordered to pay it so talks on exporting Israeli offshore gas there can go ahead, two people familiar with the negotiations said, requesting anonymity because the talks are private. Payments would be spread over 14 years, one of the people said.

Negotiations are still under way, and authorities in both countries would have to approve any final figure, the people familiar said. State-owned Israel Electric Corp., which had sought the award from Egypt, and the Egyptian Foreign Ministry declined to comment.

Anastasiades, Netanyahu new meeting focusing on energy - CYPRUS WEEKLY

incyprus — 18/05/2016

President Nicos Anastasiades and Israeli Prime Minister Benjamin Netanyahu are set to meet within the second half of the year to push ahead with energy-related joint initiatives.

The meeting, the exact date of which will be announced soon, followed a long telephone conversation on Tuesday evening between the two leaders at the initiative of Anastasiades.

“New initiatives between the neigbouring countries focusing on the lucrative energy sector will be on the agenda of the meeting,” insiders told daily Phileleftheros.

Rosneft Eyes Building Hydrocarbon Terminal in Egypt's Suez Canal Zone - SPUTNIK NEWS / REUTERS

REUTERS/ Amr Abdallah Dalsh
17.05.2016(updated 12:55 17.05.2016)

Rosneft is looking into the possibility of building an oil and gas terminal in Egypt's Suez Canal Economic Zone, the Russian trade envoy to Egypt said Tuesday.

MOSCOW (Sputnik) — Preparations for talks on the hydrocarbon terminal project between Rosneft and Suez economic zone authorities are underway, he added, noting that in 2015, the Russian trade representation in Egypt passed a total of 11 oil and gas development proposals from the Egyptian authorities to Russian companies.

"Currently, the proposal to build a hydrocarbon terminal in the Suez Canal zone has been looked into the most. The Rosneft company is planning to take part in the project from the Russian side," Fedor Lukashin said in an interview with RIA Novosti.

EGAS to rent gasification ship located in Jordan with 500m cubic feet capacity - DAILY NEWS EGYPT

Gas line with Amman to re-open this summer, importing 200m cubic feet daily

Mohamed Adel May 16, 2016

The Egyptian Natural Gas Holding Company (EGAS) plans to rent a gasification ship located in Jordan with a capacity of 500m cubic feet of gas daily and to host it in a private port controlled by SUMED in Ain Sokhna in 2017.

A prominent official at EGAS told Daily News Egypt that Egypt has contracted to rent about 200m cubic feet of gas from the full capacity of the gasification ship in Jordan since the end of 2015.

He added that Egypt received quantities estimated at approximately 200m cubic feet of gas daily through the pipeline coming from Jordan last summer.

The official mentioned the re-opening of the gas pipeline between Egypt and Jordan and the import of 200m cubic feet per day to meet summer’s fuel requirements for power plants.

Norwegian Statoil to explore for natural gas in Turkey - DAILY SABAH / ANADOLU AGENCY

16/5/2016

Norwegian-based energy company Statoil signed a binding letter agreement for a license, together with Canadian Valeura, to explore for natural gas in Turkey's Thrace region. The exploration license covers an area of 540 square kilometers.

According to the company's written statement, the agreement was signed with Valeura, whose previous natural gas exploration has mainly focused on Tekirdağ's Banarlı district.

While Statoil has a 50 percent share in the Canadian company's Banarlı Licenses, the rest will belong to Valeura, which is currently traded on the Toronto Stock Exchange.

Delek, Noble to return Cyprus Block 12 rights - GLOBES

16/05/2016, Hedy Cohen

Delek and Noble Energy will retain rights to the Aphrodite natural gas field that they have already discovered.

Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) are expected to hand back exploration rights in Block 12 to the Cypriot government. The two companies have held the rights for seven years and are supposed to continue exploration drilling but have not done so, and next week the rights expire.

Delek and Noble Energy have already discovered the Aphrodite field in Block 12 containing 125 billion cubic meters (BCM) of natural gas and nine million barrels of condensate. It is the only gas field to date discovered in Cyprus Shell and Noble energy each hold a 35% stake and Delek holds 30% (Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each have a 15% stake).

Israeli gas can be exported to Europe through Turkey after four years - TREND NEWS

15 May 2016, Baku, Azerbaijan
By Rufiz Hafizoglu - Trend:

It will be possible to export the Israeli gas to Europe through Turkey at least after four years, Israel's Consul-General in Istanbul Shai Cohen told the Hurriyet newspaper.

Currently, Israel has a real potential to supply its natural gas to European markets, he added.

The diplomat noted that first of all, the approval of Knesset (Israel's parliament) is needed for starting the supply of Israeli gas to European markets through Turkey.

Earlier, the CEO of Turkish Turcas Petrol A.S. Batu Aksoy said that 15 energy companies have expressed interest in joining the consortium which is planned to be created for transporting the Israeli gas to Europe through Turkey.

Greece says will evaluate deep-sea oil and gas exploration bids within weeks - REUTERS

Fri May 13, 2016 2:02pm EDT

Greece will conclude the evaluation of deep-sea oil and gas exploration bids in the coming weeks and will name the preferred bidders soon after, its energy minister said on Friday, as the country seeks to tap into its limited oil reserves.

Plunging crude oil prices have cut spending on oil projects around the world but cash-strapped Greece is pushing ahead with investment in the industry in a bid to reduce dependence on oil imports and boost public finances.

"We are evaluating three bids made by oil companies whose financial strength, experience and infrastructure ensure they are in a position to successfully perform gas and oil exploration and production," Energy Minister Panos Skourletis said.

Egypt launches international bid round for 11 oil exploration blocks in the Western Desert and Gulf of Suez - ENERGY EGYPT / AHRAM ONLINE

 

May 12, 2016

Egypt launched international bids for oil exploration in 11 blocks in the Western Desert and the Gulf of Suez, the petroleum ministry announced in a press release on Thursday.

Five blocks will be offered in the Gulf of Suez, North-East of October, North-East of Al Hamd, North-East of Ramadan, East Badri, North maritime Esran, while the remaining six blocks will be offered in the Western Desert: North-West Razak, South-East Maleeha, North Um Baraka, South Allam Al Shaweesh, West Badr Eddin and South-East Siwa.

Arrears owed by the government to oil firms stood at $3.2 billion at the end of March, Reuters reported earlier in April.

Egypt became a net importer of natural gas in the past few years, having previously been a net exporter, on the back of rising consumption and falling production.

Eni's production reaches 65,000 boed with Nooros field just 10 months after discovery - ENI

11/05/2016

Eni, following the start of production of the Nidoco North 1X exploration well and the Nidoco North West 4 development well, brought the production of Nooros field, to around 65,000 barrels of oil equivalent per day. This new milestone is achieved in just 10 months of discovery.

San Donato Milanese (Mi), 11 May 2016 – Eni, following the start of production of the Nidoco North 1X exploration well and the Nidoco North West 4 development well, brought the production of Nooros field, located in Abu Madi West concession, to around 65,000 barrels of oil equivalent per day (around 33,000 net to Eni). This new milestone, achieved in just 10 months after discovery took place in July 2015, further confirms Eni's near field exploration strategy oriented on high-value activities, which, thanks to the existing infrastructures, allows the fast development of the findings.

As linking projects stall, energy companies see production rates fall - ENERGY EGYPT / DAILY NEWS EGYPT

May 11, 2016

Egypt’s average production of natural gas declined to 3.8bn cubic feet per day in 2016 from the rate of 4.4bn cubic feet per day in 2015.

A report published by the Ministry of Petroleum disclosed Egyptian gas fields’ average productivity in 2016, which has significantly decreased due to delays in plans to link gas fields to production sites managed by international companies.

The report pointed out that the Khalda Petroleum Company—a joint venture company between Egyptian General Petroleum Corporation (EGPC) and Apache Corporation—produced an average 850m cubic feet of gas per day, compared to 851 in 2015. The Italian energy company Eni, operating in Egypt through its subsidiary Petrobel, produced an average of 800m cubic feet of gas per day, down from 978m last year.

A national oil company for Lebanon? A premature and incomplete debate - MESP / EXECUTIVE MAGAZINE

May 11, 2016

It’s been three years the nascent oil and gas sector in Lebanon was brought to a complete halt. The relative success of the pre-qualification round in 2013 brought the sector to center stage and contributed to the hype surrounding it. But the pre-qualification round was not followed by a tender, which was put on hold for various rational and irrational reasons. No licenses were awarded. No exploration was conducted. Not a single discovery was made.

Yet, the oil and gas debate in the country appears to be oblivious to these realities.

Shifting Eastern Mediterranean Alliances - MIDDLE EAST QUARTERLY

by Emmanuel Karagiannis

Middle East Quarterly
Spring 2016 (view PDF)

The exploitation of energy resources in the Eastern Mediterranean has drawn together hitherto estranged states. In August 2013, Cyprus, Greece, and Israel signed onto the "EuroAsia Interconnector" project, which would install a 2000-megawatt underwater electric cable (illustrated above) to connect their power grids and to be a means by which "three nations ... [can] enhance their growth and prosperity" and build a "bridge of friendship between our nations."

The Eastern Mediterranean is changing fast with its estimated 122 trillion cubic feet (tcf) of natural gas reserves (the equivalent of 21 billion barrels of oil) already having an impact on regional patterns of amity and enmity.[1] With Israel and Cyprus well underway to becoming gas exporters, the problematic Israeli-Lebanese and Cypriot-Turkish relationships have been further strained. At the same time, energy cooperation has been the driving force behind the nascent Greek-Cypriot-Israeli partnership, manifested in rapidly growing defense and economic cooperation. Clearly, the development of energy resources and their transportation will have far-reaching geopolitical implications for the Eastern Mediterranean and its nations.

Talk of Egypt gas deal merely ‘lip service’ - CYPRUS MAIL

May 10, 2016

With oil and gas prices suppressed for the foreseeable future and with Egypt – touted as the premier market for Cypriot natural gas – set to ramp up its own energy production in the near term, Cyprus needs to fast rethink its whole gas export policy, an energy analyst has told the Cyprus Mail.

“If we’re serious about selling our gas, then we have to look at other areas,” said Charles Ellinas, commenting on latest developments in Egypt.

The neighbouring country is poised to become energy self-sufficient over the next few years as multiple gas projects there come on stream.

Recently Egypt renegotiated higher gas prices, of up to $5.88 per mmbtu (million British thermal units), prompting gas companies to fast-track project development.
Ellinas cited a presentation given last week by Egyptian Minister of Petroleum & Mineral Resources Tarek El Molla at the Offshore Technology Conference (OTC) in Houston.

Petroleum ministry plans to raise foreign investments in Egypt to $8.5 billion in 2015-16 - ENERGY EGYPT

May 10, 2016 

Egypt’s petroleum ministry eyes raising foreign investments in Egypt in drilling and exploration projects by US$1 billion to hit around $8.5 billion by the end of fiscal year 2015-16.

Source at the ministry told Amwal Al Ghad Sunday that oil agreements that were signed with foreign partners during the last months have participated in boosting oil investments in Egypt.

The discovery of Zohr giant gas field encouraged foreign investors to inject new investments and capitals during 2016 into Egyptian market to make significant discoveries, the source added.

Egypt's era of self-sufficiency nears - NATURAL GAS EUROPE

May 09th, 2016

Egypt may be facing a widening gas deficit, but it has the means to turn a shortage into a surplus, if the right policies are adopted. Last year the government plugged the 7bn m³ shortfall in domestic production with imports of relatively expensive LNG, and the oil minister said recently that Egypt is facing an estimated $8bn on energy imports this fiscal year – a drain on the country. Without new oil and gas production this will increase.

Gas production could go down from a projected 42bn m³ this year – compared with demand of 52bn m³ – to 15bn m³/yr in ten years, as most of Egypt’s existing oil and gas wells are either at maturity or beginning to decline in yield. By that point, demand could be above 65bn m³/yr.

However, the giant Zohr field and a number of new gas-field developments, spurred on by the new gas prices negotiated recently between the Egyptian government and producers, are coming to the rescue, with the UK major BP and Italian Eni leading the way.

Israel close to signing gas agreement with Turkey - GLOBES

09/05/2016, 09:33
Hedy Cohen

An energy deal between the two countries is close says Energy Minister Yuval Steinitz and reports in the Turkish media.

Israel is closer than ever to signing an agreement to export natural gas to Turkey, according to reports in the Turkish and global press and statements by Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz in an interview at the end of last week with the "Bloomberg" news agency. Turkey wants to consume half of the quantity of gas in the Leviathan gas reservoir, starting in 2020. In the second stage, gas may be transported from Turkey to Europe through a pipeline.

"We have a strong connection with Israel, and importing Israeli gas to Turkey is a big deal for us," Zorlu Holdings CEO Omer Yungul said last week, adding that his company wanted to import 8 BCM of gas in the near future.

Steinitz: Israel to propose new gas framework soon - GLOBES

08/05/2016, Globes correspondent

Energy Minister Yuval Steinitz told Bloomberg he would present a softer version of the stability clause ruled illegal.

The State of Israel will shortly present Noble Energy and Delek Group Ltd. (TASE: DLEKG) an alternative to the stability clause in the gas framework agreement with them that was struck down by the High Court of Justice, Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz told Bloomberg last week. The controversial clause in the agreement promised that the government would introduce no material regulatory changes for ten years. Steinitz said that the redrafted clause would enable the Leviathan gas reservoir to be developed, and would pave the way to gas export agreements with Egypt and Turkey. Steinitz refused to be specific about the content of the new clause.

Egyptian government reconsiders decision to reduce natural gas prices - DAILY NEWS EGYPT

No official notification received from Industry Ministry to apply the decision, says EGAS

Fatma Ahmed May 7, 2016

The Egyptian government did not execute the decision to sell natural gas to iron factories at the price of $4.5 per million British thermal units (Btu) until now, according to the head of the Metallurgical Industries Chamber, Gamal Al-Garhy.

“Nowadays, the company is challenged due to the shortage of natural gas. It will stop supplying high-production factories in the summer months, which coincides with high electricity consumption,” Al-Garhy explained.

The Egyptian government announced on Monday that it is reconsidering its decision to sell natural gas to the iron factories at $4.5 per million Btu instead of $7. This is in order to reduce the price of steel for consumers.

Russia's Rosneft says delivers first LNG cargo to Egypt - REUTERS

Fri May 6, 2016

MOSCOW May 6 (Reuters) - Russian oil giant Rosneft said on Friday it had delivered its first liquefied natural gas (LNG) cargo to Egypt.

It said the GOLAR ICE tanker supplied the cargo to the port of Ain Sukhna as part of a deal agreed in August 2015.

Rosneft does not produce LNG itself and the deliver was the first ever in its trading activity. The cargo was bought off from the global spot market, Rosneft said. (Reporting by Vladimir Soldatkin; Editing by Jack Stubbs)

Tamar gas is jewel in Noble's tarnished crown - GLOBES

05/05/2016, 16:05
Yaakov Tzalel

Noble Energy's first quarter loss would have been far worse without the Israeli offshore gas field, Yaakov Tzalel observes.

The Tamar natural gas reservoir is among the world's most attractive energy sites, according to Noble Energy president and CEO David Stover. Noble Energy yesterday published its first quarter financial statements. Despite the quality of the Tamar site, the company posted a $422 million operating loss, an increase of 220%, compared with its loss in the first quarter of 2015, and a $287 million net loss, more than a 10-fold increase. Had oil prices, which recently jumped 50% been just $10 a barrel higher, Noble Energy's quarterly revenue would have been $835 million, $130 million more than they actually were. That might not have turned its loss into a profit, but it would have made the company's struggle to survive much easier.

OTC 2016: Israel to Hold Oil, Gas Bid Round in 2016 - RIGZONE

by Andreas Exarheas
Thursday, May 05, 2016

Israel is scheduled to hold an international oil and gas bid round this year, confirmed Eitan Levon, consul general of Israel to the Southwest US, in a presentation at OTC in Houston.

Addressing industry delegates, Levon revealed that the Levant basin could still hold undiscovered resources of 6.6 billion barrels of oil equivalent. In a statement in November, Israeli Energy Minister Yuval Steinitz said experts estimate that there are between 10,000 and 15,000 billion cubic meters of gas in the East Mediterranean basin.

Greece's sole oil producer boosts output by 30 percent - REUTERS

4 May 2016

ATHENS (Reuters) - Greece's sole oil producer, Energean Oil & Gas, has stepped up daily production by about 30 percent since early January, it said on Wednesday, as the debt-ridden country seeks to tap into its limited oil reserves.

Plunging crude prices have deterred spending on oil projects around the world but Greece is pushing ahead with investment in the industry in a bid to reduce dependence on oil imports and boost public finances.

Many analysts are now growing more confident that a new-two-year rout in oil prices has ended.

Energean, 45 percent owned by hedge fund Third Point (TPOG.L), said it had increased production to more than 4,000 barrels per day from its two oil fields off the northern Greek island of Thassos.

OTC: Egypt eyes free-market future as gas demand requires more development - OIL & GAS JOURNAL

HOUSTON, 05/03/2016
By Tayvis Dunnahoe
OGJ Exploration Editor

The recent Zohr discovery in Egypt’s Mediterranean basin has given the country an impetus to further its move to an open oil economy, according Minister Tarek Elmolla of Egypt’s Petroleum and Mineral Resources Ministry (OGJ Online, Mar. 10, 2016).

Among paying down its debt, reforming its subsidy programs, and adjusting natural gas prices, “attracting foreign investment is one of our biggest challenges,” Elmolla told attendees of a May 3 panel discussion at the Offshore Technology Conference in Houston.

Egypt’s daily natural gas demand currently outpaces its production. The country has become increasingly dependent on gas, which makes up 53% of its total energy mix and 63% of its electricity-generating feedstock, Elmolla said.

Energy to top the agenda during Russian president’s Athens visit - KATHIMERINI

03.05.2016
CHRYSSA LIAGGOU

Russian President Vladimir Putin is arriving in Greece on May 28, with the main subject topping his agenda being the promotion of a new conduit for the transmission of Russian natural gas via Bulgaria and Greece, including the utilization of the plan for the Interconnector Greece-Italy (IGI) pipeline.

The Russian president’s energy agenda also includes the revival of Russian companies’s interest in the privatizations of the Public Gas Corporation (DEPA) and Hellenic Petroleum, should they go ahead, as well as Russian electricity companies’ joint ventures with Public Power Corporation (PPC). The Russian interest in Thessaloniki Port Authority and Trainose will also be reassessed.

Azerbaijan’s SOCAR: No financial obstacles to developing TANAP project - TREND NEWS AGENCY

2 May 2016
Baku, Azerbaijan

By Maksim Tsurkov - Trend:

There are no financial obstacles to developing the Trans-Anatolian Natural Gas Pipeline (TANAP) project, Vagif Aliyev, head of the investments department at the State Oil Company of Azerbaijan (SOCAR), told the Natural Gas Europe website.

"Despite the low oil price and the need for foreign loans, the development of TANAP continues to follow the projected schedule," he said.

The Board of Directors of the World Bank will approve the allocation of $1 billion loan to Turkey on July 7, 2016 for financing the TANAP project.

Egypt gas impact: Cyprus and Israel - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas Charles Ellinas — 01/05/2016

This week and next I will analyze the rapid developments in Egypt’s gas projects, and its progress to self-sufficiency, and the impact this has on Cyprus and Israel gas.

Egypt in context
Current demand for natural gas in Egypt is 52bcm/y and may reach 65-70bcm/y over the coming 10 years.

A combination of a switch to renewables, reduction of subsidies, higher gas prices and an awareness campaign by the Egyptian government on ways to rationalize energy consumption should help stem the rampant increase in demand.

But even with these, without new gas coming online the gas deficit of 7bcm/y in 2015 will carry on increasing.

The challenge is that gas production has already declined this year to 42bcm/y, due to past-government misguided policies, requiring expensive LNG imports.

New Estimate Lowers Offshore Potential at Israel's Leviathan - FORBES

APR 30, 2016
Christopher Coats , CONTRIBUTOR

A new estimate of Israel’s offshore Leviathan field shows a far more conservative outlook for the country’s natural gas potential, possibly eating away at the country’s export plans.

According to a Platts report, the new estimate reduces a previous assessment of the field’s potential by almost a quarter to 16.6 Tcf, threatening to reshape the country’s plans for moving natural gas beyond its own borders.

Israel has previously established allowable amounts of natural gas to be exported from the country’s offshore efforts, establishing a minimum for domestic use. Since then, the country has worked to establish potential new trade partnerships with regional neighbors and possible links with the broader European market.

At the same time, Europe has looked to explore potential new import efforts with Eastern Mediterranean producers like Israel as it hopes to reduce its current dependence on Russian natural gas.

US diplomat urges Israel to resolve the deadlock in gas industry - NATURAL GAS EUROPE

April 29th, 2016

Amos Hochstein, a senior US state department official and special envoy on energy issues, said Israel's regulations were deterring energy companies. In an interview with Calcalist, a business daily, Hochstein said that energy companies prefer investing in Egypt over Israel and urged Israeli politicians and regulators to solve the deadlock in Israel's energy sector since the High Court of Justice rejected the stability clause in the natural gas regulatory framework late March.

"Stable regulation is a must and it doesn’t matter how, but it has to happen fast," Hochstein said. "It is a subject that came up in the past in my talks with the Prime Minister, Benjamin Netanyahu."

Energy across the Mediterranean: a call for realism - BRUEGEL

After almost two decades of unproductive regional cooperation attempts, the EU should reshape its energy cooperation efforts in the Mediterranean through new bilateral approaches

BY: SIMONE TAGLIAPIETRA AND GEORG ZACHMANN DATE: APRIL 28, 2016

The issue

This paper was produced within the framework of the Bruegel- OCP PC joint conference.

Political instability in the southern Mediterranean countries have highlighted the unsustainability of their economic models. Widespread economic discontent, and in particular very high youth unemployment, underpinned the Arab Spring uprisings. As the refugee crisis shows, this is also Europe’s problem and Euro-Mediterranean economic cooperation needs to be reviewed. Energy is a key part of the cooperation framework.

RPT-UPDATE 1-Genel courts Turkey with Kurdish gas to reduce reliance on Russia - REUTERS

Apr 27, 2016

• Genel in talks with Turkish state-backed firm on stake in fields
• Deal would help Turkey diversify supplies after Russian dispute
• Could help Genel and Chairman Hayward regain investor confidence (Recasts, adds details, background)

By Ron Bousso

LONDON, April 27 Genel Energy, chaired by former BP head Tony Hayward, is betting on a major deal with Turkey to jointly develop gas fields in Iraqi Kurdistan which will help Ankara reduce its reliance on Russian supplies after relations soured with Moscow.

The deal, if it goes through, could help London-listed Genel regain investor confidence after it steeply downgraded its oil reserves two months ago - leading to it losing a third of its market value, contributing to its biggest-ever annual loss and piling pressure on Hayward.

Italy's Eni to build natural gas processing plant in Egypt's Port Said - AMWAL ALGHAD / ZAWYA

Apr 26 2016
By Mahmoud Shaaban

Italian energy giant Eni received 400 feddans in Port Said governorate to establish a plant for processing natural gas of Zhor field, Egyptian petroleum minister Tarek El-Molla stated Monday.

Speaking to Amwal Al Ghad, El-Molla said that Eni is continuing drilling works in petroleum wells affiliate to Zohr gas field in Mediterranean Sea.

He added that production processes at Zohr field are set to start during 2017 with initial volume of one billion cubic feet gas per day. Hence, Egypt's production rates of natural gas will be improved within the upcoming years . Additionally, Egyptian imports of natural gas will be lowered, the minister pointed out.

EU looking towards East Med gas reserves - CYPRUS MAIL

Jakub Adamowicz, European Commission Spokesperson
for Transport and Regional Policy

APRIL 25TH, 2016

Eastern Mediterranean gas reserves, including Cyprus’, could play a significant part in addressing the European Union’s drive for energy diversification, the European Commission reiterated on Monday.

During a press briefing in Brussels, Jakub Adamowicz, European Commission Spokesperson for Transport and Regional Policy, was asked how the gas fields located between Israel and Cyprus fit into the wider EU Energy Union scheme.

“The East Mediterranean gas findings could play a very important role helping both producing and neighbouring countries to address their energy security problems. They could also have a growing role in the EU diversification strategy,” Adamowicz said.

He added however that it was too early to assess the impact of those gas finds on the EU gas market.

Edison and EGPC ink deal to develop second phase of Abu Qir gas field - ENERGY EGYPT / MUBASHER

April 25, 2016

Egypt’s General Petroleum Corporation signed an agreement with Electricité de France (EDF Group), owner of Italy’s Edison Company, to develop the second phase of Abu Qir Gas Project.

The signing of the $220 million worth agreement was attended by Tarek al Molla, Minister of Petroleum and Mineral Resources in Cairo on Saturday.

The deal involves a daily production rate estimated at 150 million cubic feet of gas and 6,000 barrels of crude oil and condensate, according to al Molla.

Abu Qir was the first gas field developed in the Egyptian Mediterranean.

Since 1979, it has served the domestic market’s growing demand for gas.

Russia drives Turkey into arms of EU, Ukraine: Think-tank - NATURAL GAS EUROPE

April 25th, 2016

Turkey is moving ahead this year with renewed urgency to develop a hub, as a means of defending itself from Russia's pricing tactics.

What is perceived as the main obstacle, Botas’ dominance, is unimportant, argues former Botas expert and now director of Ankara think-tank Eppen, Dr Volkan Ozdemir. In an interview with NGE which also covered Russian pipelines and the southern gas corridor, he compared Botas’ 75%-80% in Turkey with GasTerra’s similarly dominant position in the Netherlands – home to the Title Transfer Facility, the continent’s most liquid hub.

Private companies can import spot LNG into Turkey through a privately-owned terminal; and the gas release program means that private importers supply 10bn m³/yr.

The Turkish balancing point is small; but last month a contract traded for gas for delivery over the balance of the month at the EPIAS energy exchange. EPIAS was set up as part of the Istanbul stock exchange and the government has a good reason now to encourage the development of a domestic hub, he says.

Only two options for Cyprus gas: Turkey or FLNG - IN CYPRUS / CYPRUS WEEKLY

24/04/2016
By George Telaveris

The government has received the draft gas field development plan for the Aphrodite field in Block 12 from Noble Energy and its partners, but it is now an open secret that unless Cyprus clinches a deal with a potential buyer, the plan will remain on paper.

Negotiations to sell part of the estimated 4.54 trillion cubic feet (tcf) in Block 12 to Egypt were seriously undermined following the discovery of the Zohr supergiant gas field by Eni in Egyptian waters last August.

“Selling gas for domestic consumption in Egypt is not really a possibility for Cyprus, as Egypt will be able to cover its needs by 2020,” hydrocarbons business consultant Charles Ellinas told the Cyprus Weekly.

The gas find in Zohr is estimated at 30 tcf or 850 billion cubic metres. All of it will be allocated to cover the Egyptian domestic market.

Report: Russia wants share in Israeli gas - JERUSALEM POST / GLOBES

Netanyahu and Putin. (photo credit:IVAN SEKRETAREV / POOL / AFP)

By HEDY COHEN/GLOBES \ 04/24/2016

Gazprom's interest in Israeli gas reservoir Leviathan is a strategic issue for Russian President Vladimir Putin.

The Russian press reported at the end of last week that Russia was seeking to enter the Israeli natural gas industry, following a meeting in Russia last Thursday between Russian President Vladimir Putin and Prime Minister Benjamin Netanyahu.

It is believed that Putin wants to take part in the development of the Leviathan gas reservoir. This was not the first time that Russia has tried to strengthen its foothold in the Middle East through control of gas reservoirs. In February 2013, Gazprom, the Russian state-controlled (50.1%, with 49.9% owned by private and other investors) national gas company, signed a memorandum of understanding to buy gas produced from the Tamar reservoir through a floating liquefied natural gas (FLNG) facility. Gazprom agreed to buy three million tons of LNG a year, amounting to 4.1 BCM. The project was never implemented, among other things because the Minister of National Infrastructure, Energy, and Water Resources never approved the export project.