Leviathan partnership authorises $120mn FEED - NATURAL GAS EUROPE

June 23rd, 2016

Leviathan partners have approved a $120mn front-end engineering and design contract for the development of the giant gas field offshore Israel. The three partners – Delek Group (45.3%), Noble Energy (39.7%) and Ratio (15%) – authorised Noble Energy, the operator, to start the Feed phase.

In a filing to the Tel Aviv Stock Exchange (TASE) the Israeli partners said that Noble Energy could sign contracts for "a detailed engineering plan" for the project. The engineering work will include the design of the gas treatment and production rig and other activities. The fixed rig will be 10 km off shore and will be connected to a second entry point to Israel in the north of the country.

Update with Regards to the Dolphin Natural Gas Field in the License 351/Hanna Area - DELEK GROUP

Tel Aviv, June 22, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY). Further to the filing of an application by the partners in License 351 / Hanna to the Petroleum Commissioner at the Ministry for National Infrastructures, Energy and Water to recognize the Dolphin natural gas reservoir in the area of the Hanna License as a discovery in the meaning of the Petroleum Law, 1952, and receipt of the lease in accordance with the provisions of the Petroleum Law, Delek Group’s gas subsidiaries announce that on June 20, 2016 the Commissioner informed that if the license partners provide by August 1, 2016 an irrevocable commitment to develop the Hanna license together with Phase 1 of the Leviathan field as well as a plan of the requested area to be declared as a discovery, the Hanna license partners will then be granted a lease during the four months following (namely by December 1, 2016), and this is in order for the development of this lease to be completed by the end of 2019.

Leviathan Field - Agreement to Receive Front End Engineering Design (FEED) for the Production Platform - DELEK GROUP

Tel Aviv, June 22, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) ("the Company") announces that attached is an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership ("the Partnerships") concerning an agreement to receive Front End Engineering Design (FEED) services for the Leviathan project production platform.

Pursuant to what was stated in the Partnerships' Annual Reports to December 31, 2015 ("the Annual Reports") concerning the updated development plan for the Leviathan field ("the Development Plan") in the Partnerships' Immediate Report dated May 22, 2016 concerning ratification of the Gas Outline Plan, as defined in the said report ('the Gas Outline Plan"), and to the Partnership's Immediate Report dated June 2, 2016 concerning the Commissioner's approval of the Development Plan, the Company announces that the Partnerships have authorized Noble Energy Mediterranean Ltd., the operator of the Leviathan project ("the Operator"), to enter into an agreement for a cumulative value of USD 120 million (for all the partners) to receive Front End Engineering Design (FEED) for the production platform ("the Platform"), as approved in the Development Plan. It should be noted that the Leviathan Partners are working to close other agreements for the purchase of equipment and/or services related to the Development Plan, as approved, and they expect to sign off on them in the near future.

Young ADIPEC announces partnership with Abu Dhabi Education Council - ENERGY EGYPT

June 22, 2016

• Community Outreach Programme Supports Government Efforts to Prepare Today’s Youth for New Energy Landscape.
• 450 Students from 18 Schools Across Abu Dhabi City, Al Ain, and the Western Region to Participate.

Young ADIPEC, the annual youth outreach initiative by the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), has announced it is partnering with the Abu Dhabi Education Council (ADEC) as part of government efforts to cultivate the next generation of home-grown energy professionals.

The first-time cooperation between the two entities will enable Young ADIPEC to relay a strong and powerful message to the wider school community: The future of the UAE’s energy sector depends on today’s educated and informed youth.

Baku eyes $30-50bn profit from Southern Corridor - NATURAL GAS EUROPE

June 21st, 2016 11:10am

Azerbaijan is hoping in the best case for profits in excess of $50bn from the Southern Gas Corridor (SGC). State oil company Socar told NGE June 20 that even the gloomiest outlook showed that Azerbaijan’s share in the profit of SGC would be at least $30bn over the 25 years' duration of the sales and purchase agreements.

SGC is a project consisting of the development of Shah Deniz gas field stage 2 (SD2), including the South Caucasus Pipeline Expansion (SCPX), as well as the Trans-Anatolian Natural Gas Pipeline (Tanap) and Trans Adriatic Pipeline (TAP).

Azerbaijan has 16.7% share in Shah Deniz project, 58% in Tanap and 20% in TAP. The total costs of the implementation of SGC is expected to reach $39.1bn, of which about $9bn would be invested by Azerbaijan. “In return, the country is expected to earn $30bn-$50bn from SGC, depending on oil prices and additional incomes from transiting the other suppliers’ gas through SGC,” Socar said.

Delek, Supergas win hospitals natural gas tender - GLOBES

21/06/2016, 19:07
Hedy Cohen

Conversion to natural gas will save Israel's 13 government hospitals NIS 60 million a year.
Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, and Supergas, controlled by Azrieli Group Ltd. (TASE: AZRG), have won a tender for converting government hospitals to natural gas, sources inform "Globes." The tender is for 11 general hospitals and two psychiatric hospitals. Together with Baran Group (TASE: BRAN; Nasdaq: BRANF), Delek will convert six hospitals, and together with Ludan Engineering Co. Ltd. (TASE: LUDN), Supergas will convert seven others. The companies will also be responsible for supplying natural gas to the hospitals for five years. The companies' bids were far lower than expected by the Ministry of Health.

Nostra Terra makes headway in Egypt - ENERGY VOICE

21/06/2016 5:42 am
Rita Brown

Nostra Terra today confirmed its subsidiary, Independent Resources Egypt (IRE), had been given the initial green light from Egyptian authorities.

IRE received security clearance and is now is formally registered with the Egyptian General Petroleum Corporation (EGPC).

Nostra Terra chief executive Matt Lofgran said: “We are very pleased that our 50 per cent. owned subsidiary IRE has taken the next step forward in establishing its operations in Egypt. As a company we remain excited by the potential for oil & gas in Egypt and look forward to updating the market on further developments.”

OneSubsea wins contract for Zohr development, offshore Egypt - WORLD OIL

6/20/2016

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.”

BP approves investment in Egypt gas field 15 months after discovery - REUTERS

A BP logo is reflected in a car window at a petrol station in
LondonJanuary 15, 2015 - REUTERS/LUKE MACGREGOR

British oil major BP has approved investment in the first phase of developing the large Atoll gas field offshore Egypt, only 15 months after it first announced its discovery.

BP, which declined to give an investment figure for the project, said the field was on track to deliver its first gas in the first half of 2018, set to pump 300 million cubic feet a day of gas to the Egyptian market.

BP decided in November to fast-track the development of Atoll, estimated to contain 1.5 trillion cubic feet of gas and 31 million barrels of condensates.

The company is in a tight race with other oil and gas explorers in the region to develop the Mediterranean's huge untapped fossil fuel reserves.

How gas could warm relations between Israel and Turkey - REUTERS

Mon Jun 20, 2016 6:03am EDT
JERUSALEM | BY LUKE BAKER

On the sidelines of a nuclear security summit in Washington in March, Turkish President Recep Tayyip Erdogan held a private meeting with Israel's energy minister, Yuval Steinitz. It was the highest level contact between Israel and Turkey since diplomatic relations broke down six years ago after Israeli forces raided a Turkish ship bound for Gaza, killing 10 Turkish activists.

The meeting, which lasted 20 to 30 minutes and whose details have not been previously disclosed, discussed the war in Syria, Iran's presence there, terrorism – and natural gas. That last item is a key driver of efforts to forge a rapprochement between Israel and Turkey: At stake are reserves of natural gas worth hundreds of billions of dollars under the waters of Israel and Cyprus. To exploit them Israel will likely require the cooperation of Turkey.

Kuwait holds talks with Petroleum Ministry to refine oil in Egypt - ENERGY EGYPT / MUBASHER

June 19, 2016

KPCA delegation from Kuwait Petroleum Corporation (KPC) had talks with the Egyptian petroleum minister over the possibility of refining the Kuwaiti oil in Egyptian refineries, according to a statement issued on Friday.

The studies included the increase of shipping and storage facilities in SUMED’s location in Ain Sukhna and Sidi Kerir, as well as raising storage capacity.

This steps comes in line with Kuwait’s strategy for increasing oil production to 4 million barrels a day by 2020, and exploiting Egypt’s strategic platform to expand in Europe, said KPC’s director general Nabil Bouresli.

He clarified that Kuwait intends to expand in the African market, by entering the Egyptian market.

Global gas demand growth down - IN CYPRUS / CYPRUS WEEKLY

18/06/2016
By Charles Ellinas

The International Energy Agency (IEA) released last week its annual Medium-Term Gas Market Report 2016 and it makes grim reading for gas exporters.

This was followed-up by BP’s 2016 Statistical Review of World Energy. When presenting it, BP’s Chief Economist said, “This is truly an age of plenty.” He went on further to say, “On the energy demand side what we are seeing is a gradual deceleration in the growth of global energy consumption”, contributing to an age of plenty.

These developments of course have a global impact on markets and prices, but also seriously affect East Med gas developments. This is the subject of this article.

Investor's Guide to Greece & Eastern Mediterranean 2Q-2016 - ITE OIL & GAS

Greece is primed for a powerhouse position in the European energy trade. Exploration licenses have been issued to Greek companies, including Hellenic Petroleum, which is teaming up with international partners to explore onshore and offshore blocks in Western Greece.

More offshore licenses are up for grabs, with the Greek government and the private sector inspired by major finds elsewhere in the Eastern Mediterranean. The upstream push has already yielded results for Energean Oil & Gas, which has doubled domestic oil production at the Prinos field in the Aegean Sea. The Greek operator is targeting 10,000 barrels per day in crude production within the next two years. Greece remains an aggregate hydrocarbons importer and is a prominent player in European refining. Exports of petroleum products are set to rise in 2016 as domestic demand weakens in light of power sector reforms and a struggling Greek economy. Bailouts and conditional loans are prompting privatisation of state entities and the energy sector is not immune.

International oil and gas companies are seeking out opportunities, stimulated by upside potential in terms of economic growth and Greece’s rise to prominence in the European natural gas trade. Greece is set to become the nexus of trans-regional gas pipelines, with multiple projects on the table. Ground breaking of the Trans Adriatic Pipeline (TAP) was scheduled to commence in May with deliveries as soon as 2020. There is also significant interest in Liquefied Natural Gas (LNG), and international firms are fronting the capex to get infrastructure expansion underway. The future of Greek Energy is bright to say the least.

Egypt Sends Rare LNG Cargo in Midst of Newfound Buying Binge - BLOOMBERG

Anna Shiryaevskaya, Tsuyoshi Inajima, Dan Murtaugh
June 17, 2016

One of the world’s newest liquefied natural gas importers is again shipping out the fuel.
Egypt, which last year began importing LNG to meet domestic demand while halting shipments from two multibillion-dollar facilities that produce the fuel, this month sent out its second shipment this year. The Provalys loaded at the Ikdu terminal on June 3-4 and is headed to Japan, according to shipping data compiled by Bloomberg.

Steinitz says Israel will soon find ‘as much as four Leviathans’ worth of gas in new fields - THE JERUSALEM POST

Yuval Steinitz at the Jerusalem Post's Diplomatic Conference.
(photo credit:Courtesy)

By MICHELLE MALKA GROSSMAN \ 06.17.2016 | 11 Sivan, 5776

The next step, Steinitz said during a panel discussion, is to develop the natural gas market and integrate it into the larger geopolitical picture.
Although the past year has been challenging with setbacks in developing the Leviathan offshore gas reservoir, National Infrastructure, Energy and Water Minister Yuval Steinitz said Thursday that Israel was planning to develop new gas fields in the coming months.

The next step, he said during a panel discussion, is to develop the natural gas market and integrate it into the larger geopolitical picture.

Israeli partners line up Tamar, Leviathan rig - NATURAL GAS EUROPE

June 17th, 2016

The controlling stakeholders offshore Israel – Noble Energy and Delek Group – are moving forward in their expansion and development plans for Tamar and Leviathan gas fields by trying to coordinate and schedule a sequence of drilling operations between the two projects.

A source told NGE that a tender was issued for a drilling rig, which is supposed to arrive at Israel later this year. The rig will drill a new well at Tamar field, Tamar 5, the source said. The new well is part of the expansion plan for the already producing field.

Speaking at the Herzeliya Conference June 16, Delek Group CEO Yossi Abu said that by the end of the year a drilling rig would arrive in Israeli waters. However he did not refer to the Tamar field. Drilling production wells in Leviathan will follow final investment decision at the end of this year, so not before the second half of next year, at the earliest.

Egypt LNG arbitration 'not over', says Spain's UFG - NATURAL GAS EUROPE

The Damietta liquefaction plant in Egypt (Image credit: Union Fenosa Gas)

June 16th, 2016

Union Fenosa Gas (UFG), owned 50-50 by Spain’s Gas Natural Fenosa and Italy’s Eni, has challenged reports that Egypt’s state gas company EGAS has “won” a case at the International Court of Arbitration in Paris.

Egypt’s petroleum ministry was quoted by Reuters on June 14 as saying that EGAS will not have to pay $270mn plus interest to owners of the Damietta liquefaction plant in relation to a complaint that they lodged in 2013 with the International Chamber of Commerce (ICC), which runs the Paris-based arbitration court. The $270mn plus interest covered contracted capacity at the plant. Egyptian state newspaper Al Ahram also carried the report.

"Israel has undiscovered gas worth 4 Leviathans" - GLOBES

16/06/2016, 13:06
Hedy Cohen

Energy Minister Yuval Steinitz says Israel will offer new offshore gas exploration licenses in the fall.

Israel has undiscovered offshore natural gas worth four more Leviathan fields, Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz has told the 16th Herzliya Conference of the Institute for Policy and Strategy (IPS) at the Interdisciplinary Center.

Steinitz said, "It's no secret that Israel has had a major downturn in growth, in investments and in exports and that's very worrying. Developing the gas fields, bringing natural gas to factories and transport and developing export pipelines all these things are a huge engine of growth. What might save us from recession and bring us back to a reasonable level of growth is natural gas."

Cyprus' Top Diplomat: Gas Finds Could Partly Fund Peace Deal - ABC NEWS / AP

By THE ASSOCIATED PRESS
NICOSIA, Cyprus — Jun 15, 2016, 6:26 AM ET

Cyprus' foreign minister says potential offshore gas discoveries could partly fund the cost of reunifying the ethnically divided island as a federation.

Ioannis Kasoulides said Wednesday future gas finds could possibly underwrite funding that would be needed to compensate individuals who — under specific criteria — wouldn't get back properties lost during the 1974 conflict that cleaved the island.

Breakaway Turkish Cypriot leader Mustafa Akinci made a similar remark in an interview with the AP in April.

Italy overtakes Turkey to become Russia's second biggest gas buyer - PLATTS

London (Platts)--15 Jun 2016 907 am EDT/1307 GMT

Italy is now the second biggest buyer of Russian gas in Europe -- overtaking Turkey -- the head of Gazprom said Wednesday.

CEO Alexei Miller said Italian demand for Russian gas continued to rise and was up 5.3% so far in 2016 compared with the same period of last year.

But although volumes to Italy so far this year are up on 2015, the growth has slowed in the second quarter compared with the first.

In addition, Turkish purchases are considerably down this year compared with 2015.

"In 2016, Italian consumers have increased their demand for gas from Russia," Miller said in a short statement.

Egypt dreams of new pipelines crossing the Red Sea - ABO (About Oil)

Alessandro Scipione (Agenzia Nova) - June 15, 2016

The latest agreement between the government of Cairo and Aramco is just one of the pieces that make up Egyptian strategy, created to transform the country into a regional energy hub. The aim is ambitious but feasible with the financial help of the Gulf countries

Egypt could become a world class energy hub, not only due to recent gas discoveries in the Eastern Mediterranean, but also due to the black gold arriving from Saudi Arabia. This is the aim of the lucrative agreement signed during Saudi King Salman’s first visit to the Land of the Pyramids. The agreement will ensure large supplies of oil at discounted prices: approximately 700,000 tons of oil products per month - respectively, 400,000 tons of diesel, 200,000 tons of gasoline and 100,000 tons of mazut - amounting to a total of €23 billion, to be paid within 15 years at an interest rate of 2%. The Saudi Fund for Development will directly pay the energy giant Aramco the cost of supplies, enabling the Egyptian General Petroleum Corporation (EGPC) to pay calmly.

Egypt's EGAS wins case over gas cuts at LNG plant - REUTERS

LNG plant Damietta

Tue Jun 14, 2016 10:45am GMT

CAIRO, June 14 (Reuters) - The Paris-based International Court of Arbitration has ruled that Egypt's state gas board EGAS will not have to pay a $270 fine related to gas cuts at its foreign-owned liquefied natural gas (LNG) plant, the petroleum ministry said on Tuesday.

The Damietta LNG plant filed a complaint with the International Chamber of Commerce in 2013 alleging that its state partner had failed to comply with contracts by halting gas supplies in 2012 and not making payments.

The plant was demanding EGAS pay $270 million plus interest for contracted LNG capacity.

Noble Energy to Present at Upcoming Energy Conferences - NOBLE ENERGY

Credit: Noble Energy website

Houston, June 13, 2016 (GLOBE NEWSWIRE) -- Noble Energy, Inc. (NYSE: NBL) announces its participation in two upcoming energy conferences. David L. Stover, the Company's Chairman, President and CEO, will present at the Wells Fargo West Coast Energy Conference on Wednesday, June 22, 2016 at 8:15 a.m. Pacific Time. Kenneth M. Fisher, the Company's Executive Vice President and CFO, will present at the J.P. Morgan Inaugural Energy Equity Conference on Monday, June 27, 2016 at 11:20 a.m. Eastern Time.


Both presentations will be webcast live on the ‘Investors' page of the Company's website with a replay accessible for 90 days. Presentation materials for each will also be posted on the website.

Cabinet approves gas fund - INCYPRUS / CYPRUS WEEKLY

incyprus — 13/06/2016

The cabinet has agreed on a National Investment Fund to be established to handle future revenue from the management of natural gas resources, said Finance Minister Harris Georgiades on Monday.

Speaking to journalists at the Presidential Palace after the end of the cabinet meeting, Georgiades said that the legal proposal they agreed upon is the result of systematic work and advice from experts.

The legal plan, said Georgiades, stipulates procedures of transparency, multiple checks and balances, but also specific rule in how the revenue will be managed. He also said that the revenue will be used to benefit future generations, either by reducing the public debt, or by going into an investment fund which will make safe investments outside of Cyprus.

Oil and gas assets on Fosun’s takeover radar - THE AUSTRALIAN

JUNE 13, 2016

Bridget Carter, Mergers & Acquisitions Editor, Sydney
Gretchen Friemann, Mergers & Acquisitions Editor, Sydney

China’s Fosun Group will continue to seek out investment opportunities in the oil and gas sector after keeping a low profile following its $474 million acquisition of Australia’s Roc Oil nearly two years ago.

Roc Oil is the first acquisition Fosun has made in the sector so far, bringing the Chinese conglomerate into the upstream oil and gas industry with its established petroleum and natural gas businesses in China, Southeast Asia and Australia.

Saudi Arabia and Turkey’s pipeline wars in Yemen and Syria - ASIA TIMES

CHRISTINA LIN, JUNE 12, 2016

Saudi Arabia’s pursuit of the war in Yemen, at considerable cost in blood and treasure, is a literal affirmation of the term “backdoor strategy.” However, both the “door” and the actual contours of that strategy remain submerged beneath the murky waters of Mideast politics.

In June 2015, a senior advisor on Yemen in the Netherlands Ministry of Foreign Affairs, Joke Buringa, wrote an article regarding Saudi Arabia’s interest in building an oil pipeline through Yemen. Her piece underscored the energy geopolitics behind Riyadh’s bombing campaign over the past year.

Which companies are likely to win in Cyprus’ third licensing round? - CYPRUS MAIL

JUNE 12TH, 2016Abboud Zahr

In May 2016 Cyprus launched its third offshore licensing round, which will close on July 22. In this round, three blocks (6, 8 and 10) are expected to be awarded by early 2017. Block 10 has been relinquished by Total after the oil major did not find potential prospects in the said block.

Energy Minister Giorgos Lakkotrypis said recently at an energy conference in Brussels, that he is seeing strong interest from international oil companies (IOCs) in the country’s present licensing round.

BP, Eni confirm new 'significant' gas discovery in Egypt's Mediterranean - ALBAWABA / AHRAM ONLINE

Published June 12th, 2016 - 05:26 GMT

British oil company BP and Italy's Eni announced a "significant" gas discovery off the coast of Egypt on Thursday.

The new discovery in Baltim South West area is jointly owned by both companies, Eni said in a press release on Thursday.

The Baltim South West well is located 12 kilometres from the coast, 25 metres deep, and 10 kilometres north of the Nooros field.

"Baltim South West discovery further confirms the significant potential of the so called “Great Nooros Area”, which is now estimated to hold 70-80 billion cubic metres of gas in place," read Eni's statement.

Shell, Apache to complete gas production tests of Apollonia field in June - DAILY NEWS EGYPT

30 wells will be drilled to extract gas from limestone layers in Western Desert
Mohamed Adel, June 12, 2016

Dutch company Shell and American corporation Apache will complete the initial tests for producing gas from limestone layers in the Apollonia field in the Western Desert by the end of June.

A prominent source at the Ministry of Petroleum told Daily News Egypt that the two companies have a plan to drill 30 wells in the Western Desert after the initial production tests are completed.

He added that the limestone layers in the Western Desert contain natural gas and if the results of the tests are positive, new investment opportunities for producing natural gas in unconventional ways would be available.

Total to start drilling in early 2017 - CYPRUS MAIL

Tourism and Energy Minister Giorgos Lakkotrypis

JUNE 10TH, 2016 ELIAS HAZOU
FRENCH oil major Total will likely commence exploring for gas in their offshore Block 11 concession in early 2017, energy minister Giorgos Lakkotrypis said on Thursday.

Speaking to the Sigma television channel, Lakkotrypis was also asked to comment on reports that Russian companies are exhibiting a keen interest in the third licensing round launched by Cyprus.

The companies are said to be most interested in blocks 6, 8 and 10.

Lakkotrypis neither denied nor confirmed the Russian interest. But he did say he was pleased by the overall interest in the new licensing round.

July 22 is the deadline for the submission of bids.

IGI Poseidon and Noble sign a Cooperation Agreement in relation to the finalization of PRE-FEED activities of EastMed Pipeline - DEPA / EDISON / IGI Poseidon

Source: DEPA website

09.06.2016, IGI Poseidon Press Release 

IGI Poseidon S.A. and Noble Energy International Ltd have signed today a Cooperation Agreement to support the finalization of the Pre-FEED activities of the EastMed pipeline and to jointly assess its viability as one of the export options for the Eastern Mediterranean gas discoveries. The EastMed Pipeline Project is a European Project of Common Interest and the ongoing development activities are supported by European Union through the Connecting Europe Facility (CEF) co-financing program.

Background Note: IGI Poseidon S.A. is a company incorporated in Athens and equally owned by DEPA S.A. and Edison, involved in the development of 3 major gas pipeline projects: the Poseidon Pipeline, the IGB Pipeline and the EastMed Pipeline, all qualified as Projects of Common Interest (Commission Delegated Regulation 2016/89) thanks to their contribution to the European energy security, via diversification of routes and sources of natural gas supply.

BP, Eni Announce New Gas Discovery Off Egyptian Coast - HAARETZ / THE MARKER / REUTERS

Eni's Bouri Offshore oil terminal is seen off the Libyan coast, AAP

Newest find confirms potential of area estimated to hold 70-80 billion cubic meters of gas, says Italian energy firm Eni.

TheMarker and Reuters Jun 09, 2016 6:28 PM

The European energy companies BP and Eni on Thursday announced a significant natural gas discovery off the Egyptian coast.

The discovery in the Baltim southwest exploration prospect in the East Nile Delta is 10 kilometers north of the Nooros gas field which was discovered in July last year and has a production rate of 65,000 barrels of oil equivalent per day, the companies said.

‘Τurkey may not respect Cyprus’ EEZ but the US does’ - CYPRUS MAIL

JUNE 9TH, 2016

PSEKA delegates in Washington

The US State Department’s Special Envoy and Coordinator for international energy affairs Amos Hochstein has said that while Turkey may not respect the EEZ of Cyprus, the United States does and said without “resolution in Cyprus” no pipelines can go through its EEZ from Israel to Turkey.

Hochstein, who was addressing the 32nd Congress of the International Coordinating Committee’s Justice for Cyprus, also known as PSEKA, on Wednesday, also called energy a “game changer” and an incentive for a settlement of the Cyprus problem.

“In 2011 Noble Energy was exploring in Aphrodite. Turkish F-16s were flying over and there was other naval activity. But they stopped and since then there was no interference in Cyprus’ ability to explore its offshore,” he said.

Delek defends Leviathan gas reserve potential - UPI

File photo by Maryam Rahmanian/UPI | License Photo

Government estimates came in at about 20 percent less than drilling partners predicted.
By Daniel J. Graeber | June 8, 2016 at 8:25 AM

Partners aiming to exploit the
Leviathan gas field off the Israeli coast defend the field potential amid a government estimate lower than drillers expected.

TEL AVIV, Israel, June 8 (UPI) -- Partners aiming to develop the Leviathan gas field off the coast of Israel said they can exploit the full potential amid questions about reserve estimates.

Delek Group and its partners steering development plans for the Leviathan gas field, considered one of the largest in the world, said they're working on a plan to develop a maximum 741.6 billion cubic feet of natural gas per year.

Egypt's petroleum minister: a man with a plan - PETROLEUM ECONOMIST

Tarek el-Molla believes his country will be a major oil hub, and self-sufficient in natural gas

THE EGYPTIAN energy sector’s fall from promise to penury was swift. Just twelve years ago, two liquefied natural gas plants were about to come on stream – the Segas facility in Damietta and Egyptian LNG’s plant in Idku – each underpinned by several years of consistent, industry-leading success in the upstream that also brought plans for gasification of the local economy. But exploration dwindled, the discoveries ended, and the plants ran out of gas. Saboteurs killed off piped exports from Egypt to the Levant through Sinai. All the while, the energy needs of the Arab world’s most populous country soared, spurred by subsidised prices that drain the country’s budget. The 2011 revolution and the counter-revolutionary upheaval of 2013 destroyed what investors craved: stability.

Government Spokesman addresses AJC, noting strategic partnership of Cyprus and Israel - CYPRUS MAIL / CNA

JUNE 7TH, 2016

Cyprus and Israel are strategic partners and are building on cooperation mechanisms to address common challenges, Government Spokesman Nikos Christodoulides said, addressing an event of the American Jewish Committee in Washington.

Christodoulides addressed one of the conference’s fora, together with Israel’s consul in New York, Amir Sagie, who referred to the importance of building strategic alliances with Israel’s neighbors, especially Cyprus.

Delek Group nears Leviathan funding - NATURAL GAS EUROPE

Yossi Abu, Delek Group

June 06th, 2016

Delek Group, the main Israeli partner in the Leviathan partnership, is close to securing $2bn in funding for its part in the development of Leviathan gas field. The CEO of Delek Drilling Yossi Abu negotiated deals with banks while on a visit to the US last week, according to Israeli business daily Calcalist.

Delek would invest $500mn of its own money in the project. The other main partners are Noble Energy (36.99%) and the Israeli company Ratio (15%). Noble Energy has already said it will not put its own money into the project and would seek loans instead. Last year Noble repatriated $858mn of which a significant amount was supposed to be invested in Leviathan development. Noble might try to sell off some of its holdings in the project before development starts.

Aker Solutions wins umbilicals order for Egypt's Zohr field - WORLD OIL

6/6/2016

OSLO, Norway -- Aker Solutions won a contract to deliver its longest-ever umbilicals system at the Zohr offshore gas field in the Egyptian part of the Mediterranean Sea.

The agreement with Petrobel in Egypt is worth more than NOK 1 billion and will be booked in the second quarter. It stipulates the delivery of 180 km of steel tube umbilicals that will connect the Zohr subsea development to an offshore control platform. Petrobel, a joint venture between The Egyptian General Petroleum Corporation (EGPC) and Eni, is responsible for the development and operations at Zohr.

Vortex of turmoil, vacuum of power - WASHINGTON TIMES

The stabilization of the Mediterranean Sea is more critical than ever

By John Sitilides - - Sunday, June 5, 2016

ANALYSIS/OPINION:
At the core of NATO’s southeastern flank and the nexus of the Middle East, North Africa and Southern Europe, the eastern Mediterranean region a half decade ago was relatively serene. Egypt, Libya and Syria were ruled by enduring dictators. Turkey’s falling out with Israel had been triggered by the notorious Mavi Marmara episode to crack the Gaza embargo. The economic depression in Greece had begun, but its severity was not yet apparent. Cyprus was governed by a Communist, but with little regional impact.

Why A Junior Could Snatch This Cyprus Natural Gas Mega-Project - ValueWalk

Pierce Points / Dave Forest, June 4, 2016

Further to the second item above, the upcoming Cyprus bid round may be one of the best opportunities of the year — to build a new oil and gas empire.

When the tiny Mediterranean nation offers up its offshore acreage this summer, all eyes will be on the “usual suspects” in this part of the world. Namely, Italian major Eni — who operates the massive Zohr natgas discovery next-door in Egyptian waters. And others mid-tiers like Noble Group, who work nearby in the Israeli offshore.

And there could well be some surprises when it comes to bidders for the Cyprus licenses. Especially from Russian firms — with that nation having shown a surprising level of interest in the eastern Mediterranean energy scene. Don’t be surprised to see a Gazprom or Rosneft pop up in the mix.

Greece-Bulgaria gas pipeline seeks financing under EU plan - IN-CYPRUS.COM / CYPRUS WEEKLY

03/06/2016

A natural gas pipeline between Bulgaria and Greece will be eligible for financing under an EU investment scheme once it completes a market test of demand in September, Energy Minister Temenuzhka Petkova said on Friday.

Bulgaria and Greece signed last year a final investment decision to build the 182 km pipeline, important for Sofia’s efforts to cut its almost total dependence on Russian gas and boost supply security.

Bulgarian state-owned energy holding company BEH has 50 percent in the joint venture which will build the Interconnector Greece-Bulgaria, while Greek state energy firm DEPA and Italy’s Edison hold 25 percent each.

Greece plans to conclude DESFA deal with SOCAR by end of 2016 - TREND NEWS AGENCY

3 June 2016
Aygun Badalova, Baku, Azerbaijan

Greece plans to conclude the sale of its stake in natural gas grid operator DESFA to Azerbaijan's SOCAR by the end of the year, Reuters reported referring to Greece's energy minister Panos Skourletis.

The minister said that Greece, which signed a third international bailout last year, will get 188 million euros from the deal. Greece's biggest oil refiner Hellenic Petroleum, which also owns 35 percent in DESFA, will get the rest.

Israel approves development of large offshore Leviathan natgas field - REUTERS

Thu Jun 2, 2016 9:48am EDT

Israel's government on Thursday approved the development of the controversial Leviathan natural gas field that will give Israel a second source of gas supply while potentially turning it into a gas exporter.

Leviathan, one of the largest offshore discoveries of the past decade, was found off Israel's Mediterranean coast in 2010. It has an estimated 622 cubic meters of natural gas (BCM) of reserves and is expected to become operational in 2019.

Texas-based Noble Energy, which holds a 40 percent stake in Leviathan, said the field would initially start production at 1.2 billion cubic feet a day and expand to 2.1 bcf.

"Leviathan is expected to provide a second source of supply and entry point into Israel's domestic natural gas transport system, while also delivering exports to regional countries," Noble said in a statement.

The site, however, will cost at least $5 billion to develop and it was not yet clear how the project will be financed.

EC backs 'ending Cyprus' isolation' - NATURAL GAS EUROPE

East Med route (Map credit: Depa)

June 01st, 2016

“We want to make sure that Cyprus is much better connected, not only with its neighbours in the eastern Mediterranean, but also with the European Union,” Maros Sefcovic, the EU commissioner for Energy Union, told an event in Brussels last week at which he and Cyprus’s energy minister Yiorgios Lakkotrypis were panellists.

The latest EU list of Projects of Common Interests includes the ‘Euroasia Interconnector’ that would connect Israel, Cyprus, Crete and mainland Greece by a 1,518-km mostly subsea cable (400 kv, 2000 MW); and the 1,700-km East Med gas pipeline that would do broadly the same.

Bulgaria, Greece form task force to build Greek LNG terminal - KATHIMERINI

31.05.2016

Bulgarian state energy holding company BEH and Greek natural gas company Gastrade have set up a joint task force to prepare a proposal to build an off-shore liquefied natural gas (LNG) terminal in northern Greece, Gastrade said on Tuesday.

Greece currently has one LNG terminal on an islet off Athens and Gastrade, part of Greek energy group Copelouzos, is planning a second LNG terminal near the northern city of Alexandroupoli.

The task force will prepare and submit a proposal to the Bulgarian government for the best possible way to take part in the project, Gastrade said in a statement.

Israel in dilemma over LNG imports - NATURAL GAS EUROPE

May 30th, 2016

Israel Electric Corp. (IEC) has initiated a move to simplify LNG import procedures and lower the price, The Marker, a business daily reported. IEC is the only entity importing LNG, most of which it uses in its power plants, the remainder being sold on the market.

Israel has no onshore regasification facility. In 2011 Israel invested $150mn in an offshore buoy that can be connected to a floating storage and regasification unit (FSRU). However, each time the FSRU is emptied it has to leave Israeli waters and sail to Cyprus in order to be resupplied with LNG from an awaiting LNG cargo ship. That takes at least three days, during which period any major mishap in the natural gas systems has the potential to cause lengthy power outages.

Noble, Delek set to begin arbitration on Eran license - GLOBES

30/05/2016, Hedy Cohen

The government is in dispute with the gas exploration companies because the Tamar Southwest field extends into the license.

Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) will begin arbitration proceedings with the Israeli government over the Eran license. The license was expropriated from the energy exploration companies more than two and a half years ago and the issue remains in dispute. The problem is that part of the Tamar Southwest field owned by the companies extends into the license. Noble Energy and Delek agreed to the arbitration more than a month ago and today Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz agreed that the arbitration will be conducted by former Supreme Court President Asher Grunis.

A pro Russian politician o be confirmed Israel Defense Minister - NATURAL GAS EUROPE

May 30th, 2016

Avigdor Lieberman, an ultra-nationalist pro-Russian right-wing politician, is expected to be confirmed as Israel's next minister for defense, which could influence the development of Israel's gas industry.

Lieberman was born in Moldova when it was still a part of the Soviet Union and he speaks fluent Russian. He immigrated to Israel in 1978 at the age of 20. Following a short business career he became the director-general of the prime minister's office when Benjamin Netanyahu became prime minister for the first time, exactly 20 years ago this month.

He later resigned this post, established his own party and became foreign minister, a job he held for six years from 2009. From time to time he left politics and became involved in international trade particularly with eastern European and Eurasian regimes. His friendship with Vladimir Putin, the Russian president, is not a secret.

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.