BP Enters Zohr "Super Giant" Gas Field as Eni Cuts Stake - FORBES

CEOs Claudio Descalzi (ENI); Emilio Lozoya (Pemex); Bob Dudley (BP),
Amin H. Nasser (Saudi Aramco), Patrick Pouyanne (Total) 

NOV 29, 2016 @ 07:42 PM 
Christopher Coats

After leading the discovery of the Zohr field, Italy’s Eni has signaled its intention to reduce its stake in the field to about 50%, starting with the sale of a 10% stake to BP for $375 million.

Billed as the largest natural gas discovery in the Mediterranean in the last decade, the Zohr offshore field near Egypt has attracted intense interest from companies hoping to make the most out of the region’s new-found energy potential. According to earlier reports, the “super giant” field could be home to an estimated 30 trillion cubic feet of natural gas.

However, Eni appears ready to reduce its exposure to the effort, telling media outlets that it feels it can manage the project with a smaller stake.

Greece again asks SOCAR to extend DESFA tender term - TREND NEWS AGENCY

29 November 2016 12:26 (UTC+04:00)Maksim Tsurkov, Baku, Azerbaijan

Hellenic Republic Asset Development Fund (HRADF) again requested from Azerbaijan’s state oil company SOCAR to extend the term of a letter of guarantee on a tender on SOCAR’s acquiring a 66-percent stake in the Greek national gas transmission system operator DESFA until Dec. 23, the Greek media reported Nov. 29.

It is reported that the HRADF appealed to SOCAR with the aim of proper execution of the DESFA privatization contract.

“Simultaneously, Greece’s Energy Ministry is in constant contact with SOCAR and aims to close the deal in the next two days, as the current letter of guarantee expires on Nov. 30,” according to the Greek media.

Glencore comes out top as Egypt awards mega LNG import tender - REUTERS

Mon Nov 28, 2016 | 3:37pm GMTReporting by Mark Tay; Additional reporting by Henning Gloystein in Singapore and Eric Knecht in Cairo; Editing by Susan Fenton

• EGAS awards mega tender, taking mainly 2017 cargoes
• Glencore emerges as top supplier, followed by Trafigura
• Jan-Mar 2017 cargoes priced at about 15 percent to crude
• Remainder of 2017 cargoes priced lower as fundamentals expected to weaken

Egypt will import around 60 cargoes of liquefied natural gas (LNG) next year and Glencore will be the biggest supplier, trading sources with knowledge of the results of Egypt's mega tender for 2017 and 2018 said on Monday.

Glencore bagged the right to supply around 25 liquefied natural gas (LNG) cargoes to Egypt, while second-placed Trafigura is understood to have won the right to supply about 18 cargoes of the super-cooled fuel, the trading sources said.

Other parties successful in Egypt Natural Gas Holding's (EGAS) tender included BB Energy, Gunvor and Vitol, the sources added.

Breakeven Rundown: Mediterranean, GoM Gas Outshine Others - HART ENERGY / STRATAS ADVISORS

Monday, November 28, 2016 - 3:00pm
Velda Addison

When it comes to breakeven prices for development projects targeting natural gas, the ultradeep water of the Mediterranean Sea and the deep U.S. Gulf of Mexico are hard to beat.

This is based on research conducted by Stratas Advisors, which studied the economics of about 150 natural gas assets worldwide.

“Driven by the low-cost Leviathan gas development with high well productivities offshore Israel, the breakeven price of the ultra-deepwater development is only about $1.5/Mcf [thousand cubic feet], much lower than its counterparts in the shallow-water and deepwater developments in Egypt and Libya, where the breakevens are around $4.4/Mcf and $3.8/Mcf,” the research and consulting company said in a report. “The low cost giant gas discovery Zohr, offshore Egypt, drives the average price down in the deepwater segment.”

Eni aims to cut stake in Zohr field to 50 pct, could happen quickly - REUTERS

Mon Nov 28, 2016 4:50pm GMTReporting by Stephen Jewkes, writing by Agnieszka Flak

MILAN Nov 28 (Reuters) - Italian energy group Eni plans to reduce its stake in the giant Zohr gas field offshore Egypt to 50 percent, Chief Executive Claudio Descalzi said on Monday.

The company, which owns the whole concession that includes Zohr, already agreed to sell a 10 percent stake to BP for $375 million last week. In addition, BP will also reimburse Eni around $150 million in past expenditure costs.

"We believe we can operate the field with 50 percent, that's my objective," Descalzi told journalists on the sidelines of an event in Milan when asked whether Eni could reduce its stake further.

"This could happen fairly quickly, in our business that could also mean a few months." 

Ratio unit to raise NIS 100m in TASE IPO - GLOBES

28/11/2016, 12:22
Nitzan Cohen

Delek will buy 17.5% of the offering in Ratio Petroleum, which holds gas and oil exploration permits abroad.
An interesting new collaboration seems to be forming between Leviathan partners Delek and Ratio in Israel's gas and oil exploration industry. Ratio Petroleum, controlled by the Ratio Oil Exploration (1992) LP (TASE:RATI.L) partnership, is to hold a Tel Aviv Stock Exchange (TASE) IPO to raise NIS 100 million in a partnership unit and options issue. The fascinating development in this IPO, other than the relatively barren IPO market on Tel Aviv in the past few years, is the commitment made by Delek Group Ltd. (TASE: DLEKG) to buy 17.5% of the offering and therefore become a significant member of this partnership.

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

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

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

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

Environmental Affairs Ministry approved plans for Zohr pipeline - ENTERPRISE

Monday, 28 November 2016

The Environmental Affairs Ministry approved the plans to build a 220 km pipeline connecting the Zohr gas fields to an onshore processing station in Port Said, Ahram Gate reported. The Ministry approved of the studies for the pipeline, saying it complies with all of its environmental regulations.

Israeli Leviathan Partners Get Up to $1.75 Billion HSBC, JPMorgan Financing - HAARETZ / REUTERS

Nov 27, 2016 6:22 PM

Delek Drilling and Avner Oil Exploration said the funds would go towards the A1 development stage of the project.

The main Israeli partners developing the large Leviathan natural gas site said on Sunday they signed commitment letters with HSBC and J.P. Morgan for up to $1.75 billion of financing.

Delek Drilling and Avner Oil Exploration said the funds would go towards the A1 development stage of the project.

Delek and Avner, units of conglomerate Delek Group, hold a combined 45.3 percent of Leviathan. Texas-based Noble Energy owns nearly 40 percent.

Oil Ministry announces new natural gas discovery in Shell’s Alam El Shawish Western Desert concession - ENERGY EGYPT / ENTERPRISE PRESS

November 26, 2016

An Oil Ministry report on the Alam El Shawish field in the Western Desert suggests that the concession has a production capacity of 20 mcf/d and preliminary estimated reserves of 500 bcf, Al Masry Al Youm reported. The well is operated by Royal Dutch Shell JV Badr El Din Petroleum (Bapetco). Production is expected to rise to 60 mcf/d when drilling is completed.

The Oil Ministry report says the results have encouraged Shell to increase drilling rigs from two to four. Shell have agreed to drill nine discovery wells in 2017 that could be increased depending on seismic scans due in 1Q2017, the report adds. We had noted the discovery back in September, when Aidan Murphy, chairman and CEO of Shell Egypt, said then that it could be one of the biggest in the Western Desert.

President Sisi approves amendments to Ras El Barr concession agreement between EGPC, Eni and BP - ENERGY EGYPT / EGYPT'S MINISTRY OF PETROLEUM

November 26, 2016

President Abdel Fatah Al-Sisi issued on Monday an agreement between the Egyptian General Petroleum Corporation (EGPC) and with the Italian Egyptian Oil Company (IEOC), a subsidiary of Eni, and UK’s BP. The deal is regarding explorations in Ras El Bar concession area in Nile Delta.

The future of East Med gas - IN CYPRUS / CYPRUS WEEKLY

November 26, 2016

Charles Ellinas

The future of East Med gas was the subject of a conference in Nicosia. It was organised by the Atlantic Council, Friedrich-Ebert-Stiftung, Istituto Affari Internazionali, PRIO and Strata Insight.

The conference considered both the global realities and trends, in terms of energy supplies, supply security, markets, demand trends, prices, availability of financing for projects, new technologies, but also geopolitical factors and risks.

The aim was to discuss how these have so far influenced offshore gas field development in the East Med, and how they will do so in the future.

The state of the global oil and gas markets and prices and where these are going and their impact are key issues for the development of East Med gas.

BP buys stake in Eni's giant Zohr gas field offshore Egypt - REUTERS

Fri Nov 25, 2016 | 1:07pm EST

By Agnieszka Flak and Karolin Schaps | MILAN/LONDON(Editing by David Evans)

BP (BP.L) has agreed to buy 10 percent of Eni's (ENI.MI) Shorouk concession offshore Egypt, which includes the giant Zohr gas field, for $375 million, joining other oil majors in increasing bets on the growing gas market.

The deal gives Eni much-needed cash as part of its 5 billion euro divestment plan to continue investing and paying dividends despite weak oil prices.

The companies also agreed BP could purchase another 5 percent of the field before the end of next year, when the Zohr field is slated to start production, under the same terms and that BP would reimburse Eni around $150 million in past expenditure.

Israeli oil pipe operator eyes gasline to Turkey - NATURAL GAS WORLD

November 25th, 2016, 9:06amYa'acov Zalel

Israeli Eilat-Ashkelon Pipeline Co will explore the possibility of building a natural gas pipeline between the Leviathan gas field and Turkey, reported Calcalist, a business website. EAPC is the operator of a 250-km oil pipeline between the southern town of Eilat, Israel, on the most northern point of the Red Sea, and the oil terminal in the city of Ashkelon, on the Mediterranean.

Libyan oil production dropped to 523,000 bpd - Sanallah - ECOFIN AGENCY

Thursday, 24 November 2016 - 10:08

Anita Fatunji

The Chairperson of the Libyan National Oil Corporation (NOC), Mustafa Sanallah (photo), has revealed that Libya’s oil production fell almost by 70 thousand barrels per day (bpd) due to electric and power issues.

Sanallah had recently announced that an explosion, believed to be caused by an electric issue, occurred at the control room of the Laheeb oil field on Tuesday. According to Sanallah, the 60,000 bpd rate that the NOC was able to sustain over the last period has stopped for the time being due to electric failures at the Al-Waha and Al-Diffa oil fields.

Delek units report rise in Tamar gas production - GLOBES

24/11/2016, 12:40
Nati Yefet

Avner and Delek Drilling saw profits rise in the third quarter due to higher natural gas production.

Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE:AVNR.L) and Delek Drilling LP (TASE: DEDR.L) reported a rise in Tamar natural gas production in their third quarter financial results. During the third quarter of 2016, the Tamar gas field produced 2.6 billion cubic meters (BCM) of natural gas compared with 2.5 BCM in the corresponding quarter of 2015 and 2.3 BCM in the preceding quarter of 2016, and 2.2 BCM in the first quarter of 2016.

The well also produced 127,000 barrels of condensate in the third quarter compared with 117,000 in the corresponding quarter of 2015, 110,000 in the preceding quarter of 2016 and 104,000 in the first quarter of 2016.

Subsea 7 wins Egyptian offshore contract - OFFSHORE SUPPORT JOURNAL

Thu 24 Nov 2016

Subsea 7 has won a substantial contract to install subsea systems and pipelines on the Atoll project offshore Egypt

Some of the predicted contract awards for offshore construction and support vessels in the Eastern Mediterranean are starting to materialise. There has been great expectation recently that large gas discoveries in the region will result in new contracts for subsea construction companies and supporting vessels. In November, one of the first of the expected contracts was awarded.

Subsea 7 gained a substantial order for offshore construction work in Egypt. It gained the contract from Pharaonic Petroleum Co, an affiliate of BP, for subsea engineering, procurement, construction and installation work on the Atoll project. Subsea 7 will be responsible for installing more than 40km of rigid pipelines and associated structures for the new Atoll field. The water depths for the installation work range from 100m to 900m. Subsea 7 will also be tying these pipelines into the existing Taurt field facilities, which are in water depths of 100m, and installing 105km of umbilicals to connect subsea wells on the Atoll field.

Israel Tamar faces $13 billion class action - NATURAL GAS WORLD

November 24th, 2016, 8:55amYa'acov Zalel

An Israeli district court rejected November 23 a petition by the Tamar Partnership to dismiss a class action law suit alleging monopolistic pricing of natural gas in Israel. The district court rejected the request in a preliminary hearing. Now the court will have to hold a hearing whether to approve the class action before it goes to a full trial. The process can be quite lengthy as the class action was filed almost two and half years ago and the trial hasn’t started yet.

The plaintiffs estimated that the excess cost for the Israeli customers is NIS 2.5bn ($630 mn)/yr and asked the court to order Tamar partners to compensate the customers and reduce prices. The estimated excess cost for the duration of the contract was estimated at NIS 26.8-43.7 bn.

Partners in Israel Leviathan Gas Field Clinch $700 Million Deal - BLOOMBERG

November 24, 2016 — 11:02 AM EET Yaacov Benmeleh

The partners owning rights to Leviathan, Israel’s largest natural gas deposit, signed a $700 million contract to supply gas to Paz Oil Co., as arrangements to finance the project are nearing completion.

Paz, the country’s biggest fuel company, will receive about 3.1 billion cubic meters of gas over 15 years, according to a Tel Aviv Stock Exchange filing on Thursday. The deal would be the fourth linked to Leviathan.

Libyan oil production shows signs of continued gains: Wood Mac - WORLD OIL

11/23/2016

LONDON -- Wood Mackenzie's latest study on Libya's oil production shows the country's output has doubled from 300,000 bopd in early September to close to 600,000 bopd today, adding to the global oil supply glut.

Although an OPEC member, Libya's output has fallen so drastically it won't be bound by any production restrictions. The country will seek to recover its lost market share, notably in southern Europe where refineries prize its light, sweet blends.

"Libya's oil production increases have occurred despite the absence of a political agreement between competing administrations, and an ongoing security vacuum," said Martijn Murphy, research manager at Wood Mackenzie.

Medserv awarded contract for logistics support to Eni North Africa - THE MALTA INDEPENDENT

Wednesday, 23 November 2016, 11:45

Medserv announced today that the company have been re-awarded a contract by Eni North Africa (EniNa) to provide logistics base and associated services for its exploration activities taking place offshore and onshore Libya. The contract duration is for a period of one year with the possibility of extending for another year. This contract comes into effect on the 1st of January 2017. These services are to be carried out at the company’s Malta base situated in the Malta Freeport.

This contract, in addition to the two-year major logistic and base support contract that came to market in 2016 for offshore Libya activity that was announced earlier this year consolidates the business pipe line for Medserv Operations and work levels for the Malta operation are expected to be high in the next three years, the company said in a statement.

"Over 60% of Leviathan development plan already closed" - GLOBES

Yossi Abu, Delek Drilling CEO

22/11/2016, 16:33
Nati Yefet

Delek Drilling CEO Yossi Abu: We are in advanced stages of signing Leviathan financing agreements.
Yesterday, at the Eco Energy conference in Kfar Maccabiah, Delek Drilling LP (TASE: DEDR.L) CEO Yossi Abu said that over 60% of the Leviathan gas field development plan has been covered in financing agreements. "Since the approval of the outline, we have invested over half a billion of shekels in approving Leviathan plans and preparations, in order to ready Leviathan for investment."

"We will begin exporting gas from Tamar to Jordan as early as this year," Abu said. He said that as soon as Israel connects to the to the Jordan-Egypt pipeline it will be much easier for it to export to Arab countries.

Israel minister sees exports to Turkey - NATURAL GAS WORLD

November 22nd, 2016, 1:35pm
Ya'acov Zalel

Israel's energy minister Yuval Steinitz told a conference in Tel Aviv November 21 that the giant Leviathan and two other smaller gas fields offshore Israel, Karish and Tanin, will be developed come what may, and gas would then flow to Turkey.

He told the 2016 Israel Energy and Business Convention in Tel Aviv that there was no question about it. "I know it is sometimes neither simple nor easy. We have done what we had to do, the best I could, and now there is not a situation that timetables would be delayed. It will not happen. It is unthinkable."

The final investment decision (FID) for Leviathan has yet to be taken by the project's partners. Delek is adamant that the FID will be taken by the end of the year while Noble Energy, a 40% shareholder, and the operator, said it could be early next year. Delek Drilling CEO Yossi Abu said at the conference that the Leviathan partners were close to securing $4bn in finance for the field's development. "The Leviathan financing agreements are in the final stages of negotiations," Abu said at the conference. Last month Ratio, a 15% shareholder in Leviathan, had raised about $200mn in bonds in order to finance its equity investment in the project through a mezzanine debt.

Libya: Crude oil production reached more than 75,000 bpd from the Waha and Samah fields - Waha Oil Co - ECOFIN AGENCY

Tuesday, 22 November 2016 - 08:18
Anita Fatunji

In Libya, Waha Oil Co has said that its production has reached over 75,000 barrels per day (bpd) through the Waha and Samah fields and it is expected to increase further once the Jalu field comes online.

Output at the Waha field, resumed last month after several blocked ports were reopened and exports from the field, is being directed through the Ras Lanuf terminal, while renovation works are being carried out at the Es Sider terminal. Both ports were damaged by fighting.

Production has been crippled for years by an on and off blockade of the Libya’s largest export terminals, militant attacks by groups including Islamic State and the lack of a united government. According to Waha Oil Co, it expected output to increase when work at the port and pipelines from Jalu field to the Waha field was completed. The company however did not say when that might happen.

We are committed to be in Cyprus, says ENI Managing Director-General - FAMAGUSTA GAZETTE / CNA

Tuesday, 22 November, 2016

ENI believes there is a sense in investing in Cyprus and it is committed to be here especially at this particular period of time, ENI Cyprus LTD Managing Director Alessandro Barberis has said.

Speaking on Monday during a conference organised by the PRIO Cyprus Centre, in collaboration with the Atlantic Council, the Friedrich-Ebert-Stiftung in Cyprus and Istituto Affari Internazionali and Strata Insight, Barberis said that ENI has a strong presence in this region and especially its activities in Egypt date back to 1954.

He added that after the discovery of Zhor gas field off the coast of Egypt, the position in the country has been reinforced. The finding of Zhor, he pointed out, opened a completely new era that was unknown. Barberis said that the company struggled a lot to find partners in Zhor and ended up drilling it 100% alone, but the risk was well paid by the results, he pointed out.

Noble Plans Sale of 10% Stake in Leviathan - HAARETZ

Nov 22, 2016 4:22 AMAvi Bar-Eli 
Proceeds would help Texas company raise badly needed cash to develop giant gas field.

After selling stakes in the Tamar gas field as well as its holding in the tiny Tanin and Karish fields for a combined $438 million over the past year, Texas-based Nobel Energy is now gearing up to sell part of its stake in the giant Leviathan reserve.

In a presentation to investors over the weekend, the company said it was looking to sell a 10% stake in Leviathan, whose 622 billion cubic meters of estimated reserves make it by far Israel’s biggest field. Noble now holds a 39.7% stake, making it the second-largest partner after Israel’s Avner and Delek Drilling, both units of Delek Group, which each have 22.7%. Ratio Oil holds the remaining 15%.

Cyprus gas via Turkey the most viable option, experts say - CYPRUS MAIL

November 21, 2016
Elias Hazou

Transporting natural gas to Turkey from Israel and Cyprus seems to be under current market conditions the most viable option, but not without geopolitical risks, experts said on Monday at a conference titled ‘The Future of Eastern Mediterranean Gas’.

The conference, the fourth in a series on energy in the eastern Mediterranean, was organised by the Prio Cyprus Centre, in collaboration with the Atlantic Council, the Friedrich-Ebert-Stiftung in Cyprus and Istituto Affari Internazionali and Strata Insight.

Charles Ellinas, non-resident senior fellow with the Atlantic Council, said that in the long term the transport of natural gas through a floating LNG (FLNG) plant is a serious option, since options such as exporting gas to Europe through Egypt, through the mooted East Med pipeline or through Turkey, seem not to be viable because of low prices internationally.

Cyprus positions itself to tap regional LNG growth - LNG WORLD SHIPPING

Mon 21 Nov 2016

Cyprus Department of Merchant Shipping acting director Ioannis Efstratiou sets out the east Mediterranean island nation’s LNG-development priorities

The LNG market is firmly embedded within the new shipping strategy that Cyprus’ minister of transport, communications and works recently announced, that aims to consolidate and develop Cyprus’ role in world shipping.

Following the discovery of several sizeable natural gas fields in the eastern Mediterranean in recent years, the opportunity for Cyprus to become an energy hub and leading regional transporter of natural gas continues to flourish.

Israel gas partners close to $4-billion financing for Leviathan - WORLD OIL / BLOOMBERG

21 November 2016
YAACOV BENMELEH

TEL AVIV (Bloomberg) -- The companies that own the rights to Israel’s largest natural gas pool are close to securing the $4-billion financing needed to develop the field, according to the CEO of one of the partners.

"The Leviathan financing agreements are in the final stages of negotiations," Delek Drilling LP CEO Yossi Abu said in a Tel Aviv conference on Monday, referring to the Israeli gas reservoir.

With a large export contract already in hand, obtaining the funds is the next milestone for the gas explorers looking to tap the Leviathan pool, led by U.S.-based Noble Energy and billionaire Yitzchak Teshuva’s Delek Group Ltd. The partners signed a $10-billion deal with Natural Electric Power Co. of Jordan two months ago.

Amendment to Agreement for the Supply of Natural Gas between the Tamar Partners and the Israel Electricity Corporation - Update - DELEK GROUP

Tel Aviv, November 21, 2016

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that pursuant to what was stated in section 7.12.4(A)(3) of the Company's Annual Report to December 31, 2015 (as amended) that was published on May 30, 2016 (ref. no. 2016-01-037758), and the Company's Immediate Report dated September 4, 2016 (ref. no. 2016-01-116773) concerning signature of the amendment to the agreement between the Tamar project partners, including Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership, ("the Tamar Partners") and the Israel Electricity Corporation Ltd ("IEC") concerning exercise of the option to increase the amounts of gas that the IEC will require, provided below is an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership (jointly "the Partnerships"), concerning receipt of approval for the agreement amendment from the financing bodies of the Tamar Partners.

Italy's Eni says Egypt Nooros gas field producing 900mln cubic feet per day - REUTERS

Mon Nov 21, 2016 11:41am GMT

Reporting by Ali Abdelaty; Writing by Eric Knecht; Editing by Louise Heavens

CAIRO Nov 21 (Reuters) - Italian oil major Eni said its Egypt Nooros field is a producing almost 900 million cubic feet of gas per day and will top 1 billion cubic feet per day in the first quarter of 2017, Egypt's state news agency MENA reported.

Once an energy exporter, Egypt has turned into a net importer in recent years, squeezed by declining production and increasing consumption.

It is racing to reverse that trend, speeding up the development of major gas discoveries with a stated goal of achieving energy self-sufficiency by 2020.

Eni began production at its Nile Delta offshore field Nooros in September 2015.

Can the American-Israeli Alliance Go to Sea? - FAMILY SECURITY MATTERS

November 20, 2016
ANDREW E. HARROD

"In a world of important and rapidly transforming regions, none is more strategically significant and wildly volatile than the Eastern Mediterranean."

During a recent Hudson Institute panel, former Undersecretary of Defense Douglas Feith echoed a report that has been co-written by the Hudson Institute and the University of Haifa and which calls for the United States and Israel to collaborate in a mutually beneficial Mediterranean naval buildup amidst increasing global naval threats.

According to Hudson Institute naval expert Seth Cropsey, the United States Navy's Sixth Fleet in the Mediterranean once had two aircraft carriers and a large contingent of marines permanently assigned to it. This is in dramatic contrast to the report references, which pointed out that following post-Cold War cuts, the "Sixth Fleet's permanent naval presence is now a single command ship in Italy and four Aegis destroyers equipped for ballistic missile defense, all based in Rota, Spain, just outside the Mediterranean." Retired United States Navy Admiral Gary Roughead said that Americans "have essentially ceded the Eastern Mediterranean, at least from a maritime perspective."

Apache to invest $960m in western desert concessions during current fiscal year - DAILY NEWS EGYPT

20.11.2016Mohamed Adel

Ongoing discussion in regards to increasing FY 2017/2018 investments with Apache’s officials, says Abdel Azim
The American Apache Corporation is planning on investing $959.7m for researching, exploring, and developing fields in its concession area in the western desert during the current fiscal year (FY), compared with $796m in FY 2015/2016.

Mohamed Abdel Azim, head of the Khalda Petroleum Company, said in an interview with Daily News Egypt that their foreign partner’s investments will be divided into $552.5m for drilling development wells, $346.4m for implementing the exploration plan, and $62.8m for operating expenses of the concession areas in FY 2016/2017. He explained that there are ongoing discussions with Apache officials in regards to setting a demo plan for FY 2017/2018, to agree on increasing investments to raise oil and natural gas production rates in the western desert, to offset the natural decline of the fields and to work on increasing reserves.

ICIS: Egypt juggles fuel supply loss with currency flotation, subsidy cuts - ENERGY EGYPT

November 20, 2016

Egypt will look for lucrative long-term deals to import refined products or turn to spot tenders with international traders to meet the vacuum left by Saudi Arabian Oil Company (Saudi Aramco)’s reported decision to indefinitely suspend its supply arrangement with the country, according to analysts.

Egyptian General Petroleum Corporation (EGPC) is currently seeking seven cargoes totalling 259,000 tonnes of low-sulphur gasoil for December delivery, a trader said when asked about tender news.

The terms of such spot tenders will be market-driven and less favourable to Egypt, James McCullagh, oil products analyst at Energy Aspects said.

Shell to boost deepwater investments, but is owed substantially by government - ENERGY EGYPT / ENTERPRISE PRESS

November 20, 2016

Shell will be increasing exploration and drilling at its deepwater concessions in Burullus and Rosetta concessions, according to statements by Aidan Murphy, Shell Egypt VP and country chairman.

The company plans to expand its investments there following promising data on the size of the concessions. Murphy also stated that the company is owed a substantial sum by the government, Al Shorouk reports, possibly tying these future investments to the government’s ability to payback its arrears.

Turkey-Russia relations improve with pipeline politics - NATURAL GAS WORLD

November 19th, 2016, 8:20am

Last July’s failed coup attempt in Turkey alarmed everyone who is involved in this region one way or another, writes Anir Jahangirli for NGW. Reactions were across the board: financial markets in the country were shaken and internal political structures were thrown into disarray. The government introduced a state of emergency and is pursuing a hunt of possible coup-attempt allies and supporters.

As a country in southeast Europe and a member of Nato, Turkey hosts US nuclear arsenal and was a key Western ally during the Cold War against the USSR. It has a large competitive market economy and the country is a member of the G20 Club. Since Mr Erdogan came to power, Turkey’s economy saw a boost and the society has been transitioning from the strictly secular into a so-called “moderate Islamic” state.

Turkey increases gas import from Azerbaijan by 330 million cubic meters - APA

18 November 2016 / 16:10

Baku, Vusal Nabiyev

Turkey’s BOTAS is planning to import 36.5 billion cubic meters of gas by the year-end, down 4.1 billion cubic meters from 2015.

According to Anadolu agency, the company imported 40.6 bcm of gas last year.

BOTAS plans to reduce gas import from Russia by 3.99 billion cubic meters.

Along with this, the company intends to increase the gas import from Azerbaijan to 6.5 bcm (6.17 bcm in 2015), from Iran to 7.85 bcm (7.83 in 2015) and from Algeria to 4.38 bcm (3.92 bcm in 2015).

Lebanon keen to revive offshore exploration - LINKED IN / MIDDLE EAST OIL & GAS MONITOR

East Med Foreign Ministers: Kasoulides, Bassil and Kotzias.

November 17, 2016Gary Lakes

With the election of a new president and the formation of a new government in the making, Lebanon is looking forward to a time when it might finally move ahead with its long-delayed plans to explore for hydrocarbons in the East Mediterranean. Yet with Lebanese politics being very complex, there’s no reason to expect that the offshore exploration game will come back into play quickly even though a number of politicians and businessmen are keen to get the suspended licensing round moving.

Saad Hariri, leader of the Sunni Muslim Future Movement, is trying to form a government before the country’s national day on November 22. If he meets that deadline it may suggest that there exists sufficient goodwill among Lebanon’s numerous political parties and religious sects to put the country on some sort of track.

Libya: OPEC gives go ahead to double oil production - ECOFIN AGENCY

Thursday, 17 November 2016 - 09:14Anita Fatunji

(Ecofin Agency) - The Organization of the Petroleum Exporting Countries (OPEC) has given Libya the green light to increase its crude oil export regardless of a deal being set up to cut production to manage the oversupply of crude oil and bolster prices.

According to the chairman of the National Oil Corporation (NOC), Mustafa Sanalla, Libya’s production currently stands at 600,000 barrels of oil per day and has Africa’s largest crude oil reserves.

He added that the goal is to increase oil production to 900,000 barrels per day by the end of this year and target 1.1 million barrels of oil per day in 2017.

Sanalla said Libya is heading toward economic revival but ongoing clashes still put oil facilities at risk of being attacked again.

Israel wants 2-3 new energy firms to drill off its coast - DAILY MAIL / REUTERS

16 November 2016, 11:35 GMT
Ari Rabinovitch

JERUSALEM, Nov 16 (Reuters) - Israel began accepting bids this week from energy companies to drill for oil and gas in 24 offshore blocks, and its energy minister said that in the end he would be happy choosing just two or three foreign exploration groups.

Upon announcing the tender, Israel released new geological data pointing to a good probability that large natural gas deposits are buried off its Mediterranean coast.

"The preferred outcome is that at the end of the tender we can choose two, three companies that present serious, concrete and relatively fast work plans," Energy Minister Yuval Steinitz told Reuters in an interview on Wednesday.

They could bid together with local partners, but each group must have a foreigner, he said, "because today in Israel there still are no serious operators".

Israel is preparing for gas revolution - ECONOMICS WIRE

15/11/2016Viliyana Filipova

Israel is preparing for a gas revolution, after in recent years the country released several promising discoveries in the Mediterranean Sea. The country is working to develop gas routes in three directions – north to Turkey, south to Egypt and west to Italy.

The shareholders, who developed field Leviathan, which is considered one of the most promising fields developments, has already signed an agreement to export gas in the eastern direction – to Jordan. Besides the field Leviathan in the last decade in the Mediterranean Sea Israel opened several very promising areas, including Tamar and the smaller [Karish and Tanin]. According to the Israeli Ministry of Energy the reserves of Leviathan are estimated at about 500 billion cbm, and in the Tamar are about 300 billion cbm. The last deposit was discovered in 2009 and is now being developed.

Kuwait to supply Egypt with 2 million barrels of oil a month - FOX NEWS / ASSOCIATED PRESS

November 15, 2016

CAIRO – Egypt's state news agency says Kuwait has agreed to supply Egypt with 2 million barrels of crude per month, starting in January.

Tuesday's announcement comes more than a month after Saudi Arabia halted previously agreed fuel shipments to Egypt as differences over the conflicts in Syria and Yemen strained ties between the two nations.

The Saudi move has ratcheted up pressure on Egypt as it tries to revive a battered economy and overcome a shortage of dollars.

Cairo floated its currency this month and significantly hiked fuel prices.

The MENA news agency says that under the deal with Kuwait, Egypt will get the crude at international prices with no discounts, but with a nine-month grace period.

Israel launches upstream round - NATURAL GAS WORLD

November 15th, 20164:30pmYa'acov Zalel

Israel's offshore holds up to 6.6bn barrels of oil and 2,137bn m³ of natural gas. according to an independent survey performed lately by BeicipFranlab, for the Israeli energy ministry.

Those data were published November 15 when energy minister Yuval Steinitz launched the first offshore licensing round. During a media event he not only expressed his hopes for future discoveries, but also settled scores with opponents of the natural gas framework.

"For years the sea was shut, the gas was buried and the economy was stifled. Today we change this situation, and what was a national missed opportunity to the Israeli economy. In our vision Israel will become a natural gas superpower and a significant player in the eastern Med basin," Steinitz said in a statement.

Eni Adopts Unconventional Focus On Conventionals - E&P HART ENERGY

The Saipem 10000 drillship has been used at the Zohr gas field
 offshore Egypt in the Mediterranean Sea.

Tuesday, November 15, 2016 - 12:17pm Mark Thomas

LONDON—Italian major Eni has taken an unconventional approach to the ongoing “lower for longer” industry downturn, achieving outstanding results by focusing on conventional oil and gas.

While many upstream companies have pulled back from conventional offshore exploration and development activity due to traditionally longer project cycles in order to focus on shorter-cycle, faster return unconventional projects, Eni has stuck to what it knows best, according to Luca Bertelli, the company’s chief exploration officer.

Speaking in London on Nov. 15 during the exploration-focused PETEX exhibition and conference, organized by the Petroleum Exploration Society of Great Britain, Bertelli told a crowd that Eni decided “to stay conventional. We did not want to follow the pack, but stay with what we know. We see many opportunities remaining.”

Egypt- Natural gas market regulatory authority to be established before end of 2017: El Molla - MENAFN / DAILY NEWS EGYPT

14/11/2016

(MENAFN - Daily News Egypt) The Ministry of Petroleum and Mineral Resources is aiming to complete the law to establish a regulatory authority for the natural gas market, said minister Tarek El Molla. The law has been presented to the State Council and is expected to be completed before the end of 2017.

"By the end of 2017, we will have the law and the executive regulations ready, and we will have completed the establishment of the authority to allow private companies to import gas," El Molla said during an economic conference in Cairo held on Tuesday.

The ministry has provided about eight companies to be offered in the Egyptian Exchange (EGX) during the upcoming period. The assessment of these companies will be announced in November.

Israel energy minister hopeful on gas export - NATURAL GAS WORLD

November 14th, 2016,11:20am
Ya'acov Zalel

Israel's energy minister Yuval Steinitz sees a "very rosy future" for Israel's natural gas economy in general and for gas exports in particular. Speaking at a conference in Tel Aviv November 14, he said talks would lead to sales to three destinations in three directions: north to Turkey, south to Egypt and west to Italy. Leviathan Partnership already signed a contract to export gas to Jordan, east of Israel.

According to a report in business website Globes, Steinitz said that professional teams from Israel and Turkey started negotiations concerning laying a 500-km undersea pipeline from Leviathan gas field to Turkey. The previous week, Sahul Meridor, the director-general of Israel's energy ministry met with his Turkish counterpart to discuss a framework agreement.

Final decision on third-round concessions expected early 2017 - CYPRUS MAIL

Minister Yiorgos Lakkotrypis, in charge of energy, at the House

November 14, 2016
Elias Hazou

Technocrats’ initial assessments of the bids submitted by energy companies in the third offshore licensing round should be ready within the next few weeks, Energy Minister Giorgos Lakkotrypis told MPs on Monday.

Once the ministry receives the reports and presents them to the cabinet, there will follow a period of negotiations with the preferred bidders.

A final decision awarding concessions should be made by early 2017, Lakkotrypis said.

In May 2016 Cyprus launched its third offshore licensing round. Three blocks (6, 8 and 10) have been put up for auction.

SDX Energy Inc Operations Update - SDX ENERGY INC.

14 November 2016

SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to provide an operational update on its South Disouq and Meseda concessions in Egypt. 

South Disouq 

As previously announced on 10 October 2016, SDX’s initial assessment of the 3D seismic data at South Disouq was positive and identified potential for both oil and gas bearing prospects. Further interpretation of the data has now indicated several Abu Madi and Kafr El Sheikh prospects displaying strong Class III amplitude versus offset (AVO) responses. Testing of similar responses in offset areas has resulted in numerous discoveries at these stratigraphic levels. These responses have allowed SDX to high grade several prospects for drilling in the near term. These positive AVO responses further derisk the prospectivity in the area, allowing SDX and its partners to achieve the intended goal of the 3D seismic acquisition program. 

Ethydco complex successfully produces ethylene and derivatives - ENERGY EGYPT / ENTERPRISE PRESS

November 14, 2016

The Ethydco complex has successfully produced and supplied ethylene and derivatives to the domestic market and exported excess, the Oil Ministry announced, according Al Masry Al Youm. The complex also produced polyethylene, which is used in pipelines carrying natural gas, water, and wastewater. The project helps achieve the ministry’s strategy to maximize added value on petroleum products, in addition to curbing USD costs, it said.

Israel, Turkey hold first meeting on construction of pipeline: report - i24NEWS

14/11/2016, 09:37am

Meeting builds on October meeting between Israel's energy minister and Turkish counterpart

A delegation from Israel's Foreign Ministry and Department of Energy last week held a secret meeting with Turkish representatives to discuss the construction of a gas pipeline between the two countries, Israel's Army Radio reports.

The report did not reveal any details of the meeting.

Last month, Israeli energy minister Yuval Steinitz said the countries will start examining the feasibility of building an undersea gas pipeline to pump Israeli gas to Turkish consumers and on to Europe.

"What we decided is to establish immediately a dialogue between our two governments... in order to examine the possibility and the feasibility of such a project," Steinitz said after talks with Turkish counterpart Berat Albayrak in Istanbul on October 13.