Gas pipeline deal reached with Egypt – CyBC - CYPRUS MAIL

AUGUST 6, 2018
Evie Andreou 

Nicosia has reached an agreement with Cairo on a pipeline to connect the Aphrodite gas field in block 12 to Egypt, it was reported on Monday.

According to state broadcaster CyBC, the inter-state agreement is expected to be signed in the autumn.

The two countries had signed in 2017 a preliminary agreement to transport natural gas from Cyprus to Egypt to be liquefied at Egypt’s LNG facilities and re-exported to Europe and other markets.

CyBC, citing diplomatic sources, said that the agreement has already been given the green light by the EU and it is being scrutinised for the final touches.

Cyprus demarcated its maritime border with Egypt in 2003. The Aphrodite gas field, discovered in December 2011 by Houston-based Noble Energy, is estimated to hold some 4.5 trillion cubic feet of gas.

Management Committee reviews progress of TurkStream project - GAZPROM

September 5, 2018, 16:40

The Gazprom Management Committee reviewed the current status of the TurkStream project.

It was noted that the project was going according to schedule. Specifically, the deep-water pipelaying for the offshore part of the gas pipeline’s first string had been completed in the Black Sea along with the construction of the second string in Russia’s exclusive economic zone. On June 26, 2018, the Pioneering Spirit vessel had started to lay the second string in the Turkish exclusive economic zone. As of today, over 1,520 kilometers of the two strings are ready, which translates into about 81 per cent of the overall length of TurkStream’s offshore section.

Particular attention at the meeting was paid to the efforts being taken on the coasts of Russia and Turkey. It was highlighted that the landfall near the Russian town of Anapa had been completed and the continuing start-up and commissioning operations would be finished in 2018 together with landscaping. In addition, a receiving terminal is being constructed in the coastal area near the Turkish settlement of Kiyikoy.

Gov’t hints at willingness to settle on Union Fenosa arbitration ruling - ENTERPRISE

Wednesday, 5 September 2018

Gov’t hints at willingness to settle on Union Fenosa arbitration ruling: It is the general policy of the government, and the Oil Ministry specifically, to seek a settlement in international arbitration cases, an Oil Ministry source told Al Mal. 

His statements are the first we’ve heard since news broke that the World Bank’s International Centre for Settlement of Investment Disputes ordered Egypt to pay USD 2 bn in settlements yesterday to Spanish-Italian JV Union Fenosa Gas (UGS) for the government cutting off supplies to UGS’ Damietta liquefaction plant. 

The source noted that the ministry is carefully studying the ruling before issuing an official statement on the matter, but added that the ministry was intending to resupply the plant and other liquefaction plants as its regional energy hub strategy gains steam. Supplies of natural gas will be restored by 2019, the source noted.

Israel's Ratio Oil expected to sign Philippines exploration deal - INDIA TIMES / REUTERS

REUTERS | September 04, 2018, 18:17 IST

TEL AVIV: Israel's Ratio Oil Exploration is expected to sign a long-awaited deal on Tuesday to search for oil and gas in the Philippines, a spokesman for Philippines President Rodrigo Duterte said.

Ratio was not available for immediate comment.

The company in 2015 was one of a number of foreign firms to be awarded an exploration deal. Ratio won the so-called East Palawan block, a 416,000-hectare oil and gas prospect off of Palawan, a southeastern province near the South China Sea.

But the award was delayed due to legal issues involving a previous exploration contract covering that block.

Duterte is visiting Israel this week. During his visit, Israel and the Philippines signed an agreement promoting foreign investments between the two countries.

Egypt to pay Spanish-Italian JV $2bn in natural gas dispute - FINANCIAL TIMES

3 September 2018
Myles McCormick and David Sheppard

Ruling by World Bank panel poised to accelerate resumption of country’s LNG exports
A joint venture between Spain’s Naturgy and Italy’s Eni has been awarded a $2bn settlement from Egypt over gas supplies by a World Bank arbitration body, in a move that could accelerate the resumption of the country’s liquefied natural gas exports.

The ruling by the International Centre for Settlement of Investment Disputes comes after Egypt stopped supplying gas to Unión Fenosa Gas joint venture’s Damietta LNG plant as the country faced internal energy shortages in the wake of the political turmoil unleashed by the Arab Spring.

Unión Fenosa Gas took its case to the ICSID in 2014. The arbitration body on Monday found that in stopping the gas supply Egypt had failed to grant Unión Fenosa Gas “fair and equitable treatment”, contravening the country’s bilateral investment protection treaty with Spain, Naturgy said in a statement.

The $2bn is likely to be paid in the form of renewed gas supplies to Damietta rather than in cash, according to people familiar with the matter.

Naturgy, formerly known as Gas Natural Fenosa, said the award would allow it to reach a “comprehensive agreement” with Egypt to resume gas supplies to the plant, which were halted four years ago.

A big bonanza, but a tough sell - SAN ANTONIO EXPRESS NEWS

September 3, 2018

Jordan Blum

At a time when energy companies are positioning themselves for a lower-carbon world by investing heavily in natural gas, it would seem relatively easy to sell them on developing huge reserves of the cleaner-burning fuel. That is, unless those reserves are in the territorial waters of Israel.

Nearly a decade after natural gas was discovered off its coast, Israel is still struggling to enlist foreign firms to explore its vast deposits in the Mediterranean Sea, in part because oil and gas companies are wary of alienating Arab countries in which they have long done business. So far only one foreign company, Houston-based Noble Energy, is operating there. And last year, when Israel launched its first-ever auction of offshore blocks, it attracted just two bidders — a Greek company and a group from India.

This history is what brought Shay Luvshis to Houston. Luvshis, 38, is Israel’s energy consul, sent to Texas to recruit American and international oil and gas companies to explore Israeli waters in the eastern Mediterranean Sea. About year after opening an office, the Energy Ministry’s first outside of Israel, Luvshis says he and other officials have held advanced talks with Exxon Mobil, the French oil major Total and the Australian oil and gas company Woodside Petroleum, among others.

Exxon Mobil and Total declined to comment. Woodside said it regularly reviews opportunities around the world.

“If everything had gone well” in the past, Luvhsis said, “we wouldn’t be here. Israel is the new kid on the block as an emerging energy region.”

Greece presses the E&P button - PETROLEUM ECONOMIST

3 September 2018

Gerald Butt

Plans for deep-water exploration have raised hopes of an eventual major natural gas discovery, while onshore oil development is progressing slowly

In a modest, modern building tucked away in a leafy residential street close to the centre of Athens a major energy transition is being managed. The building is home to Hellenic Hydrocarbons Resources Management (HHRM). Since 2011, this state-owned company has been revitalising what had become a near-moribund energy sector.

HHRM exudes vigour, taking its cue, perhaps, from president and chief executive Yannis Bassias. Not so, he insisted, in an interview with Petroleum Economist. He said the firm's youthful vitality stemmed not from him but from the staff themselves: "When you take me out of the statistics, the average age here is 34, so this is great. We have a staff of just 17, we don't need any more."

This lean team has just pulled off a considerable coup, hooking super-major ExxonMobil into Greece's upstream, in partnership with Total, which already had a presence there. The latest move, many believe, will eventually see Greece emerge as a significant player on the East Mediterranean energy stage. Greek deputy energy minister Michalis Verroiopoulos told Petroleum Economist that "these days we're focussing on promoting hydrocarbons exploration in Greece—there's a new dynamism to it. We're very happy having huge companies like Exxon and Total deciding to invest here." 

Egypt to restore exports of gas to Jordan to pre-2009 levels - ENTERPRISE

Monday, 3 September 2018

Egypt plans to ramp up gas exports to Jordan to their pre-2009 levels, an Oil Ministry official tells Al Masdar. Egypt and Jordan plan to sign a new export agreement before the year is out that would see Egypt export around 250 mcf/d of gas that the kingdom would use to fire electricity generation stations, the source added. Egypt had committed to export 250 mcf/d to Jordan under a 2004 agreement. Export levels started falling in 2009 before being stopped after the events of 25 January 2011, causing losses to the Jordanian government of around JOD 5 bn (USD 7 bn), according to previous statements by Jordan’s Energy Minister Hala Zawati. Cairo and Amman signed an amendment to the 2004 agreement last month under which Cairo will supply c. 10% of Amman’s natural gas needs.

Gov’t giving oil majors friendlier terms in production sharing contracts - ENTERPRISE

Monday, 3 September 2018

Gov’t giving oil majors friendlier terms in production sharing contracts: The Oil Ministry is looking to keep international oil companies happy, having recently rolled out new production sharing contracts with some IOCs that leave the companies larger shares of profits from concessions in a bid to cut the time it takes for the companies to hit profitability on any one concession, ministry sources tell Al Masdar. 

The changes include eliminating a clause in the model contract that required the companies cede a additional points in their concessions to the government every two years. The new agreements also apparently raise the cost-recovery ceiling to 40% of the oil or gas produced by a concession, up from 35%, the newspaper claims. Oil and gas companies were consulted during the drafting of the changes and their recommendations factored into the changes, the source said. 

Caveat lector: The single-source story doesn’t cite anyone from the private sector, so we’ll be looking into this in a bit more detail in the days ahead.

Israeli energy firm Delek Q2 profit dips on North Sea weakness - REUTERS

AUGUST 30, 2018 / 11:56 AM

JERUSALEM, Aug 30 (Reuters) - Israeli energy conglomerate Delek Group reported lower quarterly profit on Thursday, hurt by a loss from exploration and production (E&P) business in the North Sea at its Ithaca Energy unit.

Delek said it earned 170 million shekels ($47 million) in the second quarter, compared with 180 million a year earlier when a gain from the purchase of Ithaca boosted profits.

Ithaca, wholly owned by Delek, contributed a 32 million shekel loss to Delek’s bottom line versus a 47 million shekel profit a year earlier. The decline was caused by a nearly one-month operational standstill to connect a floating production facility in June.

Revenue rose to 2.1 billion shekels from 1.6 billion, boosted by higher sales at its Delek Israel unit but partly offset by the sale of 9.25 percent of its holdings in the Tamar natural gas field off Israel’s Mediterranean coast.

Tamar’s gas sales hit a new quarterly record of 2.6 billion cubic metres (bcm) in the second quarter.

In addition to a stake in Tamar, Delek, through a subsidiary, has a major share in the nearby Leviathan gas field.

Eni Makes New Gas Discovery in Egypt - RIGZONE

Thursday, August 30, 2018Valerie Jones

Italian oil and gas company Eni S.p.A. has made a new gas discovery in the Egyptian Western Desert, the company announced Aug. 30.

The discovery well has been drilled on the Faramid South exploration prospect located in East Obayed concession, 30 km North-West of the Melehia Concession

The well was drilled on the Faramid South exploration prospect in East Obayed Concession, 18.6 miles (30 kilometers) northwest of the Melehia Concession and reached a target depth of 17,000 feet.

The discovery well has been open to production delivering 25 million cubic square feet per day, confirming the East Obayed Concession’s potential, the company said.

Eni said to be in talks with Shell to connect Western Desert well with processing plant in Obayed - ENTERPRISE

Wednesday, 29 August 2018

Italian oil and gas giant Eni is reportedly in talks with Royal Dutch Shell to begin pumping a daily 23 mcf of gas from a well in its Western Desert concession to the company’s processing plant in Obayed, unnamed EGAS officials said yesterday. 

The Faramit well will be closed until the two sides agree on the terms of constructing a pipeline connecting the field to the facility, they added. 

No further details were provided.

Egypt highlights benefits of Cyprus gas renegotiations - CYPRUS MAIL

AUGUST 27, 2018

Evie Andreou 

Egypt has nothing to fear from the ongoing renegotiations concerning the Cyprus natural gas deal, an Egyptian official has said.

In an interview with Ahram online, the former vice president of the Egyptian Petroleum Authority, Medhat Youssef, said that Cyprus’ renegotiation with energy companies over the revenue sharing agreement for the 4.5 trillion cubic feet (tcf) Aphrodite gas field find is a normal procedure that should be undertaken if there is a change in the market, including oil prices.

Youssef said that any changes in the agreement would only guarantee benefits for every side involved including Egypt, Cyprus and foreign investors.

Cyprus’ cabinet last week appointed a committee to enter talks with energy companies. Energy Minister Giorgos Lakkotrypis said that the best option would be to try and find a mutually acceptable solution with the consortium so that the Aphrodite reserve is developed as soon as possible.

14 private companies apply for natgas distribution licenses - ENTERPRISE

Monday, 27 August 2018

14 unnamed private Egyptian companies have submitted requests to the Natural Gas Regulatory Authority for licenses for the local distribution of natural gas, a source from the regulator said. 

Another two private companies are expected to submit their own requests within the next week, according to the source. 

The authority had set earlier this month the fees that private sector players will be required to pay to use the state’s national grid to transport gas, in addition to the fees for different types of permits and licenses.

Wafa–Mellitah gas pipeline fire in Libya causes no significant damage: NOC - OIL REVIEW MIDDLE EAST

Sunday, 26 August 2018 06:00

Fire outbreak next to a station on Libya’s Wafa-Mellitah gas pipeline was extinguished without causing significant damage, said Libya’s National Oil Corp (NOC) in a statement.

“Preliminary investigations revealed that the arson was carried out with rocket-propelled grenades, gasoline and burnt car tyres found at the scene,” stated NOC.

Industrial Security Departments at the NOC and Mellitah complex closely worked with the Petroleum Facilities Guard and relevant authorities to investigate the incident and identify its perpetrators.

Foreign oil, gas investments in Egypt hit $10 bln in 2017-18 - minister - REUTERS

CAIRO, AUGUST 24, 2018 / 5:46 PM 

Reporting by Ali Abdelaty, writing by John Davison; Editing by Jan Harvey

Foreign investment in Egypt’s oil and gas sector rose to $10 billion in the 2017-2018 financial year, Petroleum Minister Tarek El Molla said in an interview with state-run Al Ahram newspaper published on Friday.

That is up by nearly a quarter from 8.1 billion in the previous year. El Molla was quoted by the paper as saying he expected the same volume of investments in the current fiscal year. Egypt’s fiscal year runs from July to June.

Italian oil company Eni said last month that the production capacity of Egypt’s giant Mediterranean Zohr gas field stood at 1.6 billion cubic feet a day and would reach 2 billion by September.

Egypt plans to become a regional hub for the trade of liquefied natural gas after a string of major discoveries in the Mediterranean that are expected to make Egypt self-sufficient in gas by the end of 2018. 

Azeri natural gas sellers book 8.6 Bcm/year long-term capacity to Italy: TAP - S&P GLOBAL PLATTS

Brussels, 23 Aug 2018 | 11:28 UTC
Author: Siobhan Hall; Editor: Alisdair Bowles

• 10 Bcm/year Greece
• -Italy TAP gas link to open in 2020
• Shah Deniz 2 sellers have 25-year capacity contracts
• TAP to offer short-term capacity in future auctions

Brussels — Azerbaijan's Shah Deniz 2 natural gas field producers have booked around 8.6 Bcm/year of long-term capacity to Italy in the planned 10 Bcm/year Trans-Adriatic Pipeline, developer TAP's head of communication, Lisa Givert, told S&P Global Platts on Thursday.

TAP is the last leg of the so-called Southern Gas Corridor that is to enable Europe to import gas initially from the 16 Bcm/year Shah Deniz 2 field, a new supply source.

Apache to increase oil and gas exploration investment in Egypt to $1bn - HYDROCARBONS TECHNOLOGY

23 AUGUST 2018

US-based oil and gas company Apache has reportedly unveiled plans to increase its annual investment in exploration activities in Egypt to $1bn.

The decision comes after Apache CEO John Christmann held a meeting with Egypt’s Petroleum Minister Tarek al-Molla, Xinhua reported, citing a statement released by the Egyptian Petroleum Ministry.

The company’s intention to increase exploration is aimed at supporting Egypt’s reserves while helping to increase the country’s oil and gas production.

In a statement, the ministry said: “Christmann and Al-Molla discussed means to expand Apache’s exploration activities in Egypt, as well as the company’s ongoing projects and future investment plans in the country.”

The company is planning to form a partnership to prepare a five-year plan for oil exploration in the country.

The proposed plan will outline the expected investments and production using advanced technologies in the oil and gas industry, according to the news agency.

Christmann also lauded the economic progress made by the Egypt Government in the oil field over the past three years through investment-friendly policies.

Last month, Apache reached a deal with Egypt’s Ministry of Petroleum to invest $9bn towards exploration and production of oil and gas in the country’s Western Desert.

Operating in Egypt for 22 years, Apache is one of the largest oil companies in the country’s Western Desert.

Israel comes to Houston, seeking partners to develop gas reserves - HOUSTON CHRONICLE

Aug. 22, 2018 
Jordan Blum

At a time when energy companies are positioning themselves for a lower-carbon world by investing heavily in natural gas, it would seem relatively easy to sell them on developing huge reserves of the cleaner burning fuel. Unless those reserves are in the territorial waters of Israel.

Nearly a decade after natural gas was discovered off its coast, Israel is still struggling to enlist foreign firms to explore its vast deposits in the Mediterranean Sea, in part because oil and gas companies are wary of alienating Arab countries in which they have long done business. So far only one foreign company, Noble Energy of Houston, is operating there. And last year, when Israel launched its first-ever auction of offshore blocks, it attracted just two bidders — a Greek company and a group from India.

This history is what brought Shay Luvshis to Houston. Luvshis, 38, is Israel’s energy consul, sent here to recruit American and international oil and gas firms to explore Israeli waters in the Eastern Mediterranean Sea. About year after opening an office here, the Energy Ministry’s first outside of Israel, Luvshis says he and other officials have held advanced talks with Exxon Mobil, the French oil major Total and the Australian oil and gas company Woodside Petroleum, among others.

Cabinet appoints committee to renegotiate gas agreement (updated) - CYPRUS MAIL

AUGUST 21, 2018

George Psyllides 

The cabinet on Tuesday appointed a committee that will enter talks with energy companies over the revenue sharing agreement for the 4.5 trillion cubic feet (tcf) Aphrodite gas finding in an offshore block.

“The best option is to try and find a mutually acceptable solution with the consortium so that the Aphrodite reserve is developed as soon as possible,” Energy Minister Giorgos Lakkotrypis said after the meeting.

The minister said development of the reserve would have a lot of financial and geopolitical benefits.

Aphrodite lies in block 12 of Cyprus’s exclusive economic zone and it is Cyprus’s first gas finding, discovered in 2011.

The Houston-based Noble Energy Inc. is the leader of a consortium with the participation of Israel’s Delek and Britain’s BG (British Gas), a subsidiary of Shell.

Lakkotrypis said the government had been informed at the end of last year that the consortium had come to a preliminary agreement with Shell, which operates an LNG terminal in Egypt, to sell gas to them.

The consortium also said that because of the low international price of oil, the project would not be viable and they had asked for a review of the financial conditions in the existing agreement.

Egypt signs 2 new agreements for oil, gas exploration - EGYPT TODAY

CAIRO, Mon, Aug. 20, 2018

Minister of Petroleum and Mineral Resources Tarek el-Molla signed two new agreements for the exploration of oil and natural gas in Sinai and the Suez Gulf with investments of $65 million.

The minister also signed grants of $3.5 million, an official statement revealed.

The first agreement is signed with General Petroleum Company (GPC) in Sinai to improve its production in the frame of the Ministry of Petroleum’s plans to increase production and support the national companies working in oil and exploration field.

The statement referred that the second agreement was signed with the Petroleum Corporation and Zaafarana Petroleum Company, Oceaneer Zaafarana, and Sahary for Oil and Gas in the Gulf of Suez.

Molla announced that the number of signed petroleum agreements reached 61 new agreements since 2017 with a minimum investment of $14 billion to explore oil and gas in Egypt’s Egypt's land and sea areas.

More energy reforms needed, IMF tells Egypt - PETROLEUM ECONOMIST

20 August 2018
Gerald Butt

The Egyptian economy continued to improve in 2018, according to the organisation, but further measures are needed

In 2016, the International Monetary Fund agreed to help Egypt's economy recover from years of crisis by providing it with disbursements totaling $12bn. The deal was conditional on the government reducing subsidies on basic goods and services, including sources of energy.

Fuel subsidies, according to the IMF, have represented "an important share of budget spending in the past, contributing to increased deficits and debt, and crowding out spending on education and health".

The IMF, in its latest review of the Egyptian economy, praised the government's performance since the loan programme began, saying that its "fiscal consolidation plan remains on track".

Government may renegotiate deal with Noble Energy, spokesman says - CYPRUS MAIL

Licensees in Cyprus' EEZ as of August 2018

AUGUST 20, 2018

Stelios Orphanides

Government spokesman Prodromos Prodromou said that the cabinet may decide to renegotiate the revenue sharing agreement for the 4.5 trillion cubic feet (tcf) Aphrodite gas finding, the Cyprus News Agency (CNA) reported on Monday.

The cabinet, which is meeting on Tuesday at the presidential summer residence in Troodos, may decide whether the renegotiation will commence and if yes, its direction and terms, he said according to CNA.

“Decisions are about to be taken regarding demands raised by companies with which the Republic is in cooperation in Aphrodite,” the spokesman was quoted as saying. “Despite challenges or obstacles some people attempt to raise, we are now at a point that decisions of strategic importance have to be taken”.

Greece-Israel-Cyprus summit brought forward - KATHIMERINI

SATURDAY AUGUST 18, 2018, 10:07

VASSILIS NEDOS

This fall’s planned trilateral summit in Jerusalem between Greece, Cyprus and Israel at the foreign ministry level has been brought forward to September 13.

The meeting between Greece’s Nikos Kotzias, Cyprus’s Nikos Christodoulides and Israeli Prime Minister Benjamin Netanyahu, who holds his government’s foreign affairs portfolio, will take place amid increased gas exploration activity in the Eastern Mediterranean and Turkish plans to drill in the region.

Turkish President Recep Tayyip Erdogan has repeatedly made his intention clear that Turkey will not be left out of the new energy balance in the Eastern Mediterranean.

Ankara says the solution to the decades-old Cyprus problem hinges on the way natural gas reserves off the island’s coast will be exploited.

Meanwhile, the Medusa joint aeronautical exercise between Greece and Egypt is expected to begin in coming days south of the island of Crete.

Israel's offshore blocks reserve could prompt change in natural gas export policy - PLATTS

17 Aug 2018 | 12:22 UTC
Authors: Fabio Reale, Neal Sandler; Editor: Daniel Lalor;

Tel Aviv — The five new Israeli offshore blocks awarded last year to Energean have a potential reserve of 126 Bcm, according to an initial analysis conducted by Netherland, Sewell & Associates (NSAI), the Greek exploration company said. The estimates added a significant amount to Israel's resource base potential and could contribute to a change in the current 40% export limit and higher exports to Egypt or Turkey.

The Karish and Tanin offshore fields, which Energean is developing has proven natural gas reserves of 86 Bcm. In February, producers Delek and Noble signed a 10-year deal with Egypt's Dolphinius Holdings for the LNG re-export of 64 Bcm of gas from Tamar and Leviathan offshore fields from early 2019.

"We have a contingent commitment to conduct exploratory drilling in the new blocks," Energean CEO Mathios Rigas said. The five blocks are 12, 21, 22, 23 and 31.

Independent certification of reserves and resources in Israel - ENERGEAN OIL & GAS

London, 16 August 2018

Energean Oil and Gas plc (LSE: ENOG), the independent oil and gas exploration and production company focused on the Eastern Mediterranean, is pleased to announce that it has received an updated independent Competent Persons Report from Netherland Sewell & Associates (“NSAI”) for its Israeli portfolio. The updated CPR includes the certification of 63 bcm (2.2 Tcf) of 2P reserves and 7.5 Tcf of gross prospective resources and is the first assessment of prospective resources in the new Blocks (12, 21, 22, 23 and 31) that were awarded as part of the recent offshore licencing round.

The updated CPR includes 63 bcm (2.2 Tcf) of gas and 31.8 million barrels of liquids (gross, Energean 70%) of 2P reserves in the Karish and Tanin fields. Energean’s independently certified net 2P reserves are now 349 mmboe, an increase from the 51 mmboe estimated when Energean undertook its London Stock Exchange listing in March 2018.

Contingent resources in the Karish field of 5.4 bcm (0.2 Tcf) of gas and 1.0 million barrels of liquids (Gross, Energean 70%) are recognised. Remaining contingent resource relates to the Karish B reservoir. Overall 2P reserves plus contingent resources across the Karish and Tanin leases remain the same.

Eni signs concession agreement to begin exploration at offshore Noor gas field - ENTERPRISE

Wednesday, 15 August 2018

Eni signs concession agreement to begin exploration at offshore Noor gas field: Eni announced yesterday signing a new concession agreement with the Egyptian government to begin exploration activities at the offshore Noor gas field in the East Mediterranean, the company said in a statement (pdf). The USD 105 mn agreement will see Eni drill two exploratory wells in the 739 sqm field during 2H2018. Eni holds an 85% stake in the concession alongside Tharwa Petroleum Company, which holds 15%. Eni had denied last month that it made a massive gas discovery at the Noor gas field, after news reports suggested that Noor could contain around 90 tcf of gas reserves, or 3x as much gas as the supergiant Zohr field. Egyptian Oil Minister Tarek El Molla had also downplayed the reports at the time, saying that seismic studies were not yet complete.

Did Israel just back our quest to become the region’s premier energy hub? - ENTERPRISE

Wednesday, 15 August 2018

Israel’s foreign ministry gave our quest to become the East Med’s gas export hub a huge pat on the back at the expense of Turkey. A classified report from Israel’s Foreign Ministry has recommended that Israel rely on exporting its natural gas to Europe through Egypt, rather than Turkey, according to Ynet News (Hebrew). According to the report, Egypt is the best option on the economic, political, and strategic fronts than Turkey, which is “a dangerous and volatile player,” and is also preferable to Greece.

The endorsement casts shade on an EU-endorsed pipeline that would run from the East Mediterranean through Turkey — the rival proposal to exporting the gas to Europe from Egypt. Energy analysts have long complained that the pipeline was not cost effective compared with the Egypt option. Regional politics and tensions between Israel, Cyprus and Turkey have also dimmed the prospects of the pipeline. Not to mention the fact that plans to export from Egypt are already underway with international agreements having been signed, including the USD 800 mn-1 bn pipeline.

Revealed: ExxonMobil's private dinner with Cyprus' top EU brass - EU OBSERVER

De Warande

BRUSSELS, 14 AUGUST 2018, 06:56
PETER TEFFER

Oil and gas firm ExxonMobil recently hosted Cypriot MEPs, Cyprus' highest EU diplomat and EU commissioner Christos Stylianides at a dinner in a private club in Brussels, to inform them about its offshore drilling plans near Cyprus.

However, no record was made of what was said at the out-of-hours private event, causing concern for campaigners on the question of the EU's transparency and accountability on meetings with lobbyists.

The dinner, held in April, was confirmed by all parties - but only after EUobserver asked the European Commission for information about the meeting in an access to documents request.

The commission's register of meetings had merely stated that Stylianides – a Cypriot – had a meeting with ExxonMobil about "update of exploration activities offshore Cyprus".

LNG back in the limelight - CYPRUS MAIL

AUGUST 12, 2018
Charles Ellinas

With Noble, Delek and Shell requesting to renegotiate their Production Sharing Agreement (PSA) with Cyprus, and particularly the formula for sharing potential profits, LNG is back in the limelight in Cyprus. But how is LNG faring in a world with a glut of energy supplies, brought about by the inexorable increase in renewable energy?

This was the subject of recently released Global Annual Reports by the International Group of LNG Importers (GIIGNL) and the International Gas Union (IGU) on the performance of the LNG industry in 2017, and they make a very interesting reading.

Global LNG imports in 2017 recorded their highest annual growth rate since 2010, at 9.9 per cent, reaching 289.8 million tonnes. New liquefaction capacity continued to come online in various areas of the world ranging from the US to Australia, Malaysia and Russia, leading to a 26.2 million tonnes/yr increase in LNG supply compared with 2016.

Expectations of an LNG surplus did not materialise, as, among other factors, rising imports into China contributed substantially to balance the market.

Key conclusions are:

Jordan, Egypt ink agreement on gas supply resumption - ENTERPRISE

Sunday, 12 August 2018

Oil Minister Tarek El Molla and his Jordanian counterpart Hala Zawati renewed a natural gas sale and purchase agreement, under which Cairo will export 10% of Amman’s natural gas needs, Jordan Times reports. 

Both sides reportedly signed the initial agreement in 2014 but Egypt failed to meet the amount of natural gas it was agreed to provide. 

“Egypt provided Jordan with 250 mcf of natural gas daily since 2004, but these amounts started decreasing at the end of 2009 until they were completely halted in 2011 after attacks on the Arab Gas Pipeline,” the Jordanian energy minister said. 

Zawati also met with Electricity Minister Mohamed Shaker over cooperation on electricity connection and exchange, as well as exchanging expertise in the fields of energy and renewable energy, according to a ministry statement.

CYPRUS: Gas pipeline to Egypt a done deal but there is a snag - FINANCIAL MIRROR

07 August, 2018

Nicosia and Cairo have agreed to build a gas pipeline from the Aphrodite field in Block 12 to Egypt, but those reserves could remain untapped in a row over profits.

The deal could come unstuck if the government does not strike a compromise on profit sharing with the consortium licensed to exploit Block 12.

CyBC TV said the agreement, already approved by Brussels, is undergoing the finishing touches before it is signed at an official ceremony in the Autumn.

An Energy Ministry official has briefed the political parties on new demands by US firm Noble, UK-Dutch Shell and Israel’s Delek to exploit Aphrodite gas.

They want a change in the product-sharing contract which outlines the percentage of revenues to be received by the state in any commercial deal.

The three companies have proposed a ratio change of 60-40 in favour of the Republic of Cyprus be reversed so that Noble, Shell and Delek receive the lion’s share of the 60% instead.

Such a reversal in the profit ratio would see the state lose in the region of €2.5 bln to the consortium.

Delek, Noble and Egypt said to put final touches on gas deal - WORLD OIL

8/AUGUST/2018MIRETTE MAGDY and YAACOV BENMELEH

CAIRO and TEL AVIV (Bloomberg) -- The companies developing Israel’s largest natural gas fields and their Egyptian partner have finalized details of a deal that would give them control over a pipeline to Egypt, according to people familiar with the matter, a crucial step that would pave the way for a $15-billion export contract.

The deal involves setting up joint venture companies in Cyprus and the Netherlands, through which Israel’s Delek Drilling LP, U.S.-based Noble Energy Inc. and their Egyptian partner, East Gas, would buy a 37% stake in Eastern Mediterranean Gas Co., held by businessmen Sam Zell and Yosef Maiman, among others.

An initial agreement is expected to be signed in a month or less, the people said, speaking on condition of anonymity because the negotiations are confidential. Separately, efforts also involve a substantial reduction of a $1.76-billion fine imposed on Egypt by an arbitration court in favor of Israel Electric Corp.

The agreements would eliminate legal obstacles to implementing the gas export contract, seen as a step adding economic depth to a relationship dominated by security since the two countries signed a peace treaty more than four decades ago. It would also advance Egypt’s plan to capitalize on its own giant Zohr gas field and become a regional energy hub.

Shares of Ratio Oil Exploration 1992 LP, a partner in an Israeli gas field that is party to the export deal with Egypt, rose as much as 3% on the news. The Tel Aviv Oil & Gas Index gained as much as 0.9% to 902.58, the highest in one month.

The deal is shaping up as follows:

TurkStream's 2nd Leg to Become Operational by December 2019 – Turkish Minister - SPUTNIK NEWS

08.08.2018 15:21

ANKARA (Sputnik) - The second leg of the TurkStream gas pipeline is expected to be put into service by December 31, 2019, Turkish Energy and Natural Resources Minister Fatih Donmez said Wednesday, citing information provided by Russian energy giant Gazprom, which is involved in the construction project.

"The construction of the offshore portion of the first leg of TurkStream has been completed. Gazprom built it on its own. They covered a 930 kilometer [578 mile] route. Now, construction of the land portion is underway. Gazprom continues laying down the second leg of the offshore part [of the pipeline]. Gazprom has notified us of the date [it will become operational] — December 31, 2019," Donmez told A Haber TV Channel.

The TurkStream pipeline will have a capacity of 15.75 billion cubic meters (556 billion cubic feet) per year. One leg is expected to supply natural gas solely for Turkish consumption.

The second leg will transport gas to European countries through Turkey, and is scheduled for completion in 2019. Gazprom is considering options for extending the pipeline through Bulgaria and Serbia or through Greece and Italy.

The new Cypriot-Egyptian agreement regarding the natural gas pipeline - LYGEROS

7 August 2018
Nikos Lygeros

The new agreement between Cyprus and Egypt regarding the natural gas pipeline, which carries the European Union's necessary stamp of approval, is the implementation of the intermediate path towards the exploitation of the mineral wealth.

It constitutes a new success which enhances the alliance context with Egypt, but also the triple point of contact issue, where Greece is also involved, at both geopolitical and geo-economic levels, since it will also have an impact upon the East Med pipeline which is of strategic importance.

The other important element is that it regards a transnational agreement that goes beyond European Union issues.

Therefore it constitutes an effective response to Turkey's provocative statements.

It's indicative in practical terms that Egypt functions catalytically in regards to this relationship, and that the two countries now obtain mutual interests, a factor which is very important at a geostrategic level.

With this agreement, Cyprus acquires an energean ally which has a European orientation, both politically and technologically.

Consequently, Cyprus' position is becoming upgraded and the island can now see differently the Eastern Mediterranean and its interconnection with the European Union.

EGX, Oil Ministry officials begin deliberations over setting up natural gas futures exchange - ENTERPRISE

Tuesday, 7 August 2018

EGX, Oil Ministry officials begin deliberations over setting up natural gas futures exchange: Bourse officials have reportedly started talks with the Oil Ministry to set up a futures exchange for natural gas, banking sources tell Al Mal. Officials met last week to begin discussing their vision for the establishment of energy-oriented futures exchanges, beginning with natural gas, according to the sources, who add that the gas exchange market will be the main platform used for striking gas sale and purchase agreements and determining prices, quantities, and delivery dates. The framework is still in the early drafting stages, the sources said, hinting that we’re still a long way from seeing the market turn into a reality.

Background: The recently-amended Capital Markets Act and its executive regulations included provisions that allow for the establishment of futures exchanges and the introduction of other financial instruments, such as green bonds, sukuk, and margin trading. We had heard in May that Financial Regulatory Authority boss Mohamed Omran had tasked a committee with drafting the rules and regulations that would govern futures exchanges, which are part of a four-year strategy to develop Egypt’s non-banking financial sector. New regulations to govern short-selling are also in the works and expected to be complete by 3Q2018.

Gas pipeline deal reached with Egypt – CyBC - CYPRUS MAIL

AUGUST 6TH, 2018
Evie Andreou

Nicosia has reached an agreement with Cairo on a pipeline to connect the Aphrodite gas field in block 12 to Egypt, it was reported on Monday.

According to state broadcaster CyBC, the inter-state agreement is expected to be signed in the autumn.

The two countries had signed in 2017 a preliminary agreement to transport natural gas from Cyprus to Egypt to be liquefied at Egypt’s LNG facilities and re-exported to Europe and other markets.

CyBC, citing diplomatic sources, said that the agreement has already been given the green light by the EU and it is being scrutinised for the final touches.

Cyprus demarcated its maritime border with Egypt in 2003. The Aphrodite gas field, discovered in December 2011 by Houston-based Noble Energy, is estimated to hold some 4.5 trillion cubic feet of gas.

Edison stops gas exploration in Israel - GLOBES

6 Aug, 2018 18:47
Amiram Barkat

The market sees the decision as proof that gas exploration in Israel is not attractive due to restrictions on gas exports.

Italian company Edison, owned by a French group, one of the oldest foreign investors in the Israeli gas exploration market, has closed down its activity in Israel in recent weeks. The market is interpreting the decision as proof that gas exploration in Israel is not attractive and that the restrictions on gas exports imposed by the Tzemach Committee should be eliminated. Government sources argue that the company closed its office because of strategy changes, not because of anything involving the Israeli market.

Edison's office, managed by Octavio Viglione, was active in Israel for five years and was closed two months ago. As far as is known, the company is maintaining its connection with Lavi Capital, managed by former Ministry of Finance director general Yarom Ariav, which provided it with consultation services and representation for years. As of now, Edison is continuing its activity in the Royee license in which it is a partner with Israeli partnership Ratio Oil Exploration (1992) LP (TASE:RATI.L).

Egypt to Begin Importing Israeli Gas in 2019 - HAARETZ / REUTERS

Aug 06, 2018 10:28 AM

Avi Waksman and Assa Sasson

Egypt’s Dolphinus Holdings plans to start importing gas from Israel for re-export in the first quarter of 2019, sources in the country’s energy sector said on Sunday, under agreements signed in February to buy $15 billion worth of gas over 10 years. “Imports will start in small quantities first and will gradually increase to reach their climax in September 2019,” one source told Reuters. The source gave no details on prices or quantities. Partners in Israel’s Tamar and Leviathan offshore gas fields, which include Delek Group, Isramco and Ratio, said in February that they would supply Dolphinus with around 64 billion cubic meters of gas over a decade. Although controversial in Egypt, Cairo hopes that the imports will help in its efforts to become a regional energy hub. Delek shares ended up 0.4% at 528.60 shekels ($143.15). (Reuters)

Indications that gas finds will be high in block 10 - CYPRUS MAIL

AUGUST 5, 2018

Elias Hazou

ExxonMobil and Cyprus could hit the jackpot later this year when the US energy behemoth bores down into the seabed in search for natural gas. But according to an energy analyst, the potential windfall could have broader ramifications for the government’s arrangements with other companies operating in the island’s exclusive economic zone.

Charles Ellinas tells the Sunday Mail of highly sanguine chatter inside the industry over the potential of block 10, located southwest of Cyprus and licensed to a consortium of Exxon and Qatar Petroleum.

The seismic data is extremely encouraging.

Weeks ago, Ellinas was speaking to a senior executive of one of the companies that had bid for block 10 but did not get the contract.

“He told me: ‘If they [Exxon] don’t find something big there, I’ll quit my job’.”

Natgas market regulator sets fees for private sector’s use of the state grid at USD 0.38 MMBtu - ENTERPRISE (Corrected)

Sunday, 5 August 2018

The Natural Gas Regulatory Authority set on Thursday the fee that private sector players will have to pay to use the state’s national grid to transport gas at USD 0.38 / MMBtu, according to its official website. The rate applies for the first year of the program, suggesting a revision could be in the works after the initial trial period. License fees will be calculated based on the amount of gas transferred and can be settled in EGP. The regulator will be issuing permits for different types of commercial gas market activities, including grid operations and maintenance, supply, distribution, and shipping, with different fees set for each type as follows:

• USD 0.57/MMBtu for transmission licenses;
• USD 0.31/MMBtu for shipping licenses;
• USD 0.23/MMBtu for distribution licenses;
• USD 0.08/MMBtu for supply licenses.

Permit requests must be processed within 10 working days of application and any additional documents required by the regulator must also be submitted within 10 working days. The regulator will then have 45 days to approve or deny the request and fees must be deposited within seven days of that date.

Shell starts Production in (9b) October 2018 - EAST MEDITERRANEAN GAS NEWS

Cairo August 3 2018
Suzan Nour

Rashid Petroleum Company (Rashpetco) to start production from the first two wells in phase two (9b) in the West Delta region deep waters of the Mediterranean Sea during the first half of October.

Adding eight production wells and two exploration wells will be completed in the third quarter of 2019 to reach overall production rates about 400 million cubic feet of gas and 3,000 barrels of condensate per day.

Why Is Israel Spending $500m to Protect Gas Facilities Close to Home? - HAARETZ

Aug 02, 2018 6:04 AM
Hagai Amit
The navy is ordering ships designed to protect drilling platforms far from the coast, even though they will be just 10 kilometers from the shore

The debate under way over how far offshore the natural gas production platforms should be located raises another question about why Israel’s navy is spending 430 million euros ($502 million) to buy four corvettes from Germany.

If plans to locate the facility 10 kilometers from Israel’s coast go ahead as planned, despite protests of residents near Dor Beach concerned about the environmental impact, the Israel Navy will be equipped with a fleet of expensive firepower completely disproportionate to the threats it will face.

The platform, which is being built in Texas and is due to arrive in about six months, will service the giant Leviathan field when it goes into production.

UPDATE 2-Turkey's Botas hikes natural gas price for power generation by 50 pct - sources - REUTERS

JULY 31, 2018 / 10:55 PM

Orhan Coskun

• Turkey links gas prices to dollar
• Energy regulation authority hikes electricity prices
• Botas also hikes natural gas prices for residential use (Adds hikes to electricity and natural gas consumer prices)

ANKARA, July 31 (Reuters) - Turkey’s state pipeline operator Botas will hike the price of natural gas used for electricity production by 50 percent as of Wednesday, sources said.

The price hike was “inevitable” due to a weaker lira pushing oil and natural gas prices higher, as Turkey is mostly dependent on energy imports, energy sources told Reuters.

Earlier on Tuesday, the central bank hiked its crude oil price assumption to $73 from $68.

Ankara insists on East Med plans - KATHIMERINI

Cavusoglu, Turkey (L), Mogherini, EU (right)

WEDNESDAY AUGUST 1, 2018, 14:52

Recent statements from Turkish officials suggest that Ankara has no plans to back away from its energy plans in the Eastern Mediterranean, including sea areas under Cyprus’s (EU) jurisdiction.

Turkish Foreign Ministry spokesman Hami Aksoy this week urged foreign diplomats in Cyprus not to overstep their authority. His statement was in response to comments by Israeli and Egyptian ambassadors in Nicosia during a diaspora conference between July 25 and 27.

“The remarks made by some ambassadors during a recent conference in the Greek-Cypriot administration, in support of the unilateral hydrocarbon-related activities being conducted by the Greek Cypriots in the Eastern Mediterranean, are unwarranted,” he said, adding that Turkey would “recommend to the representatives of the relevant countries that they do not exceed their authority.”

FinMin to impose a real estate tax on oil and gas developments - ENTERPRISE

Wednesday, 1 August 2018

EXCLUSIVE- FinMin to impose a real estate tax on oil and gas developments: The Finance Ministry is planning to impose a real estate tax on oil and gas assets, according to documents seen by Enterprise. The move appears to have been in the works for some time and according to the documents, the Finance Ministry, the EGPC and oil and gas companies have been holding meetings on how this real estate tax would be imposed. It is not yet clear whether an agreement had been reached with foreign and local energy companies with regards to the tax. Nonetheless, the ministry had drafted a framework and formula for how the new tax would work and sent it to the Oil Ministry for approval and sign off.

Government considering its gas options - CYPRUS MAIL

JULY 31, 2018

Elias Hazou

The government is said to be mulling its options after the consortium holding the license for the Aphrodite gas field proposed amending the revenue-sharing agreement with the Cypriot state.

Under the proposal recently floated by the consortium of Noble, Shell and Delek, the overall long-term revenues to the state would decline by €2.3 billion – according to daily newspaper Politis – or by up to 20 per cent compared with the current contract, daily Phileleftheros reported.

On Monday, energy minister Giorgos Lakkotrypis gave a behind-closed-doors briefing to MPs on the overall state of play in the hydrocarbons sector, with emphasis on Aphrodite gas.

According to information that has leaked, Lakkotrypis told lawmakers the government rejects the consortium’s specific proposal.

EGPC signs USD 46 mn oil and gas exploration agreement with BP - ENTERPRISE

Tuesday, 31 July 2018

The Egyptian General Petroleum Corporation (EGPC) signed a USD 46 mn agreement with BP yesterday for oil and gas exploration the in Gulf of Suez, according to a statement picked up by Ahram Gate. 

The agreement also includes a USD 4 mn to cover the cost of drilling three wells. The Oil Ministry said it is currently finalizing procedures for 13 other agreements that will be announced soon. 

The new agreement comes as the government steps up exploration activities in FY2018-19 as Egypt marches toward natural gas self-sufficiency and bids to become a regional energy export hub.

Building New Natural Gas Rig Off Israel's Shores Poses High Ecological Risks, Expert Warns - HAARETZ

Jul 30, 2018 10:07 PMZafrir Rinat 

One of the world’s leading experts on the environmental consequences of gas and oil pollution, Prof. Rick Steiner, is warning of the risks posed by erecting a platform only 10 kilometers from Dor Beach to process natural gas from the Leviathan gas field.

He argued that it isn’t too late to rethink the idea and instead operate a floating platform much closer to the drilling site, which lies over 100 kilometers further from shore.

Steiner spoke Monday at a press conference held by Shomrei Habayit (“Homeland Guards”) an organization representing residents of the Carmel shore region that is battling against the platform’s construction.

Steiner prepared a detailed report for Shomrei Habayit saying that operating the gas platform near the shore increases the likelihood of serious damage to the marine environment and the beach, should there be a malfunction or a hostile attack on the facility.

Steiner criticized the planning and decision-making process. He noted, among other things, that in important documents dealing with the environmental impact of the platform’s activity, large sections were redacted because Noble Energy, one of the partners operating Leviathan, claimed they contained trade secrets.

Edison to begin drilling exploratory wells in Mediterranean concessions in 2H2019 -ENTERPRISE

Sunday, 29 July 2018

Italy’s Edison will begin drilling exploratory wells at its North East Hapi and Theqa (Thekah) concessions in 2H2019, Oil Minister Tarek El Molla said. 

The company’s studies of the concessions show geological structures that indicate there is a “good chance” the areas hold natural gas reserves. 

Edison had signed an USD 86 mn agreement with EGAS in January 2017 for E&P operations.