Libyan MoU cannot affect Greek rights, says US energy official - KATHIMERINI

02.JUNE.2020 : 22:45

The Turkey-Libya memorandum of understanding (MoU) relating to maritime zones “cannot as a legal matter affect the rights or obligations of third states” such as Greece, a US energy official said on Tuesday during a virtual roundtable discussion on the Eastern Mediterranean and the trilateral partnership between Greece, Cyprus and Israel.

The event was organized by the Atlantic Council and the American-Hellenic Chambers of Greece, Cyprus and Israel.

“International Law, the Convention of the Law of the Sea generally recognises that islands ... generally have an EEZ and they have a continental shelf, just as any other land territory, said Francis Fannon, US Assistant Secretary of State for Energy Resources.

At the same time, an MoU “does not abrogate the rights of states,” he added, "their legal status is recognized, there's not an equivalency here."

Ambassador Pyatt’s Remarks at AmCham East Med Act and 3+1 in Age of COVID-19 - US EMBASSY GREECE

June 2, 2020

Delivered (virtual roundtable)

Thanks Katerina. Well, let me start first of all by congratulating both the Atlantic Council and AmCham for this event, and in the same way as Ben said, the Atlantic Council has made a big bet on Greece, the United States has made a big bet on the 3+1 framework as a means to build stability and prosperity in a strategically dynamic region. We can see the challenge of great power rivalry returning to the region, even during this Coronavirus period.

I would just say a couple of quick points. Minister Hatzidakis spoke well to the benefits to Greece from this trilateral cooperation. For the United States, first of all, I should highlight that energy has been one of the real bright spots of our bilateral relationship for a few years now. We see Greece emerging as a major source of energy security across southeastern Europe with a whole variety of projects from the expanded Revithoussa terminal to the TAP pipeline to the IGB pipeline now moving ahead to the Floating Regassification Unit in Alexandroupoli.

Gazprom signs contract with Mytilineos to supply gas to Greece until 2030 - TASS

1 JUN 2020, 18:39

MOSCOW /TASS/ Gazprom Export, a wholly-owned subsidiary of Gazprom, and Greece’s Mytilineos S.A. concluded a long-term contract for the supply of natural gas, the Russian company said. The contract provides for the delivery of gas to Greece from 2020 to 2030.

The document was signed by Vice Chair of the Gazprom Management Committee, Director General of Gazprom Export, Elena Burmistrova and Chairman of the Board, General Director of Mytilineos S.A., Evangelos Mytilineos.

"The cooperation between Gazprom Export and Mytilineos proves the demand for Russian gas on the Greek market and will further strengthen the interaction of our countries in the energy sector," Burmistrova said.

"This long-term contract will strengthen Mytilineos’s competitiveness in the region’s gas market and make a significant contribution to maximizing the efficiency of our assets in industry and the electric power industry," Mitilineos added.

Report: Turkey’s Escalation in Libya: Implications and U.S. Policy Options - JINSA

Wednesday, May 27, 2020

Turkey’s recent intervention in Libya’s civil war has intensified the involvement of rival foreign powers in the strategically situated, energy-rich country, and threatens vital U.S. interests in the region, even as Washington mostly observes from the sidelines.

Ankara became significantly more involved in Libya in November 2019, when it agreed to provide military support for Tripoli-based, U.N.-recognized Government of National Accord (GNA) – strongly influenced by the Muslim Brotherhood and other Islamist elements – against the rival Tobruk-based Libyan National Army (LNA) supported by UAE, Egypt, Russia, France and others. In exchange, Turkey secured a bilateral pact ostensibly legitimizing its vast offshore territorial claims in the increasingly energy-rich Eastern Mediterranean.

Turkey’s new presence in Libya is emboldening both sides of the conflict to ratchet up their fighting, seek greater foreign assistance and forswear negotiations, despite a U.N. arms embargo and despite coronavirus sweeping through the country. It also directly imperils U.S. interests in promoting peaceful regional energy development.

ENI will not leave Cyprus while it has a licence says Italian FM - CYPRUS MAIL

May 16, 2020

Peter Michael

Italy assured Cyprus on Saturday that it’s energy giant ENI will not leave the island’s exclusive economic zone as long as it has a licence.

In statements to the press after a foreign affairs committee meeting in parliament, Rome’s Foreign Minister Luigi Di Maio said ENI will not abandon the island while its licence is still in date.

Commenting on ENI’s presence in the EEZ, he said: “Right now there are no drilling activities underway due to the pandemic, but we hope they will restart as soon as possible.”

Earlier in the month, energy companies ENI and Total notified the government they are postponing their scheduled gas drilling operations off Cyprus for approximately one year.

The two companies had planned to carry out exploratory drilling at a site dubbed Kronos in block 6 of Cyprus’ exclusive economic zone.

EastMed pipeline will change Europe’s gas landscape - FINANCIAL MIRROR

12th May 2020

Greek Energy Minister Kostis Hatzidakis said the agreement with Cyprus, and Israel to construct an ambitious EastMed gas pipeline constitutes a game-changer for Athens and Europe.

A deal for an undersea pipeline to carry gas from new offshore deposits in the southeastern Mediterranean to mainland Europe was ratified by a Greek parliamentary committee on Monday evening.

In his speech to the standing committee on trade, Hatzidakis referred to the geostrategic importance of the EastMed project, saying it will alter the landscape of gas resources and routes for Greece and Europe.

He said the EastMed project will strengthen Greece’s strategic relationship with Cyprus and Israel while giving a concrete answer to Turkey’s “revisionism and provocativeness” in the region.

Answering to criticism by opposition parties over Italy’s absence from the intergovernmental agreement signed in Athens in January, Hatzidakis said Rome participated in the whole negotiation process and retains its right to sign the agreement in good time.

Cyprus must redirect its energy policy - CYPRUS MAIL

May 10, 2020

Charles Ellinas

The international oil and gas companies (IOCs) have finally confirmed postponement of planned drilling in Cyprus’ EEZ into 2021. It is understood that the energy minister is looking into extending Eni/Total’s contracts to facilitate this.

The press coverage that followed, stated that it is “important to note that the oil companies are not pulling out”, but “they have merely postponed their planned drilling in response to the many problems currently being faced.”

But is such a complacent view justified? Where is this going? Let’s look at the evolving facts.

Oil exports fetch USD 1.4 billion in Libya - BRAZIL-ARAB NEWS AGENCY (ANBA)

07/ MAY /2020
Philippe Roy/AFP

São Paulo – Libya saw LYD 1.98 billion in oil export revenues year-to-date through April, an amount equivalent to roughly USD 1.4 billion, African news outlet Panapress reported quoting official Central Bank of Libya numbers. Libya is an Arab country located in the African continent.

Libya is struggling with maintaining its oil at full capacity, as a result of political unrest since the ousting of dictator Muammar Gaddafi in 2011. The Government of National Accord is officially ruling over the country, however opposing forces do not recognize its authority, and are controlling part of Libya’s territory.

Libya’s National Oil Company (NOC) recently said that a blockade of oil-producing areas as a result of fighting since January has trimmed daily oil output down to between 92,000 and 72,000 barrels per day, from a prior 1.2 million bpd.

Noble Energy laying off dozens in Israel - GLOBES

3 May, 2020 15:59
Amiram Barkat

Sources in Israel stress that the layoffs will not affect the flow of gas from the offshore rigs or the service that the company provides its customers.
US energy exploration and production company Noble Energy Inc. (NYSE: NBL) has begun laying off dozens of employees in Israel as part of its international streamlining plan.

The company, which operates the Tamar and Leviathan gas fields, has several hundred employees in Israel, some on the gas rigs themselves and others in its Israel head office in Herzliya. Sources in Israel stress that the layoffs will not affect the flow of gas from the offshore rigs or the service that the company provides its customers.

SDX Energy’s Sobhi well set to produce 10-12 mcf / d of natural gas - ENTERPRISE

Thursday, 30 April 2020

SDX Energy is expected to produce 10-12 mcf / d of natural gas from its Sobhi well, the company said in a statement (see below). 

The discovery has grown the South Disouq concession’s production capabilities by 50%, putting SDX on track to extract up to 50 mcf / d by 2023. Earlier this month SDX discovered 24 bcf of natural gas at the Sobhi well, marking a “low-cost, highly-cash generative" expansion to the field.

The full statement follows:

SDX ENERGY PLC ("SDX" or the "Company")

EastMed pipeline project seeks offshore EPCI players - OFFSHORE ENERGY

April 28, 2020

Adis Ajdin

IGI Poseidon has rolled out a tender for EPCI activities related to offshore sections of EastMed pipeline project.

IGI Poseidon is a 50:50 joint venture between Public Gas Corporation of Greece (DEPA) and Edison International Holding.

Eastern Mediterranean (EastMed) is a 1,900 kilometers long natural gas pipeline project to connect the gas reserves of the eastern Mediterranean to Greece.

EastMed pipeline project is currently in its FEED development phase.

Breakdown in Naturgy, Eni and EGPC Damietta dispute resolution - ENTERPRISE

Sunday, 26 April 2020

DISPUTE WATCH- The resolution of a long-simmering dispute over a shuttered Damietta LNG plant has fallen apart despite an agreement reached last month, according to a cabinet statement. Parties to the dispute include Spanish gas firm Naturgy Energy Group, Italy’s Eni, and the Egyptian government.

Why does this matter? First, the dispute was closely followed by investors in Egypt’s energy sector, though that concern was largely swept away as the Sisi administration reached a settlement with all parties. More importantly, the Damietta plant is a key part of Egypt’s strategy to grow its natural gas exports as it emerges as the Eastern Mediterranean’s premier energy hub. The plant has been closed since 2012, when supply of gas was shut off amid disruptions in the wake of the political events of the previous year. Its reopening would have expanded Egypt’s ability to export natural gas to European markets.

Hoegh LNG wants to install Cyprus FSRU - FINANCIAL MIRROR

24th April 2020
Charlie Charalambous

Norway’s Hoegh LNG on Friday confirmed that it has officially applied to Nicosia for a liquefied natural gas infrastructure ownership, operations, and development license in Cyprus.

In a statement, Hoegh LNG said it sent letters to President Nicos Anastasiades, and the Ministers of Energy and Finance, in which the “advantages and benefits of its proposal for the installation of an FSRU in Cyprus, and more specifically at Vasiliko, were presented”.

“The purpose of the letters was for the President and the two Ministers to be informed about Hoegh LNG’s proposal, the application for licensing which was officially submitted to Cyprus Energy Regulatory Authority (CERA), being the competent authority,” said the statement.

Egypt’s Oil Sector Thrives Amid Lockdown, Oil Crisis - DAILY NEWS EGYPT

Tuesday, 21st April 2020

The Former Minister of Petroleum and Mineral Resources, Osama Kamal, said that Egypt has benefited from the oil price decline during the last period by storing sufficient quantities of oil, according to his call on Amr Adib’s El Hekaya Program.

He noted that Egypt will neither be directly affected positively nor negatively by the current collapse of oil prices, but this might contribute in decreasing the burden of financial support from the public budget. Kamal discussed that its only negative effect would be when American oil companies cut their exploration and discovery investments in the different countries including Egypt.

US oil future prices declined to below zero on Monday 20 April. The price of West Texas Intermediate Crude reached to $-37.63 due to the industries’ halt and lockdown driven by the coronavirus outbreak.

Saipem Wins Egypt Plant Contract - RIGZONE

Monday, April 20, 2020

Matthew V. Veazey

Egyptian Ethylene & Derivatives Co. (Ethydco) has selected a consortium of Saipem and Egypt-based Petrojet to build that country’s first polybutadiene plant, Saipem reported Friday.

According to a written statement Saipem emailed to Rigzone, the estimated US$150 million contract for the 36,000-metric ton per year (MT/Y) synthetic rubber plant calls on Saipem and Petrojet to provide:

Midor Refines 9.3 MMBBL of Crude in Q1 2020 - DAILY NEWS EGYPT

Sunday, 19th April 2020

Middle East Oil Refinery (Midor) has refined approximately 9.3 million barrels (mmbbl) of domestic and imported crude oil in Q1 2020, according to a press release.

Gamal ElKareish, Chairman and CEO of Midor, stated that the company has produced and delivered approximately 80% of the total products to the local market. Such products include about 43,000 tons of butane, 325,000 tons of high-octane gasoline, 646,000 tons of diesel, in addition to 72,000 tons of coal and 14,000 tons of sulfur. On top of that, the company exported 265,000 tons of jet fuel to global markets.

Additionally, ElKareish added that production remains uninterrupted as a result of implementing preventive maintenance for equipment so as to maintain strategic supplies of petroleum products to the local market.

WEPCO’s Production Reaches 3,500 bbl/d - EGYPT OIL & GAS

Tuesday, 14th April 2020

Western Desert Operating Petroleum Company’s (WEPCO) production has reached 3,500 barrels per day (bbl/d) after streamlining well Badr 4-6, according to a statement.

The new development well (Badr 4-6) has added about 500 bbl/d to the state-owned company’s production. Production has increased in the past five months by 1,500 bbl/d, bringing the total production from 2,000 bbl/d to 3,500 bbl/d.

It should be noted that WEPCO is fully operational with 100% of Egyptian youth cadres without foreign partners.

WEPCO adheres to the Minister of Petroleum and Mineral Resources, Tarek El Molla’s strategy to increase crude oil production by developing a rapid development plan for new discoveries and benefiting from the well’s existing infrastructure.

Coronavirus: Minister confirms long delay in Cyprus’ gas drilling - CYPRUS MAIL

April 13, 2020

Elias Hazou

Exxon Mobil have informed the government they will be delaying a planned drill in their block 10 concession in Cyprus’ Exclusive Economic Zone (EEZ), with other oil companies expected to do the same due to the ongoing coronavirus situation as well as the sharp drop in energy prices globally.

Energy Minister Giorgos Lakkotrypis confirmed that in recent days he was informed in writing by ExxonMobil that they have pushed back to September 2021 an appraisal (or follow-up) well at the site dubbed Glafcos in block 10.

The Glafcos reservoir, bearing an estimated 5 to 8 trillion cubic feet of gas, is the largest gas discovery to date in Cyprus’ EEZ. The appraisal drilling would have helped the company with its commercialisation decision.

The appraisal well there was initially scheduled for this summer.

Oslo-based company applies to bring LNG to Cyprus from 2021 - CYPRUS MAIL

April 2, 2020

Elias Hazou

An Oslo-based company has formally applied to bring liquefied natural gas (LNG) to Cyprus starting in the first half of 2021.

In a press release, Höegh LNG Holdings Ltd said its subsidiary, Höegh LNG Ltd, has applied for an LNG infrastructure ownership, operations and development licence in Cyprus.

Their proposal entails the use of a floating, regasification and storage unit (FSRU).

“The plan consists of using one of Höegh LNG’s Fsru’s as a fast track solution for the required fuel switching, thereby reducing air emissions, cutting EU emission taxes, enabling savings on fuel costs and reducing electricity price per KWh for local consumers,” the company said.

UAE's Dana Gas delays decision on Egypt assets sale- sources - REUTERS

APRIL 2, 2020 / 4:10 PM

DUBAI, April 1 (Reuters) - The United Arab Emirates-based energy producer Dana Gas has delayed a decision on whether to sell its Egyptian assets because of the market turmoil caused by the coronavirus outbreak, two sources close to the talks said on Thursday.

In February, Dana Gas said it had received bids from some companies for its assets in Egypt and that a final decision would be made by the end of March.

“A decision has not been reached yet, mainly due to the coronavirus global impact. However the (assets) valuation process is under way,” one of the sources told Reuters on condition of anonymity.

Egypt's Tharwa Petroleum seeks to acquire 6 concession areas in 2020 - ZAWYA / MUBASHER

31 MARCH, 2020

Tharwa drilled eight exploratory and development wells in 2019

Cairo – Tharwa Petroleum Company is looking to obtain six concession areas in 2020 and enter into partnerships with major companies, including Total, ExxonMobil, Chevron, BP, and Shell, the company’s chairman Amr El-Leithy said.

The company also plans to drill seven exploratory and development wells this year, El-Leithy added in a statement released by the Ministry of Petroleum on Tuesday.

In 2019, Tharwa drilled eight exploratory and development wells, leading to higher output, he pointed out.

The average output at the company’s areas reached about 6,800 barrels of crude oil per day.

Total says Lebanon offshore drilling halfway done - LEBANESE OIL & GAS INITIATIVE (LOGI)

MAR/30/2020

Timour Azhari

Lebanon’s first-ever offshore exploratory drill is roughly halfway complete in Block 4 off the coast of Beirut, according to the General Manager of Total E&P Lebanon, Ricardo Darre.

Speaking to LOGI on March 23, Darree said that the drilling was ongoing at a depth of about 3000 meters and would take a total of about 60 days. Then, he said the same amount of time should be given for analysis of the find to determine its commercial viability.

Oil and gas companies on the retreat - CYPRUS MAIL

March 29, 2020
Charles Ellinas

The combined effect of the massive decline in global oil and gas demand due to Covid-19 depressing the global economy, and the rapid drop in the oil price – due to unrestricted increase in production by Saudi Arabia and Russia and still high shale-oil production – are forcing the oil and gas companies on the retreat.

By Friday, Covid-19 had infected more than 585,000, resulting in over 27,000 deaths worldwide, and the numbers are still rising. It will probably last well into 2020, but it is difficult to say how long. The last Sars virus took more than eight months before it burned itself out. Covid-19 seems to be substantially more infectious than Sars. Its impact on what was already a weak global economy and oil and gas demand is expected to last into 2021.

Gastrade secures 2.6 Bcm/year in capacity bookings for Greek LNG terminal - HELLENIC SHIPPING NEWS / PLATTS

27/MARCH/2020

Author: Stuart Elliott, Editor: Jonathan Dart

• Less than half of design capacity of Alexandroupolis LNG
• Non-binding first phase saw interest for 12.2 Bcm/year
• Commercial start-up of FSRU expected in Q3 2022

London - Greece’s Gastrade, the developer of a planned floating LNG import facility at Alexandroupolis in northern Greece, said Thursday it had secured 2.6 Bcm a year of capacity bookings following a binding market test process that ended Tuesday.

Capacity was booked for periods up to 15 years and parties reserving capacity included both Greek and international gas companies, as well as end-users, Gastrade said.

The company described the process as having been “successfully” concluded, although the booked capacity is less than 50% of the terminal’s design capacity of 5.5 Bcm/year.

Delek loses 5% of Delek Drilling - GLOBES

26 Mar, 2020 12:20
Omri Cohen

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has been forced to reach a painful compromise in its dispute with Citibank concerning participation units in its energy exploration and production unit Delek Drilling LP (TASE: DEDR.L) attached in Citibank's favor. Figures published by Delek Group indicate that the compromise reached by the group with Citibank and the Dayan family, which signed an agreement to buy the attached participation units, will cost Delek Group NIS 120 million in terms of market cap.

Up until now, Delek Group held 60% of the participation units in Delek Drilling, with a market value of NIS 2.38 billion. Early last week, Delek Group revealed that participation units constituted 15% of the partnership's capital were attached in favor of Citibank in order to secure a loan, the outstanding balance of which totals $57 million.

Libya’s February oil revenues down 69 percent; NOC calls for immediate end to illegal oil blockade and on state to reduce expenses - LIBYA HERALD

London, 25 March 2020

Sami Zaptia

Libya’s state National Oil Corporation (NOC) reported that February 2020 hydrocarbon revenues were approximately US$ 555 million, a decrease of around $1.21billion USD (68.6%) on January 2020 revenues. The February figure is also a decrease of around US$ 708 million (56%) compared with February last year. It called for an immediate end to the costly oil blockade.

It confirmed that oil and gas production in Libya have been consistently down, with current levels of production at 95,837 barrels a day, as of Sunday March 22, 2020. Forced restriction of production has resulted in financial losses exceeding 3,535,802,366 USD since January 17, 2020.

Energean on course to deliver first gas from Karish field in 2021 - OILFIELD TECHNOLOGY

Friday, 20 March 2020 16:00

Nicholas Woodroof

Energean Oil and Gas plc has announced its audited full-year results for the year ended 31 December 2019 (FY19).

Highlights

• Karish was 72% physically complete at 31 December 2019 and remains on track to deliver first gas in 1H21. Firm gas sales of 5 billion m3/yr with a further 0.6 billion m3/yr to be converted to a firm basis immediately on publication of a satisfactory Karish North CPR, expected at the end of March 2020.
• Post-period end, two of the three Karish development wells successfully flowed during clean-up operations, confirming that each will be capable of delivering up to the design limit of 300 mmscf/d (c.3 billion m3/yr). The third development well is currently in the clean-up phase and production performance is expected to be similar, confirming that the three wells will be able to produce to the 8 billion m3/yr capacity of the FPSO.

Energean on track for first Israeli gas, FPSO sailaway 'in coming weeks' - PLATTS

19 Mar 2020 | 10:54 UTC London

Author: Stuart Elliott
Editor: Alisdair Bowles 

London — UK-based Energean Oil & Gas said Thursday it is on track for first gas from its Israeli offshore fields in the first half of 2021, announcing that the hull of the firm's dedicated production vessel would sail away from its Chinese shipyard "in the coming weeks."

There had been concern that work on the 8 Bcm/year capacity FPSO Energean Power could be delayed due to travel restrictions imposed in China after the start of the coronavirus outbreak.

"In the coming weeks, you will see our FPSO hull sail away from China to Singapore, a key milestone in the delivery of first gas from Karish, which is on track for H1 2021," CEO Mathios Rigas said following the release of the company's 2019 earnings.

Energean said final work on the vessel would take place in Singapore and the vessel sailed to Israel around year-end for installation.

Egypt agrees with five energy firms on exploration in Mediterranean - minister - ET ENERGY WORLD / REUTERS

February 16, 2020, 08:08 IST

CAIRO: Egypt has reached initial agreements with five major energy firms to explore for oil and gas in deep waters in off its western coast on the Mediterranean, the petroleum minister said, the first such deals in that offshore region.

The five companies are Royal Dutch Shell, Chevron , BP, Total and Exxon Mobil, said Tarek El Molla told Sky News Arabia TV on Saturday.

He said the exploration and production agreements spanned seven concessions and had been signed with major companies because of the scale of investment needed. Exploratory drilling in the area would start in early 2021, he said.

The discovery of the giant Mediterranean field of Zohr off the eastern coasts of Egypt by Italy's Eni in 2015 sparked renewed interest and investment in Egypt's energy industry.

Lebanon to start oil and gas exploration in Block 9 despite dispute with Israel - XINHUA

Xinhua, March 7, 2020

BEIRUT, March 7 (Xinhua) -- Walid Nasr, head of the Lebanese Petroleum Administration, said Lebanon will start in 2020 oil and gas exploration in Block 9 of its territorial waters regardless of the negotiations with Israel about border demarcation, local media reported on Saturday.

"We will prepare for oil and gas exploration in Block 9 this year and we will be drilling at a distance from the borders with Israel," Nasr said in an interview with Elnashra, an online independent newspaper.

Nasr said that it is currently hard to assess if Lebanon has a wealth of oil and gas and companies may not find any resources in the well that's currently being drilled by Total in Block 4.

"Sometimes we need to drill five wells to find oil and gas," Nasr explained.

Libya says oil shutdown losses close to $2.6 billion - ASSOCIATED PRESS

March 3, 2020
Samy Magdy

CAIRO (AP) — Economic fallout continues from a protracted blockade of Libya’s vital oil fields and ports, with losses close to $2.6 billion, the national oil corporation announced Tuesday, intensifying the pressure on a U.N.-supported government in the capital.

Powerful tribes loyal to Libya’s eastern-based forces seized large export terminals and choked off major pipelines in January, aiming to starve the Tripoli-based government of crucial revenues.

The eastern-based forces, led by military commander Khalifa Hifter, launched an offensive in April to capture Tripoli, clashing with an array of militias loosely allied with the U.N.-supported government. The fighting for Tripoli has ground down to a stalemate in recent months.

The National Oil Corporation, which dominates Libya’s critical oil industry, said Tuesday the losses as of Monday were close to $2.6 billion since Jan. 17.

Record Egyptian finds but gas glut beckons - CYPRUS MAIL

March 1, 2020

Charles Ellinas

Egypt had another successful year in 2019 and this was showcased at the country’s annual petroleum show, EGYPS-2020, held mid-February in Cairo.

But 2020 is turning out to be a pivotal, but challenging, year for the oil and natural gas industries worldwide and Egypt and the East Med are not immune to it.

Opening the conference, Petroleum Minister Tarek El Molla highlighted the successes of 2019, with the oil and gas sector contributing 25 per cent to Egypt’s gross domestic product.

A total of 29 international agreements were signed during EGYPS-2020, reflecting the great potential and promising opportunities of the Egyptian petroleum sector.

Eni to restart Egypt’s Damietta LNG plant operations - OIL REVIEW MIDDLE EAST

Sunday, 01 March 2020 04:30

Supermajor Eni has announced that Egypt’s Damietta LNG plant is expected to resume operations by June following a series of agreements with its partners in Egypt

The liquefaction plant’s owner is the company SEGAS, which is 40 per cent owned by Eni through Union Fenosa Gas (50 per cent Eni and 50 per cent Naturgy). The plant has a capacity of 7.56 bcm per year, but has been idle since November 2012.

The agreements provide for the amicable resolution of the pending disputes of Union Fenosa Gas and SEGAS with EGAS and ARE, and the subsequent corporate restructuring of Union Fenosa Gas, whose assets will be divided between the shareholders Eni and Naturgy.

Energean gets Total’s stake in the Ionian - KATHIMERINI

27.02.2020 : 22:11
Chryssa Liaggou

Greek oil enterprise Energean has secured its entry into Block 2 of the Ionian Sea by buying out the stake of French company Total, which had been seeking to disengage from the region for months.

Total had a 50 percent stake in the consortium to survey Block 2, while Hellenic Petroleum and Edison each hold 25 percent. Sources say Total first offered its two partners the stake but that they were not interested. Energean agreed to buy it because it appreciates the synergies this particular block presents with the other areas it has undertaken in Greece (Ioannina), as well as similar ones in Montenegro and the concessions of Edison in Italy.

EU imposes sanctions on Turkish energy officials - KATHIMERINI

THURSDAY FEBRUARY 27, 2020 - 21:47

The European Union has imposed sanctions on two high-ranking officials from the Turkish Petroleum Corporation (TPAO) in connection with Turkey's illegal drilling activities in Cyprus’ exclusive economic zone, it emerged on Thursday.

The restrictive measures to be imposed on Mehmet Ferruh Akalin and Ali Coscun Namoglu consist of a ban on travel to the EU and an asset freeze, the Cyprus Mail reported. Moreover, EU persons and entities are not permitted to make funds available to the two individuals, it said.

The decision was made public on Thursday in the EU’s Official Journal which referred to Akalin as Vice-President and member of the Board of Directors of the Turkish Petroleum Corporation (TPAO) and head of TPAO’s exploration, research and development and information technologies departments and to Namoglu as TPAO’s deputy director of exploration involved in planning and overseeing TPAO’s offshore hydrocarbon exploration activities.

Egypt reaches agreement with Eni, Naturgy over Damietta LNG plant - AHRAM ONLINE / REUTERS

Thursday 27 Feb 2020

Italy’s Eni and Spain’s Naturgy have reached an agreement with Egypt to resolve a series of disputes over the Damietta gas liquefaction plant in northern Egypt, paving the way for the facility to restart by June, the Egyptian Ministry of Petroleum and Mineral ressoruces and the companies said on Thursday.

The agreement will end Naturgy’s business interests in Egypt and dissolve a joint venture between Naturgy and Eni, while Eni and state-owned Egyptian firms will increase their holdings in the Damietta plant.

The facility, which has a capacity of 7.56 billion cubic meters per year, has been idle since the end of 2012 when a popular uprising hit gas supplies in Egypt and the government was forced to import gas to meet domestic demand.

Drillship off Lebanon to start oil and gas exploration - FRANCE24

25/FEB/2020 - 17:57
Beirut (AFP)

A drillship anchored off Lebanon Tuesday to explore for oil and gas, an energy firm and the government said, raising hopes for a future boost to the country's crumbling economy.

Information Minister Manal Abdel Samad said the first ever such exploration would start within 48 hours.

The Tungsten Explorer was to start drilling in its first exploration well situated some 30 kilometres (16 nautical miles) offshore from Beirut, French oil firm Total said.

"Total is pleased to start exploration operations on block 4, which is the first deepwater exploration well in Lebanon," Total's Lebanon chief Ricardo Darre said.

Anticipation has been high in Lebanon for exploration to start, with many hoping a major hydrocarbon discovery could help redress the debt-burdened economy.

Energy Minister Raymond Ghajar said on Twitter the ship had anchored in block 4.

Greece's Gastrade extends deadline for Alexandroupolis LNG capacity bids - PLATTS

25 Feb 2020 | 09:51 UTC

Stuart Elliott, Author / Jonathan Fox, Editor

• Binding bids can now be submitted up to March 10
• Non-binding first phase saw interest for 12.2 Bcm/year
• Commercial start-up of FSRU seen in Q3 2022

London — Gastrade, the Greek developer of a planned floating LNG import facility at Alexandroupolis in northern Greece, has extended the deadline for binding bids for capacity in the project to March 10, it said late Monday.

The original deadline for interested participants to submit their offers was Monday, but Gastrade opted to extend the deadline to allow interested parties more time to submit their bids.

In particular, Gastrade said it wanted to attract bidders that did not take part in the first, non-binding phase for expressions of interest in Alexandroupolis LNG capacity.

The fifteenth Zohr well is expected to go online in March - ENTERPRISE

Tuesday, 25 February 2020

Italy’s Eni will begin commercial operations on the Zohr natural gas field’s 15th well next month, Oil Minister Tarek El Molla said, according to the local press. 

The new well will put the field on track to reaching maximum production capacity this year. 

Production at the Zohr field inched up to 2.7 bcf/d last November with the connection of four wells in the field’s southern region.

Israel Electric buys gas 45% below Tamar prices - GLOBES

23 Feb, 2020 18:19
Amiram Barkat

With the coronavirus outbreak pushing down gas prices, IEC has bought liquefied natural gas for $3.39 and $3.61 per BTU.

Because the coronavirus crisis is pushing down global liquefied natural gas (LNG) prices, Israel Electric Corporation (IEC) (TASE: ELEC.B22) is buying up LNG at the lowest ever price. Sources inform "Globes" that IEC is buying LNG on the spot market at an average price of $3.50 per BTU, 45% lower than the price paid by the company to owners of the Tamar natural gas reservoir. Every LNG cargo purchased at these prices lowers the electricity rate by 0.1-0.2%, and IEC is planning to buy more such cargoes.

French, Italian Companies Will Drill for Energy off Cyprus - THE NATIONAL HERALD

February 21, 2020

NICOSIA – Ignoring threats from Turkey, a French-Italian consortium of oil companies Total and ENI said they will begin drilling off Cyprus despite between oil giants Total and ENI will start drilling in Block 6 of Cyprus’ despite an “escalation” in tension, Energy Minister Giorgos Lakkotrypis said.

That would be done in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ,) parts of which Turkey doesn’t recognize and as it has sent in two ships to also hunt for energy despite denunciation from the legitimate government, a member of the European Union that Turkey has been trying to join for 15 years.

The French and Italian companies said they would start in April although Turkish President Recep Tayyip Erdogan said Turkish warships near the EEZ could use the threat of military force to stop them, as they did earlier when an ENI ship steered away.

Greece says nine investors interested in gas distribution network sale - REUTERS

FEBRUARY 21, 2020 / 6:43 PM

ATHENS (Reuters) - Greece received nine expressions of interest from investors in the sale of the country’s state-controlled gas distribution network, DEPA Infrastructure, the country’s privatisation agency said on Friday.

Greece, which emerged from a series of international bailouts in 2018, intends to sell gas utility DEPA’s commercial and distribution business in two separate tenders to help open up the sector.

The country is selling its 65% stake in DEPA Infrastructure.Hellenic Petroleum, which holds the remaining 35% inthe company, has also agreed to offload its stake.

The privatisations agency said the following investors had expressed interest to acquire DEPA Infrastructure:

Antin Infrastructure Partners, China Resources Gas (HONG KONG) Investment Ltd, Consortium SINO-CEE Fund and Shanghai Dazhong Public Utilities Group, EP Investment Advisors, First State Investments (European Diversified Infrastructure Fund II), Italgas SpA, ISQUARED Capital Advisors LLP, KKR (KKR Global Infrastructure Investors III L.P.), MAQOUARIE (MEIF 6 DI HOLDINGS).

The agency said its advisors would evaluate the expressions of interest and make their recommendations to its board on the candidates that “qualify for the next phase of the tender, the binding offers phase.”

Cyprus and Norway prepare to sign energy MoU - KATHIMERINI

Norwegian Foreign Minister Ine Marie Eriksen Soreide with her Cypriot
counterpart Nicos Christodoulides (PIO)

21 FEBRUARY 2020 - 16:43

Cyprus and Norway began preparations on Friday to sign a Memorandum of Understanding (MoU) on energy issues, that will contain provisions for the exchange of expertise in relation to the national hydrocarbon fund (sovereign fund), among other things.

According to the Cyprus News Agency, the MoU under discussion contains five components, concerning LNG bunkering, LNG legislation, and cross border interconnection for natural gas and electricity. Other provisions include Renewable Energy Sources and sovereign fund management.

The MoU will be signed at Ministerial level once the relevant preparation work is completed.

Diplomatic sources said Oslo recently discouraged a Norwegian energy company form entering into cooperation with TPAO, the Turkish Petroleum Corporation.

After it was approached by TPAO to cooperate over drilling issues, the company contacted Norway’s Foreign Ministry, which in turn appeared negative to the prospect of the two companies cooperating.

France Gives Backing to Cyprus Amid Gas Search Tensions - NEW YORK TIMES / ASSOCIATED PRESS

Feb. 18, 2020

NICOSIA, Cyprus — France's defense minister said Tuesday that her country stands in solidarity with Cyprus amid tensions over a Turkish search for natural gas inside Cypriot waters.

Florence Parly said France supports Cyprus, which finds itself under “strong pressure.”

“France is a friend of Cyprus," Parly told The Associated Press after talks with Cyprus President Nicos Anastasiades. “And we also express our solidarity regarding, for instance, what's going on in the EEZ" — Cyprus' exclusive economic zone.

Turkey has sent warship-escorted vessels to drill for gas in waters where Cyprus has exclusive economic rights, including areas where the Cypriot government has licensed energy companies Total of France and Italy's Eni to carry out exploratory drilling.

European Union member Cyprus has denounced Turkey's actions as a flagrant violation of its sovereign rights and of international law. The EU has also rebuked Turkey over the drilling.

Greece's Corinth produces 62km of line pipes for Greece-Bulgaria gas link - SEENEWS

Feb 17, 2020 14:13 EEST
Mario Tanev

SOFIA (Bulgaria), February 17 (SeeNews) - Greece's Corinth Pipeworks has completed the production of the first 62 kilometres of line pipes for the Greece-Bulgaria gas interconnector project - ICGB, Bulgaria's energy ministry said.

Pipes have been loaded on six trains, three of which are already in Bulgaria, the ministry said in a statement on Saturday.

The first production lot is expected to be delivered in full in March, which will provide the gas link construction company with all necessary types and sizes of pipelines.

ICGB, the project company developing the gas link, signed contracts for the supply of pipes and construction of the interconnector with Corinth Pipeworks Industry and J&P-Avax, respectively, last year. The construction of the 123-km section of the interconnector on Bulgarian soil will begin in 2020, the energy ministry said at the time.

The pipeline, which has a total estimated cost of 220 million euro ($242.7 million), will connect the Greek gas transmission system in the area of Komotini to the Bulgarian gas transmission system in the area of Stara Zagora. The planned length of the pipeline is 182 km and the projected capacity will be up to 3 billion cu m per year in the direction from Greece to Bulgaria.

Egypt officially became a net exporter of LNG last year, bringing our gas hub ambitions ever closer - ENTERPRISE

Sunday, 16 February 2020

Egypt officially became a net exporter of LNG last year, bringing our gas hub ambitions ever closer: Egypt’s imports of liquefied natural gas (LNG) fell to zero in 2019 and exported USD 1.24 bn-worth of LNG, marking a nearly 150% y-o-y increase, according to Capmas figures released on Thursday. Oil Minister Tarek El Molla had been saying since 2018 that Egypt’s LNG imports would come to an end as of October of that year, and that Egypt would begin exports by January 2019 as more output from gas fields is connected to the national grid. Crude oil and butane gas imports also dropped last year, while exports of petroleum products rose 4.5% y-o-y to reach USD 4.9 mn.

Israel limits gas production at Leviathan due to malfunction - REUTERS

FEBRUARY 13, 2020 / 9:15 PM

JERUSALEM, Feb 13 (Reuters) - Israel’s Energy Ministry said on Thursdsay it limited production at the new Leviathan natural gas field to 60% after a malfunction was discovered in the project’s subsea pipeline.

The Leviathan partners said in a statement there was no malfunction, rather they were dealing with “issues common during the initial production phase of a development of this type.”

Israel's Leviathan gas group seeks partners to expand - REUTERS

FEBRUARY 12, 2020 / 11:19 AM
Ari Rabinovitch, Tova Cohen


TEL AVIV (Reuters) - The energy companies that own Israel’s offshore Leviathan gas field are seeking partners to build a floating liquefied natural gas (FLNG) platform and possibly to explore for oil in ultra-deep water, a CEO from the group said.

Leviathan, one of the world’s biggest offshore gas discoveries of the last decade, has turned Israel into an energy exporter in a tumultuous region and has weaned it off more polluting imports, notably coal.

UAE's Dana Gas receives bids for Egyptian assets - REUTERS

FEBRUARY 12, 2020 / 8:51

DUBAI (Reuters) - United Arab Emirates-based Dana Gas (DANA.AD) said on Wednesday it has received bids from some companies for its assets in Egypt.

“We have received a number of bids from a number of companies,” the company’s CEO Patrick Allman-Ward said on an earnings call, declining to say how many bids or from which companies.

The CEO said a final decision had not been taken on whether the company will sell its Egyptian assets. He said offers would be submitted to the company’s board for review and that a decision is expected by the end of March.

Allman-Ward said the company would cover its outstanding sukuk, or Islamic bonds, of $397 million, due on Oct. 31, with the potential sale of its Egypt assets.

The company is in talks with banks to refinance the sukuk if the sale does not cover the whole amount, or if there is no sale, he said.

“We received bids for the entire package of onshore and offshore” assets in Egypt, the CEO said, adding that the bidders were given flexibility to only bid for development leases and exclude exploration deals.

Cyprus President: Gas Drilling Won't Stop for Turkey Dispute - NEW YORK TIMES / ASSOCIATED PRESS

Feb. 9, 2020

NICOSIA, Cyprus — Cyprus won't put its exploratory gas drilling plans on hold despite Turkey's attempt to force the east Mediterranean island nation to halt its activities by conducting its own gas search in Cypriot waters, the president of Cyprus said Sunday.

President Nicos Anastasiades said pausing drilling in the face of Turkish pressure would be tantamount to Cyprus abrogating its sovereign rights.

Anastasiades said he was ready to engage with Turkey on charting a course to a deal that would reunify Cyprus, which has been divided into ethnically Greek and Turkish areas since the 1970s.

But that won't happen if Turkey sets preconditions such as the suspension of offshore drilling for such peace talks to take place, he said.