Ενα βήμα πιο κοντά για την ΑΟΖ Αθήνα και Κάιρο | ΤΟ ΕΘΝΟΣ

3/5/2015 / ΤΟ ΠΑΡΑΣΚΗΝΙΟ ΤΗΣ ΣΥΝΑΝΤΗΣΗΣ ΤΣΙΠΡΑ - ΑΛ ΣΙΣΙ

Ενα βήμα πιο κοντά για την ΑΟΖ Αθήνα και Κάιρο

Ενα πρώτο «παράθυρο» ευκαιρίας για την οριοθέτηση των θαλασσίων ζωνών μεταξύ της Ελλάδας και της Αιγύπτου άνοιξε μετά από αρκετά χρόνια, κατά τη συνάντηση που είχαν στη Λευκωσία ο πρωθυπουργός Αλέξης Τσίπρας και ο Aιγύπτιος πρόεδρος Αλ Σίσι, ο οποίος προσκάλεσε τον πρωθυπουργό να παραστεί τον Αύγουστο στο Σουέζ στα εγκαίνια διεύρυνσης της Διώρυγας.

Ο Αλέξης Τσίπρας, ο Αλ Σίσι και ο οικοδε­σπότης Νίκος Αναστασιάδης στην τριμερή Ελλάδας - Κύπρου - Αιγύπτου

Παρά τη γενική αναφορά που υπήρχε και στο ανακοινωθέν της προηγούμενης τριμερούς Ελλάδας - Κύπρου - Αιγύπτου για εντατικοποίηση των ενεργειών για την οριοθέτηση θαλασσίων ζωνών στη βάση των προβλέψεων της Σύμβασης για το Δίκαιο της Θάλασσας, στην κατ' ιδίαν συνάντηση που είχαν οι ηγέτες της Ελλάδας και της Αιγύπτου υπήρξαν πιο συγκεκριμένα αποτελέσματα.

Σύμφωνα με πληροφορίες του «Εθνους της Κυριακής», ο Αιγύπτιος πρόεδρος έδειξε να ξεπερνά τις αντιρρήσεις που παγίως προέβαλλε μέχρι τώρα η Αίγυπτος και να συναινεί στη συγκρότηση κοινής τεχνικής επιτροπής η οποία θα εξετάσει τόσο το θέμα που έχει προκύψει με την επικάλυψη τμήματος της ελληνικής υφαλοκρηπίδας από το αιγυπτιακό Οικόπεδο 12, αλλά και με την οριοθέτηση ΑΟΖ μεταξύ των δύο χωρών.

Η εξέλιξη αυτή, η οποία φυσικά θα δοκιμαστεί στην πράξη, είναι ιδιαίτερα σημαντική, καθώς ακόμη και την περίοδο Μουμπάρακ η αιγυπτιακή κυβέρνηση υπέκυπτε στις πιέσεις της Τουρκίας, βραχυκυκλώνοντας έτσι τις συνομιλίες με την Ελλάδα για την οριοθέτηση των θαλασσίων ζωνών.

Θέση της Αθήνας είναι πως η ελληνική ΑΟΖ συνο­ρεύει χάριν του Καστε­λόριζου με τις ΑΟΖ Κύπρου και Αιγύπτου.

Η ευόδωση των ελληνο-αιγυπτιακων συνομιλιών θα αποτελέσει μια ηχηρή απάντηση στην Τουρκία η οποία αμφισβητεί την ύπαρξη θαλασσίων συνόρων Ελλάδας - Κύπρου - Αιγύπτου, θεωρώντας ότι το Καστελόριζο δεν έχει θαλάσσιες ζώνες πέραν των 6 ν.μ. και συνεπώς όλη η περιοχή μεταξύ Ρόδου - Κρήτης - Αιγύπτου και Κύπρου η «μερίδα του λέοντος» διαμοιράζεται μεταξύ Τουρκίας και Αιγύπτου.

Την εβδομάδα αυτή θα ανταλλαγούν ημερομηνίες για τη συνεδρίαση της τεχνικής επιτροπής και σημείο-κλειδί είναι η διόρθωση εκ μέρους των Αιγύπτιων του «λάθους» που είχε γίνει στη χάραξη του Οικόπεδου 12 της αιγυπτιακής ΑΟΖ, καθώς δεν είναι μόνο ότι επικαλύπτει μέρος της ελληνικής υφαλοκρηπίδας, αλλά η χάραξή του στην προέκτασή της συμπίπτει με τη γραμμή που αποτυπώνει τις διεκδικήσεις της Τουρκίας εις βάρος της ελληνικής και κυπριακής υφαλοκρηπίδας.

H Toυρκία αμφισβητεί την ύπαρξη θαλάσσιων συνόρων Ελλάδας - Κύπρου - Αιγύπτου, θεωρώντας ότι το Καστελόριζο δεν έχει θαλάσσιες ζώνες πέραν των 6 ν.μ.

Ακόμη κι αν οι συνομιλίες αυτές εστιαστούν κυρίως στα θαλάσσια σύνορα νότια της Κρήτης, αποφεύγοντας περιοχές που υπάρχει τουρκική διεκδίκηση, θα πρόκειται περί σημαντικής εξέλιξης, καθώς η οριοθέτηση θα γίνει βάσει της Σύμβασης του ΟΗΕ (UNCLOS), δημιουργώντας έτσι ένα διαπραγματευτικό κεκτημένο στην περιοχή. Η οριοθέτηση σε αυτές τις περιοχές θα διευκολύνει στο μέλλον τη διεξαγωγή ερευνών και εφόσον διαπιστωθεί η ύπαρξη κοιτασμάτων εκατέρωθεν της οριοθέτησης, θα είναι δυνατή ακόμη και συμφωνία συνεκμετάλλευσης, όπως έχει γίνει και μεταξύ της Κύπρου και της Αιγύπτου. Εχει ενδιαφέρον ότι η αιγυπτιακή πλευρά ήταν εκείνη που δεν ήθελε να υπάρξει στο ανακοινωθέν αναφορά σε «τρίτες» χώρες, καθώς εκκρεμεί η οριοθέτηση των ζωνών του με το Ισραήλ και τη Λωρίδα της Γάζας, ενώ η Ελλάδα επιθυμούσε να υπάρχει ένα κατευναστικό μήνυμα που να απευθύνεται κυρίως προς την Τουρκία (και τελικά το έστειλε ο ίδιος ο πρωθυπουργός στις δηλώσεις του).

Οι συνομιλίες που εξελίχθησαν σε πολύ καλό κλίμα επιβεβαίωσαν και τη βούληση των δύο πλευρών για προώθηση των οικονομικών σχέσεων, ενώ ο Αιγύπτιος πρόεδρος εκτίμησε ιδιαίτερα την εποικοδομητική στάση της Ελλάδας τόσο στο θέμα της καταπολέμησης της τρομοκρατίας όσο και των σχέσεων της ΕΕ με την Αίγυπτο.

Οι κ. Τσίπρας και Αλ Σίσι συμφώνησαν στη συγκρότηση μιας ακόμη τεχνικής επιτροπής που θα εξετάσει την επικαιροποίηση και ενεργοποίηση των σχεδόν 72 διμερών συμφωνιών που υπάρχουν.

Στην ατζέντα της τεχνικής επιτροπής θα βρεθεί και το θέμα της ασφαλιστικής συμφωνίας μεταξύ των δυο χωρών που εκκρεμεί από το 1985, αλλά έχουν προκύψει πολλά προβλήματα λόγω του γεγονότος ότι δεν υπάρχουν επαρκή αρχεία για τους Αιγυπτίους ασφαλισμένους στο ΙΚΑ.

Η τεχνική επιτροπή σε συνεργασία και με την Κύπρο θα εξετάσει τη δυνατότητα διοργάνωσης κρουαζιέρων από την Αίγυπτο προς την Κύπρο και τα νησιά του Αιγαίου με κατάληξη στην Αλεξανδρούπολη, η σύνδεση των χωρών με Cargo πλοία, σχέδια για τα οποία όμως απαιτούνται οικονομικοτεχνικές μελέτες ώστε να διαμορφωθεί ελκυστικό πακέτο προτάσεων προς του πλοιοκτήτες. Ο Αιγύπτιος πρόεδρος άκουσε θετικά την ιδέα για συμμετοχή κατασκευαστικών εταιρειών από την Ελλάδα και την Κύπρο σε έργα που προγραμματίζονται στην Αίγυπτο.

Ο ΜΟΝΙΜΟΣ «ΤΑΡΑΞΙΑΣ»
Η Τουρκία απειλεί την τριμερή πρωτοβουλία

Η τριμερής Ελλάδας - Κύπρου - Αιγύπτου, σε συνδυασμό με την παράλληλη διαδικασία της τριμερούς Ελλάδας - Κύπρου - Ισραήλ, δημιουργούν σταδιακά έναν νέο χάρτη συνεργασίας και έναν νέο διάδρομο ασφάλειας και σταθερότητας στην πιο εύφλεκτη περιοχή του πλανήτη. Αντίθετη σε αυτές τις προσπάθειες είναι η Τουρκία, η οποία λειτουργεί ως αποσταθεροποιητικός παράγοντας στην Ανατολική Μεσόγειο.

Ο Τούρκος υπουργός Εξωτερικών Μεβλούτ Τσαβούσογλου, με δεδομένο ότι η χώρα του όχι μόνο δεν έχει διπλωματικές σχέσεις με το Ισραήλ, την Αίγυπτο και την Κύπρο, αλλά είναι σχεδόν σε ανοικτό πόλεμο με τον Αλ Σίσι και τον Νετανιάχου, σε δηλώσεις του την Παρασκευή κατέφυγε στις απειλές προειδοποιώντας ότι «στις συναντήσεις που δεν συμμετέχει η Τουρκία κανένας περιορισμός και καμιά πρωτοβουλία δεν ισχύει. Δεν θα το επιτρέψουμε, είναι ξεκάθαρο»...

Η Αγκυρα ανησυχεί για το ενδεχόμενο ελληνο-αιγυπτιακής συμφωνίας για την οριοθέτηση θαλασσίων ζωνών, ακόμη και στην περιοχή νοτίως της Κρήτης, καθώς δημιουργεί νέες «συμμαχίες συμφερόντων» και κατοχυρώνει την εφαρμογή της UNCLOS στην Ανατολική Μεσόγειο, ενώ αντιλαμβάνεται ότι αποδυναμώνεται η τουρκική θέση στην Ανατολική Μεσόγειο και η διαπραγματευτική ισχύς των Τουρκοκυπρίων στο Κυπριακό με την ενεργειακή συνεργασία της Λευκωσίας με το Κάιρο και το Τελ Αβίβ (το όποιο θα επισκεφτεί εντός του Μαΐου ο Νίκος Αναστασιάδης).

Η τριμερής που συνδυάστηκε με την πρώτη στην ιστορία της Κυπριακής Δημοκρατίας επίσκεψη Αιγύπτιου προέδρου σηματοδότησε την επίσπευση των διαδικασιών για την ενεργειακή συνεργασία των δυο χωρών.

Η προμήθεια φυσικού αερίου
Οι κ. Αναστασιάδης και Αλ Σίσι επιβεβαίωσαν τη συμφωνία για πώληση κυπριακού φυσικού αερίου από το κοίτασμα της «Αφροδίτης» στην Αίγυπτο και, σύμφωνα με τον πρόεδρο της κρατικής εταιρείας ενέργειας EGAS Χαλεντ Αμπντελ Μπαντίε, η Αίγυπτος θα προμηθεύεται 700 εκατ. κυβικά πόδια φυσικού αερίου από την Κυπρο μέσω υποθαλάσσιου αγωγού. Ηδη ολοκληρώνεται το θεσμικό πλαίσιο για την κατασκευή του αγωγού μήκους σχεδόν 400 χιλιομέτρων, το κόστος του οποίου θα καλυφτεί από την Κύπρο, τη Noble Energy, την Αίγυπτο και τις εταιρείες BG και Union Ferosa και, σύμφωνα με τις εκτιμήσεις, το πρώτο κυπριακό φυσικό αέριο θα φθάσει στην Αίγυπτο στα τέλη του 2017.

ΝΙΚΟΣ ΜΕΛΕΤΗΣ
nmeletis@pegasus.gr

ΠΗΓΗ

COOPERATION: SECURITY AND THE EAST MEDITERRANEAN ENERGY SECTOR | Natural Gas Europe

May 02nd, 2015

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COOPERATION: SECURITY AND THE EAST MEDITERRANEAN ENERGY SECTOR

The Greek Prime Minister Alexis Tsipras has now met with the President of Cyprus Nikos Anastasiades and the President of Egypt Abdel Fattah el-Sisi in Cyprus in a meeting that took place on the 29th of April 2015. The main topics on the table were those of the delineation of the exclusive economic zones between the three states, maritime security of the East Mediterranean and the potential for cooperation in the energy sector.

It is well known, that the current situation in Libya could have the potential to destabilize the region. This fact could prove devastating for the success of the 2nd international offshore licensing round for 20 blocks in the Ionian Sea and the Sea on the South Crete, which Greece is currently running. This is because coupled with the low oil prices, and the political changes in Greece, the uncertainly of Libya will add one more factor which any company that is thinking of bidding in this competition will inevitably have to take under consideration. Especially, since this is a factor of safety for anyone who wishes to develop oil and gas production facilities in the area.

It is obvious that if these countries want to unlock the potential of the region as an alternative energy source for Europe, they must take very some very big steps towards regional cooperation. Firstly, they must secure the whole region through military operations, which will reassure the oil and gas companies that nothing will interfere with their operations. Such policy can be implemented with the creation of a joint military force, assigned with the task of ensuring the safety and stability of the Eastern Mediterranean Sea.

With the oil price level having settled between 55$ - 65$ per barrel, the upstream outlook seems particularly gloomy. The exploration of hydrocarbons on deep-water areas is a very risky and expensive process, so co-operation is needed in order to optimize such operations and make them as cost effective as possible. Hopefully this meeting in Cyprus has sent the right message to the industry, and the announcements that will follow will be targeted towards minimizing the concerns of the industry over the political risk of the region.

However, the equation of South-East European natural gas production could prove to be more complex than anticipated. The discussions over the construction of Turk Stream, or the potential for further natural gas volumes finding their way to Europe from the Middle East via the Trans Anatolian Line, can also add additional noise to this. This is mainly due to the fact that any regional production from offshore wells will have to compete against gas from onshore wells, which adding the transportation costs could still prove to be more competitive.

Thus, according to a number of experts, in order to unlock the full potential of the region, the first commercial target for the natural gas from the regional fields of Cypriot and Israel must be the local – regional - markets. Solutions such as that of Compressed Natural Gas (CNG) could prove to be beneficial allowing for the cheapest transportation of natural gas, compared to pipeline and Liquefied Natural Gas (LNG) options, between distances of maximum 2500 km. Technology that becomes even more relevant after the recent merger between Shell and BG Group. This is because any project which involves assets of BG will probably be delayed, and a prime example could very well be the LNG export terminal of BG in Egypt, which was favored for being used for the natural gas production of Cyprus and Israel.

From a geopolitical point of view the stability on the region can only be guaranteed if Cyprus, Egypt, Greece and Israel find a way to cooperate, and launch a common strategy regarding both the maritime security of the region as well as energy cooperation. The grounds for the latter are clearly paved via the EU strategy for Energy Union, as well as the PCI projects that are targeting this region, and enjoy the full support of the EU, allowing them to enjoy a fast track process and easier access to funds.

Athanasios Pitatzis is Member of the Greek Energy Forum. The opinions expressed in the article are personal and do not reflect the views of the entire forum or the company that employs the author. Follow Greek Energy Forum on Twitter at @GrEnergyForum and Athanasios at @thanospitatzis

Source: http://www.naturalgaseurope.com/east-mediterranean-energy-sector-security-23506

Egypt homes in on Cyprus’s Aphrodite gas find | Interfax

Egypt homes in on Cyprus’s Aphrodite gas find

Written by
Rachel Williamson

Posted
1 May 2015

Licence blocks offshore Cyprus.

Egypt is pinning its hopes on Cyprus and its large offshore gas reserves, following a second high-level state visit by the Egyptian premier to the island state.

Although the flying visit on Tuesday by President Abdel Fattah el-Sisi yielded no new political commitments on energy, Egypt’s Ministry of Petroleum told Interfax the visit pushed forward the case for future gas imports from Cyprus.

"The memorandum of understanding [MOU] signed between Egypt and Cyprus… on the sidelines of the Egypt Economic Development Conference will no doubt pave the way for both countries to start the implementation potential during the coming period, along with the progress of the well from Cyprus’s Aphrodite field," said a statement from Petroleum Minister Sherif Ismail’s office. "It will no doubt boost such cooperation between Cyprus and Egypt in the gas domain."

A spokesperson for the ministry said no date had been set for signing an official deal on gas imports, and research was being carried out on whether pipeline or LNG imports would be more feasible following two MOUs signed between the countries in February and March.

While Egypt’s Ministry of Electricity and Energy has said a deal at the political level is still in the early stages, Egyptian Natural Gas Holding Co. (EGAS) is moving ahead quickly with its plans to import gas from Cyprus.

Under the MOU signed between EGAS and Cyprus Hydrocarbon Co. (CHC) during the investment conference in March, the two organisations were given a mandate to look into building a submarine pipeline. Not only has Egyptian engineering firm Enppi been chosen to conduct the technical studies, but Egypt also expects first gas deliveries to start by 2017.

EGAS Chairman Khaled Abdel Badie was quoted by local media as saying the company is in talks to import roughly 20 million cubic metres of gas per day from the Aphrodite field, off the coast of Cyprus, through a pipeline he expects will be completed within three years.

EGAS could not be reached for comment, but the Ministry of Petroleum spokesperson said the organisation has the state’s full support in driving the technical discussions forward.

Aphrodite expectations

However, this relies on production from Aphrodite starting around 2017, the year Badie wants deliveries to Egypt to begin. As Cyprus’s hydrocarbon ambitions have taken a hit this year following disappointing exploration results in other licence areas, both countries are gambling on the single field to supply gas.

Noble Energy, Aphrodite’s owner, has yet to declare whether the field is commercially viable – despite expectations voiced by Cyprus’s Energy Minister Yiorgos Lakkotrypis in March that an announcement would be forthcoming in April.

However, Noble is unlikely to make any such statement about the field for some months, a source familiar with the matter told Interfax.

Furthermore, Aphrodite was supposed to be developed alongside Israel’s Leviathan field, but an anti-monopoly case against the owners of the field, Noble and Delek Group, by Israel’s Antitrust Authority has thrown the original timeline into uncertainty. A tender to supply gas via a pipeline from Leviathan to Cyprus was postponed again last week because of this uncertainty.

The other setback to Cyprus’s regional gas ambitions is the lack of positive results from the Kogas and Eni consortium from its Block 9 exploration programme, and the temporary exit of Total after it failed to find potential drilling sites in its Block 10 and Block 11 licensed areas.

Maritime borders

While no concrete progress was made on energy matters during Sisi’s visit, the parties took time to discuss Cyprus’s territorial integrity, following Turkey’s dispatch of a seismic research ship into waters claimed by the Republic of Cyprus in November and January.

In a communiqué following the meeting with Sisi, the Cypriot government tied the future development of its gas reserves to the legal settlement of its disputed maritime borders with Turkey.

"We recognise that the discovery of important hydrocarbon reserves in the eastern Mediterranean can serve as a catalyst for regional cooperation. We stress that this cooperation would be better served through the adherence by the countries of the region to well-established principles of international law," the communiqué said.

"We emphasise the universal character of the UN Convention of the Law of the Sea, and decide to proceed expeditiously with our negotiations on the delimitation of our maritime zones, where it is not yet done."

Source: http://interfaxenergy.com/gasdaily/article/16001/egypt-homes-in-on-cypruss-afind

NOBLE ENERGY: APHRODITE HAS POTENTIAL TO SUPPLY THE DOMESTIC MARKET , MEET STRONG REGIONAL DEMAND | Natural Gas Europe

April 30th, 2015
NOBLE ENERGY: APHRODITE HAS POTENTIAL TO SUPPLY THE DOMESTIC MARKET , MEET STRONG REGIONAL DEMAND

In Cyprus, the focus seems to solely on the the Aphrodite field. The disappointing results released by the Italian-North Korean consortium ENI/KOGAS, and TOTAL’s temporary withdrawal from the island’s Exclusive Economic Zone, have eclipsed the island’s ambitious ambition to turn into a regional natural gas hub and instead shifted the focus on the development of the Aphrodite field.Natural Gas Europe spoke to Noble Energy, the Texan company involved in Cypriot and Israeli waters, to learn more about the island’s future plans.

Noble Energy told Natural Gas Europe that the Aphrodite field, discovered in 2011 and estimated at 4.54 Tcf, has the potential to supply the domestic market and help meet strong regional demand. Noble added the Texan company was looking forward to working closely with the government and the people of Cyprus to achieve the economic benefits that these resources can provide, as well as increase energy security.

At this stage, Noble is conducting various meetings with the Government of Cyprus to progress the development plan for Aphrodite and is working towards submitting a draft proposal in the near future that will open the door to declaring Aphrodite commercial. Noble Energy did not dismiss plans of future gas explorations in the island’s maritime zone, stating that further drilling would be discussed in conjunction with development plan with the government of Cyprus.

Cyprus has been eyeing regional markets, including Jordan and Egypt, to export its natural gas resources. Neighbouring Israel has made significant gas discoveries in its waters and is also engaged in talks to export to immediate neighbours, including Egypt, Jordan and the Palestinian Authority. Delayed decision-making and ongoing domestic debates have prevented Israel from finalising export deals and accelerating production from the 21 Tcf Leviathan field. Lebanon is also believed to hold substantial hydrocarbon resources, but the political vacuum in the country has caused several postponing of the country’s first licensing round despite considerable interest from major oil and gas companies expressed at the country’s pre-qualification round in 2013.

The Eastern Mediterranean region is facing major challenges in its path towards production and export of natural gas. Whilst Cyprus’ most important setback is its bad luck in its exploration activities, Israel must resolve domestic disputes to move closer to the production of its Leviathan field and secure regional deals. Lebanon has a long way to go as it struggles to issue crucial pieces of legislation that will allow the launching the country’s first bidding round and exploration activities to commence.

Karen Ayat is an analyst and Associate Partner at Natural Gas Europe focused on energy geopolitics. She holds an LLM in Commercial Law from City University London and a Bachelor of Laws from Université Saint Joseph in Beirut. Email Karen karen@minoils.com Follow her on Twitter: @karenayat

Source: http://www.naturalgaseurope.com/noble-energy-aphrodite-field-supply-domestic-market-regional-demand-23430?utm_content=buffere8923&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

700m cubic feet of gas to be imported daily from Cyprus by 2017: EGAS | Daily News Egypt

700m cubic feet of gas to be imported daily from Cyprus by 2017: EGAS

Mohamed Adel  /   April 29, 2015  /   0 Comments

Marine pipeline will be established to Aphrodite field within three years

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The Egyptian Natural Gas Holding Company (EGAS) is negotiating to import roughly 700m cubic feet of gas daily from the Cypriot Aphrodite field, owned by US company Noble Energy.
(AFP photo)

The Egyptian Natural Gas Holding Company (EGAS) is negotiating to import roughly 700m cubic feet of gas daily from the Cypriot Aphrodite field, owned by US company Noble Energy.

In a statement to Daily News Egypt, EGAS Chairman Khaled Abdel Badie announced that the marine pipeline will be completed within two and a half to three years.

Abdel Badie also said that Enppi will handle the technical and engineering studies to set the closest route for the line in the Mediterranean. The line will link the Aphrodite field to Egypt through the deep waters of the Mediterranean. The gas will be received in a treatment station and will then be pumped to clients.

Abdel Badie expects that the Cypriot gas will be sent to Egypt by 2017, after finishing the pipeline and preparing Noble Gas with the equipment to facilitate production.

A Memorandum of Understanding (MoU) was signed between EGAS and Cyprus Hydrocarbons Company (CHC) to start an information exchange. Technical and economic studies of establishing the pipeline with a length of 400km to import gas from the Aphrodite field will also be undertaken.

The cost of establishing the pipeline will be divided between Cyprus’ government and Noble Energy, on one side, and the Egypt government, BG, and Union Fenosa, on the other side.

Abdel Badie said that he visited Cyprus at the beginning of the month to start the information exchange for importing gas, and negotiations will continue with CHC.

The MoU allows EGAS and CHC to find technical solutions for gas transportation through a direct marine pipeline from the Aphrodite field to Egypt. It will positively affect operation of both the EDCO and Damietta liquefaction plants and fulfil the country’s gas needs. It is expected that the agreement will be implemented within six months after the MoU’s signing.

President Abdel Fatah Al-Sisi arrived to Cyprus on Tuesday, in an official visit that will also include Spain. The president of Cyprus, Nicos Anastasiades, and the republican honorary guard received the Egyptian president at the airport.

With his Cypriot counterpart and the Greek Prime Minister Alexis Tsipras, President Al-Sisi held two meetings, and a trilateral summit followed by an expanded session of talks, where delegations from the three countries participated.

Egypt has previously signed an agreement with Cyprus to be able to purchase gas in order to fulfill Egypt’s needs.

Source: http://www.dailynewsegypt.com/2015/04/29/700m-cubic-feet-of-gas-to-be-imported-daily-from-cyprus-by-2017-egas/

Shell bets big on BG | in-cyprus.com (Cyprus Weekly)

Charles Ellinas — 19/04/2015

Driven by the low oil price, Royal Dutch Shell’s $70 billion acquisition of BG Group plc promises to create the second biggest publicly traded oil company in the world and a liquefied natural gas (LNG) production giant.

The combined company would have a market value of about $250bn, compared to $360bn for ExxonMobil, the world’s largest publicly traded oil and gas company. BG fits well with Shell’s growth strategy, particularly in giving more emphasis to gas rather than oil, LNG and deep-water production. The acquisition is expected to be completed during the first quarter of 2016.

The Shell Chief Financial Officer (CFO) indicated that some projects could be delayed, put on hold or even cancelled as the company moves to eliminate duplication of effort and create synergies. About $30bn asset sales are expected, as well as $2.5bn reduction in operating and exploration costs, by 2018.

Shell is aiming to create a leaner and more efficient company as it goes forward into what is expected to be a long period of low oil prices. It will give priority to strategically important regions and in that process it is important to better understand the potential implications for the East Med.

The deal

Shell will pay BG shareholders the equivalent of $5.70 and 0.46 shares of Shell stock for every BG share. This values BG’s shares at 50% more than their value the day before the deal was announced. As a result, BG shareholders will own 19% of the combined company.

The move will expand Shell’s oil and gas reserves by 25% and add 20% to its annual production. BG shareholders also benefit as BG was facing huge expenditure demands in developing the assets it helped discover, particularly in Australia and Brazil.

It is possible that by 2018 Shell may surpass ExxonMobil as the world’s largest publicly traded oil and gas company, unless of course, and as expected, ExxonMobil itself goes for acquisitions.

Operational Priorities

Shell is betting LNG will play an increasing role, especially beyond 2020, as the world seeks cleaner energy and alternatives to coal. Gas is a key aspect of this acquisition. On the back of this deal Shell will turn into a much more focused company, very strong in gas and in deep water.

The acquisition of BG will bring deep-water production from Brazil. Through this, Shell gains access to probably the best deep-water oil reserves globally. By 2025, Brazil is projected to deliver 550,000 barrels of oil equivalent per day of production to the combined Shell-BG company, which would represent 13% of its total production.

Australia also offers strong growth potential, in terms of Shell’s Gorgon and Prelude and BG’s Queensland LNG projects. The new company will have a combined LNG production of 45 million tonnes per annum by 2018, which is more than what ExxonMobil and Chevron produce together.

In Canada, both companies have plans for LNG exports but there will be rationalisation. There are also interests in the US, the Gulf of Mexico and the Caribbean. In addition to the UK, other important areas are Kazakhstan, India, Indonesia and East Africa.

Shell is also committed to Turkey. It signed a number of joint operating agreements with TPAO and it is currently carrying out deep-water exploration in the western Black Sea. Turkey’s energy demand is expected to double in the next decade in line with its rapid economic growth and Shell intends to be part of this. This is a key reason Shell refrained from entering Cyprus’ EEZ.

Going forward, Shell would give priority to projects under its control that would give it diversity of supply, a lower capital cost per unit and the right timing.

But in all the publicity surrounding this acquisition there is no mention of the East Med and Egypt, where both Shell and BG have significant interests, other than BG’s well-publicised problems in Egypt. This is important to Cyprus as it is in the process of promoting sale of its gas to BG in Egypt. So let’s look into this.

Implications for the East Med

Egypt has been a key source of LNG exports for BG. But it has been unable to obtain enough gas to supply its LNG plant at Idku. As a result, BG declared force majeure on its Egyptian LNG business last year.

Despite attempts to resolve the problem and the announcement a few weeks ago of a multi-billion dollar plan to increase gas production, earlier this month BG blamed the Egyptian government, which it says is diverting such large quantities of gas to the domestic market that there is little available for export.

BG said that Egypt still owes it $900 million and that it shipped no liquefied natural gas from Egypt during the first quarter of 2015, with only one shipment expected in the second quarter. Dwindling gas reserves and problems in Egypt have also dragged down BG’s profits and contributed to the company’s $1.4bn loss in 2014.

“In the absence of concerted action from the Egyptian government, the future commercial operation of Egyptian LNG is increasingly at risk,” BG said beginning of April. In addition to the diversion of gas to the domestic market, BG said Egypt posed the “most significant security challenge” of its portfolio.

Shell also has a number of assets in Egypt and like other companies it experienced major difficulties during the political turmoil of the past few years, with hundreds of millions of dollars of overdue payments still owed by the government.

Analysts say that Shell will have little appetite for pursuing further production in Egypt, now that it is becoming very much a domestic gas supply industry. This was confirmed by Shell’s CFO who was cool on the company’s future in Egypt, and generally projects in the region, as Shell’s focus turns to more promising projects elsewhere. Asked about the future of the combined group in Egypt, Shell’s CFO said: “In valuation of things we haven’t given it a lot of value in our assessment of the combined company going forward.”

Where all this leaves potential deals with Israel and Cyprus is difficult to see at this stage. But with Shell committed to Turkey and its coolness on its future in Egypt, such deals could be at risk. Timing may also be an issue as no serious developments may be expected before the completion of the BG acquisition early next year and the company and management reorganisation that will follow.

This makes the development of a Plan B for Cyprus’ gas exports focusing on Europe even more critical.

SOURCE

End Of The Road For Cyprus ‘Gas Hub’ Dreams | Oilpro

End Of The Road For Cyprus ‘Gas Hub’ Dreams

posted 2 days ago

Cyprus’ hopes of becoming a regional natural gas player are all but dead more than three years after the discovery of the 5 tcf Aphrodite field. The five blocks awarded in early 2013 have yielded nothing, with no further drilling planned before their February 2016 expiry.

Before arriving in Cyprus in January 2012, your correspondent did some reading up on the state of the economy. “Cyprus is hugely leveraged…[with a] formidable refinancing schedule,” the FT said. So he expected to find a sense of foreboding at the coming economic storm. Not a bit of it.

Instead he found a population high on gas. Aphrodite gas to be precise. A month earlier, on 28 December 2011, US firm Noble Energy had announced that it had struck gas with the first ever well drilled offshore Cyprus, on Block 12.

In something of a reversal of the normal procedure, the island’s politicians had already named the ‘field’ even before its discovery: ‘Aphrodite,’ after the legendary beauty who rose from the waters off the south coast of Cyprus (MEES, 22 August 2011).

How big was the field? 7 tcf was Noble’s estimate of recoverable reserves (MEES, 9 January 2012), but the island’s politicians and other supposed experts didn’t stop there: figures of 10, 15 or even 20 tcf were regularly bandied about. And of course the amount the island could hope to make was as simple as multiplying the reserve size by the international gas price: Cyprus was going to be the next Kuwait.

Fast forward three years and few are quite so bullish. A second well drilled on Aphrodite in June 2013, led to the mean recoverable reserves estimate being downgraded to 5 tcf (MEES, 11 October 2013). And the two exploration wells drilled since have both been flops.

These more recent wells were the result of a bid round launched in February 2012, at the height of ‘Aphrodite euphoria’ (MEES, 20 February 2012): before this only one block, Noble’s Block 12, had been awarded. The 2012 round was a moderate success, with heavyweights Total and Eni (with Korean state firm Kogas) snapping up blocks – two and three respectively, a total of five out of the 12 on offer.

This interest came despite Turkey threatening to sanction any firm that took part. Turkey claims part of Cyprus’ Exclusive Economic Zone (EEZ) for itself and says that, even though exploration to date has been south of the island, all exploration offshore Cyprus must be undertaken in conjunction with the Turkey-backed ‘Turkish Republic of Northern Cyprus’ which occupies the northern third of the island.

HIGH WATER MARK

In retrospect these awards, finalized in February 2013, marked the high point of Cyprus’ gas hopes. The plan was that Aphrodite, together with that other soon-to-be-found nearby fields would be tied back to a to-be-constructed LNG liquefaction plant at Vassilikos on the island’s south coast. Maybe a 1,500km pipeline to Greece could be thrown in for good measure.

And of course there would be plenty of gas left for the Cypriot domestic market, and, so the population was told, this would lead to a slashing of utility bills that are the highest in Europe.

REALITY CHECK

The first reality check for the island came the following month, in March 2013, when the island’s newly elected President, Nicos Anastasiades was forced to accept a €10bn bailout from the EU and IMF after his predecessor, communist President Demetris Christofias, had managed to delay seeking assistance for the country’s crumbling economy. Even a last-ditch trip by former Finance Minister Michalis Sarris to persuade Russia’s President Vladimir Putin to help out rather than accept money from the EU and IMF – as Mr Christofias had done with a €2.5bn loan at sub-market rates the previous year – failed to secure the required billions. Even Mr Putin knew a bad investment when he saw one and politely said ‘nyet’ to the prospect of accepting Cyprus’ supposed future gas output as collateral.

ENI DISAPPOINTMENTS

Cyprus’ latest drilling disappointment came when Italian firm Eni’s second exploratory well on Block 9 last month failed, as with the first drilled last year, to locate exploitable amounts of natural gas (MEES, 20 March). This appears to mark the end of the road for exploration offshore Cyprus – possibly for several years. The Italian firm operates Blocks 2, 3 and 9 with an 80% working interest while Kogas holds the remaining 20%.

No further drilling will take place before the February 2016 expiry of the initial three-year exploration period for the blocks awarded in 2012. MEES understands that if Eni seeks an extension then Nicosia will grant it, but “this is a big if,” says a source with knowledge of the situation. On Blocks 2 and 3 seismic has failed to turn up drillable targets.

Though Eni is contracted to drill four exploration wells across the three blocks under the terms of the January 2013 award, MEES understands that Nicosia has shown flexibility with both Eni and Total – the other key exploration player – in the hope of keeping both firms active in its offshore. Eni’s two unsuccessful wells have already cost some €300mn and the best the Italians have been able to offer Nicosia is that they plan to reconsider their modelling of Block 9 seismic in the hope of turning up more targets.

TOTAL ALL BUT OUT

Total is even closer to the exit. In February it relinquished Block 10 without drilling any wells and was only just persuaded by Nicosia not to quit the country (MEES, 23 January).

Cyprus has absolved Total from its original two-well drilling commitment (across two adjacent blocks, Blocks 10 and 11, which lie on the maritime border with Egypt) on the condition that it continues to evaluate 3D seismic on Block 11 in an attempt to locate a possible target. But “unless they come up with something spectacular” the French firm will quit Cyprus when their initial exploration period expires in February, Charles Ellinas, former head of Cyprus’ state-run hydrocarbons company CNHC tells MEES.

If, as seems likely, Total and Eni both quit, then it’s back to square one for Cyprus in terms of exploration.

Cyprus scored a coup in getting such sizable players to sign up amid threats from Turkey; in the light of the exploration setbacks and international capex cuts since, it would do well to repeat the trick. In its most recent act of protest Turkey sent a research vessel in December to perform 3D seismic near Block 9, whilst Eni was drilling.

This Turkish “aggression” led Mr Nicos Anastasiades to withdraw from talks to reunify the island with the Turkish Cypriots, claiming Turkey had breached Cyprus’ exclusive economic zone. UN Special Envoy to Cyprus Espen Barth Eide is in Cyprus this week looking to broker a new round of talks between the two sides which would most likely begin in May following elections in the north, although not many hold high hopes that a solution will be found any time soon.

ONLY APHRODITE REMAINS

All of this means that in terms of Cyprus gas development the 5 tcf Aphrodite field is the only game in town. Any talk of a gas hub, or an onshore liquefaction plant, must be thrown out of the window – for a field of this size, 200km from Cyprus and separated from the island by a 2,500meter-deep trench, it simply isn’t economic. Cypriot gas discoveries for the foreseeable future will begin and end with Aphrodite: the country’s politicians will have to scale back their expectations.

The only economic options are either a floating LNG production facility (or possibly floating CNG) or else a pipeline to Egypt, where two existing LNG liquefaction plants lie idle. (Though Egypt is somewhat further away, the seabed topography is less challenging, and of course a new liquefaction plant is not needed.)

However even these two options have their problems – international LNG prices have fallen sharply in recent months, denting the economics of any new LNG development; whilst the Egypt option owes its relative attractiveness to the stasis in that country’s offshore gas development. There are undeveloped fields in the Egyptian Mediterranean of similar size and much closer to the coast than Aphrodite. If Cairo can sort out the investment conditions to facilitate their development – and it seems the government is well on the way to doing this (MEES, 27 March) – then the relative economics of piping Aphrodite gas to Egypt lose their sheen.

IT’S ALL ABOUT THE MONEY

In addition, it is clear that for Aphrodite operator Noble, in these cash-tight times, the field’s development is not its first priority. The firm devoted a mere three lines to Cyprus in its recently-released 152-page annual report, compared to several pages on neighboring Israel where it operates fields with total reserves of 40 tcf. And the main thing that Noble had to say about Aphrodite is that it is looking to farm down its 70% stake.

“There is also potential for a farm-out arrangement of our working interest,” Noble says.MEES understands that Noble is looking to divest 30% of Block 12 in order to reduce its exposure in light of the current low oil and gas prices.

Noble’s partner at both Aphrodite and its Israeli fields is Israel’s Delek Group. And Delek, which holds a 30% stake in Aphrodite, has had difficulties in raising the cash to finance its share of development costs for Israel’s 22 tcf Leviathan field – a priority ahead of Aphrodite for both firms. Noble says it has “supported the efforts of our Leviathan partners to obtain appropriate financing for their share of development costs, and we have sought other arrangements with experienced industry participants to ensure the required technical support for the execution of the (Leviathan) project.”

‘DEVELOPMENT PLAN’?

In some ‘good news,’ Noble says it will submit a development plan for Aphrodite in the second half of this year (MEES, 20 March). However, in something of a Kafkaesque twist, this supposed development plan – or at least the version of it mentioned in Delek’s recently-released 2014 annual report – would not actually enable the field’s development.

The submission “will include a preliminary plan for the establishment of a FPSO (Floating Production Storage and Offloading Unit) with an estimated initial production capacity of approximately 800mn cfd,” Delek says. This sounds like the ‘Egypt option,’ but with one major catch: both Noble and Delek have made clear that they will not be paying for the pipeline needed to land the gas in Egypt, that is to say the most expensive part of development.

In another indication that this does not constitute a serious development plan, Delek also floats the option of a pipeline to Cyprus – if someone else will be paying for it then why not continue to indulge the fantasies of the island’s politicians? FPSO development will “enable the supply of natural gas to the local market in Cyprus as well as the export of natural gas via pipelines to other markets, including Egypt,” it says. So the “development plan” would get the gas to the surface of the sea, 200km from shore: if it’s going to go anywhere from there then someone else can pay for it.

ECONOMIC LIFELINE?

Nicosia was hoping that revenue from possible gas finds would help the country’s economy rebound swiftly after it was forced to accept a €10bn bailout package from the IMF and European institutions (collectively labelled ‘The Troika’) in March 2013 (MEES, 20 September 2013). But, even if the government promptly jettisons its hopes of a larger project tying in yet-to-be-found or Israeli fields and prioritizes Aphrodite development, Nicosia-based financial expert and Director of Sapienta Economics, Fiona Mullen tells MEES that any income from natural gas will most likely be after 2020.

CLOSER TO RECOVERY

Nicosia moved a step closer to exiting its bailout program when it this week lifted capital controls put in place in March 2013 to stem the outflow of bank deposits, after the Troika ordered the island’s second largest bank, Laiki, to be wound down while also imposing a one-time levy of 47.5% on all uninsured deposits of over €100,000 at the island’s largest lender, Bank of Cyprus (MEES, 4 April, 2014).

“This sends the message that the Cyprus crisis is now behind us, although there are plenty of challenges ahead of course,” Ms Mullen says.

These challenges include passing a long-delayed foreclosure and insolvency bill and the privatization of state firms.

Ms Mullen tells MEES that despite these challenges, she is more worried about growth in the long term. “Cyprus has the lowest investment rate in the EU. It is only around 10%, more like a developing economy than a developed economy, compared with an EU average of 20%,” she says. She adds it is difficult to see where the growth will come from, “unless there is a lot of time and effort put in by both the private sector and the government into creating the foundations for new growth.”

Source: http://oilpro.com/announcement/859/end-road-cyprus-gas-hub-dreams?utm_campaign=newsletter406&utm_source=dailyNewsletter&utm_medium=email

IEC to take up $6b option for Tamar gas | Globes

IEC to take up $6b option for Tamar gas

 

14/04/2015, 14:11

Hedy Cohen

IEC will exercise only part of its option, allowing it to do business later with new suppliers.

Israel Electric Corporation (IEC) (TASE: ELEC.B22) will partially exercise its option to increase the quantity of gas it is to buy from the Tamar gas reservoir partnership, according to talks in recent days between the company and the gas partners. The decision has not been postponed, and the deadline for final notification of the partners that the IEC wishes to exercise the option is in two days. The amount of additional gas under the option is believed to total $6 billion.

IEC and the Tamar partners signed a gas supply contract in 2012, in which the partnership undertook to supply 42.5 BCM, up to a maximum of 77 BCM, over 15 years. The agreement included an option to increase the amount of gas to 99 BCM in two installments. According to the reports of Noble Energy and Delek Drilling Limited Partnership (TASE: DEDR.L), the original agreement amounted to $14 billion, and together with the two added amounts, to $23 billion.

In April 2013, the IEC board of directors approved the first increase of $3 billion, which will be in effect until the end of 2019. As part of the option, the take or pay (the consumers' undertaking to pay for a minimum proportion of the purchased gas, even if they do not need the full amount) rose from 3.5 BCM annually to 5 BCM. It was decided that if IEC wishes to extend the option until 2028 by an additional $6 billion, it must notify the Tamar partners no later than April 15, 2015, in other words, two days from now.

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IEC hoped that the notification deadline would be postponed at least until the new gas suppliers enter the sector, enabling it to conduct negotiations with a number of suppliers and obtain a lower price. These hopes soared when the Antitrust Authority director general decided several months ago to intervene in the natural gas sector and split the sole gas supplier in the economy into a number of suppliers. An inter-ministerial committee was established for this purpose, headed by National Economic Council chairman Eugene Kandel, who formulated a draft plan that included a sale and diluting of the partners' holdings in the reservoir, price controls, and separate marketing of the gas.

The draft proposal, however, included no intervention in the IEC's gas contract, nor did it postpone the deadline for IEC's notifying the partners of its wish to exercise the second installment of the option. This fact aroused severe criticism of the inter-ministerial team. Critics pointed out that the contract with IEC was the only contract important to electricity consumers in Israel. Cheaper gas purchased by IEC will be translated into cheaper electricity for consumers.

In any case, the draft proposal was not approved, competition was not achieved, the gas sector in Israel has come to a standstill, and the rest is history. IEC thus has no choice other than to negotiate with the Tamar partners for $6 billion of gas. The Ministry of Finance and the Israel Antitrust Authority therefore asked the Tamar partners to allow IEC to partially exercise its option. In this way, IEC will be able to undertake two days from now to buy a certain amount of gas, and negotiate with additional suppliers entering the market for the rest. The Tamar partners agreed, and their senior executives are currently meeting with senior IEC executives to formulate an agreement facilitating partial exercise of the option.

IEC declined to respond to the report, saying that business information was involved. The Tamar partners also declined to respond.

Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2015

Source: http://www.globes.co.il/en/article.aspx?did=1001028171&from=iglobes

Eide’s remarks on EEZ not correct, expert on Law of the Sea Convention tells CNA | Cyprus Mail - CNA

Eide’s remarks on EEZ not correct, expert on Law of the Sea Convention tells CNA

APRIL 14TH, 2015 CYPRUS1 COMMENT

CYPRUS

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Andreas Jacovides, Cyprus` former Ambassador to Washington, who negotiated and signed on behalf of the government of the Republic of Cyprus the UN Law of the Sea Convention, believes that references by the top UN envoy on the Cyprus problem to the sovereignty of states in their exclusive economic zone do not reflect the provisions of the said Convention.

Invited by CNA to comment on Espen Barth Eide`s remarks in an interview with CNA, Jacovides points out that “the correct position is not as stated by Eide,” who said “It is a question of how much a violation has actually happened because many countries do not see seismic exploration as a violation as long as they don`t lead to exploitation. Because the Economic Zone is not sovereign territory, anybody can basically do anything there but for taking out the resources. But that’s a very technical issue.”

Jacovides also said that Eide`s reference to “a hijack state” in Cyprus, with regard to the legal government of the Republic of Cyprus, is not correct either, noting that this is an allegation adopted by the Turkish side in the early 1960s.

The correct position, on the basis of the 1982 UN Convention, is stated in Articles 56 and 58 and in UN Security Council resolutions, Jacovides, who currently and for the past several years has also been a Faculty Member of the Rhodes Academy of Maritime Law and Policy (Virginia University,Max Planck Institute,Iceland Law of the Sea Institute,Rotterdam Law of the Sea Institute,Aegean Institute), explained.

“It is clear that seismic research by the Turkish vessel “Barbaros”, escorted by warships, contrary to the declared position of the Republic of Cyprus, is incompatible with these provisions of the Convention, which has become customary international law, having been adopted by the overwhelming number of the members of the international community,” Jacovides, special adviser to the Foreign Ministry on the Law of the Sea, has told CNA.

With regard to the reference to a “highjack state”, a Turkish allegation since December 1963, Jacovides points out that “SC resolution 186, adopted unanimously by the Council on 4 March 1964, makes not one but five references to the Government of Cyprus”, a fact which, as he notes, Eide seems to have overlooked.

In addition to that there are also the resolutions 541 and 550 which call on all states not to recognise the UDI, declared by the Turkish Cypriots in November 1983, and the self styled Turkish Cypriot regime in occupied Cyprus, describing the unilateral declaration of independence as “legally invalid.”

According to the UN Convention on the Law of the Sea, and with reference to the legal status of the territorial sea, of the air space over the territorial sea and of its bed and subsoil “The sovereignty of a coastal State extends, beyond its land territory and internal waters and, in the case of an archipelagic State, its archipelagic waters, to an adjacent belt of sea, described as the territorial sea. This sovereignty extends to the air space over the territorial sea as well as to its bed and subsoil. The sovereignty over the territorial sea is exercised subject to this Convention and to other rules of international law.”

In Part V, Article 56, paragraph 1, the Convention states “In the exclusive economic zone, the coastal State has sovereign rights for the purpose of exploring and exploiting, conserving and managing the natural resources, whether living or non-living, of the waters superjacent to the seabed and of the seabed and its subsoil, and with regard to other activities for the economic exploitation and exploration of the zone, such as the production of energy from the water, currents and winds.”

Article 58, paragraph 3 notes “In exercising their rights and performing their duties under this Convention in the exclusive economic zone, States shall have due regard to the rights and duties of the coastal State and shall comply with the laws and regulations adopted by the coastal State in accordance with the provisions of this Convention and other rules of international law in so far as they are not incompatible with this Part.”

Article 57 says that “The exclusive economic zone shall not extend beyond 200 nautical miles from the baselines from which the breadth of the territorial sea is measured.”

CNA

Source: http://cyprus-mail.com/2015/04/14/eides-remarks-on-eez-not-correct-expert-on-law-of-the-sea-convention-tells-cna/