Corinth to manufacture Karish steel pipes - OFFSHORE MAGAZINE

JUNE/08/2018

MAROUSSI, Greece – TechnipFMC has contracted Corinth Pipeworks Pipe Industry to manufacture and supply steel pipes for Energean’s Karish gas field development in the Mediterranean Sea offshore Israel.

The agreement covers 90 km (56 mi) of 24-in. and 30-in. LSAW pipe material for the offshore gas pipeline: this will connect the subsea manifold at a maximum water depth of 1,750 m (5,741 ft) to the receiving terminal onshore.

Pipe manufacture and coating will start at Corinth Pipeworks facility in Greece later this year.

Egypt lets contract for Midor refinery expansion - OIL & GAS JOURNAL

Houston, JUNE/08/2018
Robert Brelsford

The government of Egypt has let a contract to TechnipFMC PLC to provide services related to the implementation of the expansion at state-owned Middle East Oil Refinery Co.’s (Midor) 115,000-b/d refinery in El Amreya Free Zone, Alexandria, Egypt.

Signed on June 7, the $1.7-billion contract will cover construction, supplies, and engineering designs for the expansion, which aims to increase overall refining capacity at the site by 60% to 175,000 b/d, Egypt’s Ministry of Petroleum and Mineral Resources (MPMR) said.

Overall cost of Midor’s expansion project—which will include participation of Egypt’s ENPPI and Petrojet—will amount to about $2.2 billion, MOP said.

Alongside increasing Midor’s crude processing capacity, the expansion also will raise the refinery’s current LNG production by about 145,000 tonnes/year, benzene 95 by about 600,000 tpy, and jet fuel by about 1.3 million tpy.

The Midor expansion comes as part of MPMR’s integrated plan to develop, upgrade, and increase efficiency and production quality of Egypt’s refineries through implementation of a series of new projects across manufacturing sites to help meet domestic petroleum product demand as well as reduce imports from abroad, said Tariq El-Molla, Egypt’s minister of petroleum and natural resources.

Italy says mulling late-in-the game changes for massive TAP natural gas project - XINHUA NEWS

2018 JUNE 08, 05:33:26
Eric J. Lyman

ROME, June 7 (Xinhua) -- The future of the ambitious Trans-Adriatic Pipeline (TAP), which aims to give western Europe access to natural gas from Azerbaijan's massive Shah Deniz fields, may be in doubt after leading officials in the new Italian government said the project made no sense for Italy.

Sergio Costa, who was installed as Italian environment minister under Prime Minister Giuseppe Conte less than a week ago, promised to launch a study into whether Italy will benefit from continuing to participate in the so-called TAP project. And Minister of the South Barbara Lezzi expressed worry about environmental risks associated with TAP.

The 4.5-billion-euro (5.4-billion-U.S. dollar) TAP project spans 880 kilometers (550 miles) from the border between Turkey and Greece, across Greece into Albania, under the Adriatic Sea, and into San Foca in the southern Italian region of Apulia. From there, it will link with existing gas infrastructure to reach multiple western European markets.

Israel offers Lebanon resolution to border dispute - INTERFAX

 7 June 2018

Israel made a proposal to Lebanon offering a resolution of a long-standing border dispute between the two countries, according to Lebanon’s Speaker Nabih Berri in a report published by Hezbollah’s Al-Manar news service.

The proposal covers onshore and offshore territory.

Total, Eni and Novatek hold a licence to explore Lebanon’s Block 9, part of which crosses the disputed area.

Israel’s proposal was delivered to Lebanon by a US delegation last week, said Berri.

Israel navy drills attack on offshore gas rigs - THE TIMES OF ISRAEL

6 June 2018, 1:34 pm

The Israeli Navy successfully completed a complex exercise last week led by its missile boats flotilla, the military announced Wednesday.

The drill included two major attack and defense scenarios at sea.

In the first scenario, an aircraft simulated a missile threat against an Israeli gas rig. The threat was detected on board a Sa’ar 4.5 missile boat, and was shot down by an interceptor missile launched from the ship.

The navy noted that the ship was recently fitted with state-of-the art detection and observation systems, including the new Fire Sickle radar system which officials said significantly improves vessels’ tracking capabilities.

Last week’s drill was the first live test of the ship in its new configuration.

In the second scenario, a seaborne target simulating an enemy ship was struck by two cruise missiles launched by the ships INS Lahav and INS Kidon. The target was successfully hit and destroyed.

New proposals may help resolve Israel/Lebanon oil and gas dispute - REUTERS

JUNE 5, 2018 / 10:46 AM
Ari Rabinovitch

JERUSALEM (Reuters) - New ideas proposed in U.S. back-channel mediation of an Israeli-Lebanese maritime dispute over oil and gas exploration in the eastern Mediterranean raise the prospect of a partial deal this year, Israel’s energy minister said.

Israel kicked off a gas bonanza in the eastern Mediterranean almost a decade ago with the discovery of two huge gas fields. Others were found in Egypt and Cyprus, and companies are now exploring Lebanese waters as well.

One of the Lebanese blocks being explored, Block 9, borders Israel’s maritime zone and contains waters claimed by both countries. The disputed border also touches two other not-yet-licensed Lebanese blocks.

This has led to years of brinkmanship with officials on both sides promising to protect their resources and warning about encroachment.

“There are some new ideas on the table. More than that I cannot discuss,” Energy Minister Yuval Steinitz, said in a Reuters interview. He oversees energy exploration in Israel and is the pointman in indirect negotiations with Lebanon.

Risks Posed by Competing Claims to Eastern Mediterranean Oil and Gas Resources - WASHINGTON REPORT ON MIDDLE EAST AFFAIRS

2018 JUNE-JULY
Washington Report on Middle East Affairs, June/July 2018, pp. 34-35

Special Report
By Jonathan Gorvett

WHEN ISRAELI PRIME Minister Binyamin Netanyahu spoke in Nicosia in May of “building a great alliance” between his nation, Cyprus and Greece, he was also quick to praise the “unrivaled network of common interests” that exists among the three states.

And if advocates of a giant new project have their way, that network may be about to get a lot more physically tangible.

For Netanyahu was in Nicosia to solidify support for the proposed EastMed Pipeline, a 1,350-mile natural gas connector that aims to bring Israeli and Cypriot gas to energy-hungry European markets. If ever constructed, the pipeline would form a specialized steel and concrete tie among the three nations, stretching far across the deep of the (sometimes unstable) Eastern Mediterranean floor.

Delek says half the work on development of Leviathan gas field completed in Q1 - HAARETZ

TheMarker Jun 01, 2018 1:40 AM

The Delek Group has announced that, as of the end of March, about half of the work in developing its Leviathan offshore natural gas field in the Mediterranean was completed and that gas should begin flowing from the field, Israel’s largest, next year. The work performed included the laying of underwater pipes connecting the gas wells to a main pipeline and the construction of a substantial portion of the production rig, the company said. These details came Thursday as Delek released its first quarter financial results, reporting a decline in revenue from energy operations in Israel after selling off 9.25% of its stake in another gas field, Tamar, in which it retained a 22% share. Delek said all told, it earned 243 million shekels ($68 million) in the first quarter, up from 220 million a year earlier. Revenue rose to 1.78 billion shekels from 1.54 billion. 

Pharaonic Petroleum's total gas production hit 600 mcf/d - EGYPT TODAY /MENA

Thu, May. 31, 2018

CAIRO - 31 May 2018: The Pharaonic Petroleum Company (PhPC) on Thursday revealed that its total natural gas production hit 600 million cubic feet (mcf/d) per day, in addition to 11,000 barrels of condensate per day.

The announcement came during an inspection tour paid by Petroleum Minister Tarek el Molla to Port Said governorate to follow up on the progress of work at oil and gas production sites there.

During his tour, the minister said that underway projects to extract natural gas and its derivatives in Port Said represent a successful model on how to make good use of Egypt's natural gas resources.

The upcoming phase is expected to witness a boom in the activities of oil and gas exploration in some concession areas, especially after launching two global bids on this regard, el Molla added.

Total interested in other offshore blocks - CYPRUS MAIL

MAY 29, 2018

Elias Hazou 

French oil and gas giant Total is interested in buying into other licensed offshore blocks in addition to block 8, MPs heard on Tuesday.

Lawmakers received a behind-closed-doors briefing from energy minister Giorgos Lakkotrypis.

Speaking to reporters later, House commerce and energy committee chair Angelos Votsis (Diko) said Total’s recent application to acquire a 50 per cent stake in block 8 – licensed to ENI – was all but a done deal.

“What remains are the formalities of their receiving approval from Cypriot authorities,” he said.

“Similar moves are expected, that is, Total participating in other blocks operated by ENI. This is also a positive and we welcome it.”

Dana Gas receives $40m in payments from Egypt - GULF NEWS

 May 28, 2018, 16:30 

Abu Dhabi: Dana Gas on Monday announced it has received $40 million (Dh146.8 million) in payments from the Egyptian government taking the total receipts to $88.8 million (Dh325.9 million) this year.

The company said it will use the cash to proceed with growth initiatives such as drilling Balsam-8 in its development lease onshore Nile Delta to increase production.

“We are pleased to have received this $40 million payment from the Egyptian Government which takes our total receipts to nearly $90 million for the first half of the year. It is a timely cash boost and highlights the government’s publicly stated commitment to substantially reduce the petroleum companies’ receivables during 2018,” Patrick Allman-Ward, CEO of Dana Gas, said in a statement.

He added that the company’s primary focus will remain on increasing production and on drilling its first offshore well in Block 6, due to commence in early 2019.

“Block-6 is highly prospective and contains several material prospects with multi-Tcf potential,” he said.

Nooros’ 14th well pumps additional 180 mcf/d into national grid as it comes online - ENTERPRISE

Monday, 28 May 2018

The 14th well at the Nooros gas field has come online, pumping an additional 180 mcf/d into the national grid, the Oil Ministry announced yesterday. 

The Nedoco field, which was completed in record timing of under two months, brings total production from Nooros to 1.2 bcf/d.

Egypt on its way to becoming a net exporter of LNG -EIA report - ENTERPRISE

Sunday, 27 May 2018

Egypt is on its way to once again becoming a net exporter of LNG, according to the US Energy Information Administration’s (EIA) latest report. 

The report nods to new gas discoveries in the East Mediterranean, coupled with the government’s drive to reform the energy sector, for renewing investor and business interest in the country, which had died down during the economic slump that followed the 2011 uprising. 

Egypt is the largest non-OPEC oil producer in Africa and the third-largest dry natural gas producer on the continent. The country also serves as a major transit route for oil shipped from the Persian Gulf to Europe and to the United States.

Egypt is the largest oil producer in Africa outside of the Organization of the Petroleum Exporting Countries (OPEC) and the third-largest natural gas producer on the continent following Algeria and Nigeria. Egypt plays a vital role in international energy markets through its operation of the Suez Canal and the Suez-Mediterranean (SUMED) Pipeline.
The Suez Canal is an important transit route for oil and liquefied natural gas (LNG) shipments traveling northbound from the Persian Gulf to Europe and to North America and for shipments traveling southbound from North Africa and from countries along the Mediterranean Sea to Asia. Fees collected from these two transit points are significant sources of revenue for the Egyptian government.

The 2011 revolution led to an economic downturn, and the country experienced a sharp decline in tourism revenue and foreign direct investment, according to the International Monetary Fund (IMF). However, economic conditions have improved over the past few years, and financial support from the United Arab Emirates (UAE), Saudi Arabia, and Kuwait has helped Egypt address its increasing domestic demand for energy.

EBRD finances upgrade of Egypt’s Suez oil refinery - ENERGY EGYPT / OIL & GAS JOURNAL

May 25, 2018

The European Bank for Reconstruction & Development (EBRD) is providing a $200-million loan to state-owned Egyptian General Petroleum Corp. subsidiary Suez Oil Processing Co. (SOPC) for the upgrade of its 68,000-b/d refinery adjacent to Suez, Egypt, at the entrance of the Suez Canal.

ERBD funds will finance investments to modernize the refinery with technical updates to improve overall operational performance and energy efficiency at the site, as well as works to reduce the refinery’s carbon footprint, ERBD said.

Specifically, the proposed projects will increase flexibility of the plant’s crude intake and enable production of higher-quality, lower-sulfur fuels, ERBD said.

The refinery also will implement an extensive energy efficiency program that will reduce emissions of carbon dioxide equivalent by more than 295,000 tonnes/year and result in a savings of 300,000 Mw-hr of energy and 384,000 cu m of water annually, the international financial institution said.

Natural gas exported to Italy from Libya after four year halt - THE LIBYA OBSERVER

May 24, 2018 - 13:00
Housam Najjair

The National Oil Corporation (NOC) shipped on Wednesday its first quantity of propane gas from the Zueitina port to Italy, estimated at approximately 61,761 barrels.

The NOC said in a statement that the shipment is the first of its kind to Italy in four years, since the gas plant at the port of Zueitina was shut down causing gas exports to Italy being halted.

Libya is considered to be one of the largest exporters of natural gas to Italy through Italy's oil giant Eni, which invests in Libya.

Oil Ministry wants Haliburton to advise on maturing fields - ENTERPRISE

Thursday, 24 May 2018

Oil Minister Tarek El Molla met with Halliburton’s Executive Vice President of Global Business, Eric Carre, on Wednesday to discuss the possibility of the company advising the ministry on strategies on further development on maturing fields, according to an Oil Ministry statement. 

They also discussed progress on the seismic database currently being developed to market Egypt’s reserves.

Tharwa Petroleum readies to drill in North Sinai’s Noor concession - ENTERPRISE

Thursday, 24 May 2018

Tharwa Petroleum is waiting for final gas exploration approvals to begin drilling in the Noor concession in North Sinai, a company source says. 

The number of wells to be drilled will be determined once the contracts are signed, they added. 

The Cabinet had approved earlier this month a USD 105 mn exploration agreement with Eni and Tharwa to search for oil and gas in the Mediterranean off the coast of North Sinai. 

Parliament had signed off on the agreement earlier in the week.

Delek Royalties issues $113m bond - GLOBES

23 May, 2018 15:44
Kobi Yeshayahou

The first stage in Delek Royalties' two-stage offering was completed yesterday with the company raising $113 million (NIS 404 million) in the bond issue for investment institutions. Demand totaled NIS 900 million. Leading investment institutions took part in the issue, led by Leader Underwriters and Excellence Nessuah Underwriting.

Delek Royalties is a special purpose vehicle (SPV) founded by Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, in order to absorb the super royalties from the Tamar natural gas reservoir to which Delek Group's Delek Energy subsidiary is entitled.
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The interest on the 4.7-year dollar-denominated bonds, rated Aa3 with a stable outlook by Midroog, was set at 5.48%.

EGAS offers 16 Mediterranean & Nile Delta blocks in oil & gas bid round - ENTERPRISE

May 22, 2018

The Egyptian Natural Gas Holding Company (EGAS) launched the 2018 bid round for oil & gas exploration on 16 concession areas: 13 blocks in the Mediterranean Sea and three concessions in the onshore Nile Delta region.

The Egyptian Ministry of Petroleum announced in an Al Ahram newspaper advertisement that the deadline for receiving bids for the EGAS tender will be on October 1, 2018

EGPC launches 2018 oil & gas exploration bid round for 11 blocks - ENTERPRISE

May 22, 2018

The Egyptian General Petroleum Corporation (EGPC) launched the 2018 bid round for oil & gas exploration on 11 blocks: Five in the Western Desert, two in the onshore Nile Delta region, one in the Eastern Desert, and three in the Gulf of Suez (both onshore & offshore).

The Egyptian Ministry of Petroleum announced in an Al Ahram newspaper advertisement that the deadline for receiving bids for the EGPC tender will be on October 8, 2018.

SDX Energy's Kelvin-1X well disappoints in Egypt - WORLD OIL

MAY/22/2018

LONDON -- SDX Energy Inc., the North Africa focused oil and gas company, announces that the Kelvin-1X exploration well at South Disouq, Egypt (SDX 55% working interest and operator) has been drilled to a TD of 8,075 ft, encountering 606 net ft of high-quality reservoir interval in the Abu‐Madi formation, with an average porosity of 21%. However, the sands had low gas saturation and were not deemed to be commercial.

The well will now be plugged and abandoned, and the rig will move to the site of the next drilling location on the South Disouq licence, the SD-4X appraisal well.

Following the April 2017 SD-1X discovery on South Disouq, SDX targeted two near-field prospects, Ibn Yunus, where the Company has recently announced a significant discovery, and Kelvin. The Kelvin-1X well was located structurally updip of the SD-1X discovery and thought to potentially be connected to the original SD-1X structure by a continuous gas bearing section. However, the identified layer appears to be separated from the original discovery and contains gas with non-commercial saturations. The Company is now focused on completing the development at SD-1X and bringing both discoveries on stream as quickly as possible, with first gas prior to year-end 2018.

Egypt Sets Deadlines For Oil And Gas Exploration Bids - RIGZONE / REUTERS

Tuesday, May 22, 2018

Reporting by Ehab Farouk, writing by Sami Aboudi; editing by Jason Neely

CAIRO, May 22 (Reuters) - Egypt has set October 1 and October 8 deadlines for two major international tenders for oil and gas exploration spanning 27 onshore and offshore blocks, the oil ministry said on Tuesday.

Bids for 11 blocs offered by the Egyptian General Petroleum Corp (EPGC) must be submitted by October 1, the ministry said in an advertisement published in the state-run al-Ahram newspaper.

Companies interested in 16 concession areas offered under state-buyer EGAS must submit their bids by October 8, it said.

The EPGC tenders include five blocks in the Western Desert, two in the Nile Valley, three in the Gulf of Suez and one in the Eastern Desert.

The EGAS tender, described by the ministry as the largest in the company's history, includes 13 offshore Mediterranean blocks and 3 in the Nile Delta.

Egypt to launch 2 international bid rounds for oil and gas exploration in 2018 - statement - REUTERS

MAY 21, 2018 / 10:42 AM
Reporting by Nadine Awadalla; Editing by Toby Chopra

CAIRO, May 21 (Reuters) - Egypt will launch two international bid rounds for oil and gas exploration in 2018, the petroleum ministry said in a statement on Monday.

One bid round will cover 16 sectors under the state-buyer EGAS, while the other will cover 11 sectors under the Egyptian General Petroleum Corp (EGPC), the statement said.

The EGAS bid round is set to be the largest since its founding in 2001. 

France’s Total may expand presence into block 8 of EEZ (Updated) - CYPRUS MAIL

MAY 21, 2018

French energy giant Total, wants to expand its presence into block 8 of Cyprus’ exclusive economic zone (EEZ) Energy Minister Yiorgos Lakkotrypis said on Monday.

Speaking to reporters at the presidential palace after the meeting between President Nicos Anastasiades and the Regional Director of Total, Stephane Michel, Lakkotrypis said the discussion had been constructive. “The next steps in the exploration programme were discussed and one of the most important issues was the interest by Total in participating in block 8,” he said.

Block 8 was licensed to Italy’s ENI and “now we see interest by the French company to grow in this segment. It is a very important development that strengthens the [ENI-Total] consortium and expand its presence in Cyprus’ EEZ,” Lakkotrypis added. The consortium has 50 per cent stake each in blocks 6 and 11.

Kuwait Energy looks to spin-off Egyptian assets - ENTERPRISE

Monday, 21 May 2018

Kuwait Energy looks to spin-off Egyptian assets: Kuwait Energy has hired investment bank Perella Weinberg Partners to advise on possibly divesting its stakes in Egypt and Iraq, sources close to the matter tell Reuters. Plans include spinning off Egypt assets that include interests in four oil and gas fields, including the Abu Sennan concession. Kuwait Energy had reduced its stake in that field to 25% last year. In Iraq, the company is looking to sell part or all of its Block 9 field. The move comes as the company is looking for liquidity to pay back shareholders and creditors. Talks for a possible merger with the UK’s SOCO International earlier this year had reportedly had fallen apart. The firm, which lost its CEO and saw a credit downgrade last year, owes USD 290 mn due next year, and should start repayments of a convertible loan of around USD 150 mn this year to an entity controlled by private equity group Abraaj.

‘Cyprus’ oil and gas resources should be equitably shared between both communities on the island’ - CYPRUS MAIL

MAY 20, 2018
Apostolos Zoupaniotis

Cyprus’ oil and gas resources should be equitably shared between both communities on the island, in the context of an overall settlement said Jonathan Cohen, Deputy Assistant Secretary for European and Eurasian Affairs.

Cohen replied in writing to questions concerning Cyprus, submitted by Bob Menendez, the Ranking Member of the Senate Foreign Relations Committee.

The Senate Foreign Relations Committee moved without a vote the confirmation of the Ambassadorial Nominee, Jonathan Cohen, to the full Senate, where he is expected to receive an easy approval. Cohen was nominated by President Trump to be the Deputy Permanent Representative of the United States to the United Nations.

Asked on the role the Security Council should play in addressing Turkey’s belligerent actions in the Eastern Mediterranean and the Aegean Sea, including Turkish naval efforts to obstruct hydrocarbons exploration in Cyprus’ Exclusive Economic Zone, Cohen said:
“If confirmed, I will continue to support longstanding U.S. policy recognizing the Republic of Cyprus’s right to develop its resources in its EEZ. The island’s oil and gas resources, like all of its resources, should be equitably shared between both communities on the island in the context of an overall settlement”.

Schlumberger to complete Gulf of Suez seismic studies before end of 2018 - ENTERPRISE

Sunday, 20 May 2018

Oilfield services company Schlumberger is set to complete seismic studies in the Gulf of Suez before the end of this year, a source tells Youm 7. 

Norway’s TGS also expects to deliver final data in December this year after completing a 10,000-km 2D seismic surveyalong Egypt’s Red Sea border with Saudi Arabia. 

Schlumberger and TGS-NOPEC are two of five firms that were awarded contracts for scans in the area last year.

Promoting gas as a catalyst to energy transformation - CYPRUS MAIL

MAY 20, 2018

One of the best-known Cypriots in the global natural gas sector is Menelaos Ydreos, executive director of public affairs of the International Gas Union (IGU).

Charles Ellinas spoke to him about the role of gas in the future energy mix and how Cyprus can benefit

What is the main function of the IGU and your role in the organisation?
The International Gas Union (IGU) was founded in 1931 and is a worldwide non-profit organisation aimed at promoting the political, technical and economic progress of the gas industry. IGU has more than 150 members worldwide on all continents, representing approximately 97 per cent of the world gas market. The Cyprus Charter member to the IGU is the Ministry of Energy, Commerce, Industry & Tourism.

As the executive director of public affairs, I oversee all of the global strategic communications and outreach efforts for the IGU ensuring that governments and policymakers recognise the significant role that gas can play in enabling the energy transition and cleaning-up the polluted and dirty air in the world’s cities.

Israel and Cyprus disagree over Aphrodite Gas Field - THE TIMES OF ISRAEL

MAY 20, 2018, 1:04 AM

A disagreement over the ownership rights to the Aphrodite natural gas field in Cyprus is delaying billion-dollar plans to turn the eastern Mediterranean area into a larger energy hub. Aphrodite is located along the edge of Cyprus’ economic waters. One of its tips stretches across Cyprus’ border into Israel’s maritime zone. According to a recent estimate in Israel, there are as much as 10 billion cubic meters of gas worth close to $1.5 billion at stake. However, this amount is less than 10% of Aphrodite’s total reserves. Israel has said that it will not give up on this gas and that companies operating on the Israeli side are ready for legal action if Aphrodite is developed without them.

Prime Minister Benjamin Netanyahu and Energy Minister Yuval Steinitz have flown to Cyprus to discuss plans to join the two countries’ electricity grids and build a pipeline to supply Mainland Europe with their gas fields. Energy Minister Steinitz has said that he was optimistic that the dispute will be solved within six months and that the governments have asked the companies to reach an agreement among themselves on how much gas is located on each side’s economic waters. If the dispute is not resolved within a specified period, they will turn to an international expert, not an arbitrator. Cyprus’ Energy Minister Yiorgos Lakkotrypis has suggested a similar course of action.

ExxonMobil eyes Africa expansion, Egypt tops the list - ENTERPRISE

Sunday, 20 May 2018

INVESTMENT WATCH- ExxonMobil is eyeing expansion opportunities in Africa, now that oil prices are on the rise again, according to the Africa Report. “The company wants to reinvest in Africa, partly to compete against Eni and Total and to not leave them to dominate the continent,” says OCP Policy Center research associate Francis Perrin. “ExxonMobil looks at everything and everywhere, from Egypt to Mauritania through South Africa, but that doesn’t mean it will buy all the blocks it is studying or start producing from all the fields it is exploring.”

Egypt may be a good choice for Exxon, where it’s already eyeing opportunities in the East Mediterranean. “The foray into Egypt’s offshore oil and gas it is currently considering can be linked to a desire to combine recent gas discoveries in Cyprus with new Egyptian fields and also to find business opportunities for its gas in the highly populated – close to 100 mn people – and top energy-consuming country in the region,” Wood Mackenzie’s upstream Egypt analyst Stephen Fullerton. Egypt is close to finalizing an agreement with Cyprus to build a USD 800 mn to USD 1 bn gas pipeline that should see Egypt begin exporting LNG to Europe, moving one step closer to achieving its goal of becoming a regional hub.

SDX reports gas discovery in Egypt - OIL & GAS JOURNAL

HOUSTON, MAY/18/2018

SDX Energy Inc., London, expects to start production by year end from a natural gas discovery made by its Ibn Yunus 1X well at South Disouq, Egypt (OGJ Online, Feb. 21, 2018).

On test, the well flowed at a stabilized rate of 39.3 MMscfd on a 32/64-in. choke, limited by surface facilities.

The well, drilled to 9,608 ft, encountered 100.8 ft of net natural gas pay in the Upper Miocene Abu Madi formation. Average porosity of the pay section is 28.5%.

SDX operates the South Disouq concession with a 55% interest. IPR Energy Resources Ltd., Irving, Tex., holds 45%.

‘No Cyprus problem if Turkey had not violated international law’ - CYPRUS MAIL

MAY 18, 2018

The Cyprus problem would not have arisen if the rules of international law had not been violated by Turkey, a Cypriot diplomat said addressing an open debate at the Security Council on upholding international law within the context of the maintenance of international peace and security.

“In the case of Cyprus, if the rules of international law had not been violated by Turkey the Cyprus problem would not have arisen,” Charge d’Affaires Menelaos Menelaou said.

And if these rules are applied today, in other words if Turkey had implemented what it preaches, he pointed out, “the main aspects of the problem, and especially the international aspects which form the heart of the issue, can be solved fairly for all parties concerned and in the interest of international peace.

“The Republic of Cyprus remains unequivocally committed to the principle of peaceful settlement of disputes,” he added.

According to Menelaou “two examples of this, are, its steadfast commitment and continued support to the UN brokered peace process in Cyprus, and its acceptance of the compulsory jurisdiction of the International Court of Justice.

Pipelay under way at Leviathan offshore Israel - OFFSHORE MAGAZINE

MAY/17/2018

HOUSTON – Noble Energy’s Tamar gas field offshore Israel has completed its fifth year of operations, producing a cumulative 1.5 tcf.

First-quarter 2018 output was also a new record, with total sales volumes of 959 MMcfe/d.

Leviathan, the company’s second deepwater greenfield development project in the Israeli sector, is around 45% complete. Early last month a drilling rig started operations on the Leviathan-3 well, while a pipelay vessel is installing infield flowlines and gas-gathering pipelines that will connect to the platform.

Noble, which anticipates first gas sales from the field by end-2019, has recently executed various natural gas contracts with customers in Egypt and Israel bringing total volumes under contract for Leviathan to more than 900 MMcf/d.

Included in this amount is a new agreement with an existing customer to provide around 40 MMcf/d from Tamar starting in the current quarter, which will transfer to Leviathan following field start-up.

Partners commit to drill at South Ramadan offshore Egypt - OFFSHORE MAGAZINE

MAY/17/2018

LONDON – An appraisal well will spud by mid-year on the South Ramadan license in the Gulf of Suez offshore Egypt, according to partner SDX Energy.

This will be up-dip from one of the previous producing wells in the field. 

Total cost of the work program this year will be around $23.5 million, including some platform remediation work and a well workover, both dependent on the success of the appraisal well.

Jordan is Key Player in Israel's Energy Equation in Region - ALBAWABA NEWS

May 17th, 2018 - 18:00 GMT

Jordan is a key player in Israel's energy equation in the region as it could either make or break the Jordan-Israeli gas sales and purchase agreement that is vital to Israel's success as a regional energy player, according to the director of hydrocarbons at the Paris-based Mediterranean Energy Observatory (OME).

In September 2016, U.S.' Noble Energy, the operator of Israel's Leviathan gas field, signed a gas sales and purchase agreement with Jordan's National Electric Power Company Ltd. (NEPCO) to sell approximately three billion cubic meters of natural gas over a 15-year term.

"If Jordan cancels the gas deal signed with Israel following Israel's brutality in the Gaza Strip, there is no place for its gas to go, therefore, Israel can suffer huge losses in terms of energy income," Director Sohbet Karbuz told Anadolu Agency in an exclusive interview.

The deal in September 2016 was agreed despite widespread disapproval in Jordan for the purchase of Israel's energy. The past two years saw a number of popular demonstrations in Jordan's capital Amman against the proposed import of gas from the Jewish state.

Karbuz explained that Jordan is the most important market that these companies rely on to recover the billions of dollars of investments that these companies have made.

Greece's DEPA to sell stake in gas supplier to Eni - REUTERS

MAY 16, 2018 / 5:51 PM

ATHENS (Reuters) - Greece’s biggest gas company DEPA said on Wednesday it had agreed to sell its holding in a local gas supplier to Italy’s Eni (ENI.MI) for 57 million euros ($67 million).

Under the agreement, state-controlled DEPA will sell its 51 percent stake in Thessaloniki-Thessaly Gas. Eni already holds a 49 percent stake in that company.

Under a bailout-sanctioned scheme to unbundle gas supply from distribution and boost competition in the industry, Greece needs to eliminate potential conflicts of interest between DEPA and domestic gas suppliers.

DEPA will stay in the broader Athens region but will pull out of the rest of Greece.

DEPA is also in talks to buy out Shell’s (RDSa.L) 49 percent stake in another gas supplier, Attiki Gas Supply Company, and a gas distributor in Athens and become the sole stakeholder in the two companies, sources close to the matter told Reuters.

One of the sources said the deal could be worth about 150 million euros.

Zohr brings turnaround in Egypt’s LNG fortunes - LNG WORLD SHIPPING

Wed 16 May 2018

Mike Corkhill

With the start of the third production unit at Egypt’s giant Zohr offshore gas field earlier this week, the country’s need for LNG imports is rapidly drawing to a close.

Production at Zohr, which only began in December 2017, now stands at 1.1Bn ft3 per day (bcfd). Eni, the operator of the Zohr field, along with its partners in the project and Egyptian National Gas Holding Company plan to boost the venture’s output to 2 bcfd by the end of 2018 and to reach a plateau production level of 2.9 bcfd by 2019. At that rate Zohr alone will meet 60% of Egypt’s entire gas demand.

The recently discovered Zohr field, with some 30Tn ft3 (tcf) of recoverable reserves, is the largest deposit of gas in the Mediterranean. It lies in the Shorouk Block 190 km north of Port Said.

Zohr is helping Egypt emerge from a gas-deficit scenario, which manifested itself earlier in the decade amid the Arab Spring uprising and the depletion of domestic gas reserves, much more quickly than anticipated.

Are Eni and Lukoil investing in USD 700 mn gas plant in the Western Desert? - ENTERPRISE

Monday, 14 May 2018

INVESTMENT WATCH- Are Eni and Lukoil investing in USD 700 mn gas plant the in Western Desert? Italy’s Eni and Russia’s Lukoil plan to invest USD 700 mn to develop a natural gas processing plant in the Western Desert, said Mohamed El Kaffas, chairman of Eni joint venture AGIBA. The plant is expected to have a capacity of 100 mcf/d with plans to ship the processed gas to Alexandria through a 200 km pipeline, he tells Egypt Today. The plant is expected to be completed in three years. AGIBA plans to drill 28 wells in the Western Desert concessions in tandem with the development of the plant.

Caveat emptor: We have not seen this story covered anywhere else in the press and we await comment from Eni confirming the project.

Dana Gas reportedly reaches settlement agreement with sukuk holders - ENTERPRISE

Sunday, 13 May 2018

The UAE’s Dana Gas appears to have reached a settlement agreement with holders of its USD 700m sukuk. “A committee representing sukuk holders, which include BlackRock Inc. and Goldman Sachs Group Inc., agreed to accept an immediate cash payout of USD 0.20 to the USD and to roll the rest into a three-year security,” sources with knowledge of the matter tell Bloomberg. The agreement would bring the Sharjah-based producer’s court case with its Islamic bond holders to an end.

Turkey announces Med drilling - KATHIMERINI

Saturday, May 12, 2018, 16:08

Turkey will start drilling for oil and gas in the Mediterranean before the end of the summer, according to comments Friday by the country’s Energy and Natural Resources Minister Berat Albayrak.

The Turkish minister, who is also the son-in-law of Turkish President Recep Tayyip Erdogan, added that “great efforts” are being made to “ensure there is no letup in this momentum.”

His statements come as no surprise in Greece as Ankara has already purchased a drillship. However, Albayrak’s comments are also being taken with a grain of salt, given that the neighboring country is heading for elections on June 24.

Turkey has maintained it will not allow the Eastern Mediterranean island of Cyprus to drill for gas in its exclusive economic zone, saying the Turkish Cypriots must also be included in the process. Furthermore, it claims that parts of the island’s EEZ are disputed, and it remains to be seen where exactly Turkey plans to drill in the Eastern Mediterranean.

Israel's 5% Claim on Gas in Cypriot Field Causes Dispute With Nicosia - HAARETZ

Nicos Anastasiades & Benjamin Netanyahu

May 11, 2018 5:42 AM
Ora Coren 

If Israel and Cyprus don’t reach an understanding within a few months, they will hire an international expert to propose a solution based on the two reservoirs’ estimated reserves

Energy Ministry Yuval Steinitz told Cypriot leaders Tuesday that Israel is demanding 5% or more of the production from the joint Aphrodite-Yishai natural- gas field in disputed Mediterranean waters, sources told TheMarker.

Steinitz, who attended the meeting in Nicosia with Prime Minister Benjamin Netanyahu, said afterward in public that the dispute could be settled within six months but did not elaborate on Israel’s position.

“The professional opinion of the [Israeli] government is that at least 5% of the reservoir is Israeli,” said an Israeli official who asked not to be named. “The dispute with the Cypriots is about how the Israeli share will be guaranteed because it’s the Cypriots who will be developing the field.”

Eni announces the start-up of third production unit at Zohr - WORLD OIL

MAY/10/2018

MILAN -- Eni announces the start-up of the third production unit (T-2) of the Zohr project, increasing the installed capacity to 1.2 Bcfd. Zohr is now producing 1.1 Bcfd in ramp-up, equivalent to approximately 200,000 boed, of which 75,000 boed net to Eni at current working interest. This outstanding result has been achieved only a few months after the field’s start-up in December 2017.

The third unit, following just one week after the second unit’s successful power-up, confirms the programme pursued by Eni, its co-venturers and Egyptian Natural Gas Holding Company (EGAS) to pursue a production level of 2 Bcfd by end 2018, followed by a plateau of 2.7 Bcfd in 2019.

The latest achievement reinforces the exceptional development path of Zohr, one of Eni’s seven record-breaking projects, which is playing a fundamental role in supporting Egypt’s independence from LNG imports.

Zohr field, the largest gas discovery ever made in Egypt and in the Mediterranean Sea with more than 30 Tcf of gas in place, is located within the offshore Shorouk Block (some 190 km north of Port Said). In the Shorouk Block, Eni holds a 60% stake, Rosneft 30% and BP 10% of the Contractor’s Share (where Eni, Rosneft and BP are collectively the Contractor).

A U.S. Shale Gas Cargo Is Heading to Israel for the First Time - BLOOMBERG

May 10, 2018, 11:57 PM GMT+3
Ryan Collins and Kevin Varley

Israel is about to receive a cargo of U.S. liquefied natural gas, the first to arrive in the Middle Eastern nation from America’s shores since exports began in 2016.

The vessel British Diamond, beneficially owned by BP Plc, is set to arrive at Israel’s Hadera import terminal on May 27 after departing Cheniere Energy Inc.’s Sabine Pass in Louisiana on May 3, ship tracking data compiled by Bloomberg show. Most cargoes to Hadera have come from Trinidad and Tobago, which also ships to the U.S.

U.S. shale gas has sailed from the nation’s two operating LNG export terminals -- Sabine Pass and Dominion Energy Inc.’s Cove Point facility in Maryland -- to buyers from Mexico to China. With three more projects set to start up in the next year, America is on course to rival Qatar and Australia for global LNG dominance in the next five years.

Israel’s gas imports, meanwhile, may slide in coming years as the nation produces more gas from domestic fields. Earlier this year, Dolphinus Holdings Ltd., a private Egyptian company, agreed to buy gas from Noble Energy Inc. and its partners from Israel’s two largest offshore fields, Leviathan and Tamar.

The Ismail Cabinet approved a USD 105 mn exploration agreement with Eni - ENTERPRISE

Thursday, 10 May 2018

The Ismail Cabinet approved a USD 105 mn exploration agreement with Eni and the Egypt’s Tharwa to search for oil and gas in the Mediterranean off the coast of north Sinai, according to a cabinet statement. Under the agreement, Eni and Tharwa drill two wells over two stages in the coming six years, Oil Minister Tarek El Molla told reporters on Wednesday. Separately, Eni has reportedly begun drilling the second exploratory well in its South Meleiha concession in the Western Desert’s Faghur Basin, Youm7 reports. Eni had announced last week making an oil discovery from another well in the Faghur Basin, which is expected to deliver 2,300 bop/d of light oil.

Prime Minister Sherif Ismail met yesterday with the head of the Abu Dhabi National Oil Company (ADNOC) Sultan Jaber, according to a Cabinet statement. The two discussed oil and gas cooperation, as well as increasing Emirati investments in Egypt’s oil refining, petrochemicals, and LNG sectors.

Israel, Cyprus, Greece push East Med gas pipeline to Europe - ISRAEL HAYOM

Wednesday May 9, 2018

The leaders of Israel, Cyprus and Greece said Tuesday they are determined to push ahead with plans for a pipeline that would supply east Mediterranean gas to Europe as the continent seeks to diversify its supplies.

Prime Minister Benjamin Netanyahu called the East Med pipeline a "very serious endeavor" that was important for Europe, which is looking for new sources of energy.

Cypriot President Nicos Anastasiades said the three countries aim to sign an agreement this year to nudge the pipeline project forward.

"This project creates a rivaled network of common interests and clear strategic benefit for our countries and beyond since its implementation will tangibly contribute to the security of the European Union's energy supply," Anastasiades said.

Greek Prime Minister Alexis Tsipras called the project "emblematic" of the cooperation between the three countries.

The EU is looking favorably on the project, too, since the 28-member bloc has forked out €34.5 million ($41 million) to fund a technical study, the Cypriot president said.

Qalaa considering increasing stake in ERC - ENTERPRISE

Wednesday, 9 May 2018

Qalaa eying additional stake in Egyptian Refining Company: Qalaa Holdings announced yesterday that it is looking to increase its ownership of its greenfield Egyptian Refining Company (ERC) by acquiring or subscribing to additional shares in its subsidiary Orient Investment Properties, Qalaa said in a regulatory filing (pdf). 

ERC recently completed a project finance restructuring that saw the company take on new loans and equity commitments valued at around USD 500 mn, bringing the 4.2 mn tonne-capacity refinery’s overall cost to around USD 4.5 bn. 

The refinery is expected to go online by the end of 2018 or early 2019, with trial operations set to start as early as next month.

Energean receives Class approval for FPSO design for Karish-Tanin - WORLD OIL

MAY/8/2018

LONDON -- Energean Oil & Gas, the independent oil and gas exploration and production company focused on the Eastern Mediterranean, announced that it has received Class approval from DNV-GL, the global quality assurance body, for the Basic Design of the new-build Floating Production Storage and Offloading (FPSO) that will be deployed at its deepwater Karish-Tanin development, offshore Israel.

This rapid obtainment of Class approval reflects the maturity of the FPSO design at Final Investment Decision (FID) and keeps the development on track to cut first steel as planned before the end of 2018.

Early Class approval was viewed as a critical milestone and its achievement, on schedule, validates the adopted strategy of building upon an existing hull design from TechnipFMC subsidiary, Inocean.

Cyprus, Greece, Israel recommit to a way forward - KNEWS / KATHIMERINI

8 May 2018, 15:00

President Nicos Anastasiades says a ‘code of conduct’ has been established between Cyprus, Greece, and Israel, following the completion of a trilateral meeting in Nicosia that yielded a long declaration, and paved the way for another meeting before the year is out to discuss an ambitious EastMed pipeline.

The meeting was held at the Presidential Palace, where Anastasiades hosted Greek Prime Minister Alexis Tsipras and Israeli Prime Minister Benjamin Netanyahu.

A declaration was issued saying the leaders "express our commitment to continue strengthening the cooperation between our countries in the framework of a trilateral partnership encompassing an ever increasing number of areas of common interest and, in the process, contribute to the promotion of peace and prosperity in the Eastern Mediterranean and the wider region."

According to political analysts at Kathimerini, the two dominant issues emerging from the meeting had to do with energy planning in connection with latest developments in the Cyprus problem as well as discussion on pushing forward for the East Med gas pipeline.

Spud of Kelvin-1X exploration well, Egypt - SDX ENERGY INC.

8 May 2018
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that it has spud its Kelvin-1X exploration well at South Disouq, Egypt (SDX 55% working interest and operator).

Kelvin-1X is the second well in the Company's 2018 four well exploration and appraisal drilling campaign at South Disouq and is designed to prove up what the Company believes to be potentially material upside within the concession. 

The well is anticipated to take up to 30 days to drill and if successful, will be completed, flow tested and connected to the infrastructure being developed at the SD-1X discovery location.

Cyprus-Egypt gas pipeline to cost $800 mln-$1 bln - REUTERS

MAY 7, 2018 / 2:58 PM

Reporting by Ahmed Ismail; writing by Eric Knecht; editing by Jason Neely

CAIRO, May 7 (Reuters) - A pipeline connecting Cyprus’ Aphrodite gas field to Egypt’s liquefied natural gas (LNG) facilities will cost between $800 million and $1 billion, Egyptian petroleum minister Tarek El Molla said on Monday.

Egypt has rapidly increased its production of natural gas and is hoping to become a hub for exporting to Europe after making a series of big discoveries in recent years.

Molla, speaking at a joint news conference with Cyprus energy minister Yiorgos Lakkotrypis, said Cypriot gas would be used in part for domestic consumption and in part for export.

Lakkotrypis said a final agreement on the pipeline would be signed as quickly as possible but did not specify when.

Egypt is hoping to halt gas imports by 2019 and achieve self-sufficiency.