Sunday, September 15, 2019

Egypt’s position as regional gas export hub for East Med gets US support - ENTERPRISE

Sunday, 15 September 2019

Egypt’s position as regional gas export hub for East Med gets US support: US Deputy Energy Secretary Dan Brouillette met with Oil Minister Tarek El Molla on Thursday in Cairo to discuss moving forward with the US-Egypt Strategic Energy Dialogue — a bilateral cooperation initiative aimed at strengthening Egypt’s energy production, storage and distribution capacity. The project, which came out of an MoU signed during US Secretary of Energy Rick Perry’s visit in July, seeks to capitalize on Egypt’s position as the regional gas export hub for the East Mediterranean Gas Forum countries and hopes to attract new energy investments, said Brouillette. Following the meeting, Brouillette held a roundtable with a select few news outlets, including Enterprise, to discuss the initiative and Egypt’s role in the region’s energy. The Wall Street Journal also had the story.

Friday, September 13, 2019

ENERGY: Cyprus receives intense international interest for gas supply tender - FINANCIAL MIRROR

13 September, 2019

The first phase of Cyprus Gas Company’s (DEFA) tender process for the supply of liquefied natural gas (LNG) has triggered considerable interest from major international players such as Shell, BP, Eni and Total.

According to DEFA, 25 suppliers, among the most dominant in the global LNG market, are seeking to supply gas to Cyprus and have submitted the prerequisites to qualify for the next stages of bidding and negotiation.

“The intense market competition for LNG supplies confirms that the strategy to acquire an FSRU was a decision toward the right direction,” a DEFA statement said.

Bidders/suppliers participating in the next round of bidding and negotiating are; Gunvor International B.V. Amsterdam, Naturgy LNG Marketing, Centrica LNG, Endesa Energia, Cheniere Marketing International LLP, Equinor ASA, Novatek Gas & Power Asia Pte, Shell International Trading Middle East, Enel Global Trading, Eni Trading & Shipping, Total Gas & Power Asia Private, Osaka Gas Kabushiki Gaisha, Powerglobe LLC, Repsol LNG Holding, Petronas LNG, BP Gas Marketing, Vitol, B.B. Energy (ASIA), Mytilineos, Uniper Global Commodities SE, Marubeni Corporation, SONATRACH and Public Gas Corporation (DEPA), Eni (Gas & LNG Marketing and Power), Glencore Energy UK and Mitsui & Co.

Thursday, September 12, 2019

Strong results from initial Karish wells offshore Israel - OFFSHORE MAGAZINE

Sep 12th, 2019

ATHENS, Greece – Energean has issued updates (Results For Half Year Ended 30 June 2019
) on its development and exploration campaigns in the eastern Mediterranean Sea.

The main project is the Karish/Tanin gas development offshore Israel, where the drillship Stena DrillMAX recently completed drilling of two of the Karish Main wells.

In both cases, the outcome was positive, with a 45-m (147-ft) gross gas column encountered in the D-sands interval. Also, fluid samples from the main reservoir indicate a higher than foreseen condensate ratio.

Drilling of the final well in the program, Karish Main-01, is under way and this is expected to finish during 4Q. The three wells will deliver an initial 4.3 bcm of gas sales into the Israeli domestic market.

Later this year the FPSO hull is due to sail from China to Singapore.

In July, Israel’s Petroleum Council awarded Energean and Israel Opportunity – Energy Resource four new offshore licenses (55, 56, 61, and 62) for block D, 45 km (28 mi) from the coast.

Dana Gas could sell off its entire Egypt portfolio - ENTERPRISE

Thursday, 12 September 2019

The UAE’s Dana Gas has received offers from companies interested in buying its USD 500 mn Egypt portfolio, the company’s head of investor relations Mohammed Mubaideen told Mubasher. The company could potentially sell all of its assets in Egypt, depending on the offers it receives, Mubaideen said, adding that the deadline to receive offers is mid-November. The energy company currently produces 34k boe/d. Mubaideen said the Egyptian government has repaid the company USD 81 mn during the first half of the year and brought its arrears down to USD 117 mn. He reiterated that the reason behind the company’s exit is to focus on potentially more lucrative operations in Iraq.

Background: The Emirati company said in July it had hired financial advisors to study the possibility of selling down its Egypt asset portfolio. Unnamed sources told Reuters that the company hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale. The company had previously said it would abandon its Merak-1 well in the North Arish concession after failing to find commercial hydrocarbons, but that it plans to invest in drilling in the El Matareya concession in the Nile Delta.

First well from Baltim South West field linked to Egypt’s national grid - ENTERPRISE

Thursday, 12 September 2019

Italy’s Eni has linked the first well in its Baltim South West natural gas field to the national grid, an EGAS source said. 

The well has a production capacity of 50 mcf/d and is the first of six wells, which will bring the field’s total production to 500 mcf/d once developed during the current fiscal year.

Wednesday, September 11, 2019

Energy Security Key in Bolstered Cyprus-Egypt Ties - THE NEW YORK TIMES / ASSOCIATED PRESS

Sept. 11, 2019

NICOSIA, Cyprus — Cyprus' defense minister says the east Mediterranean island nation and neighbor Egypt are exchanging information to bolster security around an offshore search for natural gas as part of enhanced defense ties.

Savvas Angelides says the two neighbors' information-sharing extends to countering any extremist threats.

The Cypriot minister says defense ties are also being upgraded between Cyprus, Egypt and Greece as through joint military exercises and personnel exchanges.

Angelides was speaking Wednesday after escorting his counterpart, Lt. Gen. Mohamed Ahmed Zaki, to a meeting with Cypriot President Nicos Anastasiades.

Cyprus and Egypt share a sea border delineating their respective exclusive economic zones where each country is carrying out exploratory gas drilling.

Officials said a recent discovery of Egypt's Zohr gas field bodes well for more discoveries in Cypriot waters.

Israeli gas will arrive in Egypt before the end of the year -El Molla - ENTERPRISE

Wednesday, 11 September 2019

Egypt will begin receiving natural gas from Israel by the end of 2019, Oil Minister Tarek El Molla said in an interview at the World Energy Congress yesterday, according to Bloomberg. Israel will initially ship some 200 mn scf of gas per day, an amount that will increase to 500 mn scf/d at some point in 2020, he said. The import of Israeli gas comes as part of the landmark USD 15 bn agreement between Alaa Arafa-led Dolphinus Holdings, Delek Drilling, and Noble Energy, which was signed last year.

Multilateralism to blame for delays? El Molla said that the multilateral nature of the gas export arrangement was the main reason for the process taking longer than planned, but insisted that export plans remain on track, according to Reuters. Trial shipments were originally supposed to come in March, with commercial sales beginning by the end of June. Another potential spanner in the works surfaced in May when Thailand’s PPT Energy — a stakeholder in the Egypt-Israel EMG gas pipeline — filed a USD 1 bn lawsuit against Egypt for failing to meet gas deliveries after 2011.

Monday, September 9, 2019

More US companies will join Cyprus gas exploitation, says Ambassador - IN CYPRUS / CNA

September 5, 2019 at 4:19pm
Annie Charalambous (edited by)

More US energy companies will operate in Cyprus to help extract rich natural gas resources, joining ExxonMobil and Noble Energy.

This is what US Ambassador Judith Garber told a business dinner in Nicosia on Wednesday.

“We are proud that two American companies – ExxonMobil and Noble Energy – are participating in this game-changing development…I firmly believe other U.S. companies in the energy sector will join them, as Cyprus transitions from discovery of energy resources to the hard task of bringing those resources to market,” she also said.

She then stressed that the discovery of hydrocarbons in the EEZ of Cyprus offers “great promise and responsibility”.

“We hope, such resources promote prosperity in the entire Eastern Mediterranean region and help to diversify Europe’s energy supply,” she added.

Pipeline operator EMG signs terminal deal for Israel-Egypt gas exports - REUTERS

SEPTEMBER 8, 2019 / 11:18 AM

JERUSALEM (Reuters) - The East Mediterranean Gas (EMG) pipeline operator signed a deal to use a terminal belonging to Israel’s Europe Asia Pipeline Company (EAPC) for the export of natural gas to Egypt, the companies said on Sunday.

The pipeline arrangement was one of the final hurdles before Israel could begin selling gas to Egypt in a landmark $15 billion export deal.

The gas, produced from fields in the eastern Mediterranean, will be supplied via EMG’s subsea pipeline that connects the Israeli coastal city of Ashkelon and El-Arish in Egypt’s Sinai peninsula. But first the gas must pass through state-run EAPC’s terminal in Ashkelon.

Sunday, September 8, 2019

ENPEDCo, EGPC ink agreements for Western Desert oil and gas exploration - ENTERPRISE

Sunday, 8 September 2019

The Egyptian National Petroleum for Exploration and Development Company (ENPEDCo) and the EGPC signed two agreements to explore oil and gas in the Western Desert last week, the Oil Ministry said in a statement. 

The companies intend to invest at least USD 4 mn to drill four exploratory wells in the Abu Sennan and Ras Qattara concessions.

Saturday, September 7, 2019

Gas sector a catalyst for further cooperation between Lebanon and Egypt - EXECUTIVE MAGAZINE

Nada Boustani, Lebanon's Energy Minister
August 7, 2019
Mona Sukkarieh

The first six months of 2019 saw an unusual series of meetings between Lebanese and Egyptian officials, with energy cooperation at the core of these discussions. If memory serves well, the frequency is unprecedented.

The option of resuming gas imports from Egypt was discussed extensively, especially during the first meetings of 2019. Lebanon previously imported natural gas from Egypt in 2010 via the Arab Gas Pipeline (AGP) to generate electricity. But supplies were interrupted after a few months with various reasons touted (such as Egypt’s inability to pursue exports because production was barely enough to meet local demand, instability in Egypt, and attacks against the pipeline). With the formation of a new government on January 31, Lebanese officials explored the possibility of quickly resuming imports as they scrambled to find solutions to the problems plaguing the electricity sector. The dire state of Lebanon’s power sector and the burden it places on the economy propelled it to the forefront of the government’s reform agenda. Government officials examined the option of importing gas by pipeline from Egypt to generate electricity—in addition to the possibility of buying electricity from Jordan in exchange for water—as among the possible solutions that they thought could be implemented quickly.

Wednesday, September 4, 2019

Production platform for Leviathan, Israel’s largest gas field, to arrive in days - THE TIMES OF ISRAEL

SEPTEMBER 4, 2019 : 2:17 pm

The production platform for the massive Leviathan natural gas field will be arriving in Israel within days, ahead of the start of production for the nation’s largest energy project later this year.

The production decks, comprising five units, are expected to arrive off the Israeli coast in the coming days on four barges, the partners in the field said on Wednesday.

A large offshore crane vessel — the world’s largest — will also be arriving to install the topside decks of the Leviathan platform, which will be set up 10 kilometers off the coast, at a water depth of 86 meters.
The topside decks are the surface decks of the platform, including all the equipment for drilling, production and processing, a helipad, work areas, and living quarters for those who will work on the rig. Setting up the decks will take some four weeks, the statement said.

Tuesday, September 3, 2019

Qarun drills 10 exploratory wells in Western Desert - ENTERPRISE

Tuesday, 3 September 2019

Qarun Petroleum, a joint venture between Apache and the Egyptian General Petroleum Company, has drilled 10 exploratory wells in the Western Desert, producing a combined 5k bbl/d, the Oil Ministry said in a statement yesterday. 

This will account for 16% of the company’s total production. 

The company is now considering investing USD 237 mn during FY2019-2020 in further development projects.

Total: 20-25% chance of success on Lebanon first exploratory well - LEBANON GAS NEWS


Total is the lead company in a consortium that won contracts in 2017 to explore for oil and gas in Lebanon’s maritime block’s 4 and 9. The other two companies are ENI and Novatek.

The consortium is contractually obliged to drill a minimum of two exploratory wells per block, starting with Block 4, where the first drill location has been set off the coast of Beirut.

What are the chances of drilling before the end of 2019?

Monday, September 2, 2019

Egypt Kuwait Holding’s NSCO begins production from second North Sinai well - ENTERPRISE

Monday, 2 September 2019

Egypt Kuwait Holding’s (EKH) NSCO Investments started production from its second North Sinai natural gas well on 29 August with an output of 20 mcf/d, the company said in a press release.

The new well brings the company’s total production to 75 mcf/d, a 200% increase compared to the first six months of 2019.

The company is now drilling its third well, which it expects to complete during 4Q2019. EKH started production from its first North Sinai well in July.

Sunday, September 1, 2019

Cyprus runs the risk of being trapped into an expensive undertaking with gas deal - CYPRUS MAIL

September 1, 2019
Charles Ellinas

Gas alone will not reduce carbon emissions to the levels required by the EU. This would require a substantial increase in the share of renewables and biofuels in Cyprus energy mix

DEFA announced on 23 August its decision to award the tender for the construction of an LNG import terminal at Vasilikos. This will comprise a floating storage regasification unit (FSRU), a jetty for the mooring of the FSRU, pipelines, port and other facilities.

The winner is a consortium comprising China Petroleum Pipeline Engineering Co Ltd (CPPE), Aktor SA and Metron SA, Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Ltd.

Announcing its decision DEFA said “we believe that the future of the country is aligned with natural gas and we expect it to play a major role in the economic development of the country in years to come.

“The establishment of the natural gas market will boost the development of the whole energy and industry sectors of the Republic.”

EGAS cancels LNG tender for three cargoes due to low bids - ENTERPRISE

Sunday, 1 September 2019

EGAS has canceled an LNG tender for three cargoes from the Idku gas liquefaction plant near Alexandria, market sources told Reuters. 

The tender, which closed on 28 August, was canceled due to low bids, the sources said.

Friday, August 30, 2019

Zohr soars, Nour not sure - PETROLEUM ECONOMIST

30 August 2019
Gerald Butt

The super-giant Zohr gas field, in the Shorouk concession with at least 30tn ft3 of gas in place, keeps on breaking records. After first production was achieved in less than two-and-a-half years post-discovery, Italy's Eni now says that production has reached more than 2.7bn ft3/d (76.4mn m³/d)—five months ahead of plan.

A second 216km (134-mile) 30in pipeline connecting the offshore subsea production facilities to the onshore treatment plant just west of Port Said became operational in August. With this and the completion and optimisation of the plant treatment capacity, Eni says that, by end-2019, Zohr's potential production rate will reach 3.2bn ft3/d (90.6mn m³/d), up from the 2.7bn ft3/d plateau envisaged in the development plan.

Gas from Zohr already accounts for around one-third of Egypt's 6.5bn ft3/d output, and this extra production is enabling the resumption of LNG exports from the Idku plant—after a period when the country was forced to import LNG. The Damietta facility remains closed, pending the resolution of a dispute between the Egyptian government and operator Union Fenosa Gas, a joint venture between Eni and Spain's Naturgy.

Thursday, August 29, 2019

Superpowers Are Vying For Power In This New Oil & Gas Frontier - OIL PRICE

Aug 29, 2019, 3:00 PM CDT
Vanand Meliksetian

The Eastern Mediterranean has become a hotbed for tensions between regional and great powers due to the discovery of major energy deposits. The littoral states could potentially earn billions in gas exports while at the same time ensuring a level of energy security, which is rare to the region. However, the on-going activities create a level of complexity, which is an opportunity for countries such as the U.S. and Russia to exert influence.

Secretary of State Mike Pompeo has warned of "revisionist powers like Iran, Russia, and China trying to take major footholds in the East and West." The U.S. wishes to create an alliance of countries connected through multilateral interdependence. The backbone of the coalition is to be formed by Greece, Cyprus, and Israel.

The most critical driver for Washington’s assertiveness is Russia’s resurgence as a major force which can project power in the wider region. Moscow's relatively successful policy in the Middle East and its presence in the Eastern Mediterranean through its military intervention in Syria are making the U.S. wary of Russian influence.

Wednesday, August 28, 2019

Israeli Energy Exports Won’t Make Europe More Pro-Israel - FOREIGN POLICY


The natural gas discovered in the Eastern Mediterranean is so expensive to bring to market that it might never reach European consumers, let alone change the policies of EU governments.

Ever since the discovery of the Leviathan gas field off the coast of Haifa, Israel has been dreaming of riches and political influence. A recent Foreign Policy article has taken this to the realms of the unimaginable—arguing that future European dependence on Israeli gas exports could both change the political views of European countries toward Israel and make the EU pro-Israel.

But the article overlooks a more basic question: Can Israeli gas ever make it to Europe or to global markets at a competitive price? With Leviathan about to come onstream, Israel, Noble Energy (as the operator), and its partners are looking for gas sales beyond this first phase of development. As much as 9-10 billion cubic meters per year of gas could be available for export. This is about the same amount as the Southern Gas Corridor pipeline from Azerbaijan to Italy that will be delivering 10 billion cubic meters per year to Europe by 2020.

Damietta liquefaction plant to reopen in 3Q2019? - ENTERPRISE

Wednesday, 28 August 2019

Deja vu: Damietta LNG plant to reopen in 3Q2019? The Damietta liquefaction plant will reopen by the end of 3Q2019 after being offline for the past six years, an unnamed oil industry source tells Youm7. The facility, which produces around 5 mn tonnes of liquefied natural gas per year when operational, has been closed amid a long-running dispute between the Egyptian government and operator Union Fenosa Gas (UFG).

We’ve heard this one before: An oil ministry source said back in February that the plant would reopen in April following an agreement with UFG. This was proved wrong just two days later when UFG publicly denied reaching a settlement. Then last month Eni (a joint partner in UFG with Union Fenosa) said that the facility should open “soon this year”, and another source claimed that the facility would be operating at full capacity by 4Q2019. For the latest claim to be realistic, there needs to be a resolution to the five-year UFG dispute within the next four weeks. Forgive us if we keep our eyebrows raised on this one.

Tuesday, August 27, 2019

DLA Piper advises Natural Gas Public Company of Cyprus on terminal - HYDROCARBON ENGINEERING

Tuesday, 27 August 2019 11:30

DLA Piper has advised the Natural Gas Public Company of Cyprus (DEFA) on its tender process for the selection of the contractor for the design, construction, procurement, commissioning, operation and maintenance of an offshore LNG import terminal and associated infrastructure, located in Vasilikos, Cyprus.

DEFA announced today the outcome of its tender process, selecting as the first ranked tenderer a consortium led by China Petroleum Pipeline Engineering Co. Ltd, and includes AKTOR S.A., Metron S.A., Hudong-Zhongua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Ltd. As per the terms of the announcement, the tender is for the next stage of the development of a natural gas market in Cyprus and that major companies involved in the European gas markets also participated in the tender process.

The DEFA Chairman, Symeon Kassianides, commented: “We are pleased to see the successful outcome of the process. Here at DEFA we believe that the future of the country is aligned with natural gas and we expect it to play a major role in the economic development of the country in years to come. The establishment of the natural gas market will boost the development of the whole energy and industry sectors of the Republic.”

Cyprus to adopt new strategy for exploiting Aphrodite gas by 2025 - FINANCIAL MIRROR

27 August, 2019

A multi-billion-dollar revised development and production plan for exploiting the Aphrodite gas field within six years is expected to be received by the government within days, said Energy Minister Giorgos Lakkotrypis.

According to the timeframes given by the consortium, the gas field is expected to produce natural gas by 2025.

Cyprus expects to earn $9.3 bln over 18 years from exploiting its Aphrodite gas field after Nicosia renegotiated the contract in June.

A re-working of the production contract ensures Nicosia receives an average yearly income of 520 million dollars over the lifespan of the gas field. The figures are based on the average price of oil being around $70 a barrel.

Previously the consortium - Texas-based Noble Energy, which is the operator, British-Dutch giant Shell and Israel’s Delek - had no obligation to stick to a timeline, now natural gas is expected to flow from Aphrodite and be pumped to Egypt via a pipeline.

Egypt's EGAS offers three LNG cargoes for September - sources - ZAWYA / REUTERS

Ships are docked in front of Suez Canal Authority in Port Said,
Egypt July 29, 2018.REUTERS, Amr Abdallah Dalsh
27 AUGUST, 2019Jessica Jaganathan, Reuters News

SINGAPORE - Egyptian Natural Gas Holding Co (EGAS) has offered three liquefied natural gas (LNG) cargoes for loading from the Idku plant in September, two industry sources said on Tuesday.

The cargoes are offered on a free-on-board (FOB) basis for loading over Sept. 9-11, Sept. 24-26 and Sept. 30 to Oct. 2, they said.

The tender closes on Aug. 28, they added.

Ratification of hydrocarbon licenses within August - ENERGY PRESS

27 AUG 2019

Four offshore hydrocarbon exploration and production licenses signed by three groups of investors for areas off Crete, in the Ionian Sea and west of the Peloponnese are expected to be ratified in Greek Parliament within the next few days, possibly before the end of August, energypress sources have informed.

These licenses are significant for the reputation of the recently elected conservative New Democracy party, keen to underline its willingness to cooperate in the energy sector and draw major investments to the country.

Oil majors are involved. France’s Total heads a consortium that includes US giant ExxonMobil and Hellenic Petroleum (ELPE) for the two licenses off Crete, south and southwest of the island.

ELPE has joined forces with Spain’s Repsol for a license in the Ionian Sea, while ELPE is the sole participant in the offshore license west of the Peloponnese.

Shell to drill Montu well at West Delta concession this month - ENTERPRISE

Tuesday, 27 August 2019

Shell is set to begin drilling at the Montu well in its West Delta deep marine concession in the Mediterranean Sea this month, the company said in a statement. 

The Discoverer India drillship will drill 6k meters below the water’s surface, setting a new record as the deepest well in Egypt. 

The well is estimated to have a reserve of 4.7 tcf of natural gas and will take five months to drill.

BP to drill new wells in Atoll, Katameya fields in Nile Delta - ENTERPRISE

Tuesday, 27 August 2019

BP is preparing to drill two new wells in the Atoll and Katameya natural gas fields in its North Damietta offshore concession in the Nile Delta, according to an Oil Ministry statement. 

The drilling work will cost USD 280 mn. 

The Atoll field is expected to produce 100 mcf/d of gas when it comes online in 4Q2020, while the Katameya field will produce 60 mcf/d of gas from 2Q2020.

Egypt- First well of Baltim South West gas field to start production within days: Petrobel - MENAFN

8/27/2019 6:08:03 PM

(MENAFN - Daily News Egypt) Belayim Petroleum (Petrobel) completed the construction of 18 km-long, 26-inch-diameter offshore production line and 25 km-long, 26-inch-diameter onshore line, as well as the manufacture and installation of the offshore production platform within the development of the Baltim South West gas field, three months ahead of schedule.

Atef Hassan, chairperson of Petrobel, said the field's first well is expected to enter production in the coming days, and it is planned to complete drilling five more wells in 2019/20, bringing the total production of the field to about 500m cubic feet per day (scf/day).

The financial results of the company presented to the Minister of Petroleum and Mineral Resources, Tarek El-Mulla, showed that Petrobel succeeded in implementing an integrated action plan supported by all partners to achieve its objectives as an operating company and achieved positive performance indicators and results.

Monday, August 26, 2019

GUPCO plans to inject $1.2bn investments within two years - DAILY NEWS EGYPT

Monday August 26, 2019
Mohamed Farag 

Gulf of Suez Petroleum Company (GUPCO) plans to bring total investments in the fiscal years (FY) 2019/20 and 2020/21 up to $1.2bn to expand research, exploration, and development activities. The company aims to drill 13 new wells and carry out 12 repair operations, which will contribute to increasing production to targeted rates.

Geologist Khaled Hamdan, chairperson of GUPCO, said during his meeting with the Minister of Petroleum and Mineral Resources, Tarek El-Molla, that an ambitious work plan is being implemented to expand the activities of oil and gas research and development in Ras Shuqair (Ras Shukheir) area in the Gulf of Suez, which also include developing the quality of infrastructure and production facilities in the region.

The results of GUPCO operations showed that the average production from its fields in Ras Shuqair amounted to about 61,700 barrels of crude oil per day during FY 2018/19, and that there is a plan to increase production from Ras Shuqair fields during the current fiscal year to about 73,000 barrels per day.

Saturday, August 24, 2019

Lebanon’s High Risk Offshore Oil & Gas Boom - OIL PRICE / YAHOO

August 24, 2019
Cyril Widdershoven

The least known offshore oil and gas frontier in the East-Mediterranean, Lebanon is preparing itself for a possible entrance into the producer’s league.

At the end of 2019, most probably November – December, offshore drilling is expected to start, targeting some prolific basins. The offshore success stories in Israel, Cyprus and Egypt, have supported the appetite of Beirut to take the plunge too. Nada Boustani, Lebanon’s Minister of Energy and Water, also reiterated that the country’s second licensing round is receiving lots of interest. Lebanon estimates its natural gas reserves at 25 trillion cubic feet (tcf) based on seismic studies, but these have not been confirmed by drilling and may not amount to reserves that are commercially viable.

In an interview given to the international press this week, Boustani showed extreme optimism about the expected results, hoping that an offshore gas discovery would give a big boost to the currently struggling Lebanese economy.

Friday, August 23, 2019

Multinational consortium named for LNG construction - CYPRUS MAIL

August 23, 2019
George Psyllides

Α multinational consortium of JV China Petroleum Pipeline Engineering Co Ltd, Aktor S.A. and Metron S.A., with Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Limited ranked first in the evaluation for the construction of the infrastructure required for the introduction of natural gas in Cyprus, it was announced on Friday.

It followed a lengthy and complex tender process overseen by the state natural gas company, Defa, in cooperation with external industry experts.

The top ranked bidder had to satisfy a series of qualitative, quantitative and financial criteria, so as to be able to demonstrate an ability to perform at the high standards set by Defa regarding the development of the Cyprus natural gas market infrastructure.

Thursday, August 22, 2019

Zohr natural gas field production rises to 2.7 bcf/d - ENTERPRISE

Thursday, 22 August 2019

Production from the Zohr natural gas field has reached the 2.7 bcf/d mark four months ahead of schedule, Oil Minister Tarek El Molla said in a statement. 

This is significantly higher than the figures provided by Rosneft, which last week said production was currently averaging 2.4 bcf/d. 

The oil ministry’s figures mean that output has increased by 600 mcf/d since February, when the production stood at 2.1 bcf/d. 

Twelve wells in the field are now producing gas, the statement said. Field operator Eni originally estimated that production would peak at 2.7 bcf/d, but the ministry later said that output would rise above that to 3 bcf/d. 

Reuters also picked up the story.

Wednesday, August 21, 2019

Eni: Zohr gas production reaches 2.7 bcfd - ENI

21/08/2019 15:15

San Donato Milanese (Milan), 21 August 2019 - Eni announces that the production from Zohr field has now reached more than 2.7 billion cubic feet per day (bcfd), about 5 months ahead of the Plan of Development (PoD).

This remarkable result has been achieved following the completion of all eight onshore treatment production units – the last one commissioned in April 2019 – and all Sulphur production units in August, the production start-up of two wells in the southern culmination of the field (in addition to the ten wells already drilled in the northern culmination) as well as the start-up on August 18th 2019 of the second 216 km long 30” pipeline connecting the offshore subsea production facilities to the onshore treatment plant.

The new pipeline, in conjunction with the completion and optimization of the plant treatment capacity, paves the way to increase, by the year end, the field potential production rate up to 3.2 bcfd against the POD’s plateau rate of 2.7 bcfd.

Wintershall DEA to begin natgas production at Raven field next month - ENTERPRISE

Wednesday, 21 August 2019

Wintershall DEA will begin natural gas production from its Raven field in September, unnamed sources told Amwal Al Ghad. 

The field is expected to produce up to 900 mcf/d of natural gas, and between 20k to 25k bbl/d of condensates.

Tuesday, August 20, 2019

US urges Turkey to seize all activity in Cyprus’ EEZ - KATHIMERINI

Foreign Minister Christodoulides (L) & Secretary of State Pompeo
20.08.2019 : 10:48

The US State Department on Tuesday called on Turkish authorities to cease immediately any “unlawful activities” in Cyprus’ territorial sea and remove its drillship, Yavuz.

Turkey has already established a presence in the region with its Yavuz and Fatih drillships and the Barbaros research vessel.

On Monday, Turkish Foreign Minister Mevlut Cavusoglu announced that a fourth Turkish ship, the Oruc Reis research vessel, is on its way to the region.

“This provocative step raises tensions,” the State Department said responding to questions from Hellas Journal and Cyprus News Agency, adding that only Cyprus, acting through its government, can consent to activities such as drilling within its territorial sea.

It also said that resource development in Eastern Mediterranean should promote cooperation, provide foundation for durable energy security and economic prosperity.

Sunday, August 18, 2019

Egypt plans to expand household natural gas supply network by 950 km - ENTERPRISE

Sunday, 18 August 2019

The government is planning to expand Egypt’s natural gas supply network into the households by 950 km by the end of 2023, Oil Minister Tarek El Molla said, according to Mubasher. 

This would bring the length of the network to 8750 km. 

El Molla did not mention the expected cost of the expansion, nor the expected increase in the percentage of households with access to natgas.

Wednesday, August 14, 2019

Arbitration court rules against Nostra Terra in Egypt oil payments dispute - ENTERPRISE

Wednesday, 14 August 2019

Arbitration court rules against Nostra Terra in Egypt oil payments dispute: Nostra Terra Oil & Gas has been found in default of the joint operating agreement (JOA) governing its East Ghazalat joint venture in Egypt with North Petroleum International, the company said on Monday. The London Court of International Arbitration ruled against the UK-based oil and gas company, finding subsidiary Nostra Terra Inc. in default for the non-payment of November and December 2015 cash calls to North Petroleum of around USD 1.06 mn, along with an estimated USD 125k in interest. The company’s failure to make the payments could result in the transfer of Nostra Terra’s 50% stake in the East Ghazalat concession to North Petroleum. Nostra Terra has described the concession as “non-core” to its operations. The company is considering seeking damages from North Petroleum for allegedly breaching the JOA.

Rosneft says gas output at Zohr in Egypt surges to 11.3 bcm in H1 - REUTERS

AUGUST 14, 2019 / 2:00 PM

MOSCOW, Aug 14 (Reuters) - Natural gas production at Zohr, the largest gas field in the Mediterranean Sea, more than tripled in the first half this year to reach 11.3 billion cubic metres (bcm), Russian energy giant Rosneft said on Wednesday.

The field is an important asset for Kremlin-controlled Rosneft in its global expansion strategy and natural gas production programme. Rosneft bought a 30% stake in the project from Italy’s Eni in 2017.

The company said daily gas output at the offshore project would reach 76 million cubic metres (2.7 billion cubic feet) by the end of the year from 68 million cubic metres currently.

“After the field’s start-up in December 2017, its development is going ahead of schedule,” Rosneft said in a statement.

Eni controls 50% of the project, while BP and Mubadala Petroleum each have a 10% stake in Zohr. 

Reporting by Maria Kiselyova and Vladimir Soldatkin, editing by Deepa Babington and David Evans

Tuesday, August 13, 2019

US-Greece-Cyprus-Israel want oil, gas as much East Med peace - NEW EUROPE

AUGUST 13, 2019 - 16:32

ATHENS – Meeting in Athens, the energy ministers of Greece, Cyprus, and Israel – Kostas Hatzidakis, Georgios Lakkotrypis, and Yuval Steinitz, as well as US Assistant Secretary of State for Energy Resources Frank Fannon – have discussed their cooperation in the field of energy, while affirming their shared commitment to promoting peace, security, and prosperity in the Eastern Mediterranean region.

The four met in Athens on 7 August and agreed to establish a High-Level Working Group (HLWG) that will highlight specific energy projects and propose ways of promoting their implementation.

“The ministers and the United States agreed to support their countries’ energy independence and the establishment of an Energy Corridor of the Eastern Mediterranean, contributing thus to the energy security of the European Union by actively promoting the diversification of import sources and routes,” the US Department of State said in a statement.

Saturday, August 10, 2019

Energy cooperation boosts growing trilateral alliance between Egypt, Greece and Cyprus - AHRAM ONLINE

Saturday 10 Aug 2019

The first tripartite gathering between Egypt, Greece and Cyprus was held in 2014 and quickly turned into a broad alliance fostering cooperation across a range of economic, political and strategic interests.

Last week’s visit by Foreign Minister Sameh Shoukri to Greece and Cyprus lent impetus to the process, boosting relations and enhancing cooperation between the three states, especially in the energy field.

Professor of political science Tarek Fahmi says the tripartite gathering is already working for the benefit of the three countries, and for the region in general, especially after the East Mediterranean Gas Forum (EMGF) was established.

Egypt is seeking to become a major regional hub for the production, processing and trading of natural gas.

Friday, August 9, 2019

Mytilineos Group overtakes DEPA as major LNG importer in 2019 - KATHIMERINI


Private Greek industrial group Mytilineos has overtaken incumbent DEPA to become the country’s biggest LNG importer this year, the first time in history that an independent company has knocked the state-owned company from the top spot, ICIS an information platform on petrochemicals and specifically on energy issues, fertilisers and other commodities said in a report.

Mytilineos imported over 370,000 tonnes of LNG from January to July, or 39 percent of the national total supplies, according to LNG Edge. DEPA took 273,000 tonnes, or 29 percent.

DEPA’s market share was 92 percent last year, and has never previously fallen below 50 pct. The shift indicates the progress made in one of the last countries in the European Union to liberalize its gas market.

The market began opening back in 2005, but momentum picked up from 2018 when the retail market was fully liberalized, leaving consumers free to choose their supplier. DEPA has been losing customers ever since.

With demand from the electricity power sector as well as industrial needs in aluminium manufacturing, Mytilineos is at the forefront of the market.

Wednesday, August 7, 2019

ExxonMobil considers logistics support center in Damietta Port - ENERGY EGYPT / DAMIETTA PORT AUTHORITY

AUGUST 7, 2019 AT 3:18 PM

Damietta Port Authority (DPA) Chairman, Cpt. Tarek Shahin met with ExxonMobil delegation to discuss their interest in exploring the possibility to establish a logistic support center in Damietta Port for servicing oil and gas fields.

Both sides looked over port capabilities particularly its unique location near recent oil discoveries and gas fields in the Mediterranean, the available multimodal transport facilities which translate into a competitive edge setting Damietta in front of other national ports.

Shahin welcomed the delegation and confirmed readiness to offer all possible facilities to support the new project stressing the fact that Damietta Port does entertain a wonderful package of strong infrastructure tied with wide expertise in such projects. He also pointed out that global enterprises are currently working in Damietta Port in projects serving recently discovered oil fields in the Mediterranean.

JOINT STATEMENT following the Ministerial meeting between Greece-Cyprus-Israel and the United States Regarding cooperation in the field of Energy - MINISTRY OF ENVIRONMENT & ENERGY, GREECE

Athens, August 7th, 2019

The Energy Ministers of the Hellenic Republic, Mr. Kostas Hatzidakis, the Republic of Cyprus, Mr. Georgios Lakkotrypis, the State of Israel, Mr. Yuval Steinitz, and the Assistant Secretary of State for Energy Resources of the United States of America, Mr. Francis Fannon, met today in Athens regarding cooperation in the field of energy, while affirming their shared commitment to promote peace, stability, security and prosperity in the Eastern Mediterranean region.

Mr. Fannon underlined the increasing and tangible support of the US government for the establishment of a structured quadrilateral mechanism for cooperation that focuses on energy matters.

The Ministers and the United States identified several significant areas of common interest, including, inter alia, infrastructure projects, renewable energy and energy storage, emergency preparedness, environmental protection and cyber security, while agreeing to establish a High Level Working Group (HLWG) that will highlight specific energy projects and propose ways of promoting their implementation. The Ministers have agreed to work towards signing an agreement for a joint emergency preparedness and response mechanism for offshore oil and gas operations. The HLWG will report its progress to the Ministers of Energy on a regular basis.


07 August 2019 07:00

Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key interests in the North Falkland Basin and the Greater Mediterranean region, provides the following operational update in relation to the Abu Sennan concession, Egypt ("Abu Sennan"). Through Rockhopper Egypt Pty Limited, Rockhopper holds a 22% working interest in Abu Sennan.

Al Jahraa-7
The development well, Al Jahraa-7, was spudded on 25 May 2019, and reached total depth of 3,970m MD in the Kharita formation on 23 June 2019. Initial petrophysics indicated pay in the following intervals:
  • Abu Roash-C / Net Pay: 7m
  • Abu Roash-E / Net Pay: 4m
  • Upper Bahariya / Net Pay: 9m
  • Lower Bahariya_1 / Net Pay: 6m
  • Lower Bahariya_2 / Net Pay: 5m
A series of well tests of the Abu Roash-E and Bahariya reservoirs has commenced, initially with the rig on location and subsequently following release of the rig. These operations remain ongoing.

Monday, August 5, 2019

Energy ministers to meet in Athens - KATHIMERINI

MONDAY AUGUST 5, 2019 : 21:02

Greece is hosting officials from Cyprus, Israel and the United States at a ministerial meeting on energy issues on Wednesday.

Environment and Energy Minister Kostis Hatzidakis, Cyprus’ Minister of Energy, Commerce and Industry Georgios Lakkotrypis, Israeli Energy Minister Yuval Steinitz and US Assistant Secretary at the State Department’s Bureau of Energy Resources Francis R. Fannon will meet at the Hilton Athens to discuss areas of potential cooperation and to advance construction of the EastMed natural gas pipeline.

The officials plan to set up a working committee of high-level officials to identify specific cooperation projects and ways to implement them.

Sunday, August 4, 2019

Eni continues oil and gas initiative in Libya - OIL REVIEW MIDDLE EAST

Sunday, 04 August 2019 04:30

Fayez al-Sarraj, head of the presidential council of the Libyan Government of National Accord, met in Tripoli with Eni’s CEO Claudio Descalzi to discuss the general situation of Libya, with a particular focus on the introduction of renewable energy in Libya and Eni's activities in the country

The meeting was also attended by the chairman of the National Oil Corporation (NOC) Mustafa Sanalla.

Claudio Descalzi assured Sarraj the full commitment of the company to its operational activities and projects in the country and reiterated Eni’s commitment in the social area, particularly in reference to the initiatives undertaken in the power generation sector.

Following the Memorandum of Understanding (MoU) signed last year with GECOL and NOC, Eni has contributed greatly for the improvement of the power sector, supplying much needed spare parts and technical assistance that allowed the recovery of 425MW of power output in the Tripoli area.

Understanding the Israel-Lebanon Maritime Border Dispute - HONEST REPORTING

August 4, 2019
Griffin Judd

International border disputes are very common, and in the normal course of events rarely draw any attention. But what happens when one of the countries in the dispute refuses to acknowledge the other’s existence? This complicates things, because the two countries then cannot negotiate directly. After all, negotiation implies recognition.

That is the dilemma currently facing Israel and Lebanon, who, since 2011, have been arguing over an 856 sq km piece of ocean.

But why is this area of the sea worth fighting about? What are the problems? And more importantly, what are the possible solutions?

History of the Israel-Lebanon Maritime Dispute

To understand this dispute, one must understand the international laws behinds it. At the root of the problem lies is the jurisdiction of the United Nations Convention on the Law of the Sea (UNCLOS). Under this treaty, states are entitled to a 200-nautical mile Economic Exclusion Zone (EEZ) off their coast. Within this zone, states have exclusive rights to exploit natural resources, such as fish and oil.

Lebanon ratified UNCLOS and submitted its proposed border to the UN in 2011; Israel never ratified the treaty, but generally adheres to it, and submitted its proposed border to the UN at the same time.

And here the dispute arose.

BP eyes natgas output of 500 mcf/d from Baltim South West by mid-2020 - ENTERPRISE

Sunday, 4 August 2019

BP aims to increase natural gas production to 500 mcf/d by the middle of 2020 when it completes the development of its Baltim South West field, a source from EGAS told the press. 

Work is still ongoing to develop the field and link it to the national gas grid. Eni estimated the field to hold 1 tcf of natural gas after it was discovered in 2016. 

Six wells in the development lease were originally slated to be linked to production in 2H2017. Little has been heard of the field since then. 

Eni (through its Italian Egyptian Oil Company subsidiary) and BP both hold 50% stakes in the field.

Friday, August 2, 2019

Leviathan Partners Considering FLNG for Israel’s Offshore Field - NATURAL GAS INTEL

August 2, 2019
Tim Daiss

Partners in the Noble Energy Inc.-operated Leviathan project offshore Israel are considering a floating liquified natural gas (FLNG) vessel to enable exports from the massive natural gas field.

Delek Group and Houston-based Noble are negotiating with Golar LNG Ltd. and Exmar NV for a binding long-term charter agreement to finance, build, operate and maintain the facility in Israel’s exclusive economic zone.

Noble two weeks ago said it was only months away from delivering commercial gas from the field, with sales scheduled to start by the end of the year. The company expects to sell an average of 800 MMcf/d from Leviathan in 2020.

An FLNG facility would allow liquefaction capacity of 2.4-5 million metric tons/year. Processed gas could be piped from the Leviathan production platform to the FLNG facility offshore Israel, where it would be liquefied and transferred to LNG vessels.