Fiona Mullen "Cyprus Gas" Interview (minute 18) | Cyprus Mail

Listen at minute 18 Fri, 15 August 2014 Cyprus News Digest August 14th 2014 Energy security in the Eastern Mediterranean - as Israel decides to send gas to Egypt, what next for Cyprus gas, and can Gaza utilise its reserves? We talk to Fiona Mullen (pictured) from Sapienta Economics. From Fukushima to Cyprus: raising awareness about the fallout from the Fukushima nuclear disaster; the British Council holds the Education UK clearing exhibition.

Link to source: http://cyprusmail.libsyn.com/cyprus-news-digest-august-14th-2014

Energy Ministry declares Tanin, Karish gas discoveries | Globes

Energy Ministry declares Tanin, Karish gas discoveries

in

12/08/2014, 12:32 Globes correspondent

The declaration will let Delek and Noble sell the fields to avoid being labelled a cartel.

Another hurdle has been surmounted in the sale of the Tanin and Karish gas fields. Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling Limited Partnership (TASE:DEDR.L) reported this morning that the Energy Ministry Petroleum Commissioner had declared Tanin and Karish proven discoveries.

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Regulator orders Delek, Noble Energy to sell gas fields

This approval is critical in order to push forward with the sale of the fields to a third party as part of a compromise deal between the Antitrust Authority regulator and the gas partnerships. Delek and Noble Energy Inc.(NYSE: NBL) are committed to selling Karish, Tanin and a part of Leviathan to another market player to avoid being declared a monopoly in the Israeli market.

Selling the two fields is in effect a precondition to receive an exemption from the Leviathan partners being labelled a cartel. Both Karish and Tanin adjoin Leviathan and contained a combined potential of 80 billion cubic meters (BCM) of which 60 BCM are proven with a probability of above 70%.

Noble Energy holds 47% of Karish and Tanin and Delek Group's units hold 53%.

Delek Drilling and Avner also reported that they have extended their proposal until November in the tender to supply natural gas to Cyprus. Sources inform "Globes" that four companies have reached the second stage. The Israeli companies have a major advantage because they can supply gas by undersea pipeline whereas the other proposals involve LNG supply.

Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Link to source: http://www.globes.co.il/en/article-energy-ministry-declares-tanin-karish-gas-discoveries-1000962798

Delek extends proposal until November | Cyprus Mail

LOCAL NEWS August 12, 2014 - 7 Comments

Delek extends proposal until November

Israel’s Delek Group said on Tuesday that they had extended to November their proposal in the tender to supply natural gas to Cyprus.

According to the announcement, posted on the group’s website and on the Tel Aviv Stock Exchange, “Delek Group’s gas subsidiaries announced today that they have accepted the request from DEFA to postpone the period of validity of the proposal and acceptance in its terms of a binding agreement for the supply of natural gas, from August 15, 2014 to November 30, 2014.”

“Accordingly, after the proposal has been recognised as eligible and DEFA begins with the commercial examination process, negotiations are expected to take place between DEFA and the bidders in the near future,” the statement added.

It was not immediately clear whether DEFA (Natural Gas Public Company) has extended the period of consideration for all the bids. DEFA could not be reached for comment.

Four bidders, including Delek, have reportedly reached the second stage of the tender process. It’s understood that Israeli companies have an advantage as they can supply gas by undersea pipeline whereas the other proposals involve LNG supply.

Through DEFA, Cyprus is seeking natural gas supplies for domestic power generation until the island’s own reserves become available. Under the tender, the date of first gas supply must fall between January 1, 2016 and June 30, 2017.

Link to source: http://cyprus-mail.com/2014/08/12/delek-extends-proposal-until-november/

The Decreasing Probability of an Israel-Turkey Pipeline | Natural Gas Europe

August 12th, 2014

A 72-hour truce ended on Friday, causing the violence between Israel and Gaza to resume. Ceasefire efforts brokered by Egypt were able to secure another cessation of hostilities, albeit only temporary.. With no sight of a real solution to the problem, the probability of a pipeline from the Leviathan to Turkey is decreasing by the day. Turkey’s Energy Minister said: “If a pipeline is built from Israel, it will flow not with gas but with the blood of innocent children and mothers,” as reported by Hurriyet.

The diplomatic ties between Israel and Turkey were headed towards normalisation since the March 2013 US-brokered apology by Prime Minister Netanyahu to the Turks over the Mavi Marmara incident. The Israelis had also fulfilled the second condition imposed by the Turks by committing to compensate the families of the nine victims who were killed on board of the Mavi Marmara ship that was headed to Gaza to break the blockage and bring humanitarian aid to the people of Gaza. The amount of the compensation was yet to be determined by Israel. The third condition imposed by the Turks to resume diplomatic ties with Israel was the lifting of the blockade on Gaza.

Energy experts believe that Turkey would benefit economically from an energy deal with Israel and would realise its energy hub ambition by connecting the East Med to Europe. Turkey’s stance on Gaza has however remained unchanged throughout the years, and whether it stems from noble principles or pure populism is debatable.Another obstacle to an Israel-Turkey deal would be the problem of the division of Cyprus, Cypriot officials insist that any energy collaboration between Turkey and Israel needs the approval of the Republic of Cyprus.

Since Israel’s action in Gaza, the Israeli-Turkish relation has regressed. Israel has yet to find a way to transport its large amounts of natural gas to export markets. Egypt has played a role in brokering the talks between Israel and Gaza proving that Israel and Egypt maintain full diplomatic relations. Egypt could play the role of a corridor to facilitate the transportation of Israeli gas to export markets namely Europe and Asia.

Egypt has unused export facilities that could be used by Israel. On June 27 the Leviathan partners signed a letter of intent to hold talks with a subsidiary of BG Group PLC about supplying the company’s gas liquefying plant in Egypt. The Tamar partners also signed on May 5 a non-binding agreement of intent to sell gas from the Tamar field to Union Fenosa Gas SA’s liquefied natural gas plant in Egypt.

Historically, Israel received most of its natural gas needs from Egypt until the 2011 Egyptian revolution caused repeated sabotaging of the pipeline transporting gas from Egypt to Israel. Egypt is now suffering from its own energy problems as it undergoes severe shortages of natural gas due to flat production, growing consumption and ongoing export obligations. An energy deal between the two countries seems to be the optimal solution for the Israel’s quick, low cost and simple access to LNG markets.

Karen Ayat is an analyst and Associate Partner at Natural Gas Europe focused on energy geopolitics.  Email Karen on karen@minoils.com.  Follow her on Twitter: @karenayat

Link to source: http://www.naturalgaseurope.com/israel-turkey-natural-gas-pipeline

Tender for oil drilling targets sector’s giants | e-Kathimerini

The international tender issued by the government last week for oil drilling in 20 areas in the Ionian Sea, Western Greece and off Crete, contains terms that can only be met by very large oil companies. Environment and Energy Ministry officials confirmed that these terms result from a targeted strategy to attract oil giants, mainly dictated by the great depths of the areas to be drilled.