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Saturday, March 21, 2015
Jordan International Energy Summit, 19-20 May 2015
Αυτή είναι η πρόβλεψη για τα δικαιώματα της Κύπρου | Ο ΦΙΛΕΛΕΥΘΕΡΟΣ
Σάββατο, 21 Μαρτίου 2015 10:53 πμ - Τελευταία ενημέρωση: Σάββατο, 21 Μαρτίου 2015 10:55 πμ
Αυτή είναι η πρόβλεψη για τα δικαιώματα της Κύπρου
Έσοδα $1,5 εκατ. την ημέρα από το οικόπεδο «Αφροδίτη»
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Λευκωσία: Με πλωτή μονάδα άντλησης και αποθήκευσης φυσικού αερίου, που είτε θα ενοικιαστεί μακροχρόνια ή θα αποκτηθεί ως ιδιόκτητη, προβλέπεται ότι θα ξεκινήσει η εκμετάλλευση του κοιτάσματος «Αφροδίτη», με την πρώτη ροή αερίου να υπολογίζεται περίπου το 2020, με ημερήσια παραγωγή της τάξης των 800 εκατ. κυβικών ποδών. Το μερίδιο της Κυπριακής Δημοκρατίας, με βάση το συμβόλαιο ανάθεσης, θα κυμαίνεται από 60% μέχρι και 83% των εσόδων – όσο περισσότερα θα είναι τα ημερήσια έσοδα, τόσο θα αυξάνεται το ποσοστό της Κυπριακής Δημοκρατίας. Ακόμα, Noble Energy και Delek έχουν προγραμματίσει ότι θα γίνουν συμπληρωματικές έρευνες και αναλύσεις γεωλογικών δεδομένων στο τμήμα του Τεμαχίου «12» που παραμένει υπό την ευθύνη τους, ώστε μέχρι το καλοκαίρι να αποφασίσουν και αν θα προχωρήσουν σε γεώτρηση εκτός του κοιτάσματος «Αφροδίτη», με στόχο κοίτασμα πετρελαίου. Συγκεκριμένα, αναφέρεται ότι η απόφαση για γεώτρηση με στόχο κοίτασμα πετρελαίου θα ληφθεί πριν από τις 23 Οκτωβρίου 2015.
Αυτά και πολλά – πολλά άλλα σημαντικά στοιχεία και δεδομένα που αφορούν στις μέχρι τώρα ενέργειες, στον προγραμματισμό για το 2015, αλλά και το προκαταρτικό σχέδιο ανάπτυξης του «Αφροδίτη», περιλαμβάνει η Έκθεση που κατέθεσε η Delek Driling στο Χρηματιστήριο του Τελ Αβίβ.
Η Έκθεση, με συνολικό όγκο της τάξης των 568 σελίδων, αφορά στα αποτελέσματα της εταιρείας για το 2014 και τις προβλέψεις για το 2015, με ένα πολύ σημαντικό και ιδιαίτερα αποκαλυπτικό τμήμα της να αφορά στη δραστηριότητα της ισραηλινής εταιρείας ως εταίρου της Noble Energy στο τεμάχιο «12». Οι λεπτομέρειες που αποκαλύπτονται είναι πάρα πολλές και αρκετές από αυτές μάλιστα αφορούν στις άκρως απόρρητες και εμπιστευτικές προβλέψεις του συμβολαίου των Noble – Delek – Avner με την Κυπριακή Δημοκρατία. Τέτοια δεδομένα είναι τα αναλυτικά στοιχεία που αφορούν στον διαμοιρασμό των εσόδων και όχι μόνο. Περιέχονται ακόμα και σειρά παραδειγμάτων για τον διαμοιρασμό εσόδων, ανάλογα με την ημερήσια παραγωγή και τις διάφορες συνθήκες που προβλέπονται στο συμβόλαιο.
Η Έκθεση των 568 σελίδων, που εξασφάλισε ο «Φ» μέσω του ψηφιακού κόμβου του Χρηματιστηρίου του Τελ Αβίβ, έχει κατατεθεί στα εβραϊκά και για τον λόγο αυτό ακόμα δεν έχει εκδοθεί σχετική ανακοίνωση με περίληψή της, αλλά ούτε και ολόκληρη, αφού τίθεται θέμα χρόνου που απαιτείται για τη μετάφρασή της. Αναμένεται ότι μετά τη μετάφρασή της στην αγγλική θα δοθεί και στην κυπριακή Κυβέρνηση, ενώ σημαντικά της στοιχεία θα δημοσιοποιηθούν. Προκαλεί εντύπωση ο πολύ υψηλός βαθμός διαφάνειας που διαπιστώνεται μέσω των λεπτομερών οικονομικών, τεχνικών και επιχειρηματικών στοιχείων που κατατίθενται, χωρίς να αποκλείεται να προκληθεί δυσφορία λόγω της δημοσιοποίησης ενυπόγραφων άκρως εμπιστευτικών δεδομένων.
Η ανάπτυξη του «Αφροδίτη» θα γίνει σε συμφωνία με την κυπριακή Κυβέρνηση και αυτό προβλέπει προμήθεια φυσικού αερίου για την εγχώρια αγορά στην Κύπρο και εξαγωγή του φυσικού αερίου μέσω αγωγών σε άλλες αγορές, συμπεριλαμβανομένης της αιγυπτιακής αγοράς, περιλαμβανομένης και της τοπικής αγοράς της Αιγύπτου και άλλων αγορών που περιγράφονται επίσης ξεχωριστά ως «στόχοι αγορών». Πρόκειται για τις γνωστές γειτονικές χώρες, όπως η Ιορδανία κτλ.
Το κόστος της πλωτής πλατφόρμας άντλησης και αποθήκευσης του φυσικού αερίου υπολογίζεται από 3,5 έως 4,5 εκατ. δολάρια και αυτή τη στιγμή μελετούνται τα ενδεχόμενα ενοικίασης ή κατασκευής ιδιόκτητης τέτοιας μονάδας, με βασικό κριτήριο το πιο χαμηλό κόστος.
Μετά τη λήψη της απόφασης αυτής, που προβλέπεται να ληφθεί εντός του 2016, θα προχωρήσουν στον σχεδιασμό και τη λήψη της τελικής επενδυτικής απόφασης και του προγράμματος ανάπτυξης, που επίσης πρέπει να εγκριθεί από την κυπριακή Κυβέρνηση που θα δώσει και την άδεια παραγωγής (ή εκμετάλλευσης).
Εντός του 2016 θα πρέπει να υπάρξει και λεπτομερής συμφωνία για την ανάπτυξη του «Αφροδίτη», ενώ το δεύτερο εξάμηνο του 2016 προβλέπεται ότι θα γίνουν είτε συμπληρωματική γεώτρηση είτε νέες δοκιμές παραγωγής στο κοίτασμα.
Μετά θα πρέπει να προχωρήσει ο τεχνικός σχεδιασμός και οι συμφωνίες για την κατασκευή των αγωγών και να γίνουν οι ρυθμιστικές και διακρατικές διευκρινίσεις. Γίνεται αναφορά στα Μνημόνια Συνεργασίας Κύπρου – Αιγύπτου σε κρατικό και τεχνικό επίπεδο προς αυτή την κατεύθυνση.
Η τεχνική ικανότητα παραγωγής του «Αφροδίτη» υπολογίζεται σε ικανότητα άντλησης της τάξης των 800 εκατ. μετρικών κυβικών ποδών (MMCF) την ημέρα.
Όπως αναφέρεται, η κυπριακή Κυβέρνηση στον σχεδιασμό της που θέτει ενώπιον των συνεταίρων του τεμαχίου «12», προβλέπει ότι θα πρέπει η παροχή φυσικού αερίου να ξεκινήσει το α' εξάμηνο του 2020.
Από 60% έως και 83% τα δικαιώματα της Κύπρου
Αποκαλυπτική είναι η Έκθεση της Delek ως προς τις προβλέψεις του συμβολαίου για τα δικαιώματα της Κυπριακής Δημοκρατίας, που μάλιστα συγκεκριμενοποιούνται τώρα πολύ περισσότερο, εφόσον έχουν καθοριστεί σε σημαντικό βαθμό οι τεχνικές παράμετροι.
Τα ποσοστά της Δημοκρατίας –που θα καθορίζονται σε ημερήσια βάση– ξεκινούν από 60% σε παραγωγή 150.000 εκατ. κυβικών ποδών ημερησίως και φτάνουν κλιμακωτά σε 83% σε παραγωγή 1,4 δισ. κυβικών ποδών ημερησίως, με τα έσοδα να αποδίδονται στη Δημοκρατία μετά από σταδιακή κατανομή των (εγκεκριμένων) δαπανών που έγιναν για μέχρι τότε έρευνα και ανάπτυξη του κοιτάσματος. Μάλιστα, παρέχονται οκτώ πίνακες με υπολογισμούς με βάση διαφορετικές εκδοχές ημερήσιας παραγωγής, με τα δικαιώματα κάθε πλευράς. Με βάση την αναφορά σε παραγωγή 800 εκατ. κ. ποδών ημερήσια, το ποσοστό που ανήκει στη Δημοκρατία υπολογίζεται σε σχεδόν 70%.
Με σημερινές διεθνείς τιμές φυσικού αερίου (και πετρελαίου), με βάση τις αποκαλύψεις της Delek, μπορεί να υπολογιστεί χρονδικά ότι με βάση το σχέδιο αυτό, αν πωλούνται και τα 800 εκατ. κυβικά πόδια ημερισίως, τα έσοδα της Δημοκρατίας από το «Αφροδίτη» θα ανέρχονται περίπου στο 1,5 εκατ. δολάρια (1,39 εκατ. ευρώ) ημερησίως ή περίπου 550 εκατ. δολάρια ετησίως (510 εκατ. ευρώ), για περίοδο περίπου 25 ετών, χωρίς όμως να αφαιρούνται τα έξοδα.
Ανοικτή αλλά απομακρυσμένη η συνεργασία με «Ταμάρ»
Σε διάφορα σημεία της Έκθεσης γίνεται αναφορά για «ρευστότητα» στους τελικούς σχεδιασμούς, αφού παραμένει ανοικτό το ενδεχόμενο κάποιες από τις λύσεις εκμετάλλευσης και πιθανές αγορές, να συνδυαστούν με την ανάπτυξη του κοιτάσματος «Ταμάρ». Ωστόσο, οι αναφορές είναι ιδιαίτερα «διακριτικές» και αφήνονται μόνο ως μελλοντικό ανοικτό για την ώρα ενδεχόμενο.
Ακόμα, εκτενής και λεπτομερής ανάλυση γίνεται για τα τεχνικά χαρακτηριστικά του κοιτάσματος, αλλά και των δυνατοτήτων για πρόσθετα κοιτάσματα (π.χ. γίνεται αναφορά σε «Αφροδίτη 2»), όμως καθίσταται σαφές ότι αποφάσεις θα ληφθούν μετά τη συγκέντρωση πολλών ακόμα γεωλογικών δεδομένων.
Γράφει: Πέτρος Θεοχαρίδης
Αυτά και πολλά – πολλά άλλα σημαντικά στοιχεία και δεδομένα που αφορούν στις μέχρι τώρα ενέργειες, στον προγραμματισμό για το 2015, αλλά και το προκαταρτικό σχέδιο ανάπτυξης του «Αφροδίτη», περιλαμβάνει η Έκθεση που κατέθεσε η Delek Driling στο Χρηματιστήριο του Τελ Αβίβ.
Η Έκθεση, με συνολικό όγκο της τάξης των 568 σελίδων, αφορά στα αποτελέσματα της εταιρείας για το 2014 και τις προβλέψεις για το 2015, με ένα πολύ σημαντικό και ιδιαίτερα αποκαλυπτικό τμήμα της να αφορά στη δραστηριότητα της ισραηλινής εταιρείας ως εταίρου της Noble Energy στο τεμάχιο «12». Οι λεπτομέρειες που αποκαλύπτονται είναι πάρα πολλές και αρκετές από αυτές μάλιστα αφορούν στις άκρως απόρρητες και εμπιστευτικές προβλέψεις του συμβολαίου των Noble – Delek – Avner με την Κυπριακή Δημοκρατία. Τέτοια δεδομένα είναι τα αναλυτικά στοιχεία που αφορούν στον διαμοιρασμό των εσόδων και όχι μόνο. Περιέχονται ακόμα και σειρά παραδειγμάτων για τον διαμοιρασμό εσόδων, ανάλογα με την ημερήσια παραγωγή και τις διάφορες συνθήκες που προβλέπονται στο συμβόλαιο.
Η Έκθεση των 568 σελίδων, που εξασφάλισε ο «Φ» μέσω του ψηφιακού κόμβου του Χρηματιστηρίου του Τελ Αβίβ, έχει κατατεθεί στα εβραϊκά και για τον λόγο αυτό ακόμα δεν έχει εκδοθεί σχετική ανακοίνωση με περίληψή της, αλλά ούτε και ολόκληρη, αφού τίθεται θέμα χρόνου που απαιτείται για τη μετάφρασή της. Αναμένεται ότι μετά τη μετάφρασή της στην αγγλική θα δοθεί και στην κυπριακή Κυβέρνηση, ενώ σημαντικά της στοιχεία θα δημοσιοποιηθούν. Προκαλεί εντύπωση ο πολύ υψηλός βαθμός διαφάνειας που διαπιστώνεται μέσω των λεπτομερών οικονομικών, τεχνικών και επιχειρηματικών στοιχείων που κατατίθενται, χωρίς να αποκλείεται να προκληθεί δυσφορία λόγω της δημοσιοποίησης ενυπόγραφων άκρως εμπιστευτικών δεδομένων.
Η ανάπτυξη του «Αφροδίτη» θα γίνει σε συμφωνία με την κυπριακή Κυβέρνηση και αυτό προβλέπει προμήθεια φυσικού αερίου για την εγχώρια αγορά στην Κύπρο και εξαγωγή του φυσικού αερίου μέσω αγωγών σε άλλες αγορές, συμπεριλαμβανομένης της αιγυπτιακής αγοράς, περιλαμβανομένης και της τοπικής αγοράς της Αιγύπτου και άλλων αγορών που περιγράφονται επίσης ξεχωριστά ως «στόχοι αγορών». Πρόκειται για τις γνωστές γειτονικές χώρες, όπως η Ιορδανία κτλ.
Το κόστος της πλωτής πλατφόρμας άντλησης και αποθήκευσης του φυσικού αερίου υπολογίζεται από 3,5 έως 4,5 εκατ. δολάρια και αυτή τη στιγμή μελετούνται τα ενδεχόμενα ενοικίασης ή κατασκευής ιδιόκτητης τέτοιας μονάδας, με βασικό κριτήριο το πιο χαμηλό κόστος.
Μετά τη λήψη της απόφασης αυτής, που προβλέπεται να ληφθεί εντός του 2016, θα προχωρήσουν στον σχεδιασμό και τη λήψη της τελικής επενδυτικής απόφασης και του προγράμματος ανάπτυξης, που επίσης πρέπει να εγκριθεί από την κυπριακή Κυβέρνηση που θα δώσει και την άδεια παραγωγής (ή εκμετάλλευσης).
Εντός του 2016 θα πρέπει να υπάρξει και λεπτομερής συμφωνία για την ανάπτυξη του «Αφροδίτη», ενώ το δεύτερο εξάμηνο του 2016 προβλέπεται ότι θα γίνουν είτε συμπληρωματική γεώτρηση είτε νέες δοκιμές παραγωγής στο κοίτασμα.
Μετά θα πρέπει να προχωρήσει ο τεχνικός σχεδιασμός και οι συμφωνίες για την κατασκευή των αγωγών και να γίνουν οι ρυθμιστικές και διακρατικές διευκρινίσεις. Γίνεται αναφορά στα Μνημόνια Συνεργασίας Κύπρου – Αιγύπτου σε κρατικό και τεχνικό επίπεδο προς αυτή την κατεύθυνση.
Η τεχνική ικανότητα παραγωγής του «Αφροδίτη» υπολογίζεται σε ικανότητα άντλησης της τάξης των 800 εκατ. μετρικών κυβικών ποδών (MMCF) την ημέρα.
Όπως αναφέρεται, η κυπριακή Κυβέρνηση στον σχεδιασμό της που θέτει ενώπιον των συνεταίρων του τεμαχίου «12», προβλέπει ότι θα πρέπει η παροχή φυσικού αερίου να ξεκινήσει το α' εξάμηνο του 2020.
Από 60% έως και 83% τα δικαιώματα της Κύπρου
Αποκαλυπτική είναι η Έκθεση της Delek ως προς τις προβλέψεις του συμβολαίου για τα δικαιώματα της Κυπριακής Δημοκρατίας, που μάλιστα συγκεκριμενοποιούνται τώρα πολύ περισσότερο, εφόσον έχουν καθοριστεί σε σημαντικό βαθμό οι τεχνικές παράμετροι.
Τα ποσοστά της Δημοκρατίας –που θα καθορίζονται σε ημερήσια βάση– ξεκινούν από 60% σε παραγωγή 150.000 εκατ. κυβικών ποδών ημερησίως και φτάνουν κλιμακωτά σε 83% σε παραγωγή 1,4 δισ. κυβικών ποδών ημερησίως, με τα έσοδα να αποδίδονται στη Δημοκρατία μετά από σταδιακή κατανομή των (εγκεκριμένων) δαπανών που έγιναν για μέχρι τότε έρευνα και ανάπτυξη του κοιτάσματος. Μάλιστα, παρέχονται οκτώ πίνακες με υπολογισμούς με βάση διαφορετικές εκδοχές ημερήσιας παραγωγής, με τα δικαιώματα κάθε πλευράς. Με βάση την αναφορά σε παραγωγή 800 εκατ. κ. ποδών ημερήσια, το ποσοστό που ανήκει στη Δημοκρατία υπολογίζεται σε σχεδόν 70%.
Με σημερινές διεθνείς τιμές φυσικού αερίου (και πετρελαίου), με βάση τις αποκαλύψεις της Delek, μπορεί να υπολογιστεί χρονδικά ότι με βάση το σχέδιο αυτό, αν πωλούνται και τα 800 εκατ. κυβικά πόδια ημερισίως, τα έσοδα της Δημοκρατίας από το «Αφροδίτη» θα ανέρχονται περίπου στο 1,5 εκατ. δολάρια (1,39 εκατ. ευρώ) ημερησίως ή περίπου 550 εκατ. δολάρια ετησίως (510 εκατ. ευρώ), για περίοδο περίπου 25 ετών, χωρίς όμως να αφαιρούνται τα έξοδα.
Ανοικτή αλλά απομακρυσμένη η συνεργασία με «Ταμάρ»
Σε διάφορα σημεία της Έκθεσης γίνεται αναφορά για «ρευστότητα» στους τελικούς σχεδιασμούς, αφού παραμένει ανοικτό το ενδεχόμενο κάποιες από τις λύσεις εκμετάλλευσης και πιθανές αγορές, να συνδυαστούν με την ανάπτυξη του κοιτάσματος «Ταμάρ». Ωστόσο, οι αναφορές είναι ιδιαίτερα «διακριτικές» και αφήνονται μόνο ως μελλοντικό ανοικτό για την ώρα ενδεχόμενο.
Ακόμα, εκτενής και λεπτομερής ανάλυση γίνεται για τα τεχνικά χαρακτηριστικά του κοιτάσματος, αλλά και των δυνατοτήτων για πρόσθετα κοιτάσματα (π.χ. γίνεται αναφορά σε «Αφροδίτη 2»), όμως καθίσταται σαφές ότι αποφάσεις θα ληφθούν μετά τη συγκέντρωση πολλών ακόμα γεωλογικών δεδομένων.
Γράφει: Πέτρος Θεοχαρίδης
Source: http://www.philenews.com/el-gr/top-stories/885/248061/esoda-15-ekat-tin-imera-apo-to-oikopedo-afroditi
Friday, March 20, 2015
Russian firms urged to jump on energy bandwagon | CYPRUS MAIL
March 20, 2015
By Angelos Anastasiou
Companies within Russia’s energy industry should take advantage of Cyprus’ existing and potential opportunities relating to natural gas infrastructural projects, Energy Minister Giorgos Lakkotrypis said on Friday.
Lakkotrypis was speaking on President Nicos Anastasiades’ behalf at the Russian-Cypriot Business and Investment Forum, which was held in Limassol.
In his speech, the energy minister noted that Cyprus was at a critical juncture with regard to both its economic recovery and the strengthening of its cooperation with Russia.
Thursday, March 19, 2015
Experts say Cyprus should explore developing petrochemical industry | Gold News
Experts say Cyprus should explore developing petrochemical industry |
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Cyprus should explore the notion of developing a petrochemical industry in parallel to natural gas regional exports, experts told participants at the Eastern Mediterranean Gas Conference in Nicosia.
Symeon Kassianides, CEO of Hyperion Systems Engineering group said such an industry could potentially lead to foreign investments amounting to 4 billion and in the creation of 3,000 jobs in the period of construction. This idea has also been supported by Solon Kassinis, former head of the Ministry of Commerce`s Energy Service and former Greek PM Antonis Samaras` energy advisor. “Gas-to petrochemicals project can be a building block for the sustainable economic development through the inception of industrial sector,” Kassianides said.
The comments came as Cyprus is about to engage in talks with to explore ways to export natural gas from its Aphrodite offshore concession, that holds a gross resource of 4.50 trillion cubic feet (tcf), as well as to carry gas for electricity generation in Cyprus via a pipeline.
He noted that the creation of a petrochemicals industry would increase the required natural gas quantity of natural gas to be transported to Cyprus thereby rendering a pipeline connecting the Aphrodite gas field with the Cypriot shores.
According to Kassianides, the potential gas field production is estimated at 800 MMSC (million standard cubic feet) whereas the estimates for the Cyprus gas demands reach only 100 MMSC (corresponds to 1 billion cubic metres).
He noted that petrochemical industry could include a methanol plant with a capital expenditure amounting to €1 billion requiring 100 MMSCF of natural gas, an Ammonia Urea factory (a fertilizer element) with an investment in the region of €1.4 billion and a required volume of 160 MMSCF per day. Moreover the industry could also include an MTO plant (Methanol to Olefin) with a capital expenditure of 2,5 billion and a required quantity of 240 MMSCF. Kassianides pointed out that the MTO plant would increase the demand for methanol rendering the methanol plant more economically viable.
Moreover, the noted that two foreign companies are interested in investing in such infrastructure in Cyprus. Namely Methanex and Maire Technimont. He added that Methanx owns a methanol plant in Egypt which is currently offline as all gas quantities in the country are allocated for the domestic power demand.
On his part, Kassinis described the prospect of allocating natural gas reserves to a petrochemical industry as very serious and significant.
“We should definitely focus on this issue, and particular importance should be given to this sector,” he said speaking to CNA on the sidelines of the EMGC.
Symeon Kassianides, CEO of Hyperion Systems Engineering group said such an industry could potentially lead to foreign investments amounting to 4 billion and in the creation of 3,000 jobs in the period of construction. This idea has also been supported by Solon Kassinis, former head of the Ministry of Commerce`s Energy Service and former Greek PM Antonis Samaras` energy advisor. “Gas-to petrochemicals project can be a building block for the sustainable economic development through the inception of industrial sector,” Kassianides said.
The comments came as Cyprus is about to engage in talks with to explore ways to export natural gas from its Aphrodite offshore concession, that holds a gross resource of 4.50 trillion cubic feet (tcf), as well as to carry gas for electricity generation in Cyprus via a pipeline.
He noted that the creation of a petrochemicals industry would increase the required natural gas quantity of natural gas to be transported to Cyprus thereby rendering a pipeline connecting the Aphrodite gas field with the Cypriot shores.
According to Kassianides, the potential gas field production is estimated at 800 MMSC (million standard cubic feet) whereas the estimates for the Cyprus gas demands reach only 100 MMSC (corresponds to 1 billion cubic metres).
He noted that petrochemical industry could include a methanol plant with a capital expenditure amounting to €1 billion requiring 100 MMSCF of natural gas, an Ammonia Urea factory (a fertilizer element) with an investment in the region of €1.4 billion and a required volume of 160 MMSCF per day. Moreover the industry could also include an MTO plant (Methanol to Olefin) with a capital expenditure of 2,5 billion and a required quantity of 240 MMSCF. Kassianides pointed out that the MTO plant would increase the demand for methanol rendering the methanol plant more economically viable.
Moreover, the noted that two foreign companies are interested in investing in such infrastructure in Cyprus. Namely Methanex and Maire Technimont. He added that Methanx owns a methanol plant in Egypt which is currently offline as all gas quantities in the country are allocated for the domestic power demand.
On his part, Kassinis described the prospect of allocating natural gas reserves to a petrochemical industry as very serious and significant.
“We should definitely focus on this issue, and particular importance should be given to this sector,” he said speaking to CNA on the sidelines of the EMGC.
Source: http://www.goldnews.com.cy/en/energy/experts-say-cyprus-should-explore-developing-petrochemical-industry
Cyprus ‘progressing’ towards gas production | tce today
19/03/2015
Cyprus ‘progressing’ towards gas production
Energy minister says country in talks with industry
Helen Tunnicliffe
CYPRUS’ minister of energy Yiorgos Lakkotrypis has told a conference that the country is “moving from the exploration to the exploitation phase of its natural resources.”
Speaking at the Eastern Mediterranean Gas Conference 2015 in Cyprus’ capital Nicosia, Lakkotrypis said that Keith Elliot, senior vice-president of Noble Energy, one of the companies exploring for oil in Cyprus’ waters, had met with the president of Cyprus. Elliot told the president that Noble is planning to declare the Aphrodite field commercially viable and submit a field development and production plan within a few weeks.
In recent times there has been much exploration for gas around Cyprus, by companies including Total, ENI, KOGAS, Noble and Delek and Avner, after gas was discovered by Noble in the Aphrodite field in 2011. Last year the Cypriot government signed a joint development and cooperation deal with the Egyptian government for the hydrocarbon assets, and is currently negotiating similar deals with Israel and Lebanon. In addition Cyprus Hydrocarbons Company (CHC) and the Egyptian Natural Gas Holding Company have agreed to examine technical solutions for the export of gas from block 12 of the Aphrodite field to Egypt via a pipeline.
Lakkotrypis said that Cyprus is ideally placed to facilitate cooperation in the exploitation of the Eastern Mediterranean hydrocarbon reserves, due to its geographical location near Europe, Asia and Africa, and as it enjoys good relationships with its neighbours.
“We are fully aware of the challenges related to oil prices and other external factors, and we are conscious that there is still a lot to be done, particularly in the area of commercial agreements. I assure you however, that we are in close cooperation with CHC and our partners in Block 12 and we are confident that we will be able to succeed in our joint efforts,” said Lakkotrypis.
Source: http://www.tcetoday.com/latest%20news/2015/march/cyprus-progressing-towards-gas-production.aspx#.VQws0tKUeuo
EMGC 2015: Gas leaders examine roles of Egypt, Cyprus in future trade | World Oil
By ADRIENNE BLUME, MANAGING EDITOR on 3/18/2015
NICOSIA, Cyprus -- Gulf Publishing Company opened its third annual Eastern Mediterranean Gas Conference (EMGC) with a welcome from John Royall, President of Gulf Publishing Company. Royall thanked attendees for coming to the event and said that he believes the Eastern Mediterranean region will continue to grow over the long term with respect to exploration efforts and reserves. He also believes the downturn in the oil and gas market and pricing will be short lived, which he later addressed in a forecast presentation based on Gulf Publishing Company's World Oil data.
Cyprus embraces collective approach. Kicking off Session 1, Harris Georgiades, Minister of Finance for Cyprus, spoke about the energy prospects and potential revenue stream for Cyprus. The development of these country's gas resources must be actively promoted, Georgiades said.
Wednesday, March 18, 2015
Cyprus sign TOTAL deal | in-cyprus.com
Cyprus sign TOTAL deal
French giant TOTAL and the Cyprus government put pen on paper on Wednesday over an amended deal for offshore plot 11 of the island’s Exclusive Economic Zone (EEZ).
The new deal, by which the company will stay on and explore further, without any drilling however, for the time being, was signed in Nicosia by Energy Minister Yiorgos Lakkotrypis and the TOTAL E&P Cyprus B.V General Director Jean-Luc Porcheron.
The deal follows Tuesday’s Noble Energy announcement on the commercialisation of the Aphrodite plot and the hunt for buyers. The latest development has allowed the Cyprus government to afford a rare smile following the news of its much-needed boost over its natural gas reserves.
The Cabinet had approved Lakkotypris’ proposals, securing TOTAL’s involvement in Cyprus’ EEZ for at least another year, conducting geological surveys in areas adjacent to plot 11 as well as certain areas of plot 8.
In the next few months, the French company aims to build and complete a geological map of its contractual region and establish whether there is any natural gas or hydrocarbons prospect mostly in plot 11.
TOTAL has been unsuccessfully looking for reserves for more than a year now and was considering an exit as exploration was proving an expensive affair.
Following negotiations with Nicosia, the company was persuaded to stay under amended circumstances but without any promises of drilling.
As for Noble and the Aphrodite plot, the US firm’s vice president John Dillon, in Nicosia on the Eastern Mediterranean Natural Gas conference said that his company was sounding out buyers in Egypt and Jordan and was expecting the results of the Israeli election to consider any possible changes in energy policy.
With the confirmed victory of incumbent Prime Minister Benyamin Netanyahu it seems that the policy will remain unchanged.
Delek Leads Rally in Israeli Gas Companies on Egypt Export Deal | Bloomberg
Delek Leads Rally in Israeli Gas Companies on Egypt Export Deal
(Bloomberg) -- Delek Group Ltd. surged the most in a month after its gas-exploration units signed a supply deal with Egypt as part of Israel’s push to boost regional exports of fuel from its second-largest offshore field.
The shares climbed 5.9 percent as Delek Drilling LP and Avner Oil Exploration LP reached the seven-year accord including exports valued at $1.2 billion in the first three years. Delek Drilling and Avner, partners in the Tamar field, rose at least 8 percent on volumes more than double the three-month daily average. The shares were also supported by speculation Prime Minister Benjamin Netanyahu’s election win will enable the government to push through industry regulations.
“It’s not a small deal and the partners don’t have to invest too much money in development,” Noam Pincu, an analyst at Psagot Investment House Ltd. in Tel Aviv, said Wednesday by phone. “The election results so far also helped quiet fears of a new government undoing Netanyahu’s efforts to resolve the regulatory issues.”
The agreement with Egypt’s Dolphinus Holdings Ltd., announced on Wednesday, marks Tamar’s biggest binding export agreement since the field started supplying the local market two years ago. The companies will export a minimum of 5 billion cubic meters of natural gas in the first three years under the plan, which is subject to Egyptian and Israeli regulatory approvals.
Netanyahu, who won at least 30 seats in the 120-member parliament after the Tuesday vote, appointed a committee to decide on how to regulate Israel’s natural-gas industry in December. The nation’s antitrust authority said the same month it was considering labeling the partnership developing the largest gas field, Leviathan, a cartel.
To contact the reporters on this story: Yaacov Benmeleh in Tel Aviv atybenmeleh@bloomberg.net; Shoshanna Solomon in Tel Aviv atssolomon22@bloomberg.net
To contact the editors responsible for this story: Samuel Potter atspotter33@bloomberg.net Daliah Merzaban, Matthew Brown
Source: http://www.bloomberg.com/news/articles/2015-03-18/israel-s-natural-gas-companies-gain-on-egypt-deal-netanyahu-win
Egyptian firm to buy $1.2 bln of natgas from Israel's Tamar field | Reuters
Wednesday, March 18, 2015 12:52 PM
By Ari Rabinovitch
 |
| Pipeline that leads gas from Egypt to Israel - REUTERS |
JERUSALEM (Reuters) - A group of private customers in Egypt have agreed to buy at least $1.2 billion of natural gas from Israel's offshore Tamar field via an old pipeline built to send gas to Israel.
The Tamar partners said on Wednesday they signed a seven-year deal with Dolphinus Holdings, a firm that represents non-governmental, industrial and commercial consumers in Egypt, that calls for a minimum 5 billion cubic metres (bcm) of gas to be sold in the first three years.
One energy source in Israel, however, said the total export amount in the deal could be more than three times higher, depending on demand in Egypt, which is facing an energy crisis.
The Tamar partners said on Wednesday they signed a seven-year deal with Dolphinus Holdings, a firm that represents non-governmental, industrial and commercial consumers in Egypt, that calls for a minimum 5 billion cubic metres (bcm) of gas to be sold in the first three years.
One energy source in Israel, however, said the total export amount in the deal could be more than three times higher, depending on demand in Egypt, which is facing an energy crisis.
The supplies will pass through an underwater pipeline constructed nearly a decade ago by East Mediterranean Gas (EMG), the company that oversaw a now-defunct Egyptian-Israeli natural gas deal.
Egypt had been selling gas to Israel in a 20-year agreement, but the deal collapsed in 2012 after months of attacks on the pipeline by militants in Egypt's lawless Sinai peninsula. It has since been out of commission and EMG is suing the government of Egypt for damages.
Recent offshore discoveries such as Tamar, with an estimated 280 bcm of gas, and Leviathan, which is more than twice as big, have turned previously import-dependent Israel into a potential energy exporter. Egypt has been slow in developing its own sizable gas resources and is seeking numerous import options.
Tamar's shareholders that are traded in Tel Aviv -- Delek Drilling, Avner Oil and Isramco Negev -- were up 4-5 percent, outpacing modest gains in the broader market.
Texas-based Noble Energy is the field's operator.
The chairman of Delek Drilling, Yossi Abu, said the deal shows that Israel can be "an energy anchor for countries in the region" and that, along with a pipeline of export agreements under negotiation, it will "radically change Israel's geopolitical status."
The Dolphinus deal is linked to the price of Brent and is subject to various approvals in Israel, Egypt and from EMG.
Noble and Delek, who are also developing Leviathan, have been negotiating two larger export deals with foreign operators of liquefied natural gas plants in Egypt, but those deals have been on hold since Israel's competition regulator said it might declare the developers a monopoly.
Reuters
SOURCE
Egypt had been selling gas to Israel in a 20-year agreement, but the deal collapsed in 2012 after months of attacks on the pipeline by militants in Egypt's lawless Sinai peninsula. It has since been out of commission and EMG is suing the government of Egypt for damages.
Recent offshore discoveries such as Tamar, with an estimated 280 bcm of gas, and Leviathan, which is more than twice as big, have turned previously import-dependent Israel into a potential energy exporter. Egypt has been slow in developing its own sizable gas resources and is seeking numerous import options.
Tamar's shareholders that are traded in Tel Aviv -- Delek Drilling, Avner Oil and Isramco Negev -- were up 4-5 percent, outpacing modest gains in the broader market.
Texas-based Noble Energy is the field's operator.
The chairman of Delek Drilling, Yossi Abu, said the deal shows that Israel can be "an energy anchor for countries in the region" and that, along with a pipeline of export agreements under negotiation, it will "radically change Israel's geopolitical status."
The Dolphinus deal is linked to the price of Brent and is subject to various approvals in Israel, Egypt and from EMG.
Noble and Delek, who are also developing Leviathan, have been negotiating two larger export deals with foreign operators of liquefied natural gas plants in Egypt, but those deals have been on hold since Israel's competition regulator said it might declare the developers a monopoly.
Reuters
SOURCE
EMGC ’15: Deloitte tax experts dissect regulatory laws for Cyprus gas | Hydrocarbon Processing
EMGC ’15: Deloitte tax experts dissect regulatory laws for Cyprus gas
Cyprus is an interesting location from which to operate because it is part of the EU and is strategically located at the center of the developing Eastern Med energy industry.
By ADRIENNE BLUME
Managing Editor
NICOSIA, Cyprus -- Day 2 of Gulf Publishing Company's third annual Eastern Mediterranean Gas Conference (EMGC) opened with a breakfast workshop sponsored by Deloitte. The workshop covered tax and regulatory considerations for the Cyprus gas market.
The workshop included perspectives from Deloitte partners George Pantelides, Head of Consulting Services and Oil and Gas Specialist; Pieris Markou, Head of Tax and Legal Services and Oil and Gas Tax Leader; Nicos Papakyriacou, Partner in charge of Nicosia Office and Oil and Gas Leader; and Christos Papamarkides, VAT Leader and Oil and Gas Specialist.
Tax considerations for Cyprus energy sector. Pantelides (pictured) discussed the tax and value-added tax (VAT) aspects of doing business in Cyprus. He asserted that Cyprus is an interesting location from which to operate because it is part of the EU and is strategically located at the center of the developing Eastern Med energy industry. The country's legal system is based on the UK's legal system, and it contains one of the best tax systems in the EU, according to Pantelides.
Cyprus is also friendly to international investors. A corporate income tax rate of 12.5% is in force, but this excludes dividend income, profits on disposal of securities, overseas branch profits and profits from the disposal of immovable property outside of Cyprus. A unilateral tax relief is also available, and no withholding taxes or controlled foreign company rules are in force. Interest deductibility is available without restrictions.
There is no specific tax regime for companies operating in the oil and gas industry; rather, taxes are based on general tax rules for companies. Income is taxed on an accrual basis. Also, special rulings are available for plant and machinery rates.
Additionally, the Cyprus government is seeking to make certain expenses deductible for energy firms, such as seismic survey costs, exploratory costs, drilling costs, dry hole/decommissioning costs, capitalization of general administration costs, capital allowance rates and signature bonuses.
Value-added tax rules. Cyprus' VAT is harmonized with EU VAT legislation. VAT is chargeable on any local supply of goods and services made by a taxable person in the course of business, the import of goods from the EU, and other actions.
A business is obliged to register for Cyprus VAT if the value of its taxable supplies for the last 12 months exceeds the registration threshold of €15,600, or if it is expected that taxable supplies in the next 30 days will exceed €15,600. Input VAT is incurred on local supplies of goods and services, on import of goods from EU countries and on the application of the reverse-charge provisions on services received from outside Cyprus.
Oil and gas export rates for VAT dictate that the supply of hydrocarbon products by an operator within Cyprus must be subject to VAT at the standard rate. Supplies of goods to be admitted into Cypriot waters that are to be incorporated into drilling or production platforms for maintenance repair, construction, alteration or fitting are subject to a zero-VAT tax. Also, goods and equipment to be transported directly to drilling platforms are not subject to customs tax.
Maximizing human capital. Next, Markou talked about human capital services in the Cyprus energy sector. As of January 2015, 16.1% of Cyprus' population was unemployed—a very high percentage, which the government is working to reduce.
Employment terms for reputable organizations in the oil and gas sector are favorable and go "over and above the legislative requirement," Markou said. Local employment laws tend to rule in favor of the employees. Cyprus also plans to offer specialized courses for blue-collar workers in the energy sector to increase employment in the industry.
Lastly, to increase energy-sector employment in Cyprus, the government is encouraging the transmission of knowledge and expertise to the local workforce with the help of specialized and highly skilled individuals who gained their oil and gas work experience overseas.
Source: http://www.hydrocarbonprocessing.com/Article/3437258/EMGC-15-Deloitte-tax-experts-dissect-regulatory-laws-for.html
EMGC ’15: Eastern Med leaders tout gas transport, monetization options | Hydrocarbon Processing
EMGC ’15: Eastern Med leaders tout gas transport, monetization options
An LNG plant would allow for short-term contracts anywhere in the world, but at a high cost and with insufficient proven reserves.
By ADRIENNE BLUME
Managing Editor
NICOSIA, Cyprus -- Day 2 of the EMGC 2015 conference proceedings opened with several perspectives on gas monetization in the Eastern Mediterranean. Dr. Nestor Fylaktos, Post Doctoral Fellow at EEWRC of The Cyprus Institute, spoke about the possibility of Cyprus catering to global LNG markets.
An LNG plant would allow for short-term contracts anywhere in the world, but at a high cost and with insufficient proven reserves. It would also be very expensive and would need to compete with a glut of LNG plants being planned and constructed throughout the world, Dr. Fylaktos said.
Another option worth considering is the use of Egypt's idled regasification capacity, and still another option is the construction of an FLNG vessel.
Pipeline construction is risky because it is tied to only one export market (Europe), while CNG has been assessed as a viable option, although the technology is at an early stage of maturity, Dr. Fylaktos said.
Cyprus eyes gas use alternatives. Dr. Symeon Kassianides (pictured), Chairman and CEO of Hyperion Systems Engineering Group, next shared his ideas on alternative gas monetization in Cyprus.
The Aphrodite field discovered offshore Cyprus is estimated to hold 4.5 Tcf of gas reserves. Potential production from Aphrodite is 800 MMscfd; at present, Cyprus demand for power generation is estimated at 100 MMscfd.
The current thinking, Dr. Kassianides explained, is that gas can be delivered to Cyprus and Egypt via two pipelines, using a floating production, storage and offloading (FPSO) vessel. Cyprus would take only the gas it needs to meet its power demand, and the rest could be exported.
According to Dr. Kassianides, the end goal for Cyprus should be larger than the development of its gas resources. The country's development goals should also include:
- Discover and verify hydrocarbon prospects
- Find ways to multiply benefits from the gas discoveries
- Reposition the economy and raise Cyprus to another level
- Achieve sustainable and environmentally responsible growth.
The gas can be converted to other products, thereby helping industrialize Cyprus' economy. These products include synthesis gas, methanol, ammonia, urea fertilizer, petrochemicals and others.
Options for using this gas include power generation; syngas to methanol production; urea fertilizer production and other uses. A power generation project would involve the construction of a pipeline and require 100 MMscfd of feedstock gas, while a methanol plant would cost an estimated $1B to construct and require 140 MMscfd of feedstock. An ammonia urea plant would cost approximately $1.4 B to build and require 160 MMscfd of gas.
Another option, an advanced methanol-to-olefins plant with polyethylene and propylene production and an additional methanol facility, would cost an estimated $2.5 B to construct and require 240 MMscfd offeedstock. Altogether, these potential projects are estimated to cost $4.9 B and require 640 MMscfd or more of gas feedstock to operate.
Gas monetization in Israel. Gil Danker, Chairman of Dor Chemicals Ltd., discussed alternative gas monetization in Israel. Isolated nations like Cyprus and Israel must reexamine strategies for marketing and exporting their gas due to cost, logistical issues and geopolitical pressures, Danker said.
He advocated the use of feedstock gas for methanol blending into transportation fuels, which would reduce vehicular emissions and energy use. Dor is carrying out projects to convert diesel and natural gas turbines to run on methanol. The company is also studying the construction of two methanol plants, one in Israel and one in Cyprus.
Gas storage options. Frederic Vrinat, Business Development Manager for GTT, shared his company's perspective on LNG storage options for the region. He provided details on a design and construction concept for an onshore LNG terminal, including the selection of a stainless steel membrane.
He also discussed the possible use of small-scale LNG tanks to store LNG with membrane technology. Above-ground onshore LNG storage solutions include in-pit and gravity-based structure options, Vrinat said.
Next, Bill R. Alashqar (pictured), Managing Director of US Independents for GE Oil & Gas, presented cases for the utilization of LNG terminals, floating LNG (FLNG) vessels and FPSO vessels in the region.
FLNG can be an efficient solution for multiple wells, such as those in Noble Energy's Eastern Med fields, Alashqar said. They are also more environmentally efficient solutions than onshore LNG terminals. GE is studying the possible development of an FPSO vessel for use in Noble Energy's Eastern Med gas operations.
CNG transport technology. David Stenning, President and COO of SeaNG Corp., shared ideas for the monetization of Eastern Med gas reserves via compressed natural gas (CNG). LNG and CNG are synergistic technologies, Stenning explained, although liquefying gas costs nearly 10 times as much as does compressing gas.
CNG can add value to an LNG development by offering an alternative transport option through new CNG ships with coiled-pipe technology. The Sea NG Alliance will provide the ships, so investment in CNG ships is not needed by producers or customers, Stenning said.
SeaNG's technology involves the use of small-diameter coiled pipe in coselles, which can efficiently store CNG on a ship. The technology complies with all safety, environmental and transportation regulations to ensure safe transportation of the compressed gas via ship. The ships are sized for different market needs and feature different numbers of coselles, depending on the volume of gas transported.
CNG transport via ship makes the most sense when a mid-range amount of gas (less than 1 Bcmy to approximately 5 Bcmy) must travel a medium distance (approximately 100 km to 1,500 km), Stenning explained. This is compared to pipelines, which are designed to transport large volumes of gas over short distances; and LNG vessels, which transport medium to large volumes of gas over long distances.
CNG delivery via ship is economical for delivering Eastern Med gas to Cyprus, Turkey, Greece and Italy, with shipping tariff costs of around $2/MMBtu for shorter distances and $4/MMBtu for longer distances. This transport technology could replace the construction of pipelines to many Eastern Med markets at a lower cost, Stenning said.
EastMed pipeline project. Dimitris Manolis, Deputy Development Director of IGI Poseidon, delivered the last presentation of the morning. Manolis presented the proposed EastMed pipeline, a project supported by the EU and by the governments of Cyprus, Greece and Italy.
The target of the EastMed project is to connect European domestic gas sources in the Levantine basin to Central Europe through Cyprus, Greece and Italy, allowing the development of the recent discoveries in the area. The project includes different sections: a section between the gas sources and Cyprus; an offshore section between Cyprus and Greece via Crete, with a maximum offshore length of 600 km; and an onshore pipeline crossing the Greece mainland, ending at the starting point of the Poseidon pipeline.
The EastMed pipeline, which could transport 14 Bcmy of gas, is technically feasible and economically viable. The project would also help promote EU energy supply security, ensure the development of domestic resources and realize a European direct connection with EU neighboring resources.
Pre-FEED studies for the EastMed pipeline are expected to conclude in the fourth quarter of 2015. These studies aim to optimize the design of the project according to the requirements of all stakeholders, from buyers to sellers. IGI Poseidon will apply for co-financing from the Connecting European Facility (CEF) program, to obtain financial support for the development of this export option.
Stay tuned for more news from EMGC 2015.
Source: http://www.hydrocarbonprocessing.com/Article/3437276/Latest-News/EMGC-15-Eastern-Med-leaders-tout-gas-transport-monetization-options.html
Construction of Tanap pipeline begins in Turkey as EU and Russia spar for upper hand | Financial Times
A long awaited plan by the European Union to import Caspian gas moved forward this week as construction work began on the Trans Anatolian Natural Gas Pipeline (Tanap) in Turkey.
Tanap is the central link in the EU-backed Southern Gas Corridor, a jigsaw of existing and planned pipelines designed to diversify Caspian energy export routes and reduce European dependence on Russian gas. Initially, the 3,500km SGC network will transport gas from the giant, BP-led Shah Deniz field in offshore Azerbaijan, but could in future draw supplies from other Caspian and central Asian countries and even the Middle East, changing the energy map of the whole region.
Involving seven countries and 11 companies, the marathon project has been described by BP as the global oil and gas industry’s “most significant and ambitious undertaking yet”.
The leaders of Turkey, Azerbaijan and Georgia attended a ceremony to mark the launch of Tanap’s construction in Kars on Tuesday, underscoring the pipeline’s importance as a boost to the region’s geopolitical significance as an international energy transit route.
Estimated to cost $10bn, Tanap will tie into the existing South Caucasus pipeline that already supplies Azerbaijani gas to Georgia and east Turkey, and transport gas over a distance of 1,850km to Turkey’s western border with the EU. From there, gas is expected to enter the planned Trans-Adriatic Pipeline crossing Greece and Albania to Italy.
BP bought a 12 per cent stake in Tanap late last year and will jointly own the pipeline in a partnership with Socar, Azerbaijan’s state oil company, and Botas, the Turkish oil and gas pipeline and trading group. Gas deliveries are expected to begin in 2019 and build to a rate of 16bn cubic meters a year.
Russia has questioned the feasibility of Tanap, which will bring Caspian gas into the European market for the first time. Vladimir Chizhov, Russia’s ambassador to the EU, has described the project as “extremely challenging from a technical point of view” and “exorbitantly expensive”.
Tanap is the central link in the EU-backed Southern Gas Corridor, a jigsaw of existing and planned pipelines designed to diversify Caspian energy export routes and reduce European dependence on Russian gas. Initially, the 3,500km SGC network will transport gas from the giant, BP-led Shah Deniz field in offshore Azerbaijan, but could in future draw supplies from other Caspian and central Asian countries and even the Middle East, changing the energy map of the whole region.
Involving seven countries and 11 companies, the marathon project has been described by BP as the global oil and gas industry’s “most significant and ambitious undertaking yet”.
The leaders of Turkey, Azerbaijan and Georgia attended a ceremony to mark the launch of Tanap’s construction in Kars on Tuesday, underscoring the pipeline’s importance as a boost to the region’s geopolitical significance as an international energy transit route.
Estimated to cost $10bn, Tanap will tie into the existing South Caucasus pipeline that already supplies Azerbaijani gas to Georgia and east Turkey, and transport gas over a distance of 1,850km to Turkey’s western border with the EU. From there, gas is expected to enter the planned Trans-Adriatic Pipeline crossing Greece and Albania to Italy.
BP bought a 12 per cent stake in Tanap late last year and will jointly own the pipeline in a partnership with Socar, Azerbaijan’s state oil company, and Botas, the Turkish oil and gas pipeline and trading group. Gas deliveries are expected to begin in 2019 and build to a rate of 16bn cubic meters a year.
Russia has questioned the feasibility of Tanap, which will bring Caspian gas into the European market for the first time. Vladimir Chizhov, Russia’s ambassador to the EU, has described the project as “extremely challenging from a technical point of view” and “exorbitantly expensive”.
Tuesday’s launch of Tanap’s construction has highlighted growing competition between the EU and Russia for influence over Turkish energy export routes.
In a move that took the EU by surprise, Russia scrapped the $40bn South Stream gas pipeline to Europe in favour of another project to ship gas exports to a new trading hub in western Turkey. Gazprom says the EU, having blocked South Stream with a barrage of regulatory obstacles, can figure out itself how to move Russian gas from the Turkish hub into Europe.
Turkey says that Tanap is not a rival to Turkish Stream and has pledged there will be no political obstacles to the project.
Time will tell if Russia tries to use Turkish Stream to undermine the EU’s Southern Gas Corridor diversification plan.
SOURCE
In a move that took the EU by surprise, Russia scrapped the $40bn South Stream gas pipeline to Europe in favour of another project to ship gas exports to a new trading hub in western Turkey. Gazprom says the EU, having blocked South Stream with a barrage of regulatory obstacles, can figure out itself how to move Russian gas from the Turkish hub into Europe.
Turkey says that Tanap is not a rival to Turkish Stream and has pledged there will be no political obstacles to the project.
Time will tell if Russia tries to use Turkish Stream to undermine the EU’s Southern Gas Corridor diversification plan.
SOURCE
Tuesday, March 17, 2015
EMGC ’15: Industry experts call for clarity on Eastern Med trade laws | Hydrocarbon Processing
EMGC ’15: Industry experts call for clarity on Eastern Med trade laws
To achieve a sustainable and balanced regional gas market, consultant Gina Cohen recommends clearing up regulatory uncertainty and creating an investor-friendly climate.
By ADRIENNE BLUME
Managing Editor
NICOSIA, Cyprus -- During the Day 1 lunch presentation at EMGC 2015, Bill R. Alashqar, Managing Director of US Independents for GE Oil & Gas, shared his perspective on the power of networks globally and in the US. The "age of gas" outlook is not a foregone conclusion, although many complex pieces still need to fall into place, Alashqar said. "There is a strong need for more flexible global networks."
Global gas consumption is at 3,500 Bcm, which is 70% of the size of the oil market, Alashqar said. According to GE's global outlook, the gas market will grow to 4,800 Bcm by 2025.
"Natural gas could achieve a 28% share of global energy consumption. If we reach that, it will be slightly larger than combined share of coal and oil by 2035," the Director noted. Today's global gas supply comes 70% from conventional sources and approximately 14% from unconventional sources, although the proportion of unconventional sources is expected to increase to 20% by 2025, with shale output from the US and Canada.
Gas trade is dominated by pipeline transportation, with 89%, while LNG accounts for 10%, and the rest is delivered by truck. "Today, the leading country exporting natural gas is Qatar. By 2020, however, we think this will change, and Australia could take the lead," Alashqar said. Japan, meanwhile, remains the largest importer of gas.
"Why do we think gas consumption will increase by one third?" the Director asked. Projects in Angola, Nigeria, Australia and, eventually, Mozambique will contribute to the increased trade of gas on a global level.
"Infrastructure networks are expanding around the world, there's shale gas in the US and Canada, and alsotechnology and innovation all contributing to energy resilience," Alashqar asserted.
The Director concluded his talk with a call to the industry to work together to improve economics and supply security to attract investments in different countries. Market structures must be in place to entice new investors to come in and spend money. Tax credits are also helpful, as is public education and attracting more people to work in the industry.
"There is a need to step up and enforce the public outreach, as well as education and training," Alashqar concluded.
Reducing costs for late-life assets. After lunch, Session 3 kicked off with a presentation on upstream asset optimization from Dr. Johannes Wiik, Partner at Deloitte. Dr. Wiik shared lessons learned from mature offshore regions and late-life assets. He also discussed asset optimization post-production.
At present, there is heavy focus on reducing OPEX and CAPEX, and on working with operators to achieve cost improvements. For late-life assets, companies must focus on the physical asset first, and then build core functions around it.
The optimum business model for late-life assets is dependent on several layers. Sustainability and time sensitivity are key. If it is possible to lower the asset's cost base, then optimization and production can come later. In this way, OPEX can be sustainably reduced by 20%–50%.
Dr. Wiik named four areas for improvement: effectiveness, efficiency, contract and pricing models, and delivery models. "A key question to ask is: What is really benefiting your production, and what is the cost?" he noted.
People tend to work in silos, but by working across functions, engineers can better share and understand information to keep equipment running smoothly and sustainably.
On the CAPEX side, secondary targets can be examined if a well breaks down. Well CAPEX can be reduced by implementing drilling efficiency, rather than reevaluating the entire cost base, Dr. Wiik said.
Offshore safety and the Eastern Med. Next, Elfride Covarrubias Villegas, Business Development Manager for Italy and the Mediterranean for DNV GL Oil & Gas, discussed the potential impacts of the new EU offshore safety directive on the Eastern Med.
EU safety regulations for offshore oil platforms are needed because, as Villegas said, "Offshore accidents do not know boundaries." A serious accident on the level of the Deepwater Horizon oil spill would cause many problems for EU member states.
Stakeholder concerns and a slew of major well blowouts and gas leaks in the past decade have led to a loss of confidence in the industry, Villegas said. The EU offshore safety directive aims for the consistent implementation of best practices across all EU jurisdictions, the strengthening of EU response preparedness, and the increased independent verification of wells.
Overcoming regulatory hurdles. Session 4 delved into regulatory and legal matters, starting with a presentation from Gina Cohen (pictured at left, with panel at right), a prominent gas consultant for the Eastern Med, on Israel's upstream and downstream regulations. To achieve a sustainable and balanced regional gas market, Cohen recommends clearing up regulatory uncertainty and creating an investor-friendly climate.
There will be further play between Israel, Cyprus and Egypt with the recent signing of the MOU between Cyprus and Egypt for cooperation in oil and gas. At present, Egypt is the only anchor partner for Israel and Cyprus, Cohen said. What is happening on the regulatory front will have a strong impact on regional gas trade going forward.
Regulatory stability is important, but the Israeli antitrust commission, electricity regulators, and other entities are pressuring the Israeli government to make changes before the market is further developed.
Egypt is moving away from production-sharing contract to concession contracts. It is also moving toward less price regulation and less interference on how countries can sell gas into the country, Cohen said. Although John Burley from BG Egypt believes there is room for both Cyprus and Israeli gas in Egypt, Cohen does not believe this to be the case. She acknowledged that Israel hopes to reach the Egyptian gas market first, as does Cyprus.
Regulators need to address how much gas should go to the local market and how much gas should be exported. It is not legitimate for regulators to interfere with gas contracts or splitting up companies, as this will reduce market growth over the long term, Cohen asserted.
Constant changes in Israeli energy regulations and the structure of the energy industry have interfered with the ability to carry out business deals. Government administrations and organizations have initiated export controls, higher taxes, monopoly breakups and price controls, all of which have complicated the regulatory scenario, Cohen noted.
Under this complicated and muddled regulatory scenario, the only other company aside from Noble Energy that will come into Israel to develop gas will be one with a political agenda, rather than a business agenda, Cohen opined.
"Noble Energy, quite smartly, is saying that they are freezing investments in Israel until all of these issues are resolved," Cohen stated. To keep Israel in the gas game, issues that must be addressed in the near future include export taxes, export permits and price controls.
Call for regulatory cooperation. Closing out Day 1 of EMGC 2015, a panel discussion examined regulatory and legal issues for the entire Eastern Med. The panelists included moderator Cleopatra Kitti, Founder of KappaPhi; Antonis Paschalides, Senior Partner and the Head of the Energy Law Department at Antonis Paschalides & Co. LLC; Dr. Christodoulos Pelaghias, Managing Partner at Pelaghias LLC; and Etai Rappel, Director of Infrastructure Finance Ratings for Standard & Poor's Maalot.
Paschalides spoke about the implications on regional cooperation caused by national regulatory and legal issues. The failure to address these concerns will lead to the failure of the industry, he said. A balance is needed between public and private industry.
"It is not a crime for companies to make good profits, but it is also not a crime for countries to profit from their resources," Paschalides said. If companies and governments fail to reach agreement, then regional cooperation will fall apart, and Noble and Delek will need to sell off some assets to avoid being categorized as monopolies, he noted.
Pelaghias then spoke about the possibility of creating a regional cooperation council, which he dubbed the Eastern Mediterranean Energy Cooperation Council (EMECC). The EMECC could promote government-to-government dialogue and cooperation in energy matters; ensure the existence of a competitive and functioning petroleum industry; ensure that quality, health, safety, security and environmental laws are upheld in a socially responsible manner; and promote sustainable growth, security and prosperity in the region.
The proposed EMECC could also help answer questions about the security of energy supply, regional security concerns, the development and integration of regional energy infrastructure, energy efficiency and savings and other pressing concerns.
Closing out the panel discussion, Rappel talked about regulatory and legal frameworks from a country-risk assessment methodology. Of utmost importance are transparency, predictability, clarity (of policy and the way it is expressed) and consistency.
Infrastructure construction and operation is a long-term endeavor, so sudden changes can lead to increased uncertainty and a change in investment appetites.
"It's important that if government administrations or individual regulators change, there will be a defined and long-term policy that goes forward" to negotiate and resolve disputes with a win-win view, Rappel said.
Source: http://www.hydrocarbonprocessing.com/Article/3436919/Search/EMGC-15-Industry-experts-call-for-clarity-on-Eastern-Med.html?Keywords=emgc
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