MOU signed between GASCO and Tecnicas Reunidas for enhanced methane recovery project study - ENERGY EGYPT / MINISTRY OF PETROLEUM

February 20, 2016

Eng. Tarek El-Molla, Minister of Petroleum and Mineral Resources, and Mr. Arturo Avello, the Spanish Ambassador in Cairo, witnessed the signing of a Memorandum of Understanding between the Egyptian Natural Gas Company (GASCO) and Spanish company Tecnicas Reunidas, one of the largest international companies specializing in engineering design and construction of oil and gas projects.

The MOU is for the preparation of a technical and economic feasibility study and the provision of finance offers for the second phase of the enhanced methane recovery project at the Western Desert Gas Complex (WDGC). The project aims to maximize the production of ethane/propane mixture, which forms the basis for the production of ethylene and polyethylene in the petrochemical industry, thus contributing to securing feedstock and raw material for new and existing petrochemical projects.

The Memorandum was signed by Eng. Karem Mahmoud, Chairman of GASCO and Mr. Ricardo Sanchez Galindo, Commercial Director of Tecnicas Reunidas. The signing took place in the presence of Eng. Mohamed Taher, First Undersecretary of the Ministry of Petroleum for Petroleum Affairs, Eng. Khaled Abdel Badie, Head of Egyptian Natural Gas Holding Company (EGAS), and Eng. Mohamed Safaan, President and Chairman of Egyptian Petrochemicals Holding Company (ECHEM).

Greece's Hellenic Petroleum to buy 60,000 bpd from Iran - REUTERS

Greek FM Kotzias (left) & Iranian FM Zarif(right)

Sat Feb 20, 2016 1:12pm GMT

DUBAI Feb 20 (Reuters) - Greece's biggest oil refiner, Hellenic Petroleum, will buy 60,000 barrels a day of crude oil from Iran which can increase to 150,000 bpd, Iran's deputy oil minister said on Saturday.

The deal was made during the recent visit of Greek Prime Minister Alexis Tsipras to Tehran, Amir-Hossein Zamaninia was quoted as saying by oil ministry's news agency, Shana.

Hellenic Petroleum was a major buyer of Iranian crude, which accounted for about 20 percent of the southeast European country's annual crude oil imports, before sanctions were imposed on Tehran in 2011.

Turkey, Kurds in Duel Over Energy - NATURAL GAS EUROPE

February 19th, 2016

The intensification of ground warfare in Syria, internal strife in Turkey and the rhetoric of combat throughout the region are jeopardising prospects for both a gas pipeline from northern Iraq to Turkey and independence for the Iraqi Kurds.

On February 18, Kurdish separatists in Turkey warned against attempts to build a gas pipeline from Iraqi Kurdistan to Turkey, saying this would only stand to benefit Turkey’s ruling Justice Party, known by its Turkish initials as the AKP.

The statement from the Group of Communities in Kurdistan (KCK), an offshoot of the banned Kurdistan Workers’ Party (PKK) which is leading the revived war against Turkish rule in Kurdish areas of southeastern Turkey, came at a critical juncture. The day before, at least 28 people were killed in a car bomb attack on buses carrying soldiers to a military barracks in Ankara while a second attack, in the southern district of Lice on February 18 killed a further six members of the security forces.

First Siemens gas turbines begin their journey to Egypt Friday, Feb 19, 2016 - YOUR RENEWABLE NEWS

The first gas turbines for the largest order in Siemens' history have started their journey to Egypt. Two turbines for the Beni Suef power plant project will be loaded onto a barge at the Berlin Westhafen port, from where they will be shipped to the Rotterdam seaport. Via the Port of Adabiya on the Red Sea the 890-ton cargo will then be transported to Beni Suef. By comparison, an empty Airbus A380 has a weight of 277 metric tons. The gas turbines are scheduled to be installed in the power plant in mid-May.

The two SGT5-8000H gas turbines will begin their three-month trip at Berlin Westhafen and will end it at the Beni Suef power plant project situated around 110 kilometers south of Cairo. The machines, which each measure 12.6 meters long, 5.5 meters high and 5.5 meters wide, will be loaded into a barge with the aid of two cranes and first shipped to the Port of Rotterdam. In this seaport, the two gas turbines will be loaded onto the "Wiebke" heavy load carrier with the ship's onboard cranes. The ship will travel from Rotterdam to the Mediterranean Sea across the Strait of Gibraltar. The cargo arrives at the destination port of Adabiya on the Red Sea, passing through the Suez Canal. A 40-axle trailer will transport the turbines the rest of the way, traveling the 250-kilometer route along the Nile to Beni Suef in about five days.

Israel Risks Losing Jordanian Market - NATURAL GAS EUROPE

LNG Terminal, Aqaba

February 18th, 2016

While Israel is still stuck in internal policy debates, Jordan, Israel’s next-door neighbour and a potential export market, may have found alternative sources of natural gas.

Despite its ongoing energy crisis and a desperate need to import cheap natural gas from a reliable source, Jordan’s lawmakers seem no longer as keen to close a deal with Israel.

Dependent on imported energy for 98% of its needs, Jordan previously relied on Egyptian gas to satisfy most of its domestic demand. The disruptions in the flow of gas in the aftermath of the Arab spring caused a sudden spike in Jordan’s energy bill and forced the country into a severe crisis.

Texan Noble Energy announced in September 2014 the signing of a non-binding Letter of Intent (LOI) to supply natural gas from Israel’s 22 trillion cubic feet (Tcf) Leviathan field to Jordan’s National Electric Power Company (Nepco). Under the terms of the LOI, Noble and its partners would supply a base gross quantity of 1.6 trillion ft³ from Leviathan to Jordan over a period of 15 years, beginning at a rate of 300mn ft³/d. A final deal would be subject to regulatory approvals.

The World Refining Association holds the Inaugural Egypt Downstream Summit - ENERGY EGYPT / WORLD REFINING ASSOCIATION

Hannah Wharrier, Managing Director of the World Refining
Association, & Eng. Mohamed Al Masry, Chairman and CEO of EGPC

February 18, 2016

Under the Auspices of the Ministry of Petroleum and Mineral Resources, The World Refining Association (WRA) inaugurated its first Downstream Summit and Exhibition in Egypt bringing together key stakeholders and industry experts together to discuss innovative ideas on how Egypt can realise its downstream potential.

The World Refining Association launched yesterday its first Egypt Downstream Summit & Exhibition that focused on attracting investment and highlighting the latest projects and opportunities for Egypt’s refining and petrochemical sectors.

Senior representatives from EGPC, Midor, EGAS, Nasr Petroleum, Asiut Oil Refining Company, Cairo Oil Refining Company, Carbon Holdings, Axens, UOP, thyssenkrupp and many more to discuss the potential of the downstream industry in Egypt.

Tapping into new revenue streams - DAILY NEWS EGYPT

Patrick Allman-Ward, CEO, Dana Gas

Regional giant Dana Gas will commit millions to E&P in the next three years

February 18, 2016

To say the last 12 months have been hard on the hydrocarbons business undersells understatement. The price of a barrel of Brent, which already plummeted from over $100 to under $50 before the end of 2014, has continued to fall throughout the year, languishing at less than $40 as 2015 drew to an end. Natural gas fared little better, with the Million British Thermal Unit (mmBTU) value dropping to less than half its December 2014 peak by November 2015, although prices rallied in the last fortnight of the year.

Despite the state of global energy markets, Dana Gas, the Middle East’s leading privately owned gas company has faith enough in Egypt and the Al-Sisi administration to commit millions in exploration and production (E&P) in the country. Dana is based in the United Arab Emirates, but hasassets in Egypt and the Kurdistan Region of Iraq. Via its subsidiary, Dana Gas Egypt, it holds 100% E&P and development rights on fields in the Nile Delta and has a minority share in an LPG plant on the Gulf of Suez.

Petroceltic Sells Egyptian Licenses to Edison - RIGZONE

by Rigzone Staff|Thursday, February 18, 2016

Petroceltic International plc has completed the sale of the North Thekah, North Port Fouad and South Idku exploration licenses in Egypt to its joint venture partner Edison International S.p.A, for a cash consideration of $9.5 million.

Following government approvals and the waiver of pre-emption rights held by the Egyptian Natural Gas Holding Company, the transaction has now formally completed and funds have been received. The company first announced that it had reached an agreement to sell the licenses to Edison in December last year.

Commenting on the transaction, Petroceltic Chief Executive Brian O’Cathain said in a company statement:

“This sale continues our strategic initiative, announced in early 2015, to focus the company on the Ain Tsila development in Algeria.”

Noble Energy says looking to 'monetize' assets amid crude slump - REUTERS

Wed Feb 17, 2016
BY SWETHA GOPINATH

Oil and gas producer Noble Energy Inc (NBL.N) posted a surprise quarterly profit and said it would "monetize" assets to cope with a slump in oil prices that is eroding cash flows, sending the company's shares up 8 percent.

A more-than 70 percent fall in oil prices since mid-2014 has prompted oil producers to prune portfolios and use proceeds from asset sales to boost liquidity.

Crude prices, however, rose sharply to above $34 a barrel on Wednesday, on increased hopes of a freeze in production by top producers such as Saudi Arabia and Russia.

Noble, which operates in U.S. shale fields and offshore Gulf of Mexico, Israel and West Africa, said it exited the fourth quarter with $5 billion in liquidity.

" ... Our ability to monetize additional assets, gives us flexibility to adjust in a volatile price environment," Chief Executive David Stover said on a post-earnings call.

Energy Goals May Unify Eastern Med - NATURAL GAS EUROPE

Singapore's Minister K Shanmugam (right) with (former) Israeli
Deputy National Security Advisor Dr Eran Lerman, 11 Oct 2013

February 17th, 2016

As a former deputy adviser to the Israel National Security Council, Dr Eran Lerman has strong and clear views about the eastern Mediterranean as a strategic environment, particularly now with the increasing prospects for regional cooperation in energy. He sees the eastern Mediterranean as the successor to the 'colonial' term, Middle East. He is now professor at Bar-Ilan University’s Begin-Sadat Center for Strategic Studies 
at Ramat Gan and gave an interview to NGE.

Dr Lerman, you refer to ‘The Union for the Mediterranean’ as an important symbol of cooperation. What does this mean?

I refer to closer cooperation within the Mediterranean framework, which can be built block by block, as demonstrated by the January 27 tripartite summit of Israel, Cyprus and Greece. A parallel process already links Egypt, Cyprus and Greece and indirectly, Jordan as well. Export-oriented gas policies can help cement links between the countries. This is not an effort to isolate Turkey, but rather to create a regional balance of power in which she can find her place once her leaders change course.

Towards Energy Union: The Commission presents sustainable energy security package - EUROPEAN COMMISSION

EC - Press release
Brussels, 16 February 2016

The Commission today presented its energy security package with necessary proposals to equip the EU for global energy transition as well as to be prepared for possible energy supply interruptions.

Energy security dimension is one of the cornerstones of the Energy Union strategy, a key political priority of the Juncker Commission.

Implementing Energy Union: The Commission presents energy security package

The Commission today unveiled a package of energy security measures to equip the EU for global energy transition to address possible energy supply interruptions. Energy security dimension is one of the cornerstones of the Energy Union strategy, a key political priority of the Juncker Commission.

Cyprus set for third round of hydrocarbon exploration licensing - CYPRUS WEEKLY

incyprus.com — 16/02/2016

Cabinet on Tuesday gave the green line for the opening of the third hydrocarbon exploration licensing round inside Cyprus’ Exclusive Economic Zone (EEZ).

This is what government spokesman Nicos Christodoulides told journalists after a morning Cabinet meeting chaired by President Nicos Anastasiades.

“At the same time, the Energy Minister was authorized to table before Cabinet the soonest possible all necessary proposals towards the implementation of the decision,” the spokesman added.

Last week, Minister Giorgos Lakkotrypis said that a lot of energy companies have expressed interest in getting a license and he added:

Cyprus To Offer 12 Blocks In Third Offshore Licensing Round - OILPRICE.com

Cypriot President Nicos Anastasiades

By Charles Kennedy, Tue, 16 February 2016

The authorities of Cyprus have announced their third offshore licensing round for oil and gas exploration in the Exclusive Economic Zone (EEZ), with 12 blocks up for grabs not far from Israel’s giant Leviathan gas field in the Levant Basin.

The 12 blocks are off the southern coast of Cyprus, near the Israeli Leviathan Basin discovered by Texas-based Noble Energy, which is also preparing to exploit another Cypriot gas block containing at least 4.5 trillion cubic feet.

In June last year, Noble Energy made a commercial find in the Aphrodite offshore natural gas field, thus confirming the potential of the EEZ.

Italy’s Eni invested $4 bn on first phase of Zohr gas field – Egyptian official - ENERGY EGYPT / REUTERS

February 16, 2016

EniItaly’s Eni has invested $4 billion in the development of the first phase of Egypt’s giant offshore Mediterranean gas field, Zohr, including the drilling of four wells, an Egyptian official said on Monday.

Eni’s total investment in Zohr is between $12 billion and $16 billion, the official added on the sidelines of an Egyptian energy conference.

SOURCE / Reuters

EGAS renegotiates WDDM Phase 9b with BG, Shell and Petronas - ENERGY EGYPT / AL BORSA NEWS

BG’s activities in Egypt – including WDDM project
(Source: BG Group)

February 15, 2016

The Egyptian Natural Gas Holding Company (EGAS) is restarting negotiations with BG Group and Petronas over the West Delta Deep Marine (WDDM) Phase 9b project and bringing it on stream.

EGAS chief Khaled Abdel Badie said that regular meetings are taking place with foreign partners BG, Shell (which has recently acquired BG) and Petronas and that ongoing talks are in progress to ensure a mutually acceptable resolution is reached, noting that talks involve negotiations over the price of gas produced from Phase 9b of the Burullus fields.

BG Group had announced in December that it was delaying bringing the Phase 9b wells on stream to mid-2016 at the earliest as receivables from Egypt continued to increase.

Israel's Netanyahu defends gas deal in rare Supreme Court visit - REUTERS

Israeli Prime minister Bejamin Netanyahu (C) sits in the Supreme
Court, February 14, 2016. REUTERS/ Jim Hollander

Sun Feb 14, 2016
JERUSALEM | BY STEVEN SCHEER

Prime Minister Benjamin Netanyahu told Israel's top court on Sunday the country must forge ahead with developing a large natural gas field, with billions of dollars worth of potential exports, for both economic and security reasons.

In an unusual step for an Israeli prime minister, Netanyahu testified, at his own request, in the Supreme Court to defend a framework gas deal after opposition parties and non-government organizations filed petitions to block plans to develop the Leviathan field off Israel's Mediterranean coast.

Critics, including the anti-trust authority, have argued that planned control of the country's gas reserves by one consortium will limit competition and keep prices high.

‘Damage already done’ to Cyprus gas industry - CYPRUS MAIL

FEBRUARY 14TH, 2016 EVIE ANDREOU

THE government’s scramble to offer Limassol as an alternative support hub to the energy giants turfed out of Larnaca, is too little too late as the damage to the island’s image has already been done, business leaders have told the Sunday Mail.

Larnaca municipality’s decision to reject a request to extend the operation of MedServ, a company providing oil and gas exploration support services out of the port, has angered those directly involved and caused widespread disappointment in the industry, even more so as the move was ‘respected’ by the government.

It has also led to the delay in French company Total’s exploratory drilling by three to four months, Energy Minister Giorgos Lakkotrypis said on Saturday.