Zohr status confusion - IN CYPRUS / CYPRUS WEEKLY

05/03/2016

Remarks by the Energy Minister, George Lakkotrypis at an energy conference in Nicosia this week have sparked confusion about the status of the massive natural gas find in the Zohr field close to the Cyprus Exclusive Economic Zone (EEZ) but on the Egyptian side.

In August 2015, ENI made a mammoth natural gas find off Egypt’s coast, which was a game-changer in the industry but also renewed interest for the Eastern Mediterranean region.

The gas find is estimated at 30 trillion cubic feet (tcf) or 850 billion cubic metres, compared with around 4.7 tcf estimated for Cyprus’ Aphrodite field in Block 12.

Last Friday the Italian energy company ENI said that the Zohr find was “a single and continuous mega tank of natural gas, fully comprised in the Egyptian Exclusive Economic Zone (EEZ) and within the Shorouk Block”.

The Old Jewish Joke That Explains Israel's Dangerous Dithering on Natural Gas - HAARETZ

According to the opposition, whatever happens with the government's deal with the gas companies is bad. But any delay may cost Israel billions.

Nehemia Shtrasler Mar 04, 2016

A Polish woman decided to buy a present for her son-in-law. She bought him two ties, one red and one blue. One evening, she invited her daughter and son-in-law over for dinner, and the son-in-law, who wanted to make his mother-in-law happy, decided to wear the blue tie. But when she opened the door, the mother-in-law took one glance and complained, “I see you didn’t like the red tie.”

It’s the same story with the government’s deal with the natural-gas companies: Whatever happens with it is bad, according to the opposition. If Egypt found gas and no longer needs Israel, it’s proof the agreement is a bad one. But if Turkey, Greece and Cyprus are interested in buying Israeli gas that’s bad too, because we won’t have enough for ourselves.

Few outcomes in Cyprus-Greece-Israel trilateral summit - EXECUTIVE MAGAZINE

March 4, 2016 - Mona Sukkarieh

Despite being labeled “historic,” the trilateral summit held in Nicosia on January 28 among Cyprus President Nicos Anastasiades, Israeli Prime Minister Benjamin Netanyahu and Greek Prime Minister Alexis Tsipras did not yield concrete results. The 2013 Memorandum of Understanding (MoU) between Cyprus, Greece and Israel formally established the three countries’ will to strengthen energy cooperation and protect important infrastructure. The MoU also included a joint declaration of intent to lay an undersea electric cable linking Israel, Cyprus and Greece (Crete). But political wishes have yet to translate into actual projects. And on that front, the trilateral summit did not make significant advances.

In Nicosia, the three leaders reiterated their “readiness to further explore projects such as the EastMed Pipeline”. The carefully worded statement rules out any commitment, not surprising given the question marks that surround the project, even before a feasibility study is completed. Given the technical challenges, the project carries an exorbitant price tag, which makes its commercial viability doubtful in current conditions.

EU Clears Greek Subsidy for TAP - NATURAL GAS EUROPE

March 03rd, 2016

The European Commission on March 3 said it has found the Host Government Agreement between the Greek authorities and the Trans Adriatic Pipeline (TAP) to be in line with EU state aid rules.

"Today's decision opens the way for a multi-billion infrastructure project in Greece,” said EU competition commissioner Margrethe Vestager. TAP will invest €5.6bn over five years, of which €2.3bn will be in Greece. With an initial capacity of 10bn m³/yr, TAP will flow gas from the Shah Deniz II field in Azerbaijan to Italy starting 2020 and is a EU ‘project of common interest’ (PCI).

TAP CEO Ian Bradshaw said earlier this week that construction will start in late May or early June in Greece near Thessaloniki.

Israeli gov't to allow gas exports from Leviathan to Gaza - GLOBES

03/03/2016, 17:36
Hedy Cohen

The Ministry of National Infrastructure, Energy and Water Resources has authorized the sale of 0.25-0.4 BCM a year.

After almost seven years of attempts by the Palestinian Authority (PA) to import natural gas to the Gaza Strip, it appears that it is really happening. Sources inform "Globes" that intensive secret negotiations between Israel and the PA, led by the Quartet on the Middle East, have taken place in recent weeks for the supply of gas from the Leviathan reservoir to the Gaza Strip power station. The Israel Security Cabinet has agreed in principle to the measure, and the Ministry of National Infrastructure, Energy and Water Resources authorized the Leviathan partners several days ago to conduct negotiations. The Quartet announced that it was willing to pay for a gas pipeline to be laid by Israel up to the border.

Eratosthenes seamount Carbonate Play offers new prospects to Oil & Gas exploration - Twitter

March 2, 2016 - This map was tweeted by Cypriot Energy Minister Yiorgos Lakkotrypis. Concession blocks 2 (ENI-Kogas), 6, 7, 9 (ENI-Kogas), 10, 11 (Total) and 12 (Noble Energy, BG Group, Delek Group, Avner Exploration) appear to be made up of the same stuff as the giant 30 tcf Zohr discovery in Egypt's EEZ by ENI. Cyprus recently announced a 3rd Licensing Round.

The minister's tweet follows:

Georgios Lakkotrypis ‏@GLakkotrypis (around 16:00) Cyprus
Eratosthenes seamount Carbonate Play offers new prospects to Oil & Gas exploration in #Cyprus EEZ & #EastMed region.

Egypt doubles production of gas in Q2 of 2017: Prime Minister - DAILY NEWS EGYPT

Petroleum Minister Sherif Ismail (DNE Photo)

EGP 164bn for public investments, EGP 700bn to pay for the debt service, wages, subsidies in all forms

Mohamed Ayyad, 2 March 2016

According to Prime Minister Sherif Ismail, Egypt aims to double its current production of natural gas the second quarter (Q2) of 2017, driven by recent confirmed discoveries.

Eni Company has made discoveries of gas reserves of up to 15bn cubic metres of gas and condensates in the Delta region.

During a meeting Tuesday with members of 10 Ramadan Investors Association, Ismail stressed that this increase will contribute to augmenting the development processes in all areas, especially industrial expansion, according to a cabinet statement.

GE Oil & Gas ready to help Cyprus develop energy sector, executive says - BUSINESS MAIL / CYPRUS MAIL

MARCH 1, 2016

By Stelios Orphanides

GE Oil & Gas, a specialist in the natural gas technology, is in position to help Cyprus develop its natural gas and export it no matter which solution authorities will chose, a company executive said.

“Whether the option is pipeline, floating production storage and offloading, liquid natural gas, small-scale liquefied natural gas, floating liquefied natural gas, GE can provide the right solution that will meet specific requirements,” Bill R. Alashqar, managing director, US Independents, GE Oil & Gas and board member who also sits in the Cyprus Oil and Gas Association board, said in an interview on Tuesday.

Bill Alashqar “As the world will continue to need energy demand will continue to grow,” Alashqar said, adding that his company sees new possibilities in Cyprus and other eastern Mediterranean countries “in this volatile climate”.

Egypt signs military cooperation agreement with Cyprus - AHRAM ONLINE

Egypt's Defence Minister Sedki Sobhi (right) and his
Cypriot counterpart Christophoros Fokaides

Ahram Online , Tuesday 1 Mar 2016

Egypt's defence minister Sedki Sobhi and his Cypriot counterpart Christophoros Fokaides signed a joint military cooperation agreement Monday in Cairo, an Egyptian army spokesman said.

Sobhi and Fokaides, who is the first Cypriot defence minister to visit Egypt, also discussed previously signed memoranda of understanding for cooperation in defence, military trainings, and exchange of expertise, Brigadier General Mohamed Samir said in a statement.

Genel drops by a record after slashing Kurdistan’s Taq Taq reserves - WORLD OIL / BLOOMBERG

By RAKTEEM KATAKEY on 2/29/2016

LONDON (Bloomberg) -- Genel Energy Plc, a UK oil producer operating in Iraq’s Kurdish region, fell by a record in London trading after cutting the reserves estimate for its largest field by almost half.

Genel dropped as much as 25% on Monday, the biggest decline since the stock started to trade in June 2011, and was down 23% at 95.75 pence as of 9 a.m. local time.

The company reduced its estimate for gross recoverable proven and probable, or 2P, reserves at the Taq Taq deposit to 356 MMbbl from 683 MMbbl as of mid-2011 and will take a $1 billion charge, it said in a statement. Genel owns a 44% stake in the field.

Turkey backs Southern Gas Corridor project: Energy Min. - ANADOLU AGENCY

Berat Albayrak

Turkey will support Southern Gas Corridor project politically, financially and technically: Turkey's Energy Minister

29.02.2016
BAKU, Azerbaijan

Turkey's Energy and Natural Resources Minister declared the country's support for the Southern Gas corridor on Monday to carry Caucasian natural gas to Europe via Turkey.

During his visit to the second Southern Gas Corridor Advisory Council Meeting, which started in Baku on Feb. 29, Berat Albayrak said that Turkey will support the Southern Gas Corridor concept financially, technically and politically to ensure the country's supply security.

Israel-Turkey rapprochement - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 28/02/2016

Last December, soon after the downing of a Russian jet, and a bad year for Turkey, a flurry of diplomatic activity started with Israel aiming to restore full diplomatic ties with Ankara.

After years of false starts, Israeli and Turkish negotiators went to Geneva two weeks ago for talks aimed at ending this long-running conflict.

A consequence of Turkey’s confrontation with Russia is a threat to its gas supplies, which are heavily dependent on imports from Russia.

Turkey needs friends in its neighbourhood, but it also needs to secure alternative supplies of gas. Israel needs to export its gas, but it also needs friends to contain Iran’s increasing influence in the region. Any gas from Israel to Turkey has to go through Cyprus’ EEZ, putting Cyprus in the middle.

ENI says Zohr gas is all on Egypt’s side - IN CYPRUS / CYPRUS WEEKLY

28/02/2016

Cypriot hopes that the some of ENI’s massive natural gas find offshore Egypt last August might have crossed into the Cyprus Exclusive Economic Zone (EEZ) were dashed on Friday when the Italian oil and gas major made it clear that the gas was all on the Egyptian side.

“The comprehensive formation evaluation program confirmed the same gas-water contact and connection with the discovery well showing Zohr as a single and continuous mega tank of natural gas, fully comprised in the Egyptian Exclusive Economic Zone (EEZ) and within the Shorouk Block,” said ENI, referring to the results of the first Zohr appraisal well.

ENI said that the appraisal well had “excellent reservoir characteristics” with 305 metres ‘net pay’ – a measure of volume.

ENAP Sipetrol to complete $22m Western Desert pipeline next June - ENERGY EGYPT / AL BORSA NEWS

February 28, 2016

Chilean ENAP Sipetrol, the foreign JV partner in Egyptian Petroleum Sector subsidiary Petroshahd, plans to complete the construction of a 90 km pipeline in the Western Desert by next June at a cost of $22 million.

Eng. Sayed Rezk, ENAP Sipetrol’s General Manager, said that the company has completed 80% of the pipeline’s construction work, with the remaining work to be completed by next June according to the agreement with Qarun Company.

Eng. Rezk added that ENAP Sipetrol will start a development program of gas fields during the year with an initial investment of $15 million and to be increased later on through cooperation with Kuwait Energy Company. Eng. Rezk that the company plans to inject new investments worth $80 million through the end of next year to participate in gas fields development projects.

Israel Looks to Mediterranean Gas as Stabilizing Force in the Region - FORBES

FEB 28, 2016, Christopher Coats

Israel’s minister of infrastructure, energy and water, Yuval Steinitz promoted the idea of Eastern Mediterranean natural gas a stabilizing force in the region this past week, in remarks made at the IHS Energy CERAWeek in Houston.

The minister suggested that natural gas produced in the region and a functioning transport infrastructure could ease regional tension by providing ample energy resources to all those countries in need of it.

“I think it might serve stability at least in part of the Middle East,” said Steinitz.