Egypt's game-changing energy deals - ARABIAN BUSINESS

Egypt’s Petroleum Ministry expects to attract $8.5bn in foreign
investments in energy research and development in 2016-17.

By Jason Rosychuk
Saturday, 27 August 2016 12:23 AM

The Egyptian government’s landmark oil and gas deals with five global oil majors has been pegged as a turning point for emerging markets hydrocarbons. Amid the publicity and excitement, will these contracts be a game changer for global oil players and for indigenous energy supply in the Middle Eastern country?

While news of the new contracts does not necessarily signal an oil market turnaround, it does demonstrate a renewed appetite for exploration in emerging markets, particularly for those in which established infrastructure exists.

ENERGY: Greece, Cyprus, Israel electricity highway takes shape - FINANCIAL MIRROR

26 August, 2016

Stages 1 and 2 to cost EUR 3.5 bln, fully funded by EuroAsia Interconnector
The biggest investment in Cyprus is finally taking shape as the final and comprehensive investment dossier has been submitted in Nicosia for the first electricity interconnection license that will provide a secure and stable supply of energy between Israel, Cyprus and Greece.

The project, promoted by the EuroAsia Interconnector in cooperation with the national utilities of the three countries, will also end the energy isolation of these ‘island’ states, that although are part of the regional and global economies, have remained detached from continental electricity grids. 

Record income for Tamar Partnership - NATURAL GAS EUROPE

August 25th, 2016, 9:30amYa'acov Zalel 
The Tamar partnership ended the first six months of 2016 with new production and financial records. It reported production of 4.5 bn m³, up 0.7 bn m³ or 18.4% from the year before and 214,000 barrels of condensate up 36,000 for the period. However, because of slightly lower average gas prices in the Israeli market, revenues and income gains lagged behind the production increase.

Total revenues for the first six months totalled $792mn, up $95mn or 13.6%. The average natural gas price was down 4% at $5.17/mn Btu. Revenues from gas were at $789mn and the rest, about $10mn, were from condensate. Helping was an instruction by the energy ministry to replace 15% of the coal used in power generation with gas. Operational expenses fell by 13.7% to $67mn or 8.4% of the revenues. Combined income before taxes for all four partners was $427mn, up $46mn from the first half of 2015.

Energy Minister's meeting with Egyptian counterpart set for next Wednesday - CYPRUS NEWS AGENCY

CNA - CYPRUS/Nicosia 25/8/2016 17:45

The meeting of Cyprus' Energy Minister George Lakkotrypis with his Egyptian counterpart, that was initially planned to take place today, has now been rescheduled for Wednesday, August 31, according to an official press release.

“The meeting between Minister of Energy, Commerce, Industry and Tourism of the Republic of Cyprus George Lakkotrypis and Minister of Oil and Mineral Resources of the Arab Republic of Egypt Tarek El Molla, planned for today in Nicosia, is set for the 31st of August in Nicosia” the press release reads.

SDX Energy 'Well Placed' to Drill South Disouq Well - RIGZONE

by Andreas Exarheas, Rigzone Staff, Wednesday, August 24, 2016

SDX Energy Inc. is well placed to maximize the potential of its South Disouq asset in Egypt, says the company’s president and CEO Paul Welch.

“We have a solid financial position which is underpinned by high-margin production that enables us to generate positive free cash flow down to $15 oil,” he commented in a company statement.

“This, combined with an active, and potentially transformational work program, gives us a high degree of confidence about the future,” Welch added.

Huge East Med gas reserves are focus of int'l interest - GLOBES

24/08/2016, 18:29
Nadav Shetreet

Cyprus, Lebanon, Egypt, and Israel are issuing a new series of natural gas exploration licenses.
The major natural gas reservoirs that have been discovered off the Mediterranean shores in recent years have made the region a focus of international interest. The past few months have been especially lively, with Lebanon, Egypt, Cyprus, and Israel simultaneously issuing new exploration licenses.

The American Geosciences Institute estimated in 2010 that the Eastern Mediterranean basin, which includes the territorial waters of Israel, the Gaza Strip, Lebanon, Syria, and Cyprus, has 3,450 BCM of natural gas and 1.7 billion barrels of oil. These reserves are likely to have substantial economic and environmental consequences. The discovery of these reservoirs in the their territory has given countries that were previously dependent on energy imports an opportunity to develop gas fields, achieve energy independence, and earn money by exporting gas to other countries.

Israel to offer 24 blocks in first offshore round - INTERFAX

The 24 blocks on offer in Israel’s offshore licensing round.

By Verity Ratcliffe 24 August 2016 11:28 GMT

Israel is hoping to build on the hype surrounding exploration in the East Mediterranean with its first offshore licensing round. The Ministry of National Infrastructures, Energy and Water Resources (MIEWR), the government agency responsible for overseeing all petroleum-related activities in the country, intends to approach IOCs in September before the official launch of the round in November.

The areas in the licensing round offer high gas prospectivity, but IOCs may need convincing because of the geopolitical situation and the uncertainty surrounding possible routes to market for gas exports.

A total of 24 blocks, each covering up to 40,000 hectares, will be on offer. Israel’s Petroleum Council approved the delineation of the exploration blocks on 10 August. The government hopes the round will draw more IOCs to the country’s oil and gas sector while promoting competition and transparency.

IOCs have been invited to meet the Israeli minister of energy, Yuval Steinitz, at roadshows in London on 1 September and Singapore on 6 September. The ministry will hold an information session in Houston after that. Other dates may be added, according to IHS Energy, which is advising the government on the round. Public holidays are likely to stymie progress in October so the round will officially open in November.

Turkey and the Energy Transit Question - CARNEGIE EUROPE

SEVERIN FISCHER
TUESDAY, AUGUST 23, 2016

For foreign and security policy analysts, pipelines tend to be the entry point into the world of energy. Pipelines create dependencies between countries, pipelines stay for decades, and pipelines have a highly symbolic political value.

In the European energy security debate, gas pipelines also have an identity function: you either support freeing Europe from its dangerous addiction to Russian gas by backing the Southern Gas Corridor—formerly known as “Nabucco” and designed to bring new gas supplies from the Caspian Basin, Central Asia, and Middle East regions into Europe—or you blindly follow the Kremlin’s breadcrumbs into the Nord Stream/South Stream-energy trap. Critical differentiation is rare.

Today, controversies over pipeline politics have a rather anachronistic flavor. This is mainly due to the growing flexibility of European—and partially global—natural gas markets in light of the massive increase in LNG supply, interconnectors, and spot market trade. This new market environment has not only changed the relationship between producers and consumers but has also altered the political and economic leverage of transit countries. This is especially important when looking at new transit countries, Turkey being a prominent example.

Cyprus-Egypt energy deal a possible PR stunt - CYPRUS MAIL

AUGUST 22ND, 2016
Elias Hazou

Cyprus’ sovereign rights, including the right to commercially exploit its natural resources, cannot be sidelined because reunification talks are ongoing, the government said on Monday.

“The longstanding position of the Republic of Cyprus is that the natural wealth belongs to the state, and that subsequent to a solution to the Cyprus problem all the people of Cyprus stand to benefit” government spokesman Nicos Christodoulides told the Cyprus News Agency.

He was being asked to respond to an earlier statement released by Baris Burcu, spokesman for Turkish Cypriot community leader Mustafa Akinci.

In his own statement, Burju had commented on reports in the Greek Cypriot media of an upcoming interstate gas-related agreement to be signed in Nicosia later this week between Cyprus and Egypt.

Greek media writes about new contradictions between Greek government and SOCAR over DESFA - ABC.az

22.08.2016 10:42

Between the Greek government and SOCAR (the State Oil Company of Azerbaijan) there are new frictions over acquisition of gas transmission company DESFA.

According to www.capital.gr, one of frictions – tariff policy, which among others affects the income from DESFA sale to foreign investors.

So, the Energy Ministry of Greece has made a number of amendments to the DESFA tariff policy without foreign investors’ consultations. The Greece media believes that commencement of tariff policy amendments may compromise the company privatization.

According to some reports, the SOCAR insisted on the DESFA value adjustment in case of any changes in the company assets. As a whole, the Greek government seeks to change the DESFA privatization model and to accept instruction on the sale of minority stake to a strategic investor over MOMCC model that may withdraw the SOCAR from negotiations,” web-portal writes.

U.S. Vision for Mideast Stability Runs Through Gas Pipelines - BLOOMBERG

August 21, 2016 — 10:37 AM EESTDavid Wainer

• Countries would gain from diversifying supply, diplomat says
• Line connecting Israel, Turkey would require Cyprus deal first

The potential to benefit from new gas discoveries has created a rare opportunity for eastern Mediterranean countries including Israel and Turkey to forge closer ties, according to U.S. Secretary of State John Kerry’s envoy on energy affairs.

Apache plans to increase its investments in Egypt’s petroleum explorations sector: cabinet - DAILY NEWS EGYPT

The government is providing new areas for international companies to increase their oil and gas exploration processes, says CEO

By Mohamed Ayyad

Apache, an American company specialised in the field of petroleum, plans to inject new investments in Egypt during the coming period and to sign new contracts for exploration soon, according to the company’s CEO John Christmann.

Prime Minister Sherif Ismail met on Sunday a delegation from Apache, which included the company’s chairperson, in the presence of Minister of Petroleum and Mineral Resources Tarek El-Molla to discuss the possibility of an expansion of Apache’s activities in Egypt.

Maximising the benefits from the third licensing round - CYPRUS MAIL

AUGUST 21ST, 2016
Constantinos Hadjistassou

Taking into account the current historically low crude oil prices, the interest shown in the third hydrocarbons licensing round by energy behemoths such as Exxon-Mobil, Statoil and Qatar Petroleum, is a highly encouraging development. Although the timing of the call for tenders was bold, nevertheless great care is needed if we are to make the most of this interest.

Key to the success of the call for tenders was the discovery of the Zohr supergiant gas field which shares similar geological structures – carbonate layers in the bedrock – with the offshore blocks auctioned in the third round. The big question now is the ranking of the bids submitted by the companies as well as the final political decision granting exploration concessions.