Shell cuts Borollos, Rasheed investments to $158.9m in operating expenses - DAILY NEWS EGYPT

Daily decline rate 10m feet of gas at the company’s concession and there’s no production increase
Saturday October 8, 2016, Mohamed Adel 

Royal Dutch Shell reduced its investments for the current fiscal year (FY) in Borollos and Rasheed concessions to only $158.9m for maintenance and operating expenses.

A source within the petroleum sector told Daily News Egypt that the company allocated operating expenses valued at $96.7m to Borollos fields and $38m for periodical maintenance to the wells.

The source added that Shell allocated $22.7m for the operating expenses of Rosita field in Rasheed’s concession, and $1.4m for maintenance operations. There has been no increases in the performance of the natural gas production rates.

The source noted that Borollos and Rasheed fields’ production declines on a daily basis by 10m feet of gas.

Israel Should Avoid Turkey, Include Cyprus in Gas Export Projects - IMRA / BESA CENTER

Saturday, October 8, 2016, By Ariel Ben Solomon

Published originally as 'Israel Should Avoid Turkey, Include Cyprus in Gas Export Projects' on October 7, 2016 in BESA Center Perspectives Paper No. 370 

EXECUTIVE SUMMARY: Israel should rule out building a natural gas pipeline to Islamist Turkey because of the political risk involved. It should instead consider using LNG technology for export through Cyprus. Although this would be expensive, it would be a less risky and more durable option over the long term. This should be in addition to exporting to Jordan and possibly to Egypt.

As Israel begins closing deals for its natural gas, it should avoid linking itself to any expensive long-term pipeline deal with Turkey at the expense of allies Cyprus, Greece, or even Egypt. 

Notwithstanding the recent easing of tensions between the two countries, Israel cannot trust Turkish President Recep Tayyip Erdogan’s Islamist regime as a linchpin in its natural gas export strategy.

Israeli, Turkish Ministers to Meet for First Time Since 2010 Flotilla Crisis - HAARETZ

The Mavi Marmara, aboard which Israel's deadly raid on a Gaza-bound
flotilla resulted in the deaths of 9 Turkish activists, May 22, 2010.AP

Oct 08, 2016 9:23 PM
Barak Ravid

The meeting between the two countries' energy ministers in Istanbul was confirmed in recent days. Meanwhile, Israel and Turkey make progress toward appointing new ambassadors

Energy Minister Yuval Steinitz is expected to meet his Turkish counterpart, Berat Albayrak, in Istanbul on Thursday.This will be the first official public meeting between ministers from the two countries since the crisis over the Gaza-bound flotilla broke out in May 2010.

The two countries have reached a reconciliation deal in June, which is soon to be fully implemented.

Egypt's navy commander: new Mistral carrier can be used to protect offshore oil fields - AHRAM ONLINE

Friday, 7 Oct 2016

Egypt's new Mistral Carrier near Egyptian shores (Photo: Official Egyptian armed forces spokesperson Facebook page)

Egypt's naval forces commander Osama Rabie stated on Friday that the new Mistral-class carrier "Anwar El-Sadat" can be used in a range of missions, from confronting militancy in the North Sinai to protecting oil fields at sea.

Responding to a question from reporters about the role of the ship - newly acquired from France to combat terrorism in North Sinai - Rabie said it can be used to transfer land troops and armored vehicles.

The vice admiral also said that the carrier, named after late President Sadat, would play a role in securing Egypt's oil and gas fields off shore, which he says include 99 rigs in total.

Libya: First crude export cargo leaves Zueitina oil terminal, en route to China - ECOFIN AGENCY

Friday, 07 October 2016 - 09:17Anita Fatunji

(Ecofin Agency) - For the first time since late last year, an oil tanker loaded crude export cargo at Libya’s Zueitina oil terminal, a port official revealed.

According to the port official, the Ionic Anassa oil tanker loaded 800,000 barrels of oil for export to China.

Zueitina is one of the three formerly blocked ports that reopened in September, following the seizure of the terminals by Dignity Operation forces led by Khalifa Haftar.

The reopening of the Zueitina, Ras Lanuf and Es Sider ports has helped in boosting Libya’s oil production, which was reduced to a quarter of the 1.6 million barrels per day (bpd) being produced before the 2011 uprising.

Naftogaz increases oil and condensate production in Egypt by 20.7% in 2015 - INTERFAX

18:19, 07.10.2016

Naftogaz Ukrainy in 2015 increased production of oil and condensate by 20.7% compared to 2014, to 318,000 tonnes (2.33 million barrels).

According to a company consolidated report, posted on its website, commercial gas production was 192 million cubic meters, which is 4.8 times more than in 2014.

In general, since the launch of the project in Egypt in 2009 a total of 1.046 million tonnes of oil (7.686 million barrels) and 243 million cubic meters of gas was extracted, 49 wells were drilled, of which 37 were productive.

As of January 1, 2015 Ryder Scott had conducted an independent evaluation of hydrocarbon reserves/resources of the Naftogaz branch in Egypt, according to which total recoverable reserves (proven and probable - 2P) amounted to 1.132 million tonnes of oil (8.2 million barrels) and 599.6 million cubic meters of gas.

Cooperation between Cyprus and Israel never better, Netanyahu says - CYPRUS MAIL

East Med: partly explains the Israel-Cyprus love affair

October 7th, 2016

Israeli Prime Minister Benjamin Netanyahu has told President Nicos Anastasiades, in a letter of congratulations on the occasion of the 56th anniversary of Cyprus` independence, that the dialogue and cooperation between them, on both a state and personal level, have never been stronger.

“I take this opportunity to once again assure you of my continued commitment to the strategic ties between our two countries. Israel and Cyprus are close allies that share the same commitment to democratic values and to the pursuit of peace and stability in our region,” Netanyahu says in his letter.

TOTAL gears up for first exploratory drilling in block 11 - SIGMA LIVE / CNA

07.10.2016 07:42

French energy heavyweight TOTAL said on Thursday that block 11 in the Cypriot EEZ, which is adjacent to the Egyptian giant gas field Zhor, contains geologic structures which could carry natural gas.

Total signed today a contract with EDT Agency Services Ltd, a subsidiary of the EDT Offshore Group, a contract for Onshore Logistics Base Services in the Limassol port, paving the way for the commencement of exploratory drilling in block 11 in 2017. The ceremony took place in the presence of Ministers of Energy and Transport Yiorgos Lakkotrypis and Marios Demetriades respectively.

Without Saudi oil aid, Egypt rushes out big buy tenders - REUTERS

Fri Oct 7, 2016 | 10:47am EDT
Reporting by Eric Knecht and Abdel Rahman Adel in Cairo, and Jessica Jaganathan; Additional reporting by Rania El Gamal in Dubai and Ron Bousso and Libby George in London, editing by William Hardy)

CAIRO/SINGAPORE Oct 7 Egypt has not received October allocations of petroleum aid from Saudi Arabia, traders told Reuters, forcing its state oil buyer to rapidly increase tenders even amid a severe dollar shortage and growing arrears to oil producers.

Saudi Arabia agreed to provide Egypt with 700,000 tonnes of refined oil products per month for five years under a $23 billion deal between Saudi Aramco and the Egyptian General Petroleum Corporation (EGPC) signed during a state visit this year by Saudi Arabia's King Salman.

Total to start exploratory drilling in April - CYPRUS MAIL

October 6th, 2016, Elias Hazou

Energy giant Total said on Thursday that it plans to carry out its first exploratory drilling for hydrocarbons offshore Cyprus around April next year.

Total E&P Cyprus and EDT offshore, an oil and gas services company, signed a contract where the latter will provide the former onshore logistics services out of the port of Limassol supporting Total’s drilling programme.

Speaking at the signing ceremony, Yves Grosjean, country manager for Total E&P Cyprus, said the company was looking at an April 2017 timeframe for its first well.

Total has a concession on offshore Block 11.

In early 2015 Total relinquished Block 10, on which it had also held a concession, without drilling any wells. The company was released from its original two-well drilling commitment but maintained exploration rights in Block 11, agreeing to continue to evaluate 3D seismic data in a bid to locate a possible target.

Egypt's oil and gas sector rallies - ZAWYA / REUTERS / OXFORD BUSINESS GROUP

06 October, 2016
Reuters/Amr Abdallah Dalsh

Even amid a backdrop of low global commodity prices, new oil and gas discoveries are continuing to drive investment in Egypt's hydrocarbons sector.

27 September 2016

In late August Shell announced that it had discovered 142bn cu metres of natural gas at its Alam El Shawish concession in Egypt’s Western Desert, with the possibility of more reserves to be recovered, representing one of the largest finds in the region in recent years.

This follows another discovery by the Egyptian General Petroleum Corporation last year that could yield 2.2m barrels of oil and nearly 311.5m cu metres of gas in the Abu Sennan area of the Western Desert, which is already responsible for nearly half of Egypt’s total oil production of 723,000 barrels per day.

Gastrade, BEH to cooperate for Alexandroupolis LNG - HYDROCARBON PROCESSING

10/6/2016

The Government of Bulgaria has decided to participate in the Alexandroupolis floating LNG terminal project in Northern Greece. Bulgarian Energy Holding (BEH), an entity belonging to the Ministry of Energy of Bulgaria and Gastrade, promoter of the LNG terminal project, have signed a terms of reference (TOR) for the creation of a joint working team that will study and propose to the Council of Ministers of the Government of Bulgaria the optimum way to implement Bulgaria’s participation in the project. The ΤOR includes the composition of the joint team, the scope and the boundaries of its work as well as the timeframe for the submission of its proposal to the Government of Bulgaria.

Egypt eyes Idku LNG restart following Shell deal - INTERFAX

By Rachel Williamson, 6 October 2016

Egypt is slowly moving closer to restarting LNG exports following a deal with Shell to raise the volume of gas sent to the Idku LNG plant.

Shell cut a deal with the Egyptian government in mid-September to send 3.54 million cubic metres per day to Idku from the company’s gas fields to compensate for some of the rising debt Cairo owes to it in receivables, according to a leak from the Ministry of Petroleum reported in the Egyptian media.

Shell would not confirm or deny reports that gas volumes to the terminal have already been increased, but people working for the country’s energy authorities say the negotiations suggest that Idku will begin operating more regularly soon.

Total steps up its drilling plans in Cyprus - IN CYPRUS / CYPRUS WEEKLY

October 6, 2016

Cyprus Energy Minister Yiorgos Lakkotrypis has confirmed reports in Phileleftheros on Thursday that French energy firm Total will set up camp at Limassol port and link up with a Cypriot company to begin offshore drilling.

Total – that have already claimed the rights for Block 11 – are currently locked in a battle to secure the rights for Blocks 6 and 10 along with Italian rivals ENI.

Lakkotrypis told state radio that both he and Communications Minister Marios Demetriades will be present at the signing of the deal between Total and Cypriot company EDT Offshore later on Thursday. Four more deals are also expected to be reached for further drilling within 2018.

Egypt rebar demand recovers but gas remains issue - KALLANISH ENERGY

October 6, 2016

Egyptian rebar demand has recovered following a weak second quarter, rising 15% on-year and 35% on-quarter in Q3, but the delayed natural gas price reduction for steelmakers is unlikely to materialize, according to EFG Hermes.

Natural gas pricing and foreign exchange (FX) availability remain “pivotal” factors to the performance of Egyptian steelmakers, the investment bank says in a note seen by Kallanish, the sister publication of Kallanish Energy.

“We remain sceptical that (the gas price reduction) would occur,” it continues. “As for FX, Egypt continues to suffer from a lack of availability, which is holding back steel raw material imports, but has also kept finished steel imports at bay and allowed local players to pass on EGP devaluation, despite taking a hit on outstanding FX debt.”

Egypt: Edison to begin the drilling of three wells in its concessions by January 2017 - ECOFIN AGENCY

Wednesday, 05 October 2016 - 16:16Anita Fatunji

(Ecofin Agency) - Italian Edison is to start the drilling of three new wells in its gas concession in Egypt in January 2017, the company’s Commercial Manager, Tarek Shalaby, revealed.

The three wells will be drilled in the South Edco, Abu Qir, and North West El Gendy concessions and the company plans to start the development of the North Abu Qir-3 by December 2016 to produce 80 Mmcf/d of gas and 3,500bpd of condensates, with investments worth $220m.

Edison and Al Qalaa Holdings are currently in talks with the Egyptian Ministry of Petroleum for the provision of gas for a proposed power plant through the Abu Qir field. They are also in negotiations with the Egyptian General Petroleum Corporation (EGPC) regarding agreements to provide the needed lands for the project.

The Markets for Israel’s Offshore Gas Dry up - DEBKA FILE

DEBKAfile Exclusive Report October 5, 2016, 7:15 AM (IDT)

While keeping this a close secret, Prime Minister Binyamin Netanyahu has been forced to give up his grand plan to pipe gas from Israel’s offshore fields to Turkey for sale in European markets after France and Germany intimated that dealings with Ankara were unacceptable.

Plans to expand the Leviathan gas well have also been put on ice.

Although the search goes on for alternative buyers, the main export markets in Europe for Israel gas, barring the smaller markets of Egypt, Jordan and the Palestinian Authority, have suddenly dried up.

This misfortune for the Israeli economy and its causes are revealed here byDEBKAfile,

1. The key lies in Europe’s drastic change of heart towards Turkey during the years since Israel embarked on its offshore gas project. The Europeans today refuse to have any truck with Turkey and its President Tayyip Erdogan - or depend on him for their energy - in the light of his behavior since crushing the military coup against him in July. The counts against him range widely: from a massive domestic crackdown; the continued rampant influx of Muslim refugees through Turkey into central and Western Europe; his persecution of the Kurdish minority at home and in Syria; his détente with Moscow and, finally Turkey’s alienation from NATO. France and Germany have let Israel know that they would not buy Israel gas if it was piped through Turkey.

Larnaca-based energy companies pushed on date for Vassilikos move - CYPRUS MAIL

October 5th, 2016, Angelos Anastasiou

The VTTI storage facility at Vassiliko where the energy storage companies in Larnaca are supposed to be moving their operations

Companies in Larnaca have one week to come up with a schedule for moving their gas and oil storage facilities to the energy hub at Vassilikos, Interior Minister Socrates Hasikos announced on Wednesday.

Although there is a presidential decree stating the companies should complete the move by January 1, 2017 it was decided at a meeting of the interior minister, energy minister Giorgos Lakkotrypis, members of the Larnaca municipality and oil companies to give the companies a chance to specify when they can realistically move.

Sofia mulls participation in floating LNG terminal in Alexandroupolis - NEW EUROPE

OCTOBER 5, 2016, 19:06
By Kostis Geropoulos, Energy & Russian Affairs Editor, New Europe

Greece and Bulgaria discussed the development of a natural gas pipeline between the two countries on October 5 in Sofia in the framework of a Market Test for the project that would link the southeast European energy market.

According to an emailed press release from the Greek Energy and Environment Ministry, Minister Panos Skourletis, his Bulgarian counterpart Temenuzka Petkova and the ICGB consortium discussed the Interconnector Greece Bulgaria (IGB). Talks focused especially on plans to build a floating liquefied natural gas (LNG) terminal in Alexandroupolis, the completion of the reverse flow pipeline between the two countries and bilateral energy cooperation issues.

Skourletis highlighted the strategic importance of IGB for the energy security of Europe, the diversification of energy sources and routes and the economies of Greece and Bulgaria.

Gas in the middle of the Mediterranean - ABO

Oct, 04 2016, Giuseppe Acconcia

The latest agreement between Egypt and Cyprus further establishes the importance that blue gold plays in the energy strategies within the Mare Nostrum. Key players, especially countries on the eastern side, first and foremost Israel, look to Cairo as a possible key partner for the development of new export routes

On August 31, Egypt and Cyprus signed an agreement on the export of gas from the Aphrodite gas field of the eastern Mediterranean island to the North African country. The gas will be able to be used for both the domestic Egyptian market and for exports abroad. The agreement could speed up the relaunching of important Egyptian infrastructure, for years used only for domestic supply, but could also be overshadowed by the activation of Zohr IX, planned by January 2020. Not only that: Cypriot hopes could be downsized by a possible increase in Israeli exports in the Egyptian gas market. All this in a stalemate for the country’s economy, which is awaiting a billion-dollar loan from the International Monetary Fund (IMF) in exchange for reforms and privatizations which have caused several protests in Egypt.

Shell, BP bidding for three E&P blocks in Western Desert and Gulf of Suez - ENERGY EGYPT / ENTERPRISE

October 4, 2016

Royal Dutch Shell and BP are reportedly competing for E&P licenses in three blocks in the Western Desert and the Gulf of Suez as part of a tender by the EGPC, an unnamed source told Al Mal.

Shell has reportedly already sent offers for two blocks in the Western Desert, while BP is bidding for one block in the Gulf of Suez.

The Aphrodite plan - PETROLEUM ECONOMIST

Gerald Butt, Nicosia
3 October 2016

Cyprus is desperate to export gas. But until more is found, piping it to Egypt is now the main idea, says energy minister Yiorgos Lakkotrypis

"The discovery of Zohr," says Cyprus's energy minister, "has completely changed the complexion of the East Mediterranean gas scene, proving the existence of a new play based on carbonates that extend into Cyprus's exclusive economic zone." Only exploration drilling will decide if Cypriots' optimism that a gas bonanza similar to Zohr has fallen into their laps is justified.

In the meantime, as they assess bids submitted in July for the three blocks close to Zohr, Yiorgos Lakkotrypis and his team are focusing on Cyprus's sole discovery to date, the 4.5-trillion-cubic-foot Aphrodite field in Block 12. Five years have elapsed since Noble Energy and partners discovered Aphrodite. There has been a delay in developing it, Lakkotrypis says, because, unlike Israel and Egypt, Cyprus "does not have a sizeable domestic gas market that will support the speedy development of fields. Therefore, for the development of Aphrodite Cyprus needs to depend largely on exports."

Greece Pivotal to Plans for Natural Gas Pipeline - GREEK REPORTER / ANA-MPA

By Mary Harris
-Oct 3, 2016

A strategy by successive governments to turn Greece into an energy hub is moving into form with the promotion of a series of investment plans focusing on the country. The TAP (Trans Atlantic Pipeline), IGB (Greek-Bulgarian pipeline), East Med (Israel-Cyprus-Greece), South European Pipeline (transporting Russian natural gas) and IGI (Greece-Italy) projects, currently in different stages of maturity, are gradually changing the energy map of Greece, the Balkans and Europe.

The most advanced project, scheduled to begin operations in 2020, is the TAP pipeline. Environment and Energy Minister Panos Skourletis recently said that TAP will be the first section of a pipeline system, built from Azerbaijan to Italy, to be ready for operation. The TAP project (bringing together as shareholders Socar, Snam, BP, Fluxys, Enagas and Axpo) opens to the so-called South corridor of natural gas, a 4,000 km corridor with an estimated investment of more than 20 billion euros, of which 550 km passes through Greece with an estimated investment of 1.5 billion. Construction works began in May and transport capacity will be 10 billion cubic meters of natural gas annually — at an initial stage — with the prospect of doubling this capacity in the future.

Egypt plans 20 wells at the Zohr field - ECOFIN AGENCY

Monday, 03 October 2016 - 14:33, Anita Fatunji

(Ecofin Agency) - Petrobel has announced that the plans for Egypt’s Zohr field comprises of the drilling and continuation of 20 wells, and also the installation of 20 deep wellheads underwater.Three electro-hydraulic control cables have already been installed at the field and the company plans to also install measuring, protection and controlling equipment and gas transporting networks.

According to Petrobel’s CEO, Atef Hassan, total investments at Zohr are expected to be between $12 to 16b with production reaching 2.7bcf/d by the end of 2019.The government of Egypt continues to support the huge discovery, which Eni says has 30 tcf original gas in place following the completion of the fifth well offshore Egypt.

Petrobel is a joint venture between Eni and the Egyptian General Petroleum Corp. The company is developing the discovery on behalf of PetroShorouk, a joint venture of Egyptian Natural Gas Holding Co. and Eni, Egypt Oil & Gasreports.

Israel-Cyprus-Turkey pipeline would provide new strategic triangle, says former US Ambassador Bryza - DAILY SABAH

ALI ÜNAL, ANKARA

02.10.2016

The former Deputy Secretary of State and U.S. ambassador to Azerbaijan, Matthew Bryza, said the solution of Cyprus's problem would provide the most economically attractive export route for Cypriot natural gas as well as for the Israel-Cyprus-Turkey pipeline, which also can elevate Turkey's strategic importance and secure its economic benefits by becoming an energy transit hub

The former Deputy Secretary of State and U.S. Ambassador to Azerbaijan Matthew Bryza said it is incorrect to say that the price drop in natural gas makes it economically infeasible to transport Leviathan gas to Turkey and added his hope that gas export from the Leviathan field would start in 2019. A former senior diplomat Bryza currently serve as a board member of Turcas Petroleum which is the leading Turkish energy investment holding that created Turkey- Israel natural gas pipeline project. Answering to Daily Sabah's questions on pipeline politics Bryza said that thus far, energy reserves have had a minimal impact on regional states' relations. Underlining that if the Cyprus problem solved Turkey would provide the most economically attractive export route for Cypriot natural gas Bryza added that in this case an Israel-Cyprus-Turkey pipeline, would also provide a powerful mechanism for building a new strategic triangle among Turkey, Cyprus, and Israel.

Egypt- Petroleum Ministry's dues to Shell increase to $1.3bn from Borollos, Rashid gas returns - MENAFN / DAILY NEWS EGYPT

MENAFN - Daily News Egypt - 02/10/2016

The Ministry of Petroleum's outstanding dues to the Royal Dutch Shell Company increased to 1.3bn from 1.1bn in July from the returns of the foreign partner's gas share produced from Rashid and Borollos fields' concessions, which BG recently acquired.

A source said that the Ministry of Petroleum did not fulfil its promise to its foreign partner Shell— to repay 400m of BG's dues during June— because the Central Bank of Egypt (CBE) did not provide the required amount, in light of the Egyptian pound's devaluation against the US dollar.