East Med oil and gas: views from Norway - IN CYPRUS / CYPRUS WEEKLY

November 5, 2016
By Charles Ellinas

This article is based on meetings and discussions in Norway between October 30 and November 2. They were organised by German think-tank Friedrich Ebert Stiftung (FES) and the Peace Research Institute Oslo (PRIO). The meetings included Statoil, the Ministry of Foreign Affairs, Norges (the central bank of Norway) and PRIO.

These helped better understand Norway’s approach to oil and gas, values, transparency, business model and views about European markets and Eastern Mediterranean (East Med) prospects.

Barbaros to sail for fresh surveys in Cyprus EEZ - CYPRUS MAIL

November 4, 2016
EVIE ANDREOU

THE controversial Turkish survey vessel Barbaros is to conduct research again off the coast of Cyprus soon, an official in Ankara said on Friday.

The head of Turkey’s national petroleum company, Besim Şişman, told Anadolu press agency that the Barbaros will conduct important seismic research off the coast of Cyprus in the upcoming period.

He added that upon the completion of explorations, the company could drill off the coast of Cyprus. As such investments are expensive, he said, they are waiting for the oil prices to be corrected before they proceed with such a procedure.

Low gas prices clog pipeline projects, EastMed’s Leviathan - NEW EUROPE

NOVEMBER 4, 2016, 13:06
Kostis Geropoulos

ATHENS – Low gas prices have a limited effect on the planning of major pipeline projects, including plans to export gas from the East Mediterranean, DEPA CEO Theodoros Kitsakos said.

He was responding to a question from New Europe at a Russian-Greek forum in Athens on November 2 on whether low gas prices could affect the development of gas projects, including the EastMed pipeline.

“The decision whether the gas from the Levantine Basin will come to Europe via Cyprus and Turkey, which it is a political issue, or via EastMed from an offshore pipeline to Crete, Peloponnese and upwards, it does not have to do so much with the price of natural gas at Leviathan,” the head of the Public Gas Corporation of Greece said, adding that this is a long-term, strategic project.

Gas in the Eastern Mediterranean: "pragmatism" is the watchword - ABO

Nov, 04 2016
Nicoló Sartori

While it is clear to many that gas in the Eastern Mediterranean is an opportunity for the entire region, it is equally clear that concrete initiatives on the industrial plan must be launched in adequate times and manner
In recent years, the development of gas reserves in the Eastern Mediterranean has fueled high expectations in the region and globally. Not only as a strengthening factor of energy policies for the players involved, but also as a real geopolitical game-changer and uniting element in an area that is still very unstable and divided. In addition to this is the hope that gas discoveries will act as a catalyst for greater cooperation between the European Union (Italy in particular) and the southern Mediterranean countries, the Mare Nostrum too often becoming a disaggregating element rather than a™ driver of peace and prosperity. However, as emerged from the conference organized in October by the Institute of International Affairs (IAI) and by the Italian Centre for Peace in the Middle East (CIPMO), optimism regarding the possible development of hydrocarbons in the region must necessarily deal with a series of local dynamics, time constraints and economic and industrial factors that will significantly influence the possibilities for gas exploration and export from the area.

General Electric Gas expands service facilities in Egypt : GAFI - AMWAL AL GHAD / ZAWYA

Thursday, 03 November 2016

General Electric Gas and Oil announced Thursday it would expand its service facilities in Egypt in cooperation with the Egyptian General Authority for Investment (GAFI).

The world leader in advanced technologies and services would add 2,000 square meters to its affiliate firm in the free industrial zone, totaling 5,000 square metres.

This step comes after company's meeting with Mohamed Khodair, the CEO of GAFI.

Khodair expressed his delight over GE announcement to expand in injecting new investments into Egypt.

Van Oord wins two contracts for West Nile Delta offshore Egypt - OFFSHORE MAGAZINE

Van Oord's flexible fallpipe vessel 'Stornes' 

11/03/2016

Offshore staff

ROTTERDAM, the Netherlands – Subsea 7 has contracted Van Oord to construct the landfall and execute subsea rock installation works for the West Nile Delta project in the Egyptian sector of the Mediterranean Sea. Preparations on-site have already started.

The BP-operated project, located 65 km (40 mi) offshore northern Egypt, comprises the development of a series of gas fields. The first phase, which includes the Taurus and Libra fields, consists of a nine-well tieback to the existing Burullus facilities.

Israel: a bright spot for Noble - NATURAL GAS WORLD

November 03rd, 2016, 9:20am

Ya'acov Zalel

Noble Energy recorded a net loss of $144mn in Q3, halving its Q3 2015 loss of $286mn. The company's most profitable region was Israel, where the company recorded revenues of $150mn and income before taxes of $135mn. That compares to $647mn revenues from operations in the US and a loss before taxes of $407mn.

Noble reported record sales in Israel following the decision by the energy ministry to accelerate the use of natural gas for power generation by 15% from 2015 to 2016.

Noble sold 310mn ft³/d in Israel, an increase of 2.3%. The average gas price in Israel was $5.22/mn Btu while in the US the average price was $2.38/mn Btu.

Discounted Cash Flow Report for the Leviathan Leases - DELEK GROUP

Tel Aviv, November 3, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that further to section 1.7.5 (I) of the Company's periodic report as at March 31, 2016, as revised and published on May 30, 2016 (Ref. No. 2016-01-037758) (the "Periodic Report") concerning the Leviathan Project resources within the North Leviathan I/14 and South Leviathan I/15 Leases ("the South Leviathan Lease" and " the North Leviathan Lease", respectively) (the South Leviathan and North Leviathan Leases will be referred to below as: "Leviathan Leases" or "Leviathan Reservoir" or "Leviathan Project"), to section 1.7.13 (1)J(3) of the Periodic Report 

with regard to the agreement for the supply of natural gas from the Leviathan Project to Edeltech Ltd., to the Immediate Report issued by the Company on May 29, 2016 (Ref. No. 2016-1-036867) concerning the Leviathan Project partners’ engagement in an agreement for the supply of natural gas from the Leviathan Project to IPM Beer Tuvia Ltd., to the Immediate Report issued by the Company on June 2, 2016 (Ref. No. 2016-1-043794) 

Gazprom Waiting for EC Proposal on Gas Transit Via Turkish Stream - SPUTNIK NEWS

20:14 02.11.2016

Deputy Chairman of the Management Committee of Gazprom said that Russian energy giant has still not received any official proposal from the European Commission on gas transit to Europe via the Turkish Stream pipeline. 

Russian energy giant Gazprom has still not received any official proposal from the European Commission on gas transit to Europe via the Turkish Stream pipeline, Deputy Chairman of the Management Committee of Gazprom Alexander Medvedev said Wednesday. 

“The European Commission, together with its member states should choose where gas should go from. We are ready to supply this gas, including through Turkey. From the European Commission's side, we have not received any official proposals so far,” Medvedev told Rossiya-24 TV channel. 

Greece, Bulgaria extend gas interconnector capacity bids to end-November - PLATTS

London (Platts)--2 Nov 2016 1040 am EDT/1440 GMT
By Stuart Elliott, edited by Alisdair Bowles

Greece and Bulgaria have agreed to extend to the end of November the deadline for binding bids for capacity in the planned Interconnector Greece-Bulgaria designed to improve gas connectivity in southeast Europe.

The deadline for binding offers had been set for October 31, but the pipeline operator said it had extended the deadline "at the request of participants in the first phase."

A total of nine non-binding expressions of interest for a total of 5.3 Bcm/year of capacity were submitted in the first phase earlier this year.

Best hope for Israeli gas - Turkey, not European market - TREND NEWS AGENCY

2 November 2016 11:10 (UTC+04:00)

Leman Zeynalova

The recent talks between Israel, Greece, Italy and Cyprus on Israeli gas export to Europe
are largely political talks, Charles Ellinas, oil market expert, former executive president at Cyprus National Hydrocarbons Company (CNHC) told Trend Nov.2.

Such a pipeline can become commercially viable if gas prices in Europe double, to over $8 per mmBTU, which is not likely to happen in the foreseeable future, said the expert.

Touching upon the possibility of building a pipeline from Israel to Turkey, Ellinas pointed out that this pipeline is priority and is also commercially viable.

The only obstacle is that it is has to go through Cyprus, which could be easier with solution of the Cyprus problem, he added.

However, the expert said that there is also some resistance to the construction of such a pipeline both in Israel and in Turkey.

Our priority to further expand EEZ exploration: Lakkotrypis - SIGMA LIVE / CNA

01.11.2016 18:21

Cyprus Energy Minister Yiorgos Lakkotrypis said today that “Cyprus’ number one priority is to further deepen and expand exploration activities, in order to identify the natural gas resources that lie in the country’s exclusive economic zone.”

Addressing a Nicosia-based Summit organised by The Economist, Lakkotrypis referred to opportunities for further gas discoveries in the area, saying they amount to 2,000bcm (billion cubic metres). In comparison, “Europe consumed 430bcm last year,” he added.

The Energy Minister also referred to the Zhor reservoir discovery by ENI, off Egypt’s coast, noting that “it marked the potential and possibilities existing for Cyprus and the region.”

He also added that “Israel is launching another licensing round this month.”

Condor to complete Poyraz well in Turkey - OIL & GAS JOURNAL

HOUSTON, Nov. 1
11/01/2016
By OGJ editors

Condor Petroleum Inc., Calgary, has cemented production casing in a well that logged at least 135 m of net natural gas pay in stacked reservoirs at the edge of Poyraz Ridge gas field under development in northwestern Turkey.

Pay in the Poyraz 3 well is in Miocene Kirazli and Gazhanedere sandstones and Eocene Sogucak carbonate.

The company said the well encountered no gas-water contact in basal Gazhanedere reservoirs. The gas-water contact in the Sogucak was confirmed to be at the structural spill point of Poyraz Ridge field.

Condor President and Chief Executive Officer Don Streu said borehole imaging of the Sogucak “confirms the presence of an extensive network of fractures with the pay column, which should serve to enhance flow performance.”

EGPC grants SDX Energy, PICO preliminary approval to extend drilling in South Ramadan concession - ENERGY EGYPT / ENTERPRISE PRESS

November 1, 2016

EGPC gave SDX Energy and PICO Petroleum preliminary approvals to extend drilling operations at the South Ramadan concession, SDX Energy’s country director Ahmed Moaz told Al Mal.

The preliminary agreement does not specify a date for the extension and includes the operators spending USD 23 mn in the project.

Moaz says the operators have not received a formal approval agreement yet, but says they are willing to agree to extending the drilling period terms even if they are just to July 2017, even though they have asked for it to be extended to July 2018.

Cyprus-Israel military exercise continues - IN CYPRUS / CYPRUS WEEKLY

November 1, 2016

Cyprus and Israel are expected to complete the second and final phase of their joint Onisilos-Gideon 2/2016 air and ground military exercise on Tuesday.

According to a Defence Ministry announcement, the drill – which has seen Israeli jets flying through Nicosia FIR – will end at 7pm. The exercise is also taking place on land within the Republic of Cyprus with the participation of the Cyprus National Guard ground forces.

Sharing a common interest in securing offshore mineral exploration areas throughout the Eastern Mediterranean, Israel and Cyprus began the Onisilos-Gideon 2/2016 exercise on Monday.

Deadline extension for Greece-Bulgaria pipeline - KATHIMERINI / REUTERS

31.10.2016 : 18:54

The deadline for binding offers for the use of the natural gas pipeline between Bulgaria and Greece has been extended by a month to the end of November due to requests from bidders, the joint venture that runs the project said on Monday.

Interconnector Greece-Bulgaria (IGB), estimated to cost 220 million euros, has received nine expressions of interest to transport gas through it for a total capacity of 4.3 billion of cubic meters.

Earlier this month Bulgarian Energy Minister Temenuzhka Petkova said four companies that have not participated in the first phase of the market test have said they are interested in bidding, pending a nod from Bulgarian and Greek energy regulators.

After Saudi Halts Oil Shipments, Egypt Turns to Iraq Deal - NEW YORK TIMES / ASSOCIATED PRESS

THE ASSOCIATED PRESS
OCT. 31, 2016, 12:40 P.M. E.D.T.

CAIRO — Egypt's state news agency says the country's oil ministry has signed a memorandum of understanding with its Iraqi counterpart to pave the way for Egypt to import oil from Iraq.

Oil Minister Tarek el-Mulla was quoted by MENA on Monday as saying that the agreement will "open the doors" for developing oil cooperation with Iraq.

His Iraqi counterpart, Jabar al-Luaibi, says that the agreement prepares the way for wide cooperation, including on Iraqi oil exports to Egypt. He says Iraq offered Egypt the opportunity to invest in 12 Iraqi oil fields.

The deal comes nearly three weeks after Saudi Arabia's abrupt decision to halt previously agreed oil shipments to Egypt, putting heavy pressure on the government. Egypt angered the Saudis by voting in favor of Russia's draft resolution on Syria.

Preparing to drill - IN CYPRUS / CYPRUS WEEKLY

SAIPEM's Castoro Sei, at Limassol port, off to Zohr Field at EOY

October 30, 2016
By Charles Ellinas

Total and EDT signed a contract on October 6, in the presence of Transport Minister Marios Demetriades and Energy Minister Giorgos Lakkotrypis, signifying the restart of drilling in Block 11 by April 2017.

It was a happy occasion, with Demetriades confirming to the two companies that the government will do its utmost to support their work “because we believe that the hydrocarbons industry has a future in Cyprus”.

The day after signature of the contract, the whole process started unravelling. It was revealed that the recently-awarded contract to DP World and GAP Vassilopoulos (Consortium) for marine and port services at Limassol port, as part of the privatisation process, was posing problems.

While Cyprus Awaits Gas Future, It Explores Shorter Term Solutions - FORBES

OCT 30, 2016 @ 05:37 PM
Christopher Coats, CONTRIBUTOR

Still years away from exploiting its own natural gas potential, Cyprus is now reviving efforts to nail down import options to help the country meet its climate targets through liquefied natural gas projects.

According to media reports, Cyprus is preparing to launch a study into importing LNG to help meet the country’s domestic demand and ease the planned transition towards lower emissions power production.

“The objective of the study is, based on the analysis of the various options of LNG supplies, to identify and propose an option/project, an appropriate process and a timetable for the supply of gas to Cyprus [as soon as possible] and before 2020,” according to a tender released by state-owned Natural Gas Public Co.

Israel has limited options with its gas exports - GULF NEWS

October 30, 2016, 12:42 
Saadallah Al Fathi, Special to Gulf News

Stiff opposition in Jordan could mean existing deals might have to be rewritten

Since the major discoveries of gas in the East Mediterranean, especially in 2010, Israel has gone out in all directions to find viable export routes for its gas ... but with limited results so far.

In 1999, Israel discovered two small gasfields (Noa and Mari) with limited reserves of 1.5 trillion cubic feet (tcf), which are almost depleted now. However, in 2009, Dalit and Tamar fields were discovered with reserves of 0.5 and 10 tcf respectively and were speedily developed to supply Israel with gas after the stoppage of the Egyptian exports in 2012.

The major discovery was in 2010 when Leviathan was discovered about 150 kilometres west of Haifa in what Israel claims to be its Exclusive Economic Zone (EEZ). Its reserves were estimated at 18- to 22-tcf and in 2012 Tanin and Karish fields were discovered to add 3 tcf of reserves.