An energy market leader - IN CYPRUS / CYPRUS WEEKLY

November 12, 2016

What is the history of ExxonMobil’s business in Cyprus?

ExxonMobil’s 60-year presence in Cyprus primarily covers the supply, distribution and marketing of petroleum products under the Esso and Mobil brands. Our office is located in Nicosia and we have 65 Esso-branded service stations throughout Cyprus, marketing a full range of fuels and lubricant products. Recently, we took an active role with the government of Cyprus to plan for the orderly relocation of our fuels terminal facilities in Larnaca – one of several installations to be moved away from the popular tourist area.

We are committed to improving the lives of the communities in which we operate including the following long-term initiatives in Cyprus:

US oil companies may benefit from stronger political support - NEW EUROPE

NOVEMBER 11, 2016, 20:49 
Kostis Geropoulos

ATHENS – The new US Administration of President Donald Trump is unlikely to facilitate the export of hydrocarbons from Israel, Cyprus and Greece but support for solution of the Cyprus problem will remain, top experts told New Europe.

“With regards to export of hydrocarbons from Israel, Cyprus and Greece I do not see any direct impact, but if prices stay low it will not help,” Charles Ellinas [former] CEO of Cyprus Natural Hydrocarbons Company told New Europe on November 10, adding that such exports are still challenged by low oil and gas prices in Europe and globally. “Israel’s plans to export gas to Turkey should not be affected – it is a local deal in which the US will have a role similar to now, i.e. supporting it,” he said.

Lebanon's hydrocarbon bonanza just out of reach - BREAK BULK

November 11, 2016
By Mark Willis

Following the precipitous collapse in global energy markets over the last three years, an increasing volume of high cost hydrocarbon exploration projects once considered economically viable have been scaled down, put on hold, or canceled altogether.

Exploration projects requiring a breakeven point in excess of current oil and gas prices that have already succumbed to cost cutting among international oil companies include the Canadian oil sands, offshore drilling in the North Sea and Gulf of Mexico, and development of deep sea hydrocarbon reserves in the Arctic and West Africa.

DEPA pays price of government nod to US gas - KATHIMERINI

05.11.2016
CHRYSSA LIAGGOU

The Public Gas Corporation (DEPA) is apparently paying the price for a Greek decision to facilitate business plans that pave the way for American liquefied natural gas (LNG) to head through Greece to the Balkans and Central Europe – as in the case of the LNG terminal off Alexandroupoli – and for its own handling of the extension of the Turkish Stream pipeline.

Gazprom’s decision to supply natural gas to the Greek market via alternative suppliers is the outcome of the Russians’ dislike of Greece’s moves, breaking for the first time an informal agreement with the Greek government to exclusively supply DEPA.

Libya’s largest oil port may be ready next week for shipments - WORLD OIL / BLOOMBERG

By SALEH SARRAR, HATEM MOHAREB, SALMA EL WARDANY on 11/9/2016

TRIPOLI, Libya (Bloomberg) -- Libya’s largest oil export terminal may re-open as early as next week in a move that would provide relief for the cash-strapped country holding Africa’s largest crude reserves.

Tankers may be able to load at Es Sider port by next week as maintenance work at the terminal is almost complete, a National Oil Corp. official said by phone on Tuesday, asking not to be identified because he’s not authorized to speak with news media. Es Sider hasn’t exported crude since force majeure, a legal status protecting a party from liability if it can’t fulfill a contract for reasons beyond its control, was declared on loadings almost two years ago.

Libya currently produces 660,000 bopd, the official said. This compares with production of about 1.6 MMbopd before the 2011 uprising that ousted longtime leader Moammar Al Qaddafi. Output withered after international oil companies withdrew amid the conflict between rival governments and armed groups over the nation’s oil fields, ports and pipelines.

Subsea 7 expands offshore Egypt backlog - OFFSHORE MAGAZINE

NOVEMBER/10/2016

Offshore staff

LUXEMBOURG – Subsea 7 has completed offshore operations on the fasttrack East Nile Delta project in the Egyptian sector of the Mediterranean Sea.

During 3Q, the Seven Borealis was engaged in pipelay for the first phase of the West Nile Delta project.

Last month, Subsea 7 secured an [EPCI] contract for the Atoll project in the same area, lifting the total value of its contract awards offshore Egypt over the past 18 months to almost $1.8 billion.

The EU Takes A Serious Look at the Leviathan Giant Gas Field - PTJ (Pipeline Technology Journal)

Thu, 2016-11-10 10:31
Admir Celovic - Mark Iden

The European Commission has determined after authorizing a feasibility study on a natural gas pipeline from the Leviathan offshore gas field via Cyprus to Greece would cost about $5.7 billion.

This was reported by Shaul Meridor, Director General of the Israeli Ministry of Natural Infrastructures, Energy and Water Resources. Meridor met in Athens with his counterparts from Greece, Cyprus and Italy and a senior official from the EU Energy Commission. All meeting participants expressed the desire to carry on with the project and the European Commission has recognized the pipeline as a Project of Common Interest (PCI).

The length of the pipeline examined in the feasibility study would be 1,300 kilometers - 200 kilometers in deep waters from the Leviathan field to the Cypriot gas fields and Cyprus itself, 700 kilometers to Crete, and 400 kilometers to the Greek mainland. The pipeline's diameter would be either 24 or 32 inches in various sectors and it could supply 16 BCM annually.

Turkey plans to increase gas storage and implement FSRU - LNG INDUSTRY

Thursday, 10 November 2016 10:00

David Rowlands, Editorial Assistant

According to Reuters, the Turkish energy minister, Berat Albayrak, has said that the country is on track to become a major hub for energy trading, especially for natural gas.

In particular, Albayrak reportedly said that plans were being accelerated for additional gas storage, as well as for a floating storage regasification unit (FSRU) for LNG. Turkey is planning to bring the first phase of new storage facilities near Ankara online by January 2017, and upgrades for existing storage facilities are scheduled for completion from 2019 onwards.

TANAP to be 55% complete by the end of 2016 - WORLD PIPELINES

Wednesday, 09 November 2016 14:41
Anna Nicklin, Editorial Assistant 

Construction of the Trans Anatolian gas pipeline project (TANAP) has begun and is expected to be 55% complete by the end of the year, according to Turkey’s Minister of Energy and Natural Resources, Berat Albayrak. The pipeline is expected to serve as a new alternative for energy supplies to Europe, which, alongside TurkStream, will allow Turkey to become gas trade centre.

The minister also noted that Turkey, being located close to the energy-rich regions, such as the Caspian Sea region, the Middle East and Central Asia, is moving in the direction of becoming an energy hub and diversifying its energy sources.

Egypt: Dana Gas to review investment if not repaid dues, says in talks with potential farm-out partners - ECOFIN AGENCY

Wednesday, 09 November 2016 - 14:30Anita Fatunji

(Ecofin Agency) - Dana Gas has announced plans to review its 2017 investment plans for Egypt if the country does not pay its debt by the end of 2016, its chief executive revealed on Wednesday.

According to Patrick Allman-Ward, the payments issue is overriding several exploration developments in Egypt, for the company.

United Arab Emirates-based energy firm said its North El Arish Concession/Block 6 in the Eastern Nile Delta was an exciting prospect and the company is in talks with seven potential partners about a farm-out agreement.

Ratio’s Bond Issue Reassures Analysts of Commitment to Leviathan Project - HAARETZ

Eran Azran Nov 09, 2016 1:38 AM

The company issued 580 million shekels in bonds, amid a high demand of 740 million shekels ($194 million) .
Ratio Oil Exploration, a partner in the development of the huge offshore Leviathan natural gas field, had a successful bond issue Monday, enabling it to meet a deadline for providing $600 million in funding for initial development of the field. The company issued 580 million shekels in bonds, amid a high demand of 740 million shekels ($194 million) .

A source close to Ratio acknowledged on Tuesday that “analysts in the capital markets wondered about Ratio’s capacity to raise funds to develop Leviathan,” but he said Ratio’s “success in bond fundraising has dispelled those concerns and proved the company’s financial commitment to the project.”

Ratio has a 15% stake in Leviathan. Another 45% is held by Delek Drilling and the Avner Oil Exploration while Noble Energy of Texas holds the remaining 40%. The cost of the initial phase of development of Leviathan is estimated at $3.5 billion to $4 billion, part of which was financed through bank loans. It is Ratio’s portion of the balance that came to $600 million.

How TAP helps its transit countries - NATURAL GAS WORLD

November 08th, 2016, 5:04amEmin Akhundzada

The Trans Adriatic Pipeline project is an initiative to develop the European natural gas system. The pipeline comprises the final step of the Southern Gas Corridor project, starting at the Turkey-Greece border, running through Greece and Albania beneath the Adriatic Sea, and ending in the southern part of Italy. The total length of the pipeline is 870 km with a diameter of 48 inches for the onshore and 36 inches for the offshore section, of which 545 km will run in Greece, 211 km in Albania, 105 km offshore in the Adriatic Sea and 8 km in Italy. [1]

The total cost of the pipeline is estimated at €5.7bn ($6.3bn). Construction of the pipeline will be mainly concentrated in Greece and in the offshore section between Albania and Italy. The initial capacity of the pipeline is envisioned to be 10bn m³/year, which will be expanded to 20bn m³/yr with additional compressor stations.[2] Shah Deniz consortium has signed 25-year sales agreement with eight European companies for 10bn m³/yr, of which 8bn m³/yr will be transported to Italy, and the remaining 2bn m³/yr will be delivered to Greece and Bulgaria, respectively 1bn m³/yr each.

Adipec 2016: Egypt will focus on deepwater gas finds - THE NATIONAL

November 8, 2016, 09:04 PM
LeAnne Graves and Dania Saadi

Egypt plans to focus on more costly deepwater gas exploration, offering new terms to incentivise companies as it seeks to move from an importer of the fuel to an exporter after five years.

"Deepwater gas exploration is the future," said Tarek El Molla, Egypt’s oil minister.

The country is turning its attention to this area, which costs over 15 times more than onshore drilling because of added complexities, as its huge gas find is slated to start production next year.

The Zohr gas discovery made last year is expected to begin production next year at 1 billion cubic feet (bcf) per day, ramping up annually until it reaches 2.7bcf a day at the start of 2019.

Saudi oil shipments to Egypt halted indefinitely, Egyptian officials say - REUTERS

A Saudi Aramco employee sits in the area of its stand at the
 Middle East Petrotech 2016, in Manama, Bahrain, September 27, 2016.
REUTERS/Hamad I Mohammed

Mon Nov 7, 2016 | 1:12pm ESTReporting by Ehab Farouk in Cairo and Maha El Dahan and Rania El Gamal in Abu Dhabi, Writing by Lin Noueihed; Editing by Andrew Torchia, Catherine Evans and Mark Potter

Saudi Arabia has informed Egypt that shipments of oil products expected under a $23 billion aid deal have been halted indefinitely, suggesting a deepening rift between the Arab world's richest country and its most populous.

Saudi Arabia has been a major donor to Egypt since President Abdel Fattah al-Sisi seized power in mid-2013 but Riyadh has become frustrated with Sisi's lack of economic reforms and his reluctance to be drawn into the conflict in Yemen.

Eni commences drilling of seventh well on Zohr gas field – El-Molla - ECOFIN AGENCY

Monday, 07 November 2016 - 08:52Anita Fatunji

(Ecofin Agency) - Egyptian Oil Minister, Tarek El-Molla (photo), has announced that following the completion of the sixth well the Zohr gas field, Italian Eni has commenced the drilling of the seventh well, Zohr-7. The minister declared this during the regular committee meeting set up to assess the execution phases of the Zohr field project development.

El-Molla added that the Zohr-7 is the last well in the production plan which targets gas from Zohr with a capacity estimated at 1bcfpd by the end of 2017 and expected to increase to 2.7bcfpd before 2019 ending, Amwal-al-ghad news reports.

Eni is investing $3.5 to 4 billion to develop the Zohr natural gas production processing plant at a capacity of 2.7 Bcfpd of gas and intends to connect 900 Mmcfpd of gas to the national grid by the end of 2017 or Q1 of 2018.

East Med offers huge opportunities in energy: Leading US expert - HURRIYET DAILY NEWS

November/07/2016
Merve Erdil

There are huge energy opportunities in the Eastern Mediterranean that will create huge benefits for many countries, said Richard L. Morningstar, the founding director and chairman of the Global Energy Center at the Atlantic Council and the secretary of state’s former special envoy for Eurasian energy.

Morningstar said he did not know of another situation with so many opportunities that would benefit so many countries yet also have so many political difficulties.

“So to take advantage of those opportunities is a good thing. That is not to say there will be an agreement on projects; there certainly won’t be one tomorrow. But it is a start and I think it creates real opportunities,” added the former U.S. ambassador to Azerbaijan.

Egypt delays third LNG terminal until electricity needs determined -official - REUTERS

Sun Nov 6, 2016 8:55am GMTReporting by Ehab Farouk; Writing by Eric Knecht; Editing by Larry King

CAIRO Nov 6 (Reuters) - Egypt will delay plans to rent a third liquefied natural gas import (LNG) terminal for one month, until the ministry of electricity determines its LNG needs, an official at state gas buyer EGAS told Reuters on Sunday.

"We decided to delay holding the tender for one month (until end-November) until an agreement is made with the ministry of electricity over its needs for LNG over the coming period," said the official, who declined to be identified.

The Egyptian economy is running on empty as it awaits a recharge of energy strategy - THE NATIONAL (UAE)

Robin Mills
November 6, 2016, 06:57 PM

Long queues stretched around Cairo petrol stations on Thursday evening as motorists rushed to beat rising fuel prices. In tandem with the sharp devaluation of the Egyptian pound, the government has cut subsidies again. But with the country’s indicators blinking on zero, Egypt badly needs to recharge its energy strategy.

The Egyptian pound fell by almost a third as the central bank said on Thursday that it was letting the currency float. Devaluation had become inevitable as a requirement for securing an essential IMF loan and easing a drought of foreign currency that had led to shortages of sugar.

Problems with energy have been an important part of undermining Egypt’s budget and trade balance. Even after cuts earlier this year, subsidies account for nearly half the forecast budget deficit of 9.8 per cent for the 2016-17 fiscal year. The drop in subsidies was mostly because of falling global oil and gas prices, not internal reforms. The price of gas has gone up, but electricity tariffs have not been raised proportionately, shifting the subsidy burden rather than removing it.

Egypt's oil minister makes rare trip to Iran for oil talks after Saudi suspension - REUTERS

Tarek El Molla, Egypt's Minister of Petroleum and Mineral Resources
in Nicosia, Cyprus August 31, 2016. REUTERS/Yiannis Kourtoglou

Sun Nov 6, 2016 | 4:25pm ESTWriting by Eric Knecht; Editing by Ahmed Aboulenein and Louise Ireland

Egyptian Petroleum Minister Tarek El Molla was on his way to Iran on Sunday to try to strike new oil deals, sources close to his delegation said at Cairo airport, after Saudi Arabia suspended its oil agreement last month.

After that suspension, Egypt voted in favor of a Russian-backed U.N. resolution on Syria in October that excluded calls to stop bombing Aleppo, which Saudi Arabia strongly opposed.

Saudi Arabia has showered Egypt with billions of dollars in aid since 2013, when President Abdel Fattah al-Sisi ousted elected Mohammed Mursi of the Muslim Brotherhood and banned the Islamist movement, which Riyadh opposes.