Eni agrees to export part of Shorouk concession - DAILY NEWS EGYPT

17.12.2016
Mohamed Adel

Arbitration case worth $8bn will be waived as soon as exporting begins

The Italian gas company Eni has agreed with the Egyptian government to export part of the gas produced from Zohr field in the Shorouk concession in the Mediterranean to international markets through the Damietta liquefaction plant. Eni owned 25% of the liquefaction plant, before having bought 50% of Unión Fenosa, boosting its stake in the plant to 50%.

Government sources told Daily News Egypt that Eni will establish a land pipeline from the Zohr treatment plant to the Damietta liquefaction plant.

Sources explained that the company sold 40% of its shares to British Petroleum (BP) and the Russian Rosneft, to participate in securing investment for the project, which is estimated at $12bn, up to $16bn by 2020.

Turkish traders braced for gas crisis amid fears over LNG supplies - ICIS

16 December 2016, 15:00
Aura Sabadus

Turkish power and gas traders were braced for one of the country’s ‘worst energy crisis’, amid fears of supply shortages and soaring demand in the upcoming week.

Companies have raised concerns about a pending shortage of LNG volumes over the next seven days at a time of cold weather-driven spiking demand, uncertain pipeline imports and reduced hydro production.

“This is the biggest energy crisis of Turkey and it appears that next week [the gas transmission system operator and incumbent] BOTAS won’t be able to meet demand even with gas curtailments,” a power trader told ICIS on Friday.

Egypt: Local oil companies increase gas production from the Ras El Bar and the North Sinai fields - ECOFIN AGENCY

Friday, 16 December 2016 - 09:33Anita Fatunji

Toward the drive to achieve self-sufficiency by 2020, Egyptian oil companies have increased gas production from their respective assets. Companies such as Pharaonic Petroleum Company (BP/EGPC) and North of Sinai Petroleum Company (NOSPCO) have succeeded in producing 110 Mmcf/d and 70 Mmcf/d of natural gas respectively.

Pharaonic has completed the Phase 3 of its development operations for the Ras El Bar field located in Ras El Bar Concession in Nile Delta with an investment of $265 million. As a result, the company succeeded in producing 110 Mmcf/d of natural gas, which is later expected to increase to 500 Mmcf/d.

TANAP's external financing could reach $4bn: SOCAR - NATURAL GAS WORLD

December 16th, 2016, 9:45am

Shareholders in the Tanap gas pipeline may draw $4bn from international financial institutions for the project's construction, Azerbaijan state oil and gas company Socar's president Rovnag Abdullayev said in an interview with the Turkish news agency Anadolu December 15.

“Attracting external funding for Tanap is being negotiated with banks. So far, there are no concrete results, but we assume that the negotiations for the project will attract $4bn,” said Abdullayev.

Negotiations are conducted with the World Bank's International Bank for Reconstruction and Development (IBRD) and Multilateral Investment Guarantee Agency (MIGA), as well as with the Asian Infrastructure Investment Bank (AIIB), the European Investment Bank, and the European Bank for Reconstruction and Development (EBRD), he said.

There is still a possibility of transferring a 8% stake in the Tanap project to Socar Turkey Energy from the 58% currently held by Socar, said Abdullayev, adding: "We expect that this transfer will be formalized soon."

Deal close on Limassol to clear path for Total - CYPRUS MAIL

December 16, 2016

Elias Hazou

THE consortium granted the marine services concession at the port of Limassol is very close to an agreement with oil and gas services company EDT Offshore, the Cyprus Mail has learned.

The deal, which sources said was imminent, would clear the path for oil major Total to drill their first exploratory well in Block 11 of Cyprus’ Exclusive Economic Zone.

“An arrangement between EDT and G.A.P. Vassilopoulos and P&O Maritime is expected sometime over the next few days,” sources apprised of the matter said.

It would allow EDT to provide Total with onshore logistical support out of the port of Limassol for a period of two years, effective immediately until the end of 2018.

The sources declined to elaborate pending the deal being finalised.

Bidders for third round to be announced next week - CYPRUS MAIL

Current and potential companies in Cypriot EEZ (Dec 2016)

December 15, 2016
Elias Hazou

The government will next week name the companies with which it will engage in talks with a view to awarding them offshore exploration concessions, energy minister Giorgos Lakkotrypis said on Thursday.

The selection of the preferred bidders does not mean that the same will be awarded the concessions.

A final decision – awarding concessions or not, and for which offshore blocks – is expected around late February.

Cyprus launched its third offshore licensing round in May 2016. Three blocks (6, 8 and 10) have been put up for auction.

Eight energy companies filed six bids for the three offshore blocks as follows: Block 6: ENI/Total; Block 8: ENI, Cairn/Delek; and Block 10: ENI/Total, ExxonMobil/Qatar Petroleum (QP), Statoil.

Southern Gas Corridor company to give 8 per cent of TANAP shares to SOCAR Turkey Enerji A.Ş. - AZERTAC

Baku, December 15, AZERTAC

Southern Gas Corridor company, which is an Azerbaijani shareholder of Trans-Anatolian gas pipeline (TANAP), will give 8 out of its 58 per cent of shares to SOCAR Turkey Enerji A.Ş, said President of SOCAR Rovnaq Abdullayev.

“We are working with our partners on this. We plan to finalize this process soon,” he added.

SOCAR has operated in Turkey as SOCAR Turkey Enerji A.Ş since 2008.

Rosneft To Acquire A Share in the Biggest Gas Field in the Mediterranean Sea - POLYMER UPDATE

15-Dec-2016

Within his working visit to Cairo Rosneft Chief executive officer Igor Sechin was hosted by the President of Egypt Abdel Fattah el-Sisi. Igor Sechin passed along to the Egyptian leader the message from the President of the Russia Vladimir Putin. Sechin and el-Sisi discussed the cooperation between Rosneft and its Egyptian partners and the implementation of joint energy related projects.

The Head of Rosneft informed the President of Egypt about the reached agreement for the Rosneft acquisition of up to 35% in the concession agreement for the development of the Zohr gas field and of a 15% share in the project’s operator the parity joint venture between Eni and EGAS Petroshoruk.

Rosneft’s Board of directors approved the Company’s joining the project. The price of the stake to be purchased is USD 1.125 bln. Moreover Rosneft will reimburse Eni USD 450 mln as its 2016 historical expenses. Overall Rosneft investments in the project will amount USD 4.5 bln in a timeframe of 4 years. Rosneft joins the development of the biggest Egyptian hydrocarbon field together with world majors its long standing partners Eni and BP.

The Petroleum Commissioner’s Approval for the Transfer of All of the Rights in the I/16 Tanin and I/17 Karish Leases to Energean - DELEK GROUP

Tel Aviv, December 15, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) provides below an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership ("the Partnerships") concerning the approval of the Petroleum Commissioner for the transfer of all the rights in the I/16 Tanin and I/17 Karish Leases to Energean.

Further to the provisions of the Partnerships’ immediate reports of August 16, 2016, regarding the signing of an agreement between the Partnerships and Energean Israel Ltd. (formerly Ocean Energean Oil and Gas Ltd.) (“Energean”) for the sale of all of the rights of the Sellers and Noble Energy Mediterranean Ltd. (“Noble”) in the I/16 Tanin and I/17 Karish leases (the “Leases”) to Energean (the “Agreement”) in consideration for the total sum of U.S. $148.5 million (in equal shares between the Sellers), plus royalties in connection with natural gas and condensate that shall be produced from the Leases, as specified in the immediate reports of August 16, 2016, and subject to fulfillment of several conditions precedent, and primarily receipt of the approval of the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources (the “Commissioner”) and receipt of the approval of meetings of the holders of the participation units of the Partnerships to approve engagement in the Agreement as aforesaid, or approval of the supervisors, insofar as shall be required under the circumstances, and to Note 3B3 to the financial statements, as included in the quarterly report of the Partnerships as of September 30, 2016 regarding receipt of the approval of the supervisors for engagement in the Agreement, we respectfully update that on December 13, 2016, the Commissioner’s approval was received for the transfer of all of the rights of the Sellers and of Noble in the Leases to Energean, including approval of registration of rights to royalties for the Sellers, as specified in the immediate reports of August 16, 2016, approval of Energean as operator in the Leases, in accordance with the Petroleum Regulations (Action Principles for Offshore Oil Exploration and Production) and approval of the transfer of the permitted quota for export from the Leases at a scope of 47 BCM to the Leviathan partners, in accordance with the provisions of the Gas Framework.

Floating LNG unit to expand Turkey's annual gas storage capacity by 5.3 BCM - DAILY SABAH

GDF Suez Neptune floating terminal, the first FSRU of Turkey,
has arrived in Izmir.

15.12.2016

Turkey's first floating natural gas storage and regasification unit, FSRU, has arrived in Aliağa, İzmir. The FSRU will supply 5.3 billion cubic meters (BCM) of natural gas, raising the daily capacity to 224 million CM

Expected to contribute more than 5 billion cubic meters (BCM) of natural gas to Turkey's annual gas supply, the GDF Suez Neptune plant, Turkey's first Floating liquefied natural gas (LNG) Storage Regasification Unit (FRSU), has started conducting test studies inİzmir's Aliağa district. In a period of only six months unit will be able to transfer the capacity, which is usually activated in four years, to Turkey's national gas supply. This is possible since it operates from the water.

Is Rosneft looking to build a pipeline to export gas from Zohr to Europe? - ENTERPRISE

Thursday, 15 December 2016

Is Rosneft looking to build a pipeline to export gas from Zohr to Europe? There is speculation in the Russian media this week about whether Rosneft is planning a pipeline to export gas from the Zohr field to Europe. Russia’s Economy Today (Russian) quotes energy analyst Igor Yushkov from that country’s National Energy Security Fund as saying that Rosneft’s acquisition of a 30% participating interest in Eni’s Shorouk offshore concession for USD 1.125 bn signals an ambition to export to the EU through a pipeline. Rosneft, he says, is positioning itself as Egypt’s main export partner on the Zohr field. Meanwhile, state-owned Sputnik’s Arabic site is running with a report that a pipeline is definitely in the cards in what we’re reading as a pickup of the Economy Today piece. We’ll be keeping a close eye on this one, folks.

Bapetco to Link BTE-2 Output to Gas Plant - EGYPT OIL & GAS

Thursday, 15th December 2016

In a statement to Egypt Oil&Gas, Badr El Din Petroleum (Bapetco)’s CEO, Emad Hamdy, stated that the company is in talks with its foreign partner Royal Dutch Shell on linking production for a new discovery at North Alam El Shawish concession, BTE-2 well, to Badr-3 gas process facilities that is located 40km away from the well. Bapetco will use one of the pipelines near the new well to transport gas from BTE-2 to the facility, where it will be mixed with process gas to meet standards set forth by the Egyptian government.

BTE-2 well is expected to produce 40mcf/d of gas during its first phase. During the second phase, the company will drill 6 development wells, as well as build facilities to move gas to the proessing facility at Badr3 and increase the capacity of the carbon dioxide extracting unit to be able to treat the gas produced from BTE-2 which is expected to reach 150mcf/d.

Egypt Pays $5.8/1mBTU for Zohr Gas - EGYPT OIL & GAS

During signing an agreement between EGPC and ENI 1-6-2015

Thursday, 15th December 2016

A source with the Agreements Department at the Egyptian General Petroleum Corporation (EGPC) stated to Egypt Oil&Gas that Egypt buys Eni’s equity gas from Zohr field for $5.8 per 1m thermal unit (BTU), according to the recent agreement in November 2016 between the Egyptian Prime Minister, Sherif Ismail, the Minister of Petroleum, Tarek El Molla, and Eni’s officials.

The source added that the Egyptian government agreed with the Italian partner to hold negotiations in January 2017 to review the agreement and decide on new selling price of Eni’s gas for 2018. They also agreed on reviewing the agreement in 2019.

Affiliate of Rosneft to acquire Jet Oil - KATHIMERINI

14.12.2016 : 21:21

Rosneft has its eye on Greece’s Jet Oil, as the latter’s lawyers have cited acquisition interest by Vienna-based Cetracore Energy, in which the Russian oil giant holds a stake, in asking for the postponement of a court hearing connected with Jet Oil seeking protection from its creditors.

Jet Oil will now apply to be protected under the bankruptcy code in the same way that the Marinopoulos supermarket chain did, backed by its candidate buyer the Sklavenitis chain, and the case of the oil company will now be heard on February 14.

Cetracore Energy is 80.1 percent controlled by Luxembourg-based UFG Europe Holding, in which Rosneft subsidiary Rosneft JV Projects SA holds a 19.9 percent stake.

Two new substations in Egypt to deliver 2,500MW power to national grid - TECHNICAL REVIEW MIDDLE EAST

Wednesday, 14 December 2016 06:56

Siemens has energised the first two substations that will transmit electricity generated by the new power plants in Beni Suef and Burullus to Egypt’s power grid

When complete, the plants, which Siemens is building alongside with its partners, will feature a total of six 500/220 kV substations and will enable a reliable and resilient energy delivery for the North African country.

The Etay El-Baroud and Maghagha substations are part of the contract signed between a consortium, comprising Siemens and El Sewedy Electric T&D, with the Egyptian Electricity Transmission Company (EETC) for the design, engineering, supply and installation of six state-of-the-art substations, located in El Minia, El Beheira, Qalubia, Assiut and Kafr El Zayat governorates. They will include gas-insulated switchgear (GIS), transformers and control and protection equipment. All civil work will be completed by the local-based engineering company El-Sewedy Electric T&D.

Western pipeline block ends, one million bpd output in sight - LIBYA HERALD

Tripoli, 14 December 2016
By Libya Herald reporters

Libyan oil output could approach a million barrels a day if the blockade of a key western pipeline is lifted as reported today.

Protestors, who in 2014 closed the pipelines at Riyayna which run from the Sharara and El-Fil (Elephant) oilfields to the coast, have announced they will reopen the taps tomorrow.

Potentially this could deliver some 365,000 barrels per day of extra production. When added to the existing 600,000 bpd, year-end output could exceed the 800,000 bpd target set by National Oil Corporation chief Mustafa Sanalla in October.

However even if the Petroleum Facilities Guard unit that has mounted the blockade honours its promise, it will not in fact simply be a matter of turning on a tap. Pipeline maintenance and restoring production at oil fields shut in for more two years will not be an overnight operation.

The statement announcing the blockade’s end said “The National Oil Corporation should start its work as soon as possible and we, as the Petroleum Facilities Guard, pledge to protect and defend the wealth of the Libyan state”.

France's Engie E&P eyes more investments in Egypt's oil sector - AMWAL AL GHAD

Wednesday, 14 December 2016 14:57

Egyptian Oil Minister Tarek El-Molla met Wednesday with the CEO of France's Engie E&P International, Maria Moræus to discuss available investment opportunities.

Both sides showcased fields of mutual cooperation between Egyptian oil sector and the French company.

El-Molla stated that the Egyptian-French partnership in oil and gas field witnesses a continuous growth as pursuant to the distinguishable joint ties between two states.

BAPETCo Deployed Two New Rigs - EGYPT OIL & GAS

Wednesday, 14th December 2016

An official with Badr El Din Petroleum (BAPETCo) stated to Egypt Oil&Gas that the company has rented the services of two new 1,500-horespower rigs. This brings the total number of rigs employed by BAPETCo to four, in an attempt to execute the company’s extensive drilling strategy.

The rigs, originally owned by the Egyptian Drilling Company, cost BAPETCo $20,000 daily. The EDC-51 rig was deployed in the beginning of December 2016. It will be used to drill J-14/4 well. EDC-42 rig will also be used to drill SITRA-44 and it will start running in January 2017. The remaining rigs, EDC-52 and EDC-72, are used in the Yas-1 exploratory well and SITRA8-42 development well, respectively.

The Future of East Med Gas? First Find It - EUROIL / LINKED IN

December 14, 2016
Gary Lakes, Energy Journalist

Slotting East Mediterranean natural gas into the international, and particularly, the European energy market has been a topic of debate since the beginning of this decade. Starting with the discovery of the giant Leviathan field in the Israeli offshore in late 2010 and encouraged further by the discovery of the smaller Aphrodite field offshore Cyprus, the monetization of East Med gas is a subject that has swung to and fro throughout a series of events over the course of the last six years.

LNG, FLNG, pipelines, partners, best markets, pricing, current demand, future demand, competition, costs, energy security, geopolitics, domestic politics and other factors have been tossed into the discussion over how the new frontier in the East Mediterranean might establish itself as a key energy hub and create wealth for the region.

It is a debate that has been long and drawn out and at times pedantic, and which until recently had slipped into limbo as Israel wrestled with regulatory issues, and as exploration drilling came to a standstill in both Israel and Cyprus. Egypt and Lebanon are characters in the East Med drama too, but as Cairo strained to meet pressing energy demand, Egypt became a gas importer in 2015 and Lebanon’s 2013 plans to launch an offshore exploration program languished in the quagmire of domestic politics.

EBRD supports Mideast gas, but developer backs coal - NATURAL GAS WORLD

December 14th, 201612:00pm

The European Bank for Reconstruction and Development (EBRD) is providing a $95mn loan for the construction of a 485 MW modern gas-fired power plant in Jordan costing $460mn.

The loan - billed as reducing emissions by the bank -- will be provided to a Jordanian firm that is 60%-owned by the Saudi developer ACWA Power -- which a few days ago committed to building a giant coal-fired plant in Dubai.

The new Zarqa combined-cycle gas turbine plant in Jordan, 40km northeast of the capital Amman, will replace an obsolete oil-fired plant at the same site and be twice as efficient and cut emissions. It is needed to stabilise the Jordanian grid as older plants are decommissioned and as demand increases.

Apache to drill 20 horizontal natural gas wells for USD 100 mn - ENTERPRISE

Wednesday, 14 December 2016

Apache intends to spend USD 100 mn for horizontal drilling on 20 wells in the Apollonia [formations] in the Western Desert, Al Borsa reports. If successful, the vertical wells are expected to produce around 40 mcf/d from limestone. Apache has spent USD 24 mn so far on exploration and testing in the Apollonia field and expects to bring the second of three other wells online early next month.

3 gas shipments exported through Idku plant by Shell since September - DAILY NEWS EGYPT

14.12.2016, 02:00
Mohamed Adel

Supply from Burullus fields gradually being increased to 250m feet of gas

The Dutch oil company Shell has exported three liquefied gas shipments to international markets through its Idku plant for liquefaction since September, after it obtained 200m cubic feet of gas per day from production at the Burullus fields.

A senior source at the petroleum sector told Daily News Egypt that Shell targets to export liquefied gas shipments every 20 days according to Idku’s (EDCO) current supply rates.

Shell agreed with the Ministry of Petroleum on gradually increasing quantities specified for export to 250m cubic feet per day, to achieve a return that will help the company to repay loans due in instalments.

Technocrats complete report for third licencing round - CYPRUS MAIL

DECEMBER 13TH, 2016
Elias Hazou

Technocrats have completed and handed over to energy minister Giorgos Lakkotrypis a report recommending with which companies the government should begin negotiations in the third offshore licensing round.

The report is not binding on the minister, who will study it and make his own proposal to the cabinet.

This is expected to take place soon, Politis reports.

Based on the cabinet’s decision, the government will then name the preferred bidders and commence negotiations with them with a view to awarding exploration concessions in Cyprus’ Exclusive Economic Zone (EEZ).

The selection of the preferred bidders does not mean that the same will be awarded the concessions.

Egypt cancels tender to rent third LNG regasification terminal - REUTERS

December 13, 2016
Reporting by Ehab Farouk; writing by Asma Alsharif; editing by Louise Heavens

CAIRO (Reuters) - Egypt has cancelled its tender to rent a third natural gas import (LNG) regasification terminal as it is no longer needed, Oil Minister Tarek El Molla told Reuters on Tuesday.

"The tender to rent a third regasification terminal was cancelled due to a lack of need for it and until we reassess the gas production capacity of Egypt and the consumption levels over the next few years," he said.

Once a net energy exporter, Egypt began importing liquefied natural gas (LNG) last year and has leased two floating and storage regasification units (FSRU) already to help avert power shortages caused by falling energy production and rising consumption.

8 new wells produce 517 MMCFD of gas in H1 2016: Egypt's Oil - REUTERS / AMWAL AL GHAD

Egypt, for January-April 2016

13 December 2016

Egyptian Oil Ministry announced Monday that eight new wells started production since the beginning of the second half of 2016.

In its reports, the ministry stated that these wells, which are affiliated to different firms, added 517 million cubic feet of natural gas and 2,500 barrels of crude oil to Egypt's national production.

The new wells are located in concession areas joint between International Oil Companies (IOC) and Egyptian oil sector firms at the Mediterranean Sea, Nile Delta, and Western Desert.

The IOCs include Italy's Eni ,the foreign partner of Balaeim Petroleum Company- Petrobel, and Royal Dutch Shell - the foreign partner of Egypt's Badr El Din Petroleum Company - Bapetco.

Packers Plus frac system cuts costs/saves time for an operator in Egypt - WORLD OIL

13/12/2016

CALGARY -- Packers Plus Energy Services worked with an operator in Egypt to complete a 6-stage StackFRAC system using the drillable closeable (DC) FracPORT sleeve in a short timeframe.

"Packers Plus' advanced manufacturing capabilities ensured the product was delivered and tested within three days, meeting the client's operational timeline and technical requirements," said Packers Plus President, Ian Bryant. "Not only was the client working in a short turnaround time, they were also interested in a closeable system that would simplify future operations."

Delek Group, Ratio approve Leviathan investment - NATURAL GAS WORLD

December 13th, 2016 - 8:35am

Ya'acov Zalel

Delek Drilling and Avner, the two Delek Group subsidiaries with a combined 45.3% holding in the Leviathan gas field, said December 12 that their boards have approved the investment in the first phase of the project.

Ratio, the third Israeli partner, with 15%, also approved the development program and the working plan. Now all eyes will turn to Noble Energy, a 39.7% shareholder, and the operator, to approve the project and take final investment decision before sanctioning the project as early as next year.

The total budget for phase 1 is estimated at $3.5-$4bn according to a filing to the Tel-Aviv Stock Exchange (TASE) for a production capacity of 12bn m³/yr.

Last month Delek Group announced a major project financing deal with HSBC and JP Morgan to the tune of $1.7bn. However so far it is not clear which guarantees the banks have received apart from a lien on the group's rights to Leviathan.

Turkey’s first floating LNG plant anchored in Izmir - DAILY SABAH

GDF Suez Neptune FSRU

13.12.2016

The GDF Suez Neptune plant, which is Turkey's first floating liquefied natural gas (LNG) plant which also contains a Floating Storage Regasification Unit (FRSU), has reached the coasts of the Aegean province Izmir.

The floating plant left France last week and docked at a port in Izmir, which is especially designed for the plant, on Sunday.

The GDF Suez Neptune is to be put into use by Kolin Group in Izmir's district Aliağa within this month.

With a capacity of 5.3 million tons, it is expected to contribute 20 million cubic meters of natural gas per day to Turkey's gas supply, thus considerably increasing the country's supply capacity on a daily basis.

Eni sells a 30% stake in the Shorouk concession, offshore Egypt, to Rosneft - ENI

12/12/2016 08:05

ENI PRESS RELEASE, PRICE SENSITIVE

The agreed conditions include a consideration of 1,125 million US dollars and the pro quota reimbursement of past expenditures, which amount so far at approximately 450 million US dollars. In addition, Rosneft has an option to buy a further 5% stake under the same terms.

San Donato Milanese (Milan), 12 December 2016 – Eni has agreed to sell to Rosneft a 30% participating interest in the Shourouk Concession, offshore Egypt, where the supergiant gas field Zohr is located. Eni, through its subsidiary IEOC, currently holds a 90% stake in the block following the recent dilution of 10% to BP which completion is ongoing.

The agreed conditions include a consideration of 1,125 million US dollars and the pro quota reimbursement of past expenditures, which amount so far at approximately 450 million US dollars. In addition, Rosneft has an option to buy a further 5% stake under the same terms.

Eni sells 30 percent stake in Egypt's Zohr gas field to Rosneft - REUTERS

Mon Dec 12, 2016 | 9:39am EST

By Stephen Jewkes and Valentina Za | MILAN
Additional reporting by Vladimir Soldatkin in MOSCOW; Editing by Mark Potter and Michael Urquhart

Italian energy company Eni will sell a 30 percent stake in its giant Egyptian offshore gas field Zohr to Russia's Rosneft for $1.575 billion, pressing ahead with asset sales to fund investments and offset weak oil prices.

Eni, which owns 90 percent of the Shorouk concession containing Zohr, said Rosneft would pay $1.125 billion cash for the stake and would reimburse investments already carried out by Eni for around $450 million.

The deal comes less than a month after Eni's sale of a 10 percent stake in Zohr to BP at the same implied price, bringing overall proceeds to around $2.1 billion.

Minister of Petroleum to meet with Rosneft Chief Executive Igor Sechin - ENERGY EGYPT / EGYPT'S MINISTRY OF PETROLEUM

December 12, 2016

Rosneft Chief Executive Igor Sechin arrived yesterday in Cairo to meet today tith Minister of Petroleum and Mineral Resources Tarek El Molla, to discuss existing and potential opportunities in Egypt’s oil and gas exploration.

The board of Russia’s Rosneft plans to discuss buying a stake of up to 35 percent in the Shorouk concession, offshore Egypt, the company said on Last Monday. The concession includes the supergiant Zohr gas field, which was discovered by Eni in August 2015 and is the largest natural gas field ever found in the Mediterranean, with a total potential of 850 billion cubic meters of gas in place.

Development of Leviathan Field to Produce Natural Gas by End of 2019 - DELEK GROUP

Tel Aviv, December 12, 2016

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) provides below an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership ("the Partnerships") concerning the decisions taken for development of the Leviathan Field in order to produce natural gas by the end of 2019.

Pursuant to what was stated in the Partnerships' Annual Reports dated December 31, 2015 that were published on March 28, 2016 ("the Annual Reports") concerning the updated development plan for the Leviathan Field ("the Development Plan"), and having received the regulatory approvals and progress in the technical agreements concerning development of the Leviathan Field, including approval of the Development Plan by the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources, as stated in the Immediate Report dated June 2, 2016, 

entering into an agreement to receive Front End Engineering Design (FEED) services for the production platform as approved in the Development Plan, as stated in the Immediate Report dated June 22, 2016, 

Doosan Heavy inks 160 billion won deal in Egypt - THE KOREA TIMES / ENTERPRISE

2016-12-12 18:20
Jhoo Dong-chan

Doosan Heavy Industries & Construction has won a 160 billion won (USD 137 mn) order to build power equipment in Egypt.

The nation's top power equipment maker inked a Notice of Award (NOA) deal with Egypt's state-owned power supplier duo of Upper Egypt Electricity Production Company (UEEPC) and Cairo Electricity Production Company (CEPC) to provide 650 megawatt gas turbines and power generators as well as their related parts for two power plants in Egypt.

One gas turbine will be built for the Assiut Power Plant, which is currently under construction by UEEPC, and the other is set for CEPC's Cairo West Power Plant. Both pieces of equipment will be delivered by April 2020, Doosan Heavy said in a press release.

Israel and Turkey Seek to Shield Natural Gas Ties From Politics - BLOOMBERG

December 12, 2016 — 3:05 AM EST

Yaacov Benmeleh and David Wainer

• Governments working on deal that would provide such insurance
• Israel could pump gas to Turkey in 3 years: energy ministry

Israel and Turkey are working to eliminate a major obstacle to natural gas deals: their own fractious history.

The two governments are working on a framework for the export of Israeli natural gas to Turkey that would protect contracts between companies if diplomatic ties break down, Israeli Energy Ministry Director-General Shaul Meridor said in an interview in Jerusalem. With such a shield in place, gas could begin flowing from Israeli waters to Turkey as soon as 2019, he said.

“For banks to eventually finance such a project they will have to know that no matter what happens between the countries politically, the business side will be protected,” he said.

The Ticker: Delek Drilling, Avner Plan $400 Million Bond Issue - HAARETZ

Energy Minister Silvan Shalom (R) & Yitzhak Tshuva, the controlling
shareholder of Delek Group March 27, 2013 - by Moshe Binyamin

Dec 12, 2016 12:32 AM
Eran Azran

Delek Drilling, Avner plan $400 million bond issue
Delek Drilling and Avner, the two Delek Group firms with stakes in the Tamar and Leviathan offshore natural gas fields, are planning their first ever bond issue as limited partnerships. Unlike their 2014 “Tamar” bond, which was used exclusively in financing the gas field, the new issue will be for general corporate purposes – meaning it will be used to pay the companies’ shareholders (technically partners in a limited partnership) a dividend as required by securities regulations, minus deductions for corporate capital spending subject to shareholders’ approval.

Earlier this month, Delek and Avner said they planned a $100 million dividend for payment December 31. The bonds, which have a relatively high A1 rating from the Midroog agency, are payable in 2021. However, if the two companies reduce their combined 31.25% stake in Tamar to below 10.4%, they will have to immediately redeem half the bonds. Shares of Delek Drilling closed up 2.25% at 14.99 shekels ($3.93), while Avner rose 1.7% to 2.82. 

Turkey’s evolving energy policy - IN CYPRUS / CYPRUS WEEKLY

December 11, 2016
Charles Ellinas

Since the rift with Russia last year and the subsequent rapprochement between Turkey, Russia and Israel, Turkey’s energy policy has been evolving in response to the shifting regional geopolitics, but also its own changing energy priorities and needs.

In this article, I review the latest developments in Turkey’s energy policy and markets and how these affect the region and Cyprus.

Production from Rosetta gas field to cease in July - DAILY NEWS EGYPT

December 11, 2016
Mohamed Adel
The company refused to pay for developments to offset the natural decline in production

The daily production of 40bn cubic feet of gas from the Rosetta field in Shell’s Rashid concession area will cease in July 2017, as the company refuses to pay for field development to offset the natural decline in production while dues owed by Egyptian government continue to accumulate.

A senior source at the Egyptian Natural Gas Holding Company (EGAS) told Daily News Egypt that development of Rosetta gas field requires huge funds but lacks economic feasibility to the foreign partner based on the current price of the gas produced from there.

BP acquired the Rosetta gas treatment plant in Rashid from Shell for $128m and received the field in April, then began preparing to link production of Fayoum and Giza fields to it.

Rosneft Eyes Cooperation With Qatar in LNG Trade – Company Source - SPUTNIK NEWS

11.12.2016, updated 10:19

Russia’s oil giant Rosneft sees opportunities for cooperation with Qatar in the liquefied natural gas (LNG) trade and logistics, a source in the company told reporters. 

MOSCOW (Sputnik) — Qatar’s Investment Authority (QIA), a sovereign wealth fund, is buying a 19.5-percent stake in Rosneft in a consortium with mining firm Glencore. Separately, Rosneft is mulling buying a stake in Egypt's Zohr gas field. 

"Qatar is the largest LNG producer, Rosneft is about to become a stakeholder in Zohr, so there are opportunities for synergy in terms of logistics and trading," the source said. 

"Glencore will hedge a significant part of its stake, most of it," the source said, adding Glencore and the Qatar Investment Authority had an equity stake in their consortium.