Turkey’s role in natural gas – Becoming a transit country? - INSTITUTE OF ENERGY ECONOMICS, UNIVERSITY OF COLOGNE (EWI)

January 2017

Istemi Berk, Simon Schulte

EWI Working Paper, No 17/01
Institute of Energy Economics at the University of Cologne (EWI)

This paper analyses the possible future role that Turkey can play in European natural gas markets. We employ a global gas market simulation model, COLUMBUS, to assess the outcomes of different scenarios concerning natural gas supply routes to Europe through Turkey up to 2030. The results imply simply that under current conditions, i.e., a more competitive environment in European gas markets leading to low gas prices, Turkey’s role would be of only minor importance. In accordance with various scenarios presented in this study, Turkey’s role is seen at its most important when European demand increases and Russia exerts power in the European markets.

Turkey’s role in natural gas – Becoming a transit country? - EWI Working Paper, No 17/01

Power, gas supplies set to be tested - KATHIMERINI

19.01.2017 : 22:48

Chryssa Liaggou

Energy authorities in Greece have signaled that the country’s natural gas system is expected to remain under pressure until early February.

Liquefied natural gas reserves at the LNG terminal on the islet of Revythousa are set to run out tomorrow because the LNG carrier that had been supposed to deliver a shipment from Algiers was not able to dock at the Algerian capital’s port in time due to rough seas.

This development has generated major concern in Athens and on Wednesday the Regulatory Authority for Energy convoked the Crisis Management Committee, which assessed the situation regarding the uninterrupted supply of electricity and natural gas around the country.

Total SA (ADR) (NYSE:TOT): Drilling in Cyprus Underway - THE COUNTRY CALLER

January 20, 2017 10:18 am EST

Myrna Salomon

The site targeted for drilling stands in close proximity with the Eni owned Zohr field

With an optimistic sentiment being raised in the global energy market, energy companies are in full swing. From boosting up their exploration, production and investment plans to carry out new expansions, the big oil are doing their all.

Being in the same league, French oil and gas company Total SA (ADR) (NYSE:TOT) is prepping up for gas drilling off Cyprus. The site targeted for drilling stands in close proximity with the Eni SpA (ADR) (NYSE:E) owned Zohr field.

Stephane Michel, President of Total for Middle East and North Africa stated: "Obviously the Zohr discovery has changed the landscape. It is clear that the decision to drill block 11 was taken on the basis of the Zohr discovery."

Russian parliament ratifies major gas pipeline deal with Turkey - CHINA.ORG / XINHUA

Xinhua, January 20, 2017

Russia's State Duma, or the lower house of parliament, approved a "Turkish Stream" pipeline deal Friday to deliver its natural gas to Turkey and European markets through the Black Sea.

Russian President Vladimir Putin initiated the Turkish Stream project in 2014, and sealed the agreement with his Turkish counterpart in Istanbul in October 2016 envisioning the construction of two underwater legs of the gas pipeline.

The project, put on hold after Turkey downed a Russian warplane in November 2015 near Turkish-Syrian border, was brought back to agenda in June 2016 when Moscow and Ankara agreed to revive their relations.

El-Molla endorses budgets of three Egyptian oil firms for 2017/18 - ZAWYA / AMWAL AL GHAD

Thursday, 19 January 2017

Egyptian Petroleum Minister Tarek El -Molla endorsed Thursday the planning budgets of three oil firms for financial year 2017/18.

The minister headed the meeting of general assemblies of Misr Petroleum Company, Co-operation Petroleum Company (Copetrole), and [Arab Petroleum Pipelines Company (SUMED)].

The meeting was attended by state's Local Development Minister Ahmed Zaki Badr, Executive Chairman of The Egyptian General Petroleum Corporation (EGPC), and other officials.

Commission insists Greece must privatise 66% of DESFA gas grid - EURACTIV.COM

Miguel Arias Cañete

19 January 2017
Georgi Gotev

Europe’s top energy official said today (19 January) that Greek authorities should privatise a majority stake in Greek gas grid operator DESFA, after a deal collapsed last year.

Under its privatisation programme, an important part of its international bailout, Greece and its biggest oil refiner, Hellenic Petroleum, had agreed to sell the DESFA stake to Azerbaijan’s SOCAR for €400 million.

The deal collapsed in November after Athens passed legislation raising DESFA’s gas tariffs by a lower amount than SOCAR had expected and SOCAR asked for a lower price.

Israel bolsters maritime defense in offshore oil and gas zone - RUSSIA TODAY

19 Jan, 2017 13:36

Photo: Israeli navy patrol vessels take part in a drill simulating the targeting of an infiltrated enemy vessel and the evacuation of a patrol boat, in the Mediterranean Sea off the coast of Ashdod, southern Israel November 8, 2016. © Amir Cohen / Reuters

Tel Aviv is increasing spending on the Navy to protect its offshore oil and gas deposits better and secure a large maritime area neighboring Lebanon, Reuters reports.

The agency says the Israeli defense ministry is not disclosing the information about the new financing, but in 2013 the Navy asked for a $700 million budget increase and an additional $100 million every year to maintain a larger force.

Total readies drills in Cyprus, Egypt in regional growth push - YAHOO FINANCE / REUTERS

January 19, 2017
Bate Felix, Editing by Andrew Callus and Alexander Smith

PARIS (Reuters) - France's Total (TOTF.PA) is preparing to drill for gas off Cyprus, close to ENI's huge Zohr discovery off the Egyptian coast which in 2015 renewed interest among oil majors for exploration in the Mediterranean.

Cyprus awarded ENI, Total and ExxonMobil (XOM.N) exploration licences near the Zohr field in December, while neighbouring Lebanon plans to restart its delayed oil and gas licensing round in the region.

"Obviously the Zohr discovery has changed the landscape," Stephane Michel, who took over as Total's President for Exploration and Production in the Middle East and North Africa (MENA) region in 2014, told Reuters on Thursday.

"It is clear that the decision to drill block 11 was taken on the basis of the Zohr discovery," Michel said, adding that preparations were in the final stages but there was no date yet when drilling would begin.

Ratio Petroleum IPO oversubscribed - GLOBES

19 Jan, 2017 12:55
Kobi Yeshayahou

Ratio Petroleum engages in oil and gas exploration in Guyana, Malta, the Philippines, and Ireland.
In the first IPO of 2017, Ratio Petroleum has scored a success, raising NIS 48 million in an offering of participation units. Demand for the oversubscribed part of the offering for investment institutions totaled NIS 60 million. Ratio Petroleum is a subsidiary of Ratio Oil Exploration (1992) LP (TASE:RATI.L), which owns 15% of the Leviathan natural gas reservoir. Ratio Petroleum, which engages in oil and gas exploration outside of Israeli economic waters, holds exploration rights in Malta, Guyana, Ireland, and the Philippines. The company also engages in development and production, mainly of marine assets.

Oil Ministry establishing four new petrochemicals projects - ENTERPRISE / AL MASRY AL YOUM

Thursday, 19 January 2017

The Oil Ministry is establishing four new petrochemicals projects worth a combined EGP 1 bn, Oil Minister Tarek El Molla told Al Masry Al Youm.

The projects come as Egypt looks to maximize the petrochemicals value chain. 

Speaking at the general assembly of The Egyptian Petrochemicals Holding Company, El Molla stressed the importance of taking into account the availability of domestic production inputs, or the possibility of importing to bridge the gap between supply and demand to maintain production at these new projects.

EGAS denies Dana Gas operations affected by outstanding receivables - ENTERPRISE / AL MAL

Thursday, 19 January 2017

Dana Gas operations and investments were not affected by unpaid receivables from EGAS, a senior official at EGAS told Al Mal. 

Dana Gas had earlier said it will have to review its 2017 investment plans for Egypt if the country does not repay dues by the end of the year.

Egypt To End Capital Controls, Reform Oil Sector Under IMF Deal - RIGZONE / REUTERS

Wednesday, January 18, 2017
Lin Noueihed

Additional reporting by Ahmed Aboulenein, Eric Knecht, and Asma Alsharif; Writing by Lin Noueihed and Ahmed Aboulenein; Editing by Hugh Lawson and Eric Knecht

CAIRO, Jan 18 (Reuters) - Egypt will scrap its remaining caps on transfers and deposits of foreign currency by the end of June and overhaul its oil sector as part of ambitious efforts to reform the economy under an IMF agreement, the details of which were released on Wednesday.

The International Monetary Fund approved the three-year programme with Egypt in November, releasing the first $2.75 billion instalment of a $12 billion loan intended to jumpstart an economy battered by years of turmoil that has driven away investors and tourists, key sources of hard currency.

The Fund said on Wednesday that Egypt was on track to receive the second tranche of the loan, pending a visit to review progress at the end of February.

European interest in Israeli gas deepens - GLOBES

18 Jan, 2017 18:33
Amiram Barkat

The Energy Ministry director general will meet counterparts from Italy, Greece, and Cyprus to discuss a gas pipeline from the Leviathan reservoir.
High-level contacts between Israel and European countries on laying a gas pipeline from the Leviathan natural gas reservoir are about to take place. Sources inform "Globes" that Ministry of National Infrastructure, Energy, and Water Resources director general Shaul Meridor will travel to Brussels next Monday to meet his counterparts from Italy, Greece, and Cyprus in the European Commission offices. The meeting is designed to pave the way for a summit between the four countries' energy ministers next month in Israel.

Acquisition of Turkish oil and gas production companies completed - GLOBE NEWSWIRE / YAHOO FINANCE

January 18, 2017

DALLAS, Jan. 18, 2017 (GLOBE NEWSWIRE) -- Park Place Energy Inc. (PKPL) (“Park Place” or the “Company”) is pleased to announce it has now completed the acquisition of three oil and gas exploration and production companies operating in Turkey (the “Tiway Companies”). As previously reported, the purchase price for the acquisition of the Tiway Companies from Tiway Oil B.V. was $2.1 million. It took over a year to obtain all the required regulatory approvals for the transaction. As a result of the acquisition of the Tiway Companies, Park Place now owns interests in three producing oil and gas fields in Turkey, one of which is offshore and the other two are onshore.

At year-end 2016, net production to the Tiway Companies from such fields was 280 barrels of oil equivalent per day or Boe/d; and for the year 2016, net production to the Tiway Companies averaged 390 Boe/d. In addition, the Tiway Companies have about US$745,000 in available cash. Due to the acquisition of the Tiway Companies, the Company is now a qualified oil and gas operator in Turkey based in Ankara. With this base of operations in Turkey and its experienced management team, Park Place is poised to exploit these assets and for further growth in the region.

Greek power utility shareholders approve grid spin-off - EURACTIV.COM / REUTERS

18 January 2017

Shareholders of Greece’s power utility Public Power Corp. (PPC) approved yesterday (17 January) the transfer of a 51% stake in the power grid operator ADMIE, part of a spin-off scheme, which is a major term in Greece’s bailout programme.

Under a legislated scheme aiming at keeping ADMIE under state control, PPC will sell a 24% stake to China’s State Grid for €320 million and set up a special vehicle to transfer a cost-free 51% stake to the state and existing private shareholders.

“The extraordinary PPC shareholders meeting approved the procedures in order to conclude ADMIE’s spin-off,” the energy ministry said in a statement.

In 2015, Greece signed up to its third international bailout since the debt crisis erupted, agreeing to cut spending, pursue reforms and speed up privatisations to shore up its finances.

Prime Minister calls on Petroleum Ministry to swiftly complete oil, gas development projects - DAILY NEWS EGYPT

Wednesday January 18, 2017
Mohamed Ayyad
Gas self-sufficiency to be achieved by end of 2019, says prime minister

Prime Minister Sherif Ismail called on the Minister of Petroleum to quickly complete the development projects of discovered fields in order to increase the local production of crude oil and gas, and relieve the pressure on foreign exchange resources.

During his visit to the Petroleum Ministry on Wednesday, Ismail said that Egypt will achieve natural gas self-sufficiency by the end of 2019. The prime minister stressed the importance of intensifying exploration and research works during the upcoming phase.

Ismail also stressed the importance of delivering natural gas to homes as this would improve the services offered to citizens and provide the necessary amount of butane, 50% of which is imported.

Egypt signs two oil and gas exploration agreements - ENTERPRISE / ASWAT MASRIYA

Wednesday, 18 January 2017

Egypt signed two exploration and production agreements in the Western Desert and Suez Canal regions, Aswat Masriya reported. The first agreement was signed with Sahara for Oil and Gas, a sister company of Sahara Petroleum Services (SAPESCO), with an investment value of USD 30 mn. The second agreement was inked with the Offshore Shukeir Oil Company to carry out exploration on behalf of EGPC in the Suez Canal region.

Kuwait Energy signs farm-out agreement with Global Connect Ltd for Abu Sennan, Egypt - KUWAIT ENERGY

17 January 2017Kuwait City, Kuwait
Kuwait Energy plc (“Kuwait Energy”) is pleased to announce the signing of a Farm-Out Agreement (FOA) for 25% participating interest in the Abu Sennan concession fromits share, to Global Connect Limited (“Global Connect”); a recently established E&P Company with a focus on MENA region. The FOA was signed in Egypt on Thursday 15 December 2016 and it is effective as of 31 December 2016. The agreement remains subject to government and pre-emption approvals.

The agreement was signed by Sara Akbar, the CEO of Kuwait Energy and Sherif Foda, Founder and Chairman of Global Connect.

On this occasion, Sara Akbar said:

“We are very pleased to welcome a new partner in the Abu Sennan concession. Along with Dover and Rockhopper, Global Connect will now support the concession in the development and exploration efforts. The team at Global Connect brings in a wealth of technical expertise based on their previous experiences. We look forward to working alongside one another to create optimal value for Egypt and all the partners”.

Engagement in a Non-Binding LOI for the Supply of Natural Gas from the Leviathan Project to Edeltech Ltd. - DELEK GROUP

Tel Aviv, January 17, 2017.

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") with regard to an engagement in a non-binding LOI for the supply of natural gas from the Leviathan project to Edeltech Ltd.

Further to the provisions of Section 7.14.1 of the Partnerships’ periodic report as of December 31, 2015, as released on March 28, 2016 (the “Periodic Report”) regarding the conduct of negotiations of the partners in the Leviathan project including the Partnerships (the “Leviathan Partners”) for the marketing of natural gas and condensate to potential offtakers in the domestic economy, the Partnerships hereby respectfully announce as follows:

Petrobel to invest $630 million in FY 2017-18 - ENERGY EGYPT / EGYPT'S MINISTRY OF PETROLEUM

Abu Rudeis onshore facilities (photo: Petrobel)

January 17, 2017

Minster of Petroleum Eng. Tarek El Molla, chaired the General Assembly for Belayim Petroleum Company (Petrobel) to review the companies’ budgets for fiscal year 2017/2018. The general assemblies were held in the attendance of First Undersecretaries of the Ministry of Petroleum, CEOs of the Egyptian Natural Gas Holding Company (EGAS), and Executive President of the Egyptian General Petroleum Corporation (EGPC) , BP’s Regional Manager, Hesham Mekawy and Eng. Adriano Mongini, IEOC’s President.

Mediterranean sea, from gas new opportunities for integration - ABO

Jan 17, 2017
Costanza Concetti, Georgetown University

The new found hydrocarbon resources in the Mediterranean may represent the pretext for long-awaited regional integration
With Eni’s discovery offshore Egypt of the Zohr Field, whose 850 bcm of lean gas make it the largest gas trove in the Mediterranean to date, the Eastern Mediterranean has officially become a viable supply basin for the needs of gas-hungry Europe. The collective 3,500 bcm of natural gas reserves found offshore Cyprus, Lebanon, Israel, Gaza, and Egypt, and a predicted 10,000 bcm more lying in the ground, will predictably challenge the previous monopoly held by current suppliers like Russia, Algeria, and Nigeria. Contemporarily, as previous historical importers set out to become natural gas exporters, neighboring countries that harbored frosty relationships are already being brought together in the interest of effectively exporting and marketing the newfound resources. The Eastern Mediterranean gas reserves and their export may therefore transform the geopolitics of energy that currently connect Europe, Russia, Turkey, the Middle East, and the African continent in a complex web of interdependencies.

Libya oil output said to rebound with power returning at fields - WORLD OIL / BLOOMBERG

JAN/17/2017
SALMA EL WARDANY

TRIPOLI (Bloomberg) -- Libya’s oil production rebounded to about 700,000 bpd after dipping temporarily due to power outages that disrupted operations at some of the OPEC member’s fields.

Electricity is returning gradually to fields in western Libya following a blackout on Jan. 14, according to a person familiar with the matter, who asked not to be identified for lack of authorization to speak to news media. Oil output dropped to 655,000 bpd this week as a result of the outages, and production should increase further as electricity is restored at more fields, the person said.

The blackout occurred after an unspecified group of people closed the valve of a natural gas pipeline that feeds the Zawiya power station in the western region, and electricity was restored later in some areas, the state-run Lana news agency reported on Jan. 15. Other factors contributed to the outages, including attacks on power stations, the national utility GECOL said in a Jan. 15 statement.

CERA unveils ‘market light’ for energy liberalisation - CYPRUS MAIL

January 10, 2017
Elias Hazou

The Cyprus Energy Regulatory Authority (Cera) has unveiled its latest stopgap proposal ahead of the full opening up of the energy market.

CERA head Andreas Poulikas told MPs on Tuesday the authority has drafted a regulation introducing a “market-light,” as he put it, ahead of the transition to full market liberalisation.

Lawmakers also heard that the target now for full liberalisation is by May 2019. The date has been pushed back several times.

CERA is proposing bilateral contracts between electricity producers and suppliers. Under this arrangement, market clearance would take place every calendar month.

Russian gas flows to Europe, Turkey surge 25% on year in H1 Jan - PLATTS

London (Platts)--17 Jan 2017 931 am EST/1431 GMTStuart Elliott, Edited by Alisdair Bowles

Russian gas flows to Europe and Turkey were already 25.5% higher year on year in the first 15 days of January, according to the latest Gazprom data, having hit an all-time high daily level on January 8.

The continued high flows in 2017 -- following record-breaking volumes last year -- come as cold weather across Europe, especially in the east, triggers increased demand for Gazprom gas.

Russian gas prices also remain competitive compared with European hubs -- the oil price rally of end-2016 will only filter through to oil-indexed gas contracts in the coming months -- so European buyers are thought to be maxing out their Russian gas purchases.

In a statement Monday, Gazprom said gas flows to what it calls the Far Abroad -- Europe and Turkey but not the ex-Soviet states -- were 25.5% higher than in the same period of 2016.

Egypt's Petroleum Minister Signs Two Oil and Gas Exploration Deals - ASWAT MASRIYA / ALLAFRICA.COM

17 JANUARY 2017
Aswat Masriya (Cairo)

Cairo — Egypt's Petroleum Minister Tarek al-Molla signed two agreements for oil and gas exploration in the Western Desert and the Suez Canal regions on Tuesday.

Egypt aspires to increase its oil and gas production to meet the growing domestic demand for energy.

According to the ministry's statement, the first deal was signed with the Egyptian General Petroleum Corporation (EGPC) and Sahara for Oil and Gas with a total investment worth at least $30 million.

Israel's Edeltech seeks deal for more natural gas from Leviathan - REUTERS

Tue Jan 17, 2017 | 2:37am ESTReporting by Tova Cohen, Editing by Ari Rabinovitch

The partners in Israel's giant natural gas field Leviathan said on Tuesday they have signed a non-binding letter of intent to supply natural gas to Edeltech, an Israeli private power provider.

The two sides are negotiating terms of a potential binding deal, which would include the supply of 14.8 billion cubic meters of gas over 17 years, the Israeli partners Delek Drilling and Avner Oil said in a statement.

Delek Drilling and Avner each hold 22.67 percent of Leviathan, while Texas-based Noble Energy owns 39.66 percent.

Such a deal would be in addition to a supply deal signed between the Leviathan partners and Edeltech a year ago. 

Sharkawy & Sarhan explain how the draft gas law will affect down- and mid-stream activities - ENTERPRISE

Tuesday, 17 January 2017

The draft Gas Law gives private parties access to the gas infrastructure and provides details of a new licensing regime through regulating transmission, distribution, storage, liquefaction, regasification, shipping, and the supply of gas, according to a note by Sharkawy & Sarhan. The law creates a new independent public entity affiliated with the Oil Ministry that will be responsible for granting licences to parties, ensuring competitiveness and transparency, setting tariffs, and settling disputes. The law firm says the draft will change market dynamics as “EGAS and EGPC will continue to ship gas along with other licensed parties. EGAS and EGPC will contract with [Transmission System Operator] and be committed to the obligations regarding the supplying, shipping and using the grids. EGAS and EGPC will also be bound by the tariff determined by the Gas Regulator and shall preserve transparency.”

Spain’s Reganosa wins Malta LNG management deal - LNG WORLD SHIPPING

Malta took delivery of its first LNG cargoes last week

Mon 16 Jan 2017 by Karen Thomas

Galician firm Reganosa is to maintain and operate Malta’s Delimara LNG regasification plant, which will start commercial operations within weeks, under an agreement with ElectroGas Malta (EGM).

Last week, the first LNG cargoes arrived in Marsaxlokk Bay, Malta to be stored in a floating storage unit (FSU) for delivery to the nearby Delimara gas plant. FSU Armada LNG Mediterran aarrived in Malta last autumn.

Bumi Armada converted Mitsui OSK’s 1985-built, 125,000m³ LNG carrier Wakabu Maru into an FSU to supply LNG to the new 215MW combined-cycle gas plant at Delimara. There have been conflicting reports over when the power station will open. A Reganosa spokeswoman told LNG World Shipping that this will happen “within weeks”.

Egyptian gas market sees seasonal surplus, says Wood Mac - WORLD OIL

1/16/2017

LONDON/HOUSTON/SINGAPORE -- Egypt's gas market is poised to undergo profound changes in the next five years, and these could have an impact on the global LNG market, seeing Egypt position itself as a prominent seasonal player, research from global natural resources consultancy Wood Mackenzie shows.

After five years of falling gas production and switching from a net exporter to a net importer, Egypt's fortunes look set to change. As a number of major offshore gas developments come on stream in the next few years, including BP's West Nile Delta and Atoll fields, and Eni's massive Zohr find, the North African country will add a cumulative 41 Bcm a year of gas production by 2022. These new volumes will push the country's gas market back to surplus.

Condor’s Poyraz West 2 appraisal well in Turkey discovers gas reservoir - HYDROCARBONS TECHNOLOGY

JAN 16 2017

Canadian oil company Condor Petroleum has announced the drilling results of the Poyraz West 2 appraisal well that tested the south-west extension of the Poyraz Ridge field.

According to the wireline logs, the well encountered 142m of net pay, which includes the discovery of a 60m Pre-Sogucak reservoir.

The newly discovered reservoir is known to be stratigraphically older and deeper than the Gazhanedere and Sogucak intervals. Initial evaluation found that the reservoir comprises interbedded conglomerates and sandstones.

Zohr, Atul, North Alexandria fields to start production this year: Petroleum Ministry - DAILY NEWS EGYPT

Monday January 16, 2017
Mohamed Ayyad

$834m of investments over FY 2016/2017 to intensify exploration and drilling activities, says Atef Hassan
Minister of Petroleum Tarek El-Molla said on Monday that the gas fields of Zohr, Atul (Atoll), and North Alexandria will start the first phase of production this year.

El-Molla added in a statement that starting production in these fields will have a positive impact on increasing the production of gas and reducing the gap between production and domestic consumption in Egypt.

Egypt imports petroleum products worth about $700m per month, at a time when the country is suffering from the scarcity of hard currency.

World Bank, Azerbaijan sign TANAP loan - NATURAL GAS WORLD

Source: TANAP

January 16th, 20172:20pmAzerbaijan desk 

World Bank and the the government of Azerbaijan January 16 signed a $400mn loan agreement funding the TransAnatolian gas pipeline (Tanap) that will deliver Caspian gas to Turkey and Europe.

Tanap, part of the southern gas corridor project (SGC), will transport natural gas from the Shah Deniz field in Azerbaijan to and across Turkey, and further to Europe, aiming to diversify Azerbaijan’s gas export markets and improve the security of the energy supply in Turkey and southeastern Europe, the bank said.

Besides Tanap it includes the development of the Shah Deniz 2 field; an expansion of the South Caucasus pipeline across Azerbaijan and Georgia to Turkey; and the TransAdriatic pipeline (TAP), which carries the gas through Greece and Albania and under the Adriatic Sea to southern Italy.

Oil Minister meets with Dana Gas execs to discuss expansions - ENTERPRISE / AL SHOROUK

Monday, 16 January 2017

Oil Minister Tarek El Molla met with Dana Gas Technical Director Iman Hill to discuss future expansions, Al Shorouk reported.

Dana Gas is planning to increase production from the Balsam field by 40 mcf/d through its JV El Wastani Petroleum by drilling two additional production wells in 2H2017.

Interview of Dana Gas CEO Dr Patrick Allman-Ward in ARABIAN BUSINESS on 14.1.2017

Sphinx Glass will invest USD 150 mn into new production line if gov’t cuts gas prices - ENTERPRISE / AL MAL

Source: World Energy Council

Monday, 16 January 2017

Sphinx Glass is looking to invest USD 150 mn into a new production line in 2017, CEO Mohamed El Khattab told Al Mal. The expansion is dependent on the government reducing the price of natural gas supplied to factories, he added. The government prices natural gas at USD 5 per mmBtu to factories, while competitive regional markets price natural gas at USD 2 per mmBtu, said El Khattab. Natural gas represents 30% of production costs, he added.

Dana Gas plans raising Wastani gas production in Egypt to 235m ft3/d - AMWAL AL GHAD

Sunday, 15 January 2017 14:21
Mahmoud Shaaban

Emirati-based Dana Gas targets raising production capacity of its local partner in Egypt, El Wastani Petroleum Company (WASCO), to 235 million cubic feet of natural gas and 8,200 barrels of condensates daily.

The current production of WASCO is estimated at 195 million cubic feet of natural gas and 6,200 barrels of condensates per day.

The Emirati firm showcased its plan to raise production capacity during its meeting with Egyptian Oil Minister Tarek El-Molla on Sunday.

El-Molla met with Iman Hill -Technical Director and General Manager UAE and Egypt- and General Manager of Dana Gas-Egypt, Michael Pyszka, El-Molla to discuss company's plans to explore gas and oil in its concession areas in Nile Delta.

Moody's: Lebanese Government unlocks credit-positive oil and gas exploration - CPI FINANCIAL

Sunday 15, January 2017
Georgina Enzer

On 4 January, Lebanon’s (B2 negative) newly formed cabinet approved two decrees to start offshore oil and gas exploration by setting out both the exploration blocks that it will offer and the terms and conditions for exploration and production agreements.

The bidding round will commence within six months, with 14 companies pre-qualified, and authorities expect the exploration phase to last five years. The cabinet’s decision is credit positive for the government because it reflects improved government effectiveness and has the potential to improve the country’s fiscal and external positions.

Eni raises expected production from Nooros gas field by 20% in mid-2017 - ENTERPRISE

Sunday, 15 January 2017

Eni has raised its projected production targets from the Nooros gas field to 1.2 bcf/d by mid-2017, up from 1 bcf/d, Al Borsa reported. Eni will add 180 mcf/d in 1Q2017 through three wells with a total investment of USD 450 mn, sources said.

TEKMOR Note: The field is located offshore the Nile Delta. The gas produced by the seven wells currently operational is sent to Abu Madi to be treated and then added to the national grid. The reservoir was discovered in July 2015 and production started in September of the same year.

New Draft Law On Gas Market Downstream and Midstream Activities - SHARKAWY & SARHAN

Issue 85, 15 January 2017

The draft gives private parties access to the gas infrastructure and provides details of a new licensing regime.

Despite the great gas discovery back in August 2015 (see here), the gas market still suffers; as Egypt's gas production does not meet market needs (see here). As an attempt to overcome this inefficiency and reform the gas sector, the government chose to embark on a gradual gas market liberalization scheme, in conformity with international practice. After two years of working on a new gas transmission system with technical assistance from the EU, in December the government submitted to parliament its revised draft law regarding the regulation of the downstream and midstream sectors. The Draft Gas Market Activities Regulation Law (the “Draft Gas Law”) is another step by the government in the right direction for policy reform. The new regime will hopefully improve the investment environment both in the oil & gas sector, as well as in industrial and export sectors reliant on gas.
The Draft Gas Law does not address the gas upstream sector or oil concession agreements. The legal framework of upstream activities is still intact. The Draft Gas Law regulates transmission, distribution, storage, liquefaction, regasification, shipping and supply of gas (the “Gas Market Activities”). The Draft Gas Law is an attempt to gradually liberalize the gas market. It allows the private sector for the first time to engage in Gas Market Activities.