How natural gas could be a geopolitical game-changer in the Mideast (Video 36 min) - FRANCE24

2017-05-12
Marine Pradel

It's a discovery that could easily shake up the geopolitical order in the Middle East. Deep under the eastern Mediterranean lies the largest natural gas basin ever found on Europe's doorstep. But the gas fields often coincide with disputed borders between rival nations. Our reporter Marine Pradel investigated this lucrative resource, which everyone wants a piece of.

Cyprus is “potential pivot for gas development”, ENI International Affairs Director says - FAMAGUSTA GAZETTE / CYPRUS NEWS AGENCY

Active (May 2017) in Cyprus' EEZ

Friday, 12 May, 2017

Italian energy company ENI sees Cyprus as a “potential pivot for gas development” in the region, Lapo Pistelli, the company`s International Affairs Director, told a conference on Thursday, noting that should the Levantine region become a gas hub, “Cyprus is at the crossroads of every potential destination”.

The investment opportunities offered in Cyprus were discussed on Thursday at a special session on Cyprus’ economy, titled “Cyprus in the Eastern Mediterranean: Attractive investment opportunities within a secure business environment”, in the framework of the EBRD`s Annual Meeting, taking place in Nicosia.

Energy, Industry, Commerce and Tourism Minister, Yiorgos Lakkotrypis, noted Cyprus` energy potential as well as the investment opportunities offered in the tourism and hospitality sector of the island.

Dana Gas first-quarter profit nearly doubles as production rises - WORLD OIL

5/11/2017
Anthony Dipaola

DUBAI (Bloomberg) -- Dana Gas PJSC profit nearly doubled in the first quarter as the United Arab Emirates-based natural gas producer boosted output.

See here press release.

Net income rose to 40 million dirhams ($11 million) from 22 million dirhams a year earlier, the company said Thursday in a statement to the Abu Dhabi stock exchange. Sales climbed 44% to 432 million dirhams.

Dana Gas, which pumps most of its gas at fields in Egypt and Iraq, is seeking to recover payments from both countries for overdue bills. The company was owed $1 billion from Egypt and the self-governed Kurdish region in northern Iraq at the end of the quarter. The receivables rose from $982 million at the end of 2016 because payments from Egypt slowed, CEO Patrick Allman-Ward said on a media conference call.

British oil investments to make Egypt new energy superpower, says UK envoy - AHRAM ONLINE

Thursday 11 May 2017

British Ambassador to Egypt John Casson said petroleum giant British Petroleum (BP) is investing $13 billion over five years to make Egypt the new energy superpower, through investments worth more than Cairo's three-year $12 billion loan deal with the IMF.

In a press release, the UK Embassy in Cairo said Casson attended the inauguration of BP's first two gas fields in the West Nile Delta Project, which was opened Wednesday by President Abdel-Fattah El-Sisi and the company's chief executive Bob Dudley.

Qalaa completes 92% of works on Egypt's largest oil refinery - AMWAL AL GHAD

11 May, 2017
Hisham Ibrahim

Egypt’s Qalaa Holdings has completed 92 percent of the works in the Egyptian Refining Company’s (ERC) anticipated oil refinery project, with investments worth $3.6 billion.

The refinery, the largest in Egypt, aims to decrease present-day diesel import needs by 50 percent and Sulphur emissions by one third as well as to help reduce the country’s annual subsidy bill.

Qalaa plans to complete works and inaugurate ERC’s project by the end of 2017, managing director Karim Sadek told Amwal Al Ghad on Wednesday.

Qalaa owns 20 percent of the Egyptian Refining Company (ERC), whose current shareholding includes the state-run Egyptian General Petroleum Corporation (EGPC), in addition to Egyptian and Arab private investors.

Few takers for Israel's new gas exploration tenders - GLOBES

11 May, 2017 10:30
Nati Yefet

Burdensome regulation, limited export opportunities and geopolitical isolation mean there is scant interest in the licenses on offer.

The Ministry of National Infrastructure, Energy, and Water Resources' tender is likely to yield meager results, even though the deadline for participating in it was postponed from April until July. According to various energy market sources, three to five companies are expected to take part in the tender, even though it involves 24 marine blocks, and despite the grandiose declarations issued when the tender was announced last November. The Association of Oil and Gas Exploration Industries in Israel termed the tender a "historic decision," and Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz has since repeated at every opportunity his intention of turning Israel into a "regional natural gas power."

SGCC agreement for 24% of IPTO endorsed by Brussels - ENERGY PRESS

11.5.2017

The European Commission has endorsed an agreement between state-controlled PPC, the main power utility, and China’s SGCC (State Grid Corporation of China) for the latter’s acquisition of a 24 percent stake in the power grid operator IPTO (ΑΔΜΗΕ), a PPC subsidiary.

The proposed acquisition, priced at 320 million euros, does not breach EU competition regulations, the European Commission announced.

The Greek government had submitted its application to Brussels, seeking an endorsement for the agreement, just over a month ago, on April 10.

Wintershall says in talks with Libya to resolve oil export dispute - HYDROCARBON PROCESSING / REUTERS

May 10/2017
Reporting by Aidan Lewis; Additional reporting by Ahmad Ghaddar in London and Vera Eckert in Frankfurt; Editing by Susan Thomas and Greg Mahlich

TUNIS (Reuters) -- Libya's oil production is running at above 800,000 bpd for the first time since 2014, the National Oil Corporation (NOC) said on Wednesday, but a commercial dispute with German oil firm Wintershall has shut in a further 160,000 bpd.

Libya's output could reach between 1.1 MMbpd and 1.2 MMbpd if political obstacles were removed, the NOC said in a statement.

"We are able to produce an average of 1.1 MMbpd to 1.2 MMbpd over the rest of this year, but for this to happen our oil must flow freely. A national effort is required," NOC Chairman Mustafa Sanalla said.

One dud oil field doesn't set a trend as Kurds keep drilling - WORLD OIL

5/10/2017

Angelina Rascouet

LONDON (Bloomberg) -- When one of the biggest crude producers in Iraqi Kurdistan downgraded reserves in March, doubts about the economic potential of the region -- a key player in the fight against Islamic State terrorism -- deepened. But evidence suggests it’s too soon to write off the emerging oil province.

The downgrade at Genel Energy Plc’s Taq Taq field, the second in little more than a year, sent its shares tumbling amid gathering anxiety over a region already struggling with weak crude prices and escalating costs to fight militants.

Yet that disappointment stands in contrast to improving prospects elsewhere in Kurdistan. DNO ASA, the area’s biggest publicly listed producer, this month doubled the number of wells planned for 2017 at its Tawke field, while competitor WesternZagros Resources Ltd. increased reserve estimates in March.

First gas from West Nile Delta contributes to DEA’s growth - DEA

Cairo, 10.05.2017

• Production from the West Nile Delta (WND) project commenced
• First gas ahead of schedule and production above plan

Production from the offshore WND gas fields commenced on 24 March 2017 from the first two fields, Taurus and Libra. Nine wells have now been commissioned and the fields are currently producing at a flow rate of more than 700 million cubic feet of gas per day.

“West Nile Delta is the largest new gas project that has been brought into production in Egypt in the last years. Its gas will contribute materially to the energy balance in the country. It is also one of the largest investment projects within DEA’s portfolio and we are pleased that the first gas milestone has been reached,” says Thomas Rappuhn, Chief Executive Officer of DEA Deutsche Erdoel AG.

“DEA was already involved in this project in its exploration phase and I would like to thank the team for the successful and professional implementation of the first part of the project,” Thomas Rappuhn adds.

“DEA is proud of being an active partner in this project. All members of the project team, within BP as the operator and DEA, have done an excellent job in order to achieve the production launch,” says Thomas Radwitz, General Manager of DEA Egypt.

Höegh Gallant begins periodical maintenance, to operate at full capacity during the summer - ENTERPRISE / AL BORSA

Wednesday, 10 May 2017

Norway’s Höegh began periodical servicing and maintenance operations last week on its Egypt-anchored Höegh Gallant floating storage and regasification, Al Borsa reports. 

The FSRU, a key part of Egypt’s natural gas import infrastructure, will be back at operating at full capacity throughout the summer months, re-gasifying 500 mcf/d.

IGB launch date reset for first quarter of 2020 in revised project plan - ENERGY PRESS

10/05/2017

Construction work on the prospective IGB (Greek-Bulgarian Interconnector) has been rescheduled to start within 2018 and the commercial launch set for the first quarter of 2020, according to the project’s latest timeline revision, presented by its contractor, ICGB, to European Commission officials in Brussels late last month.

ICGB presented its revised IGB plan as part of the effort to seek PCI (Projects of Common Interest) classification, which would ensure EU funds. Other European PCI candidate projects were also presented by their developers.

The IGB, whose length and diameter are planned to measure 182 km and 32 inches, respectively, will link Komotini in Greece’s northeast with Stara Zagora in Bulgaria.

BP announces start of production from West Nile Delta development achieving first gas eight months ahead of schedule and production 20 percent above plan - BP

10 May 2017

BP today announced that it has started gas production from the first two fields, Taurus and Libra, of the West Nile Delta development in Egypt. The project was delivered eight months ahead of start-up schedule and under budget. First gas was exported to Egypt’s national grid on 24 March 2017 and the commissioning of all nine wells of the development’s first two fields and ramp up to stable operations has now been completed.

The West Nile Delta development, which includes five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks, is being developed as two separate projects to enable BP and its partners to accelerate gas production commitments to Egypt. When fully onstream in 2019, combined production from both projects is expected to reach up to almost 1.5 billion cubic feet a day (bcf/d), equivalent to about 30 per cent of Egypt’s current gas production. All the gas produced will be fed into the national gas grid.

Israel's Delek Seeks London Listing as Energy Group Goes Globalby - BLOOMBERG

10 May 2017

Angelina Rascouet

• Company hopes to list in U.K. capital in the ‘near future’
• Delek recently bought Britain’s Ithaca to expand in North Sea

Delek Group Ltd., the Israeli energy company that bought U.K. oil explorer Ithaca Energy Inc. this year, is seeking a London listing to help further overseas expansion.

“If Delek Group wants to be international, we have to be traded on an international exchange and I think London is one of the good places to be in,” Asaf Bartfeld, the company’s president and chief executive officer, said Monday in an interview. “In the near future, we plan to be listed in London.”

M&A Watch: PICO’s Cheiron acquires 50% stake in Sahara North Bahariya Ltd - ENTERPRISE/ AL BORSA

Wednesday, 10 May 2017

M&A WATCH- Our friends at PICO are on a tear this week: PICO Group subsidiary Cheiron Egypt acquired a 50% stake in Sahara North Bahariya Ltd for USD 83 mn from EFG Capital Partners Fund III, sources close to the matter told Al Borsa on Tuesday. Cheiron reached financial close on the transaction earlier this week after winning approval from the state’s Egyptian General Petroleum Corporation. Sahara North Bahariya owns the North Bahariya oil concession in the Western Desert. The news comes on the heels of news that Cheiron also acquired 100% of Engie’s West El Burullus gas concession earlier this week.

Is the EastMed gas pipeline just another EU pipe dream? - BRUEGEL

MAY 10, 2017
Simone Tagliapietra

Is the EastMed pipeline really a feasible project? The answer to this question is not simple, but the EastMed plan sounds unconvincing.


On Monday 3 April, the energy ministers of Cyprus, Greece, Israel and Italy met in Tel Aviv, warmly watched by the EU Commissioner for Climate Action and Energy. They had gathered to sign a preliminary agreement to advance a gas pipeline project aimed at linking their four countries: the EastMed pipeline. The project is ambitious, enormous and – at least today – probably unnecessary.

At first glance the EastMed is an impressive idea. The pipeline would transport 10 billion cubic metres per year (Bcm/y) of gas from eastern Mediterranean gas fields to Greece and Italy. About 1900km long, and reaching depths below 3km, it would be the world’s longest and deepest subsea pipeline. The estimated cost is €6.2 billion.

But for those who follow European energy security, Monday’s ceremony brought a kind of déjà vu. It was difficult not to remember a similar ministerial ceremony that took place in Vienna in June 2006, proclaiming next steps for the Nabucco pipeline.

Provocations will not alter energy plans - CYPRUS MAIL

May 9, 2017
Elias Hazou

Cyprus is determined to press forward with its energy plans irrespective of any Turkish provocations, energy minister Giorgos Lakkotrypis reiterated on Tuesday.

He was speaking to reporters following a closed-doors briefing to MPs on the state of play regarding the government’s offshore hydrocarbons programme.

Asked about the dispatch of the Turkish seismic survey vessel Barbaros Hayreddin Pasa, as well as Turkey’s naval military drills off Cyprus, Lakkotrypis said these moves would not perturb Nicosia.

“The answer is clear… the procedures regarding our energy programme are not affected,” he said.

“Turkey is provoking us and will continue to do so, but we shall continue doing the self-evident, which is to exercise our sovereign rights, no more, no less.”

PICO’s Cheiron Egypt acquires West El Burullus gas concession from Engie - ENTERPRISE

Tuesday, 9 May 2017

PICO Group subsidiary Cheiron Egypt has acquired 100% of Engie’s West El Burullus (WEB) gas concession in a transaction announced yesterday. WEB is located in shallow offshore Mediterranean waters with recoverable reserves of c.200 bcf gas and 3 mn bbl of condensates. 

BNP Paribas, financial advisor on the transaction, said in an emailed statement that “WEB is targeting plateau production of 100 mcf/d with first gas in 2020.” The transaction, it said, supports Engie’s “global strategy to exit E&P sector and focus on renewable energies,” while PICO will diversify its “Egyptian E&P asset base into new geological basins with higher gas component. BNP Paribas invited more than 50 bidders to take part in the process, with more than 10 signing confidentiality agreements. The transaction value has not been released. PICO, which controls assets in Egypt, Romania and Mexico, is owned by the Diab family of Cairo.

OPEC's burden grows, as Libyan output reaches highest mark since 2014 - WORLD OIL / BLOOMBERG

5/8/2017

Salma El Wardany 

CAIRO (Bloomberg) -- Libya is pumping the most oil since October 2014 as the OPEC member restores output amid progress in mending the nation’s political divisions. The increase adds pressure on the world’s biggest producers who just signaled they may extend production cuts as oil slumps.

The North African country’s production has reached about 780,000 bpd, according to a person familiar with the situation who asked not to be identified for lack of authorization to speak to the media. Libya was producing about 700,000 bpd at the end of April, Jadalla Alaokali, a board member at state producer the National Oil Corp., said then.

Jordan refiner lets contract for facility upgrade - OIL GAS JOURNAL / HYDROCARBON PROCESSING

HOUSTON, 05/08/2017

By OGJ editors

Jordan Petroleum Refinery Co. Ltd. (JPRC), the sole refining company of Jordan, has let a contract to Honeywell UOP to facilitate a $1.6-billion expansion of its refinery at Zarqa, 35 km east of Amman.

The expansion will increase the capacity of the facility to 120,000 b/d and will allow JPRC to upgrade the quality of its product to meet Euro-V emissions specifications.

JPRC Chief Executive Officer Abdul Karim Alaween said the upgrade is vital as it “will help us meet the rising demand for fuel, which is growing at an average of 3% every year.”

POGC in Talks for Libya Return - PETROLEUM AFRICA

Monday, May 8, 2017

The head of Libya’s National Oil Corp. (NOC), Mustafa Sanalla, and chairman of the Polish Oil and Gas Co. (POGC), Filip Moczydlowski, met at the end of April to discuss POGC resuming its operations in the country. The head of Libya’s Mustafa Sanalla, has again had talks with the chairman of POGC, Filip Moczydlowski, and its general manager Szymon Drzewakowski, with a view to it resuming operations in the country. The discussions took place at the end of last month but have only been announced today.

POGC has invested over $136 million in its two concessions in the Murzuk Basin. The company’s investment led to gas discovered on Area 113/1 in early-February 2014.

Energean to tender for $500m FPSO - TRADEWINDS / UPSTREAM

FPSO Mystras operating offshore Nigeria

May 8th, 2017 12:56 GMT
Gary Dixon

Greek group wants unit for Karish gas project off Israel.

Greece's Energean Oil & Gas is tendering for a new $500m FPSO.

The company wants the unit for its $1.3bn Karish gas and condensate project off Israel.

The FPSO must be ready by 2020 when the first gas is pumped.

Energean chief executive Mathios Rigas told TradeWinds' sister publication Upstream:

"I think we will be looking to go to the market probably in the summer, towards the start of the third quarter. If we are able to contract yards soon we will get a lot better prices rather than waiting."

ADB agrees to lend $500 mln to Azeri gas project - REUTERS

Sun May 7, 2017 | 9:19am EDTReporting by Nailia Bagirova; writing by Andrey Ostroukh; editing by Jason Neely

The Asian Development Bank (ADB) has agreed to provide a $500 million loan to Azerbaijan's Shah Deniz 2 project, the Azeri finance ministry said on Sunday.

The ADB said earlier this year it was considering lending money to Azerbaijan to help fund the second stage of development of the Shah Deniz natural gas project in the Caspian Sea.

On Sunday, the ADB and representatives of Azerbaijan signed an agreement in Yokohama, Japan, under which the Southern Gas Corridor will receive funds to develop Shah Deniz 2, the ministry said in a message sent to Reuters.

Nooros gas field to produce 1.2 bcf/d before the end of August -El Molla - ENTERPRISE / YOUM7

Sunday, 7 May 2017

Production from Eni’s Nooros gas field will reach 1.2 bcf/d before the end of August, up from a current 920-970 mcf/d, Oil Minister Tarek El Molla tells Youm7. 

According to El Molla, the company is in the final phases of drilling to expand production from the field.

TEKMOR Note: In July 2016, Ieoc through Petrobel has announced the discovery of the Nooros field located in the Abu Madi West development lease in the Nile Delta which is estimated to contain about 530 bcf (approx. 15ncm or 0,5tcf) of gas in place, beside to associate condensates.

Gov’t signs-off on USD 500 mn Sonker investment - ENTERPRISE / AL MASRY AL YOUM

 Sunday, 7 May 2017

The government signed an agreement activating the financing of Sonker’s liquid bulk terminal in Ain Sokhna, Al Masry Al Youm reported. 

Sonker is investing USD 500 mn to construct and operate a bulk-liquids terminal for the import and storage of gasoil and LPG in the third basin of Ain Sokhna Port. 

USD 320 mn of the project’s cost is being financed by IFC, EBRD and CIB. 

Amiral is providing the rest of the financing.

AMOC to buy condensates from Dana Gas - ENTERPRISE / AL SHOROUK

Sunday, 7 May 2017

Alexandria Mineral Oils Company (AMOC) has reached an agreement to buy condensates produced by Dana Gas, according to Al Shorouk. 

The agreement will be signed within a week, AMOC’s head said. AMOC aims to refine 1,500 boe a day of Dana Gas’ condensates in its refineries for two months, increasing the amount to 4,000 boe a day thereafter.