Egypt signs 3 contracts for oil and gas exploration worth $79 million - EGYPT INDEPENDENT / AL MASRY AL YOUM

August 26, 2017, 4:25 pm

Minister of Petroleum and Mineral Resources, Tariq Al-Mulla, signed three new agreements for oil and gas exploration in the Western Desert of Egypt with the Egyptian General Petroleum Corporation and the American companies Apache and Merlon, with a minimum investment of about $79 million, a statement from the ministry said on Saturday.

The first and second agreements were signed with Apache in the concession area northwest of Razak in the Western Desert with investments of about $61 million, and the concession area south of al-Shawish in the Western Desert with investments of $12 million, while the third agreement with Merlon Company in the Fayoum concession in Western Desert with investments of about $6 million.

Egypt's Carbon Holdings aims to start building Tahrir petrochemicals project by June - REUTERS

AUGUST 25, 2017 / 3:40 AM
Arwa Gaballa

CAIRO (Reuters) - Egypt’s Carbon Holdings aims to finalize funding and start building its massive Tahrir petrochemicals project by June, producing raw materials desperately needed to boost the country’s industrial sector, its chief executive told Reuters.

The $10.6 billion scheme in the Suez Canal Economic Zone will be the largest petrochemicals project in Egypt. Carbon Holdings CEO Basil El-Baz sees the project helping to double Egypt’s exports within one year of coming online after its five-year construction.

Why Developing Israel’s Leviathan Gas Field Is a Mammoth Task - KNOWLEDGE @ WHARTON

Aug 25, 2017

Suddenly, it’s all happening in the Eastern Mediterranean.

After years of delay, confusion and dwindling hopes, the efforts to develop the offshore natural gas Israel discovered in 2009-2010 — especially the giant Leviathan field — are back on track. This rebirth began late last year, but it is the slew of developments in recent weeks which seems to signal a move into much higher gear.

If Israel’s potential as an energy producer is this time fulfilled, it will impact everything from regional geopolitics to the commercial prospects of the specific American, Israeli and Greek-Cypriot energy companies now engaged in exploration and production. But that remains a very big “if.”

Egypt to re-draft Oil & Gas contracts by end of 2018, adding new E&P incentives - ENERGY EGYPT / DAILY NEWS EGYPT

August 24, 2017

The petroleum committee met foreign partners to discuss their suggestions for amendments.

The Ministry of Petroleum has formed a joint committee to re-draft the petroleum agreements and to add incentive terms for foreign investors in the petroleum sector. The new committee consists of the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), the Ganoub El Wadi Petroleum Holding Company (Ganope), and a global consultant.

A source in the petroleum sector told Daily News Egypt that the committee has been mandated to review the similar petroleum agreements in other countries and develop new formats by the end of 2018.

He said that the amendments will include changing the partners’ production shares and decrease the reimbursement periods to stimulate foreign investment in the Egyptian petroleum sector.

Idku Option Frontrunner For East Med Gas - ENERGY CENTRAL / BMI RESEARCH

August 24, 2017

BMI View: In line with our long-held view, the proposition to pipe natural gas from the Leviathan and Aphrodite fields to the Idku LNG plant in Egypt represents the most compelling export scenario for the fields. The Egyptian option is both less politically sensitive and less capital intensive than the alternative scenarios.

Royal Dutch Shell is in discussions to buy natural gas from Israel's Leviathan field, combine it with output from Cyprus's Aphrodite field in which it owns a 35% stake, and pipe it to the Idku LNG plant in Egypt. The two train LNG terminal at Idku has a capacity of 7.2mn tonnes per annum and could accept gas deliveries of around 10bcm. Sufficient offtake from the LNG facility may allow for full-field developments at Leviathan and Aphrodite, unlike other export options where demand is lower.

Production at the second phase development of the West Delta fields to begin in 2018 - ENTERPRISE

Thursday, 24 August 2017

Production at the second phase development of the West Delta fields, which will include the Giza and Fayoum fields, is expected to begin in 2018, Oil Minister Tarek El Molla said on Wednesday. The remarks came during a meeting with Thomas Rappuhn, CEO of Germany’s DEA, which owns a 17.25% share in the project. Production had initially been slated for 2019. 

Separately, El Molla met with Malaysian company Petronas’ Vice President Adnan Zainal Abidin to discuss the company’s projects in Egypt. Petronas and Royal Dutch Shell will begin work on phase 9B of the Borollos gas field in 4Q2017, after having halted work last year over disagreements on prices with the government.

US’ ExxonMobil set for 2018, Ankara warnings ignored - NEW EUROPE

AUGUST 22, 2017 09:12

Kostis Geropoulos

Italian energy major ENI’s bold announcement that it will start a drilling programme in November offshore Cyprus, which not only involves blocks 3 and 8, but also 6, demonstrates that it is not concerned about Turkish threats, Cyprus Natural Hydrocarbons Company [former] CEO Charles Ellinas told New Europe on August 21.

“In its own submissions to the government of Cyprus, ENI stated that it has examined in detail Cyprus’ rights to its EEZ (Exclusive Economic Zone), and it is satisfied on their legality on the basis of UNCLOS (The United Nations Convention on the Law of the Sea) and relevant international conventions. As a result, ENI and its partner (French energy major) Total are fully satisfied about their rights to explore and exploit block 6, disputed by Turkey, as well as other blocks,” Ellinas said.

License 367 / Alon D - Update - DELEK GROUP

Tel Aviv, August 22, 2017

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that below is an Immediate Report by Delek Drilling Limited Partnership (“the Partnership”) concerning the decision of the Minister of Energy in respect of the Alon D license.

Pursuant to what was stated in section 7.10.2 of the Partnership’s Annual Report to December 31, 2016 that was published on March 23, 2017, concerning an appeal submitted by the partners in License 367 / Alon D (“The License” or “Alon D License”) to the Minister of National Infrastructure, Energy and Water (“The Appeal” and “Minister of Energy”) on February 25, 2016 concerning the decision of the Petroleum Commissioner at the Ministry of National Infrastructure, Energy and Water (“The Commissioner”) on February 16, 2016, that the Alon D License would expire on March 1, 2016 and that non-receipt of the approvals required in law for drilling from other authorities was not grounds to extend the Alon D License beyond the period stipulated in the Petroleum Law, 1952, the Partnership announces that on August 21, 2017 the Minister of Energy informed the partners in the Alon D License of his decision, whereby the License would continue to be valid for 32 months from the date of the said decision of the Minister of Energy, subject to the terms below, to which the partners in the License must comply within a reasonable time:

The partners in the License will clarify to the Commissioner, in writing and without delay, that they acknowledge that at the moment there are still circumstances in the area preventing drilling, which are applicable until further notice, and that in the future there is no intention to recognize additional future obstacles in the area as grounds that will oblige further freezing of the License.

The partners will undertake to carry out an environmental survey within 18 months, in order to adapt the terms of the ongoing License to the standards acceptable in 2017.

The partners will ratify again their commitment to drilling, within a reasonable time in the circumstances, from the moment that the go ahead is given to carry out drilling.

Partners in the Alon D License and their percentage holdings are as follows:

1. Noble Energy Mediterranean Ltd. 47.059%
2. Delek Drilling Limited Partnership 52.941%

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on August 22, 2017.

SOURCE

Work at Zohr gas field 83.5% complete - ENTERPRISE

Tuesday, 22 August 2017

Work at Eni’s Zohr gas field is 83.5% complete as of August, with seven wells drilled and producing, the Oil Ministry said in a statement. 

USD 4 bn have been invested in the field to date, the chairman of Eni’s JV Petrobel, Atef Hassan, said. Zohr should be fully developed by end of 2018. 

Separately, FY2016-17 saw Petrobel invest USD 693 mn, drill 33 wells, and discover 868 bcf of gas reserves.

Agiba Petroleum invested $212 million in FY16/17 - MUBASHER

22 August 2017 01:34 PM

Cairo – Mubasher: The chairman of Agiba Petroleum Company, Alaa Al-Battal, on Tuesday announced that the company invested $212 million in fiscal year 2016/2017.

Al-Battal said, during the company’s annual general meeting (AGM) to approve the financial results for FY16/17, that the firm added 17,000 barrels of oil equivalent (BOEs) to its output of crude oil and natural gas, according to a statement by the Ministry of Petroleum.

The company’s total production of BOEs reached 50,000 per day, equivalent to 47,000 barrels of crude oil and condensates per day and 17.5 square feet of natural gas per day, as a result of drilling 36 wells, he highlighted.

He stressed that the petroleum reserves of Agiba’s fields increased by 10 million barrels of crude oil and 39 billion square feet of natural gas.

Cyprus smiling at potential Egypt-Israel energy link - IN CYPRUS / CYPRUS WEEKLY

August 21, 2017

Cyprus energy hopes have been handed a massive boost following the move by Egyptian President Abdel al-Sisi to amend legislation that would allow direct gas imports from Israel into his country.

Nicosia sees the move as a positive step in bolstering the island’s energy plans as the lack of cooperation between neighbouring Egypt and Israel was seen as a major sticking point.

The change in legislation effectively means that Cyprus can supply Egyptian LNG plants with natural gas.

Al-Sisi passed the law at the beginning of August and is expected to be implemented before the end of the year although some companies have already started negotiations with Israel to purchase natural gas from the Israeli Leviathan gas field.

Ensco drillship wins contract with Noble Energy in Mediterranean Sea - WORLD OIL

August/21/2017

LONDON -- Ensco plc announced today that the ultra-deepwater drillship ENSCO DS-7 has been awarded a contract by Noble Energy to drill two wells and complete four production wells at the Leviathan field development in the Mediterranean Sea.

This contract is expected to commence in March 2018 and be completed in December 2018. The contract also includes four one-well priced customer options that if fully exercised would extend the contract into 2020. ENSCO DS-7 will be upgraded with a second blowout preventer.

This upgrade is expected to cost less than $10 million since it will utilize a blowout preventer currently in the company's inventory. Following its upgrade, ENSCO DS-7 will mobilize to the Mediterranean Sea to begin its contract with Noble Energy.

Israeli exploration group to return Daniel natgas field licences - REUTERS

AUGUST 20, 2017 / 1:46 PM
Reporting by Steven Scheer; editing by Mark Heinrich

JERUSALEM, Aug 20 (Reuters) - An Israeli exploration group said on Sunday it would return its licences to develop a natural gas field off Israel's Mediterranean coast to the government, citing a number of factors including a lack of investors.

Returning the licence to all rights to develop the Daniel gas fields could be a significant blow to Israel, which is seeking to become energy-independent and an exporter while developing competition in its existing gas sector.

A group led by Isramco Negev and Modiin Energy last year said a resource report showed there could be an estimated total of 8.9 trillion cubic feet (tcf) of natural gas at the Daniel East and West fields.

It said on Sunday its decision to give up its rights was based, among other things, "on assessments regarding the level of geological risk in the licences, the difficulties expected in commercialising the gas, if and when it is discovered, and the lack of interest by new investors."

Shell loads oil in Libya for first time in five years - WORLD OIL / BLOOMBERG

AUGUST/20/2017
GRANT SMITH AND SALMA EL WARDANY

LONDON and CAIRO (Bloomberg) -- Royal Dutch Shell Plc, the world’s largest oil trader, is said to have loaded its first crude from Libya in five years over the weekend, adding to evidence of the OPEC nation’s comeback.

The cargo on Saturday is for 600,000 bbl of crude from the Zueitina port, according to two people familiar with the matter who asked not to be identified because the information is private. A Shell spokesperson declined to comment on the shipment, but said the company’s Shell International Trading & Shipping “has a history marketing Libyan crudes. We welcome new business opportunities with Libya’s National Oil Corp.”

Mustafa Sanalla, chairman of the NOC, didn’t answer phone calls seeking comment.

ENI goes boldly forward - IN CYPRUS / CYPRUS WEEKLY

Current status of Cyprus' (UN,EU) declared EEZ. Cyprus' northern 37,2% is illegally occupied by Turkey.

August 20, 2017
Charles Ellinas

ENI has just announced its much-expected drilling campaign in Cyprus’ EEZ, starting November. And it is a bold move. Drilling starts at Block 8 at a target named ‘Eratosthenes South 1’ (ES1), followed by a target named ‘Cuttlefish’ in Block 3, owned 80% by ENI and 20% by KOGAS, and then ‘Calypso’ in Block 6, jointly-owned with Total.

The latter is a bold move by ENI, given Turkey’s claims.

ENI has chosen to start its campaign in Block 8, where the most promising prospects probably are, completing this drilling round at Block 6, thus asserting its rights to the Block and confronting Turkey’s claims. However, the exact drilling programme is still to be finalised.

In accordance with its Production Sharing Agreements with the government of Cyprus, ENI’s drilling programme involves two wells in Blocks 2,3,9, in addition to the two unsuccessful wells drilled in 2014-2015, two in Block 8 and one in Block 6.

Natural Gas Act regs ready in October - ENTERPRISE / AL SHOROUK

Sunday, 20 August 2017

The executive regulations of the Natural Gas Act should be ready by early October, an EGAS official tells Al Shorouk. 

The source expects the new natural gas industry regulator would be set up before the end of the year — and that the first license to import gas privately should be issued in 1H2018.

As we noted last week, EGAS had reportedly approved natural gas import licenses on Wednesday for the three private companies: 

• Fleet Energy, 
• BB Energy, and 
• Qalaa Holding’s TAQA Arabia.

Shell said to mull buying Israel, Cyprus gas for Egypt plant - WORLD OIL / BLOOMBERG

August 20, 2017
By YAACOV BENMELEH AND RAKTEEM KATAKEY

TEL AVIV (Bloomberg) -- Royal Dutch Shell Plc is seeking creative solutions to bring gas from Israel and Cyprus to market, a step that could help turn the Mediterranean region into a major gas-producing hub.

Shell is in talks to buy natural gas from Israel’s Leviathan field, combine it with output from Cyprus’s Aphrodite field, in which it owns a 35% stake, and pump it to a liquefied natural gas plant in Egypt, according to people with knowledge of the matter. Talks are at an early stage and some of Aphrodite’s gas could be sold locally, said the people, who asked not to be named because the discussions are private.

Combining output from the fields, which share some major investors, could potentially improve the economics of the projects. Leviathan’s partners, led by Noble Energy Inc. and Delek Drilling LP, are looking at various shipment options as they face an estimated development cost of $3.75 billion. The partners would have to seek further funds to increase the field’s capacity if they do the deal with Shell, one of the people said.

Israeli and Cypriot gas finds, together with the giant Zohr field off Egypt and reservoirs off Lebanon, could create a center of gas production right on Europe’s doorstep. While that has given a handful of nations access to vast resources, they’re still trying to figure out the best way to use the fuel in a region fraught with political enmity.

Ownership breakdown

BG Group Plc had signed a non-binding, 15-year deal in 2014 to buy gas from Leviathan, but the accord was stalled by regulatory issues in Israel and by Shell’s purchase of BG. Shell is now considering buying about 5 Bcm of gas a year from the field, one of the people said.

Delek owns a 45.3% stake in Leviathan -- set to start production in 2019 -- while Noble holds 39.7% and Ratio Oil Exploration 1992 LP owns the remainder. Noble also has 35% of Aphrodite and Delek 30%, along with Shell. The two sites lie just 20 mi apart.

Shares of Ratio were up 5.1% on the news, their largest move since May, to 2.4 shekels at the close of trading Sunday in Tel Aviv. Delek Drilling shares were up 3.9% to 13.09 shekels, also the largest move since May, while Delek Group shares rose the most since September, 4.9%, to 691.40 shekels.

A spokeswoman for The Hague-based Shell declined to comment. Representatives of Leviathan partners also declined to comment.

A U.S.-based spokeswoman for Noble said the company remains in negotiations to supply natural gas to LNG plants in Egypt and to the Egyptian market, which together have enough demand to accommodate Leviathan, Aphrodite and other regional developments, she said.

Deliveries to Egypt would be piped to Shell’s Idku LNG plant on the country’s Mediterranean coast, the people said. Egypt was a net exporter of LNG until 2014, when declining output and power shortages resulting from political upheaval forced it to divert fuel for its own use.

Another option being considered to get Leviathan’s gas to Egypt is a pipeline through Jordan, people familiar with the matter said earlier this month. Whatever route is chosen, the Israeli government will be keen to ink a deal as a way to strengthen economic ties in the politically unstable region.

The Cypriot government is also looking to develop its gas industry. Building floating LNG terminals to evacuate the fuel may be an option for the country if regional politics make pipelines non-viable, Salih Yilmaz, an analyst at Bloomberg Intelligence, wrote in an Aug. 16 report. Still, pipelines would be cheaper, he said.

SOURCE