Saturday, February 3, 2018

Cyprus: "Calypso" (block 6) could very well be hiding a little Zohr - PHILELEFTHEROS / TEKMOR



3 FEB 2018, 10:46 πμ
Petros Theocharides (translated by TEKMOR associates)

During the initial stages when the drill came in contact with the well there was relative disappointment since gas was found but in sedimentary rocks, which, due to the very low permeability, did not allow hopes for a measurable deposit and did not confirm a Zohr-like target with carbonates in primitives reefs.

However, when the drill reached a few tens of meters below, it showed exactly what the ENI experts were looking for, the Zohr-type deposit, and even beyond the optimistic deviations in the experts' formulas. The drilling took place where the depth of the sea was 1,902 meters and reached a depth of about 1,800 meters below the seabed.


One of its important features is that it extends from block 6 where the main body of the deposit is located and fairly well within block 10 where the ExxonMobil - Qatar Petroleum consortium has rights, as is the case with 11, licensed to the ENI-TOTAL partnership similarly to block6, but it also extends in block 7 which was not awarded during Cyprus' 3rd licensing round. 

The "PHILELEPTHEROS" newspaper's information suggests that the area of ​​the field reaches up to 35% of  Egypt's Zohr, so, although very conservative and moderate for the time being, experts talk about the possibility of a "small Zohr ".

The full article in Greek follows.

Exploratory drill shows "encouraging signs" of natural gas field: Cypriot minister - XINHUA


2018-FEB-03 02:22:19

NICOSIA, Feb. 2 (Xinhua) -- Results of an ongoing gas drilling about 75 km off Cyprus' southwest coast are providing "encouraging signs" of a natural gas field, Cypriot Minister of Energy, Commerce, Industry and Tourism Yiorgos Lakkotrypis said on Friday.

"The findings are encouraging. A reserve has been located but the morphology of the particular target is complicated so we need more time," he said.

Friday, February 2, 2018

Eni Discovery Doubles Cyprus Reserves; Is It Enough To Make It A Gas Producer? - MEES


02 Feb, 2018

If rumors of a 6-8tcf discovery on Block 6 are confirmed, Eni will likely look to a tie-in with its Egyptian Zohr field.

Italian firm Eni is set to imminently announce the discovery of a sizeable natural gas deposit offshore Cyprus, MEES understands. But the question is whether the quantities – rumored at 6-8tcf, which would put it ahead of the 2011 Aphrodite discovery – will prove commercially viable.

In favor of the latest discovery, dubbed Calypso after the nymph who enchanted Odysseus, is its operator and location. Whilst almost 180km southwest of Cyprus and in 1,000ms water depth, it is a relatively modest 80km from the same company’s Egyptian 24tcf (TEKMOR Note: 30 tcf) Zohr field, which entered production at the end of 2017 (MEES, 15 December 2017). Eni has regularly touted Zohr as a potential hub for East Med gas development.

Southern Gas Corridor to Start Pumping Natural Gas in Mid-2018 - CASPIAN NEWS

February 2, 2018
Mushvig Mehdiyev


The Southern Gas Corridor mega-pipeline that will deliver Caspian gas to Europe and Turkey, may come online early and be operational by the middle of this year.

On Thursday, BP’s regional president for Azerbaijan, Turkey and Georgia, Gary Jones, said the development of the second phase of Azerbaijan’s Shah Deniz gas field – currently the only supplier for the corridor – and the expansion of the South Caucasus pipeline – one of three segments within it – are almost complete.

EU to provide €35m for Cyprus oil stocks - CYPRUS MAIL

FEBRUARY 2ND, 2018

The European Investment Bank is to give €35 million to the Cyprus Organisation for Storage and Management of Oil Stocks (COSMOS) to build a 210,000 tonne privately owned storage facility.

The project will focus on enhancing energy efficiency and improve Cyprus`s energy security by increasing the amount of reserve oil stocks held in the country.

“The EU’s Energy Union strategy aims to make energy more secure and affordable,” said Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness.

“This first EFSI project in Cyprus with COSMOS will help us meet those goals. I encourage more project promoters in Cyprus to contact the EIB with their investment proposals in order to continue boosting growth and creating jobs,” stated the Commission Vice President.

Thursday, February 1, 2018

Energean Signs US$180m RBL Facility with EBRD, BSTDB, EximBank Romania and Intesa Sanpaolo Bank to Develop Prinos Basin - ENERGEAN OIL & GAS

1 February 2018

Loan agreement finances further development of the Prinos, Prinos North and Epsilon oil fields 

Energean Oil & Gas (“Energean” or “the Company”) is pleased to announce that it has signed a reserves-based senior facility agreement (the “Agreement”), amounting to US$180 million, with the European Bank for Reconstruction and Development (“EBRD”), the Black Sea Trade and Development Bank (“BSTDB”), the Export-Import Bank of Romania EximBank SA (“ EximBank Romania”) and Banca Comerciala Intesa Sanpaolo Romania S.A (“Intesa Sanpaolo Bank”), HSBC acting as the agent bank. This Agreement is an extension to the existing US$75 million loan signed with the EBRD on 19 May 2016. 

The Agreement now includes two facilities: a senior secured reducing revolving credit facility of up to US$105 million with the EBRD and BSTDB as lenders; and a senior secured revolving credit facility of up to US$75 million arranged by EximBank Romania and having EximBank Romania and Intesa Sanpaolo Bank as lenders. 

Libya Makes Small Appearance in Hess’ Capex - PETROLEUM AFRICA


Thursday, February 1, 2018

Hess Corporation released its 2018 E&P capital and exploratory budget which amounts to $2.1 billion, the same as 2017.While the majority of the company’s capex will be spent outside of Africa, one country will see a small percentage of it over 2018.

According to Hess, part of the production funds will go to its production operations in Libya, where Hess holds an 8.16% stake as a member of the Waha Oil Company. The Waha Oil Company operates 13 producing fields in the Sirte basin. Five large oil fields were discovered between 1958 and 1961 and production started in 1962. Production has been interrupted in recent years due to civil unrest, but resumed once again in 2017.

Wednesday, January 31, 2018

Egypt with Eni to fast-track Zohr gas output - WORLD OIL

JAN/31/2018
SALMA EL WARDANY

CAIRO (Bloomberg) -- Egypt is working with Eni SpA, operator of the giant Zohr gas field, to fast-track output and end the country’s need to import liquefied natural gas as early as this year, Oil Minister Tarek el-Molla said

Zohr, the largest undersea gas discovery in the Mediterranean, will produce 1.7 Bcfgd before the end of 2018, el-Molla said in a televised ceremony to inaugurate the field. Egypt is talking with Rome-based Eni to increase output to reach the 2019 production target this year instead, he said.

“God willing, by the end of the year when we reach the second phase of production, we can stop importing LNG,” el-Molla said Wednesday.

Israeli Minister Says Lebanese Claim On Gas Field 'Provocative' - REUTERS

Wednesday, January 31, 2018

TEL AVIV, Jan 31 (Reuters) - Israel described as "very provocative" on Wednesday a Lebanese offshore oil and gas exploration tender on the countries' maritime border, and urged international firms not to bid.

"When they issue a tender on a gas field, including Block 9, which by any standard is ours ... this is very, very challenging and provocative conduct here," Israeli Defence Minister Avigdor Lieberman said.

"Respectable firms" bidding on the tender "are, to my mind, making a grave error - because this is contrary to all of the rules and all protocol in cases like this," he told an international security conference hosted by Tel Aviv University's INSS think-tank.

Lebanon in December approved a bid by a consortium of France's Total, Italy's ENI and Russia's Novatek for two of the five blocks put up for tender in the country's much-delayed first oil and gas offshore licensing round.

Turkey’s Syria campaign unlikely to affect regional energy projects - NEW EUROPE

JANUARY 29, 2018, 10:44
Kostis Geropoulos

East Med gas pipeline from Cyprus to Greece and onto Europe bypassing Turkey has the less political risk, leading regional expert says

ATHENS – As Turkey moves forward with ‘Operation Olive Branch’ with President Recep Tayyip Erdogan reportedly saying that Ankara is prepared to take its fight against Kurdish forces in northern Syria as far as Iraq, a leading regional analyst told New Europe that the latest military campaign is not likely to have any direct effect on energy projects.

Asked if that military operation would have any effect on long-term projects like the Trans Anatolian Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP), Saleh Jallad of the Consolidated Contractors Company and publisher of the Middle East Economic Survey “MEES” said, “No, these are a little bit in a way independent. TAP, for instance, it has to do with influence but indirect ways, not direct with Turkey. So it will continue to go and it’s a good project, in my opinion, because it could supply Europe… and Greece will also benefit from this project”.

Jallad stressed that Turkey also wants to diversify its energy resources because the majority of its imports are from Russia.

Tuesday, January 30, 2018

Europe's Natural Gas Market Is Heading South - BLOOMBERG


January 30, 2018, 11:56 AM GMT+2
Reed Landberg, Tommaso Ebhardt, Chiara Albanese

  • Italy pipeline operator Snam is building more flexible system
  • LNG and Caspian-area supplies may make Italy a gas exporter
The center of gravity in Europe’s natural gas market is heading south as one of the continent’s biggest pipeline operators builds a system that could make Italy an exporter of the fuel for the first time.

EGAS to buy five LNG shipments for 2Q2018 through direct order - ENTERPRISE

Tuesday, 30 January 2018

EGAS to buy five LNG shipments for 2Q2018 through direct order: EGAS is planning to import five LNG shipments for 2Q2018, traders tell Reuters Arabic


These shipments will not come through a tender as is the norm, but a direct order, the traders added. It is not yet clear whether this will be the final round of shipments to be imported, as Oil Minister Tarek El Molla said that Egypt will cease to import LNG by July.

Sidi Kerir Petrochemicals signs gas, electricity supply contracts with GASCO, ETHYDCO - ENTERPRISE

Tuesday, 30 January 2018

Sidi Kerir Petrochemicals (SIDPEC) signed yesterday a contract with the Egyptian Natural Gas Company (GASCO) to supply propane gas and another contract with the Egyptian Ethylene & Derivatives Company (ETHYDCO) to supply electricity for SIDPEC’s propylene and propylene factory, according to a statement to the EGX.

Monday, January 29, 2018

Energean appoints Stena drillship for development drilling at Israel's Karish field - WORLD OIL

Stena Forth Drillship
JAN/29/2018

ATHENS -- Energean Oil & Gas is pleased to announce that Energean Israel has signed a contract with Stena Drilling for the development drilling of Karish field, offshore Israel.

Pursuant to the contract, Stena Drilling will deploy the Stena Forth drillship (or such substitute as may agreed by the parties) to drill three development wells in first-quarter 2019 (with provision made for further options), subject to Energean’s Final Investment Decision (FID) regarding the Karish and Tanin fields.
The Stena Forth, one of the DrillMAX Fleet vessels, is a DP Class 3 ultra-deepwater drillship with a track record in world-wide operations, ranging from the Mediterranean (Libya), Egypt (Gulf of Suez), Malaysia, Greenland and the U.S. (Gulf of Mexico).

5 projects achieve natural gas self-sufficiency for Egypt in 2018 - DAILY NEWS EGYPT



January 29, 2018

The Ministry of Petroleum aims to increase its production of natural gas by working to make five gas projects operational, on top of which comes the completion of Zohr gas field’s first phase and beginning the second phase of the Northern Alexandria West Delta deep field.

The ministry plans to complete the first phase of Zohr development project in the deep waters of the Mediterranean in June, and for production to gradually reach over 1bn cubic feet of gas per day, up by some 700m cubic feet per day now, after announcing early production from the well.

The giant Zohr field is among the most important discoveries achieved by the petroleum sector in recent years. The find was made by the Italian company Eni in August 2015, with reserves of some 40tn cubic feet of gas. It is expected to help Egypt surpass its sharp gap in energy supplies. The first phase of the project costs about $5bn.

Noble Energy Announces Tamar Sell-Down - NOBLE ENERGY / GLOBE NEWSWIRE

Houston, Jan. 29, 2018 (GLOBE NEWSWIRE) --

Noble Energy, Inc. (NYSE: NBL) ("Noble Energy" or "the Company") today announced that it has signed a definitive agreement to divest a 7.5 percent working interest in the Tamar field, offshore Israel, to Tamar Petroleum Ltd. (TASE: TMRP) ("Tamar Petroleum") for cash proceeds of approximately $560 million and 38.5 million shares of Tamar Petroleum. Based upon today's closing price of Tamar Petroleum, total consideration of this transaction is approximately $800 million. This follows an initial divestment of 3.5 percent of the Tamar field in mid-2016. Combined proceeds from both transactions total nearly $1.25 billion, including almost $1 billion in cash.

EU to fund planning of pipeline from Leviathan to Europe Leviathan gas field Photo: Noble Energy - GLOBES


29 Jan, 2018 11:06
Amiram Barkat and Sonia Gorodeisky

The EU has allocated €34.5 million to complete planning, so that a decision can be made about the pipeline.

The European Union (EU) will fund the detailed planning for laying a natural gas pipeline from Israel's Leviathan offshore gas reservoir to Europe. On January 25, the European Commission in Brussels published a list of its priority clean energy projects for 2018 that will receive €873 million in aggregate funding.

The project, called EastMed, is for an undersea pipeline from Leviathan through Cypriot waters to Crete and Italy. The EU has allocated €34.5 million to complete planning, so that a final decision can be made about investing in the project in 2019.

Sunday, January 28, 2018

Price, not politics, stymying East Med gas - CYPRUS MAIL


January 28, 2018
Charles Ellinas

The greatest problem making exports of East Med gas, especially from Cyprus and Israel, challenging and difficult, is not political risk, but commercial due to the low global gas prices. You experience political risk when you reach the point of selling. If the prospect of selling is not there, where is the risk?

Exploring and discovering the gas has not been stopped due to political risk. But despite strong EU support, neither Cyprus nor Israel are anywhere near selling their gas to Europe. They cannot find buyers.

The key limiting factor is price.

New seismic surveys in Shorouk concession to uncover further reserves - ENTERPRISE

January 28, 2018

New seismic surveys are underway in the Shorouk concession in the Mediterranean Sea, Oil Minister Tarek El Molla said last week, Al Shorouk reports. The surveys are meant to uncover further reserves in the Zohr gas field, which is in the concession.

GANOPE has also completed seismic mapping for 4,200 km in the Red Sea in preparations to issue blocks there for a bid round, Chairman Mahmoud El Shimy said, according to Al Masry Al Youm. The maritime border demarcation agreement with Saudi Arabia allows for tendering blocks in the Red Sea for oil and gas E&P for the first time.

Ministerial committee resolves TAQA Arabia dispute with EGAS - ENTERPRISE

Sunday, 28 January 2018

The Ministerial Committee for Settlement of Investment Disputes announced a settlement has been reached in a dispute between Qalaa Holdings subsidiary TAQA Arabia and EGAS. The dispute arose when EGAS did not fulfil contractual requirements towards TAQA and assigned natural gas distribution rights to separate companies, resulting in losses to TAQA estimated to be EGP 7 bn. The resolution reached between the parties does not entail any direct payments by the Egyptian government, but amends some contractual clauses between EGAS and TAQA. Our friend Moustafa El Bahabety, the Deputy Justice Minister for Arbitration and International Disputes, who is the head of the organization’s technical committee, informed us that the resolution signed off by the Ismail cabinet at its meeting last week.