Egypt gas output at 6.6 bln cubic feet per day -official - REUTERS

SEPTEMBER 8, 2018 / 11:38 AM

Reporting by Ehab Farouk, writing by John Davison; editing by Alexander Smith

CAIRO (Reuters) - Egypt’s natural gas output has risen to 6.6 billion cubic feet per day after an increase in production at its mammoth Zohr offshore gas field, an energy official said on Saturday.

Output at Zohr rose to 2 billion cubic feet per day, the petroleum ministry said on Friday.

Egypt aims to be a regional hub for the trade of liquefied natural gas (LNG) after a string of major discoveries in recent years including Zohr, which holds an estimated 30 trillion cubic feet of gas.

Energy deals with US giants announced in Thessaloniki - KATHIMERINI

Mark Menezes addressed the AmCham energy conference
in Thessaloniki on Friday

07.SEPT.2018 : 21:28

Chryssa Liaggou

Major energy deals involving Greek and US interests were announced at Friday’s American Hellenic Chamber of Commerce conference held in the context of this year’s Thessaloniki International Fair, which officially opens on Saturday.

In the presence of US Under Secretary for Energy Mark Menezes, US Ambassador in Athens Geoffrey Pyatt and ExxonMobil representative Tristan Aspray, Greece’s Energy Minister Giorgos Stathakis announced the completion of negotiations for the concession contract regarding the surveying and utilization of hydrocarbons south and southwest of Crete with the Total-ExxonMobil-Hellenic Petroleum consortium. He added that the contract will be signed next week.

In the context of the conference in Greece’s second city, Public Gas Corporation (DEPA) and Gastrade also signed the agreement for the participation of DEPA with a 20 percent stake in the terminal floating storage regasification unit (FSRU) that Gastrade is developing off Alexandroupoli in Thrace. Sources say some issues on the price and the approval of board members are still pending, while DEPA’s final stake could change, depending on the other holdings that may emerge.

New Alliance Emerges in Eastern Mediterranean to Reshape Regional Security Landscape - STRATEGIC CULTURE FOUNDATION

07.SEPT.2018

PETER KORZUN

The military-political landscape in Europe and the Mediterranean is changing. NATO is not as unified as it once was, and Turkey’s membership has become more of a formality than a real thing. A pro-US group consisting of Great Britain, Poland, and the Baltic States has emerged as part of a North Atlantic Alliance that is divided by differences and the open rift over the 2% financial contribution, a decree that is largely ignored, along with the other divisions that are weakening the bloc. Other groups are arising that also have common security interests. A new pact, an Arab NATO allied with the United States, will soon materialize in the Middle East. Changes are coming, but they are hard to predict as everything is currently in a state of flux.

“The United States is interested in increasing its use of military bases and ports in Greece,” said General Joseph Dunford, the Chairman of the US Joint Chiefs of Staff (CJCS), on Sept. 4 during his visit to Athens. “If you look at geography, and you look at current operations in Libya, and you look at current operations in Syria, you look at potential other operations in the eastern Mediterranean, the geography of Greece and the opportunities here are pretty significant,” he added. According to the Military Times, “[N]o specific bases have been identified, but that Supreme Allied Commander Europe Army Gen. Curtis Scaparrotti is evaluating several options for increased US flight training, port calls to do forward-based ship repairs and additional multilateral exercises.” US Commerce Secretary Wilbur Ross came to Greece right after the CJCS’s visit to take part in the annual Thessaloniki International Trade Fair.

France looks to develop defenceco-operation with Cyprus - REGINA LEADER-POST / THE ASSOCIATED PRESS

Cyprus Foreign Minister Nikos Christodoulides, right,
and his French counterpart Jean-Yves Le Drian

September 7, 2018

NICOSIA, Cyprus — France’s foreign minister says his country is looking to bolster defenceco-operation with Cyprus that could help augment Europe’s presence in the east Mediterranean.

Jean-Yves Le Drian said Friday after talks with his Cypriot counterpart Nikos Christodoulides that France wants a more united, democratic and sovereign Europe “whose voice is heard with greater power in the world.”

Christodoulides said Cyprus is ready to work with France to fulfil the ambition of French President Emmanuel Macron that Europe takes more responsibility for its own defence.

French warships often use the east Mediterranean island-nation — some 100 miles (160 kilometres) from Syria’s coastline — as a resupply and refuelling stop.

The two ministers also discussed expanding energy co-operation.

French company Total is already licensed to search for hydrocarbons off Cyprus’ southern coast.

Gas pipeline deal reached with Egypt – CyBC - CYPRUS MAIL

AUGUST 6, 2018
Evie Andreou 

Nicosia has reached an agreement with Cairo on a pipeline to connect the Aphrodite gas field in block 12 to Egypt, it was reported on Monday.

According to state broadcaster CyBC, the inter-state agreement is expected to be signed in the autumn.

The two countries had signed in 2017 a preliminary agreement to transport natural gas from Cyprus to Egypt to be liquefied at Egypt’s LNG facilities and re-exported to Europe and other markets.

CyBC, citing diplomatic sources, said that the agreement has already been given the green light by the EU and it is being scrutinised for the final touches.

Cyprus demarcated its maritime border with Egypt in 2003. The Aphrodite gas field, discovered in December 2011 by Houston-based Noble Energy, is estimated to hold some 4.5 trillion cubic feet of gas.

Management Committee reviews progress of TurkStream project - GAZPROM

September 5, 2018, 16:40

The Gazprom Management Committee reviewed the current status of the TurkStream project.

It was noted that the project was going according to schedule. Specifically, the deep-water pipelaying for the offshore part of the gas pipeline’s first string had been completed in the Black Sea along with the construction of the second string in Russia’s exclusive economic zone. On June 26, 2018, the Pioneering Spirit vessel had started to lay the second string in the Turkish exclusive economic zone. As of today, over 1,520 kilometers of the two strings are ready, which translates into about 81 per cent of the overall length of TurkStream’s offshore section.

Particular attention at the meeting was paid to the efforts being taken on the coasts of Russia and Turkey. It was highlighted that the landfall near the Russian town of Anapa had been completed and the continuing start-up and commissioning operations would be finished in 2018 together with landscaping. In addition, a receiving terminal is being constructed in the coastal area near the Turkish settlement of Kiyikoy.

Gov’t hints at willingness to settle on Union Fenosa arbitration ruling - ENTERPRISE

Wednesday, 5 September 2018

Gov’t hints at willingness to settle on Union Fenosa arbitration ruling: It is the general policy of the government, and the Oil Ministry specifically, to seek a settlement in international arbitration cases, an Oil Ministry source told Al Mal. 

His statements are the first we’ve heard since news broke that the World Bank’s International Centre for Settlement of Investment Disputes ordered Egypt to pay USD 2 bn in settlements yesterday to Spanish-Italian JV Union Fenosa Gas (UGS) for the government cutting off supplies to UGS’ Damietta liquefaction plant. 

The source noted that the ministry is carefully studying the ruling before issuing an official statement on the matter, but added that the ministry was intending to resupply the plant and other liquefaction plants as its regional energy hub strategy gains steam. Supplies of natural gas will be restored by 2019, the source noted.

Israel's Ratio Oil expected to sign Philippines exploration deal - INDIA TIMES / REUTERS

REUTERS | September 04, 2018, 18:17 IST

TEL AVIV: Israel's Ratio Oil Exploration is expected to sign a long-awaited deal on Tuesday to search for oil and gas in the Philippines, a spokesman for Philippines President Rodrigo Duterte said.

Ratio was not available for immediate comment.

The company in 2015 was one of a number of foreign firms to be awarded an exploration deal. Ratio won the so-called East Palawan block, a 416,000-hectare oil and gas prospect off of Palawan, a southeastern province near the South China Sea.

But the award was delayed due to legal issues involving a previous exploration contract covering that block.

Duterte is visiting Israel this week. During his visit, Israel and the Philippines signed an agreement promoting foreign investments between the two countries.

Egypt to pay Spanish-Italian JV $2bn in natural gas dispute - FINANCIAL TIMES

3 September 2018
Myles McCormick and David Sheppard

Ruling by World Bank panel poised to accelerate resumption of country’s LNG exports
A joint venture between Spain’s Naturgy and Italy’s Eni has been awarded a $2bn settlement from Egypt over gas supplies by a World Bank arbitration body, in a move that could accelerate the resumption of the country’s liquefied natural gas exports.

The ruling by the International Centre for Settlement of Investment Disputes comes after Egypt stopped supplying gas to Unión Fenosa Gas joint venture’s Damietta LNG plant as the country faced internal energy shortages in the wake of the political turmoil unleashed by the Arab Spring.

Unión Fenosa Gas took its case to the ICSID in 2014. The arbitration body on Monday found that in stopping the gas supply Egypt had failed to grant Unión Fenosa Gas “fair and equitable treatment”, contravening the country’s bilateral investment protection treaty with Spain, Naturgy said in a statement.

The $2bn is likely to be paid in the form of renewed gas supplies to Damietta rather than in cash, according to people familiar with the matter.

Naturgy, formerly known as Gas Natural Fenosa, said the award would allow it to reach a “comprehensive agreement” with Egypt to resume gas supplies to the plant, which were halted four years ago.

A big bonanza, but a tough sell - SAN ANTONIO EXPRESS NEWS

September 3, 2018

Jordan Blum

At a time when energy companies are positioning themselves for a lower-carbon world by investing heavily in natural gas, it would seem relatively easy to sell them on developing huge reserves of the cleaner-burning fuel. That is, unless those reserves are in the territorial waters of Israel.

Nearly a decade after natural gas was discovered off its coast, Israel is still struggling to enlist foreign firms to explore its vast deposits in the Mediterranean Sea, in part because oil and gas companies are wary of alienating Arab countries in which they have long done business. So far only one foreign company, Houston-based Noble Energy, is operating there. And last year, when Israel launched its first-ever auction of offshore blocks, it attracted just two bidders — a Greek company and a group from India.

This history is what brought Shay Luvshis to Houston. Luvshis, 38, is Israel’s energy consul, sent to Texas to recruit American and international oil and gas companies to explore Israeli waters in the eastern Mediterranean Sea. About year after opening an office, the Energy Ministry’s first outside of Israel, Luvshis says he and other officials have held advanced talks with Exxon Mobil, the French oil major Total and the Australian oil and gas company Woodside Petroleum, among others.

Exxon Mobil and Total declined to comment. Woodside said it regularly reviews opportunities around the world.

“If everything had gone well” in the past, Luvhsis said, “we wouldn’t be here. Israel is the new kid on the block as an emerging energy region.”

Greece presses the E&P button - PETROLEUM ECONOMIST

3 September 2018

Gerald Butt

Plans for deep-water exploration have raised hopes of an eventual major natural gas discovery, while onshore oil development is progressing slowly

In a modest, modern building tucked away in a leafy residential street close to the centre of Athens a major energy transition is being managed. The building is home to Hellenic Hydrocarbons Resources Management (HHRM). Since 2011, this state-owned company has been revitalising what had become a near-moribund energy sector.

HHRM exudes vigour, taking its cue, perhaps, from president and chief executive Yannis Bassias. Not so, he insisted, in an interview with Petroleum Economist. He said the firm's youthful vitality stemmed not from him but from the staff themselves: "When you take me out of the statistics, the average age here is 34, so this is great. We have a staff of just 17, we don't need any more."

This lean team has just pulled off a considerable coup, hooking super-major ExxonMobil into Greece's upstream, in partnership with Total, which already had a presence there. The latest move, many believe, will eventually see Greece emerge as a significant player on the East Mediterranean energy stage. Greek deputy energy minister Michalis Verroiopoulos told Petroleum Economist that "these days we're focussing on promoting hydrocarbons exploration in Greece—there's a new dynamism to it. We're very happy having huge companies like Exxon and Total deciding to invest here." 

Egypt to restore exports of gas to Jordan to pre-2009 levels - ENTERPRISE

Monday, 3 September 2018

Egypt plans to ramp up gas exports to Jordan to their pre-2009 levels, an Oil Ministry official tells Al Masdar. Egypt and Jordan plan to sign a new export agreement before the year is out that would see Egypt export around 250 mcf/d of gas that the kingdom would use to fire electricity generation stations, the source added. Egypt had committed to export 250 mcf/d to Jordan under a 2004 agreement. Export levels started falling in 2009 before being stopped after the events of 25 January 2011, causing losses to the Jordanian government of around JOD 5 bn (USD 7 bn), according to previous statements by Jordan’s Energy Minister Hala Zawati. Cairo and Amman signed an amendment to the 2004 agreement last month under which Cairo will supply c. 10% of Amman’s natural gas needs.

Gov’t giving oil majors friendlier terms in production sharing contracts - ENTERPRISE

Monday, 3 September 2018

Gov’t giving oil majors friendlier terms in production sharing contracts: The Oil Ministry is looking to keep international oil companies happy, having recently rolled out new production sharing contracts with some IOCs that leave the companies larger shares of profits from concessions in a bid to cut the time it takes for the companies to hit profitability on any one concession, ministry sources tell Al Masdar. 

The changes include eliminating a clause in the model contract that required the companies cede a additional points in their concessions to the government every two years. The new agreements also apparently raise the cost-recovery ceiling to 40% of the oil or gas produced by a concession, up from 35%, the newspaper claims. Oil and gas companies were consulted during the drafting of the changes and their recommendations factored into the changes, the source said. 

Caveat lector: The single-source story doesn’t cite anyone from the private sector, so we’ll be looking into this in a bit more detail in the days ahead.