Cyprus, Noble Energy conclude deal on exploiting natural gas field - XINHUA

2019-03-13 04:20:47|Editor: yan

NICOSIA, March 12 (Xinhua) -- Cyprus and a consortium led by U.S.-based Noble Energy company have concluded an agreement on the terms of exploiting a natural gas field from which gas will be exported to Egypt, Cypriot state television reported on Tuesday.

Citing a competent government source, it said the two sides have ironed out pending issues relating to the ratio of participation of the sides involved in the revenue from the selling of natural gas, adding that what is left is to couch the deal in legal jargon.

Noble Energy leads the operation for sending gas to Egypt after building an undersea pipe, in association with British Gas and Israeli Delek Drilling, each of the three companies holding about one third of the share.

Noble Energy asked the Cypriot government last year to renegotiate the revenue sharing agreement for the 4.5 trillion cubic feet Aphrodite gas finding.

Aphrodite lies in block 12 of Cyprus's exclusive economic zone (EEZ) and it is Cyprus's first gas finding, discovered in 2011.

Cabinet appoints committee to renegotiate gas agreement (updated) - CYPRUS MAIL

AUGUST 21, 2018

George Psyllides 

The cabinet on Tuesday appointed a committee that will enter talks with energy companies over the revenue sharing agreement for the 4.5 trillion cubic feet (tcf) Aphrodite gas finding in an offshore block.

“The best option is to try and find a mutually acceptable solution with the consortium so that the Aphrodite reserve is developed as soon as possible,” Energy Minister Giorgos Lakkotrypis said after the meeting.

The minister said development of the reserve would have a lot of financial and geopolitical benefits.

Aphrodite lies in block 12 of Cyprus’s exclusive economic zone and it is Cyprus’s first gas finding, discovered in 2011.

The Houston-based Noble Energy Inc. is the leader of a consortium with the participation of Israel’s Delek and Britain’s BG (British Gas), a subsidiary of Shell.

Lakkotrypis said the government had been informed at the end of last year that the consortium had come to a preliminary agreement with Shell, which operates an LNG terminal in Egypt, to sell gas to them.

The consortium also said that because of the low international price of oil, the project would not be viable and they had asked for a review of the financial conditions in the existing agreement.

Government may renegotiate deal with Noble Energy, spokesman says - CYPRUS MAIL

Licensees in Cyprus' EEZ as of August 2018

AUGUST 20, 2018

Stelios Orphanides

Government spokesman Prodromos Prodromou said that the cabinet may decide to renegotiate the revenue sharing agreement for the 4.5 trillion cubic feet (tcf) Aphrodite gas finding, the Cyprus News Agency (CNA) reported on Monday.

The cabinet, which is meeting on Tuesday at the presidential summer residence in Troodos, may decide whether the renegotiation will commence and if yes, its direction and terms, he said according to CNA.

“Decisions are about to be taken regarding demands raised by companies with which the Republic is in cooperation in Aphrodite,” the spokesman was quoted as saying. “Despite challenges or obstacles some people attempt to raise, we are now at a point that decisions of strategic importance have to be taken”.

Palestinians in talks with int'l co to develop Marine gas field - GLOBES

21 Jun, 2018 20:16
Amiram Barkat and Sonia Gorodeisky

The gas produced from the reservoir will be used to operate the power station in Gaza and another 450-megawatt power station to be built in Jenin.

Almost 20 years after it was discovered, the Palestinian Authority (PA) will try to develop the Gaza Marine natural gas reservoir located off the coast of the Gaza Strip by itself, sources inform "Globes." In the past, the PA asked Israel for the use of the state's gas transmission infrastructure, and the matter is currently being discussed. The sources add that the owners of the rights in the reservoir are negotiating with an international drilling operator to develop and operate the reservoir.

According to the plan, the gas produced from the reservoir will be used to operate the power station in the Gaza Strip and another 450-megawatt power station slated for construction in the Jenin area. In addition to local consumption, the Palestinians are trying to find customers for their gas in the region in order to reach a minimum amount of demand for gas that will justify development of the reservoir. Costs of developing gas reservoirs have recently fallen, thereby making it easier to carry out plans.

Royal Dutch Shell to resume deep-water exploration off Egypt - REUTERS

APRIL 17, 2018 / 12:22 PM

Reporting by Ahmed Ismail, writing by Amina Ismail; editing by Jason Neely

ALEXANDRIA, Egypt - Royal Dutch Shell said it will resume deep-water exploration for oil and gas off Egypt’s Mediterranean coast, Executive Vice President Sami Iskander told a news conference on Tuesday.

Egypt is looking to production from recently discovered fields to halt energy imports by 2019.

A petroleum ministry official said last month that new production at Shell’s [WDDM] field 9B (formerly BG) is expected to reach 350-400 million cubic feet per day by 2019.

Separately, production from the first 3 wells in the field is set to begin in the 2018-2019 fiscal year.

The field is owned by Egypt’s General Petroleum Corporation (EGPC), Malaysia’s Petronas and Shell.

Importing Israeli Natural Gas Makes Sense for Egypt - BLOOMBERG

March 19, 2018, 11:00 AM GMT+2

Robin Mills

The deal is politically fraught but could create an energy powerhouse.

The discovery of Egypt’s giant Zohr gas field in August 2015 was heralded as the solution to the country’s energy problems. So why did Egypt cut a deal this year to import natural gas from Israel, its former enemy?

Dolphinus Holdings, a private Egyptian company, agreed Feb. 19 to buy gas from Noble Energy and its partners from Israel’s two largest offshore fields, Leviathan and Tamar. The controversial accord is but the latest chapter in an Egyptian gas saga that has gone from triumph to tragedy to tentative renaissance.

Egypt’s problems with gas were long in the making. In 2006, Petroleum Minister Sameh Fahmy received complaints from oil companies that low regulated gas prices were making new developments unviable, while new industries gobbled up supplies. Investment dried up and production plummeted after the 2011 revolution.

Shell relinquishes Gaza gas field rights - GLOBES

8 Mar, 2018 13:50
Sonia Gorodeisky

The Palestinian Authority is seeking a new partner to help it develop the Marine gas field.

Energy giant Royal Dutch Shell is relinquishing its rights to the Marine gas field off the coast of Gaza, "Reuters" reports. The undeveloped gas field contains an estimated 32 billion cubic meters of natural gas.

The Palestinian Authority now needs to find a new international group to develop and operate the field. Palestinian ministers say they are in the process of locating an alternative operator to Shell.

Shell owns 60% of the rights to the gas field with the Palestinian Authority owning the remaining 40%. British Gas (since acquired by Shell) discovered the field, 35 kilometers off the coast of Gaza, in 2000 but although it could have provided energy security for the Gaza Strip, the field has never been developed. The main reason for the failure to develop the field was the geopolitical problems in the region, which made it impossible for Shell to sign any export deals.

A Shell spokesman said: "We confirm we have been in discussions with various parties about the future of the Gaza Marine project. As of now, Shell continues to hold its equity in the Gaza Marine asset."

Shell's Gaza Gas Field Sale Hits Problems - HART ENERGY / REUTERS

Friday, January 12, 2018 - 12:20pm

It may prove to be Royal Dutch Shell Plc's (NYSE: RDS.A) hardest sell. The Anglo-Dutch group is struggling to find a buyer for its gas field off the Gaza Strip, even among energy companies long used to dealing with projects fraught with political and security risks.

At least one European company has shown interest in the undeveloped Gaza Marine Field following a reconciliation deal in October between the two rival Palestinian factions, a source involved in the talks said.

But the firm's discussions over the field, located about 30 km (20 miles) off the Gaza coast, have ground to a halt since tensions in the wider region have taken a fresh turn for the worse, the source told Reuters.

"Until the political situation is resolved I really can't see anything happening here," he said.

Gaza Marine has long been seen as a golden opportunity for the cash-strapped Palestinian Authority to join the Mediterranean gas bonanza, providing a major source of income to reduce its reliance on foreign aid.

Shell in talks with Oil Ministry to increase its share of gas produced at Phase 9B - ENTERPRISE

Tuesday, 19 December 2017

Shell has apparently entered talks with the Oil Ministry to increase its share of gas produced to offset their investment costs from Phase 9B of the West Delta Deep Marine Concession, government sources tell Al Borsa. 

The company is looking to recoup the investment costs of developing the concession sooner, they added. 

The company plans to complete developing two test wells in Phase 9B in 1Q2018. BG Egypt, before being acquired by Shell, had suspended work on Phase 9A+ and 9B in March 2016 after the government rejected paying USD 7.00 per mmBtu for Phase 9B.

US oil giant ExxonMobil plans Cyprus gas exploration - MAIL ONLINE / AFP

6 September 2017 | UPDATED: 17:45 BST

US oil company ExxonMobil has signed an agreement to start drilling off the southern coast of Cyprus, pictured in 2015, as Cyprus looks to exploit more of its oil and natural gas resources

US giant ExxonMobil said Wednesday it plans to start drilling at two sites in the second half of 2018 to explore for energy reserves off the south coast of Cyprus.

Preparations to support the drilling operations are already underway, the company´s vice president Tristan Aspray said at a presentation in Nicosia.

He said the operations would take place back-to-back and begin in the second half of 2018.

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

What is happening to Noble - IN CYPRUS / CYPRUS WEEKLY

August 12, 2017
Charles Ellinas

The news last week was that Noble Energy decided to move two of its senior staff from Cyprus to Israel. Some ‘political sources’ interpreted this to be the result of dissatisfaction with the way government is handling commercialisation of Aphrodite and in particular the inordinate delays and lack of progress.

Not unexpectedly, both the government and Noble denied this. However, there is no denying that commercial development of Aphrodite is now long overdue.

The development plan was originally submitted by Noble mid-2015. Following acquisition of 35% of Block 12 by BG, which in turn was acquired by Shell early 2016, the development plan was subsequently revised and resubmitted. Since then there has been no real progress and astonishingly approval of the plan has not yet been concluded.

WoodMac podcast (7:24): Egypt’s upstream renaissance - OFFSHORE ENERGY TODAY

August 9, 2017

Over the last few years there has been a resurgence in Egypt’s upstream sector boosted by several offshore gas discoveries, most notably the Zohr.

The Zohr, made by Eni in August 2015, is the largest gas discovery ever in the Mediterranean, and the first phase of production there is set to begin late in 2017, and by the time the full development is online, it will make the country a net energy exporter.

With all the gas from discoveries made by the likes of BP and Eni, Wood Mackenzie expects the country’s gas production to rise 80-90% from the lows seen in 2016.

Shell, Petronas to begin work on Borollos gas field 9B in 4Q2017 after delays - ENTERPRISE / AL SHOROUK

Wednesday, 19 July 2017

Royal Dutch Shell and Malaysia’s Petronas will begin work on phase 9B of the Borollos gas field in 4Q2017, after having suspended work last year over pricing disagreements with the government, Oil Minister Tarek El Molla said, according to Al Shorouk. 

The two sides eventually reached an agreement, but work on the field later stalled again as the state fell behind on payments to Shell and BG. 

The USD 950 mn project will produce between 350 and 400 mcf/d once operational.

Shell repays Idku loan ahead of schedule - ENTERPRISE

Thursday, 13 July 2017

Royal Dutch Shell repaid the final installment in the second tranche of a USD 2 bn loan issued to BG to build the Idku liquefaction plant ahead of schedule, a statement from the Petroleum Ministry picked up by Al Mal says. 

The company had said in January that it would complete the payments by December 2017. The Egyptian General Petroleum Corporation had agreed to pay USD 480 mn of the first installment due to the Idku plant halting operations in 2012.

Cyprus agrees gas exploration deals - EXPATICA / AFP

Oil firms active in the Cypriot EEZ at the end of negotiations
regarding Cyprus' 3rd Licensing Round

7th March 2017

US energy giant ExxonMobil, Qatar Petroleum, Italy's ENI and France's Total have successfully bid for rights to explore for oil and gas off the coast of Cyprus, officials said Tuesday.

The contracts, part of the Mediterranean island's third licensing round, will be approved by the cabinet on March 17, Cyprus trade minister George Lakkotrypis told reporters.

ENI and Total jointly negotiated a licence for a block off the island's south coast while ENI secured another on its own. ExxonMobil and Qatar Petroleum successfully bid for a third.

"This is a very important development for both the Cypriot Exclusive Economic Zone and the eastern Mediterranean in general," said Lakkotrypis.

"It reinforces the prospect for hydrocarbons in the area," he added. "You will find that companies are quite optimistic as to the prospects for the eastern Mediterranean, and more specifically the Cypriot EEZ."

Some of the firms could begin exploratory drilling this year, Lakkotrypis said.

Shell, Petronas begin working on Borollos gas field 9B - ENTERPRISE / AL SHOROUK

Tuesday, 21 February 2017

Shell and Malaysia’s Petronas have begun working on phase 9B of the Borollos gas field, an unnamed EGAS official tells Al Shorouk. The USD 950 mn project involves drilling eight new wells with a daily capacity of 387 mcf. BG, since acquired by Shell, had suspended work on phase 9A+ and 9B of the gas field last March after the government rejected paying USD 7 per mmBtu for phase 9B, and eventually reached an agreement with the government to maintain a price cap of USD 5.88 per mmBtu for gas from the phase.

Work on the gas field later stalled as the state fell behind on payments to Shell and BG, but Shell ultimately ramped-up exploration and drilling activity on the back of promising data. As we reported last week, the government is reportedly gearing up to repay USD 500 mn-1 bn to IOCs including Shell.

A change of course - LNG INDUSTRY

Thursday, 09 February 2017 08:57
Richard Bass

A discussion held 10 years ago about East Mediterranean gas would have focused on Egypt. It would have concentrated specifically on the quantity of pipeline gas that Egypt could export regionally and the capability of its two LNG terminals to compete for customers in Europe, North America, and Asia. Fast forward to today, and any discussion of East Mediterranean gas would consider when Egypt will cease to be a significant LNG importer, as well as the prospects for gas exports from Israel and Cyprus. So how, in less than a decade, have the region’s circumstances changed so markedly? And what is the next decade going to look like?

Molla in talks with Petronas over Borollos gas field phase 9B - ENTERPRISE / AL BORSA

Sunday, 5 February 2017

Petroleum Minister Tarek El Molla discussed the USD 950 mn plan to develop phase 9B of the Borollos gas field with the head of Malaysia’s Petronas on Saturday, Al Borsa reported. The project involves drilling eight new wells with a daily capacity of 387 mcf.

Egyptian LNG (ELNG) is a joint venture between PETRONAS and partners Egyptian General Petroleum Corporation, Egyptian Natural Gas Holding Company, BG Group, and Gaz de France.


The ELNG project comprises the development and operation of an LNG liquefaction plant and related infrastructure at Idku, approximately 50 kilometres east of Alexandria in Egypt. Currently, two trains are up and running, each at a capacity of 3.6 million tonnes per annum. PETRONAS’ capabilities in the project management and development of a fully-integrated LNG operation was again proven as ELNG set a record of being the world’s fastest developed LNG project – six years from the first exploration well to the lifting of the first cargo in 2005. The ELNG plant receives its feedstock from PETRONAS’ upstream operations in the offshore West Delta Deep Marine concession, in which it is a 50:50 equity partner.

Shell completes repayment of Idku liquefaction plant loan in December 2017 - ENTERPRISE / AL BORSA

Tuesday, 3 January 2017

Royal Dutch Shell will complete repayment by December 2017 of the second tranche of a USD 2 bn loan issued to BG to build the Idku liquefaction plant, sources told Al Borsa. EGPC agreed to pay USD 480 mn of the first installment due to the Idku plant halting operations in 2012. The Idku plant pays USD 200 mn in annual installments and requires around 22 shipments annually to become self-sufficient. The government has allowed the plant to export around 200 mcf/d since September; the newspaper suggests the plant could ramp up to full operating capacity by 2020.