Latest gas drilling ‘very optimistic’ - CYPRUS MAIL

Monday 07 July | 19:40

By Elias Hazou

Drilling at the Pegasus-1 well has detected a 350-metre column of natural gas, the government announced on Monday, giving no more clues about the significance of the find – but separately sources told the Cyprus Mail that the “news from Pegasus is good”.

In a written statement after an afternoon conference call between President Nikos Christodoulides and Vice President of Global Exploration at ExxonMobil John Ardill, the government said another discovery of natural gas has been made at the Pegasus-1 site in Block 10 of Cyprus’ exclusive economic zone (EEZ).

“The Pegasus-1 well… indicated approximately 350 metres of gas-bearing reservoir,” government spokesman Konstantinos Letymbiotis said.

Drilling had been carried out by the Valaris DS-9 rig at a distance of 190km southwest of the island, and at a depth of 1,921m.

“Further assessment will be required in the coming months to evaluate the results.”

Israel’s NewMed and partners to connect the Aphrodite gas field off Cyprus to Egypt - THE TIMES OF ISRAEL

31 May 2023, 3:02 pm
Sharon Wrobel

Partners in the Aphrodite natural gas field offshore Cyprus, which include Israel’s NewMed Energy, announced on Wednesday that they were seeking approval from the Cypriot government to build a subsea pipeline that will connect the field to an existing processing and production facility in Egypt.

Israel’s NewMed Energy, formerly Delek Drilling (part of Yitzhak Tshuva’s Delek Group), which owns a 30% stake in the Aphrodite field located in Cypriot waters, said it had presented the Cypriot government with an updated plan for the development of the reservoir, including natural gas processing and production. For this purpose, the Aphrodite partners met with the Cypriot energy minister on Monday to discuss the progress of the development of the reservoir.

The other partners in the Aphrodite gas field, which holds an estimated 124 billion cubic meters of gas, are US energy giant Chevron and Shell, which each own a 35% share.

Eni puts major new East Med gas project on fast track - UPSTREAM

12 April 2023 10:28 GMT
Iain Esau in London

Eni is set to sanction a major new project offshore Cyprus in 2024 and is studying onshore and offshore liquefied natural gas solutions, according to the company’s head of natural resources.

The Italian major is also exploring the possibility of working with US giant ExxonMobil on a joint development of their Cypriot gas resources, although this appears the least likely option at present.

Eni has found at least 4.5 trillion cubic feet of gas-in-place in Block 6 offshore southern Cyprus in recent years, resources held in the deep-water Calypso, Cronos and Zeus discoveries that were drilled between 2018 and late 2022.

Zeus-1 was completed late last year, hitting 105 metres of net pay in a carbonate reservoir that hosts between 2 Tcf and 3 Tcf of gas in place. This find came after the Cronos-1 probe found 2.5 Tcf of in-place resources last August, while the play-opening discovery was made by the Calypso-1 wildcat in 2018. Speaking to Upstream last week, Guido Brusco, chief operating officer of Eni’s natural resources business, explained the company’s thinking on how best to tap this gas. He said there are “clearly” two options, “either floating LNG or a tie-in to Egypt”, where Eni operates the Damietta LNG plant.

Government optimistic of swift development of natural gas finds in Block 6 - CYPRUS MAIL

January 9, 2023

Elias Hazou

The government anticipates a speedy development of the natural gas finds in Block 6 of Cyprus’ exclusive economic zone (EEZ), Energy Minister Natasa Pilides said on Monday.

She was speaking to reporters coming out of a meeting at the presidential palace between President Nicos Anastasiades and representatives of TotalEnergies, headed by Laurent Vivier, the French multinational’s Senior Vice President for the Middle East and North Africa.

Queried about the discovery of two natural gas reservoirs in Block 6 – licensed to a joint venture of Total and ENI – Pilides said the government was in talks with the companies.

“It is still too early to have a specific plan, but certainly the intensive activity relating to the actions needed to be taken in 2023 will continue, and I think the whole process will move forward quite speedily.”

Is Egypt’s Oil And Gas Sector Set To Boom? - OILPRICE.com

Nov 06, 2021, 10:00 AM CDT
Felicity Bradstock

• Italian oil major, Eni, announced this week that it has made three new oil and gas discoveries in the Meleiha region of western Egypt.
• The new discovery further adds to Egypt’s recent announcement that it expects to become self-sufficient in oil by as early as 2023.
• Eni’s finds are just the latest in several significant oil and gas discoveries over the last decade.

As Eni makes a new oil and gas discovery in Western Egypt, the future of energy in the oil-rich nation looks promising. After record production figures were hit in September for the first time since 1957, with an output of 65,000 bpd, as well as plans for new refineries and high levels of LNG production, Egypt looks set to not only become self-sufficient in energy but also to become a major exporter.

Cyprus: ExxonMobil to gauge gas field size in 6-8 weeks - MIAMI HERALD, ASSOCIATED PRESS

OCTOBER 14, 2021 3:07 PM

Menelaos Hadjicostis

NICOSIA, CYPRUS Drilling by ExxonMobil set for late next month to confirm how much natural gas is contained in a sizable deposit off Cyprus' southwestern coast will map out how the fuel will reach potential markets in Europe and Asia, the island nation's energy minister said on Wednesday.

Minister Natasa Pilides says the “significant” drilling at the ‘Glaucus-1’ well inside block 10 of Cyprus’ exclusive zone scheduled to start in 6-8 weeks will determine if the deposit is at the higher or lower end of its estimated size of 5-8 trillion cubic feet (142-227 billion cubic meters) of natural gas.

A higher confirmed quantity would naturally mean greater profits and in turn push exploitation of the deposit up the priority list for ExxonMobil and partner Qatar Petroleum among the different projects they’re currently working on.

Cyprus-Egypt technical committee on the joint gas pipeline project to meet 15/9 - IN-CYPRUS - PHILELEFTHEROS

05.SEPT.2021

The technical committee that is working on the preparations for a joint gas pipeline project between Cyprus and Egypt will convene on 15th September, according to a statement released on Sunday by the office of the Minister of Energy, Commerce and Industry, Natasa Pelides. The minister said she was very satisfied with her meetings in the Egyptian capital on Saturday.

The Energy Ministers of Cyprus and Egypt also decided on Saturday to sign a Memorandum of Understanding for the electricity interconnection between the two countries in the coming months. A business mission will also travel from Cyprus to Egypt to increase the trade of goods and services.

Discussions between Pelides and Egyptian Petroleum and Mineral Resources Minister Tariq Al-Mulla as well as Nevin Gamea, Minister of Industry and Trade of the Arab Republic of Egypt in the framework of the first Intergovernmental Meeting were “very constructive and totally productive”, the  press release said.

Egypt, Israel discuss plans to liquefy natural gas in Egyptian plants - XINHUA

2021-08-10 06:13:26

CAIRO, Aug. 9 (Xinhua) -- Egyptian Minister of Petroleum and Mineral Resources Tariq al-Molla and the Israeli Minister of Energy Karine Elharrar discussed on Monday future plans to liquefy Israeli gas in Egyptian plants.

During a phone conversation, the two sides discussed the ongoing cooperation in the field of natural gas, and future plans to pump Israeli natural gas to be liquefied in Egyptian factories for re-export, the Egyptian Ministry of Petroleum and Mineral Resources said in a statement.

The two ministers also talked about cooperation within the framework of the East Mediterranean Gas Forum (EMGF), stressing the need to strengthen bilateral and multilateral cooperation.

In January 2019, Egypt, Israel, Cyprus, Greece, Italy, Jordan, and Palestine established the Cairo-based EMGF, whose charter entered into force in March, to become an intergovernmental organization concerned with natural gas affairs.

Egypt, Cyprus focus on natural gas pipeline amid tensions in eastern Mediterranean - AL MONITOR

Sep 13, 2020
Mohamed Saied

At a time when the oil and gas industry is facing economic uncertainty as part of the consequences of the coronavirus pandemic and the decline in global prices as a result of an oversupply, the eastern Mediterranean region is marred by a frantic struggle over natural gas resources.

Eastern Mediterranean countries have rushed to demarcate their maritime borders and exclusive economic zones in a bid to facilitate the gas exploration process.

The United States Geological Survey estimated the natural gas reserve in the Mediterranean in 2017 at 340-360 trillion cubic feet with a financial value ranging between $700 billion and $3 trillion.

In January 2019, Egypt, Cyprus, Greece, Israel, Italy, Jordan and the Palestinian Authority established the Eastern Mediterranean Gas Forum in an attempt to create a regional gas market, reduce infrastructure costs and offer competitive prices.

While eastern Mediterranean countries have ambitious projects to gain a foothold in the European market with natural gas exports, the European Union (EU) is seeking alternatives to its dependency on Russian gas, as Russia is the third-largest oil producer in the world.

Is Egypt’s Energy Hub Dream Falling Apart? - OIL PRICE MAGAZINE

Feb 01, 2020, 12:00 PM CST

Cyril Widdershoven

Since the end of the 1990s Egypt has dreamt of becoming an East Mediterranean gas and energy hub.

The discoveries offshore in the Nile Delta at the end of the 20st Century, that kickstarted the LNG boom sparked hope, but regional and internal conflicts which led to the removal of president Husni Mubarak and the rule of the Muslim Brotherhood have significantly slowed down the country’s energy industry.

However, new discoveries made in the last couple of years, combined with strong results offshore Cyprus, Israel and possibly even the coming years in Lebanon have brought new hope. The so-called East Med Gas Forum, in which most littoral states are participating is seen as one of the main drivers of new energy developments. Led by Egypt-Israel and the Greece-Cyprus quartet, a new start was made to reshape the region’s energy market, with as crown jewel, Egypt’s LNG liquefaction capacity in Idku and Damietta. The combined reserves of the participants, especially Egypt’s elephant-sized fields Zohr and Noor, combined with Israel’s offshore wealth, could supply the European market. The EU and even the U.S. promote the so-called East Med Offshore Gas Pipeline project connecting the East Mediterranean with the Balkans and possibly Italy. The region is optimistic and strategies are being implemented at a remarkable speed. Even with Turkish military and political obstruction constraining or even threatening some of the projects, progress is made.

Exxonmobil Israel talk Leviathan LNG export options - OIL & GAS EURASIA

13.11.2019

Exxonmobil is offering to build Israel a floating LNG gas-ship to export from the Leviathan gasfield and thus bypass Egypt’s planned LNG export facility.

An Exxonmobil representative told various financial media that the company is still considering its options. Other sources cautioned that it is entirely likely no agreement will be reached.

Despite considerable gas discoveries in the Eastern Mediterranean region over the past decade, viable export routes have been hard to find. This has put off global energy firms. The Leviathan partners have signed deals to meet surging demand in Egypt, Jordan and Israel, but haven’t yet found a way to export to Europe or East Asia.

Challenges to Israel’s gas exports - CYPRUS MAIL

September 15, 2019
Charles Ellinas

Since discovery of natural gas in its exclusive economic zone Israel has been dreaming of exports, riches and political influence. Massive political capital has been expended in this direction, but so far without results, apart from small exports to Jordan, and possibly Egypt, but not to global markets.

The giant gas-field Leviathan is expected to come on-stream by end-2019, with as much as 9-10 billion cubic metres/yr (bcm/yr) surplus gas available for export. Noble Energy and its partners have been considering all options to secure international buyers for this, but unsuccessfully.

The main challenge is commercial. Gas prices are low globally and even though they may rise after 2025, they are still expected to be at levels that challenge exports of gas from the East Med. For example, gas prices in Europe are currently just over $3/mmbtu (per about 1000 cubic feet) and are forecast to average $6-$6.50/mmbtu between 2020-2030. Political will is not sufficient to overcome price limitations, despite all the hype, either in Israel or in Cyprus.

East Med gas is mostly in deep water and deep reservoirs. This makes it expensive to develop. The lack of regional infrastructure also impacts the cost of exporting such gas.

Israeli Energy Exports Won’t Make Europe More Pro-Israel - FOREIGN POLICY

AUGUST 28, 2019, 6:57 AMCHARLES ELLINAS

The natural gas discovered in the Eastern Mediterranean is so expensive to bring to market that it might never reach European consumers, let alone change the policies of EU governments.

Ever since the discovery of the Leviathan gas field off the coast of Haifa, Israel has been dreaming of riches and political influence. A recent Foreign Policy article has taken this to the realms of the unimaginable—arguing that future European dependence on Israeli gas exports could both change the political views of European countries toward Israel and make the EU pro-Israel.

But the article overlooks a more basic question: Can Israeli gas ever make it to Europe or to global markets at a competitive price? With Leviathan about to come onstream, Israel, Noble Energy (as the operator), and its partners are looking for gas sales beyond this first phase of development. As much as 9-10 billion cubic meters per year of gas could be available for export. This is about the same amount as the Southern Gas Corridor pipeline from Azerbaijan to Italy that will be delivering 10 billion cubic meters per year to Europe by 2020.

Egypt committed to working with US, highest standards in gas projects - ENTERPRISE

Tuesday, 21 May 2019

El Sisi meets with Noble Energy boss, says Egypt is committed to strengthening ties with the US: A meeting between President Abdel Fattah El Sisi and Noble Energy CEO David Stover tops the front pages of Al Ahram, Al Akhbar and Al Gomhuria this morning. El Sisi used the occasion to reaffirm Egypt’s commitment to strengthening strategic ties with the US and said the country was following the highest standards in its gas exploration and production projects.

Other coverage of the story: Noble, which is helping lead the charge to develop Israeli gas fields and sell the offtake to Egypt, is interested in a helping build a gas pipeline between Egypt and Cyprus, an unnamed Oil Ministry source told Youm7. No further details were provided on the company’s plans. Egypt and Cyprus signed an agreement last year, which would allow natural gas from the Aphrodite gas field to be transported to Egypt’s liquefaction facilities at Idku and Damietta, and re-exported as liquefied natural gas.

Cyprus Aphrodite gas field partners near deal - KATHIMERINI

14 MAY 2019 : 15:45

Kathimerini reports that stakeholders in the Aphrodite gas field have agreed to commit natural gas from Cyprus’ Block 12 to Egypt’s LNG facilities from where it will be exported to international markets. A few legal details remain and are expected to be clarified within days.

Noble Energy, Royal Dutch Shell and Delek Drilling aim to utilize Egypt’s existing LNG facilities to speed up commercialization of Aphrodite.

The Aphrodite field is located 160 km south of Limassol and 30 km northwest of the Leviathan field. The field was discovered following drilling of the A-1 discovery well, which began on 20 September 2011, continued for 116 days, and reached a depth of 5,860 meters below sea level.

Block 12 is expected to hold 3.6 to 6 trillion cubic feet of natural gas.

The field is estimated to produce about 800 million cubic feet per day in the first production phase, according to Delek.

Exxon Is in Talks Over Floating LNG Partnership in Israel - BLOOMBERG

April 10, 2019, 8:59 PM GMT+3Yaacov Benmeleh

• Project reflects Exxon’s growing ambitions in East Med region
• Talks come as unofficial energy boycott on Israel seen fading

Exxon Mobil Corp. is in discussions to build a platform that would expand the export reach of Israel’s biggest natural gas field, according to people familiar with the matter. Israeli gas stocks rose.

The world’s largest publicly-traded oil and gas company is in talks with the firms developing Israel’s Leviathan reservoir to build a floating liquefied natural gas ship, the people said, requesting anonymity because the matter is private. Such a project would allow the Leviathan partners to export to countries not reachable with pipelines and avoid the need to build expensive infrastructure to connect to LNG facilities in Egypt.

It’s possible the discussions ultimately won’t lead to a partnership, the people cautioned. An Exxon representative declined to comment on its intentions in Israel. The company recently made a major gas discovery nearby, off the coast of Cyprus.

“It’s too early to comment on specific development and production timelines” for the Cyprus discovery, the representative said.

Despite considerable gas discoveries in the Eastern Mediterranean region over the past decade, viable export routes have proven tough to find and global energy firms haven’t rushed in. The Leviathan partners have signed deals to meet surging demand in Egypt, Jordan and Israel, but haven’t yet found a way to export to Europe or East Asia.

Israel's Delek exploring partnership with Egypt LNG plants - REUTERS

MARCH 24, 2019 / 1:47 PM

JERUSALEM, March 24 (Reuters) - Israel’s Delek Drilling said on Sunday it was exploring options to boost natural gas exports to Egypt, including the possibility of buying into a liquefied natural gas (LNG) terminal on the northern Egyptian coast.

Delek is a partner in offshore gas fields in Israel and Cyprus and has already signed export deals to Egypt.

The company said in its 2018 annual report that one channel to increase sales could be through LNG plants near Idku and Damietta along the Mediterranean coast, and that it was “examining various arrangements with the owners of the liquefaction facilities”.

This could include purchasing liquefaction capacity or even buying into the plants themselves, Delek said. (Reporting by Ari Rabinovitch; Editing by Tova Cohen)

ENERGY: Cyprus gas fields are turning into export grade - FINANCIAL MIRROR

07 March, 2019

Cypriot Energy Minister George Lakkotrypis said the quality of the reservoir found in Block 10 of Cyprus’ Exclusive Economic Zone (EEZ) allows for optimism that the recoverability will be very high.

The Minister, speaking at the 6th Eastern Mediterranean Gas Conference in Nicosia, also noted that more appraisal work is needed by ExxonMobil within the coming weeks.

ExxonMobil discovered huge quantities of natural gas ranging from 5 to 8 trillion square feet, the largest find offshore Cyprus.

Lakkotrypis said the discovery in the “Glafcos 1” well creates prospects to relook at Block 10 targets, adding that “Calypso” and “Aphrodite” fields, indicate the potential of the EEZ. The Minister said that Nicosia was looking forward to the upcoming drilling programme of Eni and Total, waiting at the same time the appraisal well for “Calypso” in Block 6.

Referring to monetization of the discoveries, he said that the Cyprus government has been maturing all of its options simultaneously, with the exception of “Aphrodite” field for which announcements were hopefully expected in the next few weeks.

Upbeat vision of gas future in wake of block 10 find - CYPRUS MAIL

Energy minister Giorgos Lakkotrypis addressing the seminar

March 6, 2019

The gas find in Glafcos (Glaucus) 1 well in Block 10 of the island’s exclusive economic zone (EEZ) is expected to yield large revenues, the energy minister Giorgos Lakkotrypis said on Wednesday.

Speaking at the Sixth Eastern Mediterranean Gas Conference in Nicosia, Lakkotrypis said in the coming weeks further work to confirm the ExxonMobil discovery, which was announced on 28 February to be between 5-8 trillion cubic feet (tcf), will be necessary.

Further discoveries in the Calypso well in Block 6 and in the Aphrodite well in Block 12 serve to paint an overall picture of the potential within the Cyprus EEZ, Lakkotrypis added.

Around five more drillings are expected to take place in the coming period with energy companies ENI and Total, he said, to confirm the natural gas stocks of the Calypso well and reassessing the capacity of Block 10.

Regarding the utilisation of the gas finds, he said that an announcement for Aphrodite is expected within weeks concerning the use of Egyptian terminals.

Cyprus: Another Offshore Discovery Will Intensify a Regional Struggle Over Energy - STRATFOR

Feb 28, 2019 | 23:13 GMT

The Big Picture

Geopolitics and natural gas go hand in hand in the eastern Mediterranean, a region that entered the great game of natural gas competition 10 years ago with the discovery of the Tamar natural gas field off the coast of Israel. While Israel has since become a producer, Cyprus has struggled to follow suit despite striking gas just two years later. In the past year, however, new discoveries of natural gas reserves have reinvigorated the Cypriot natural gas sector, culminating in what may be the island country's largest discovery to date.

What Happened

ExxonMobil ended weeks of speculation with its announcement on Feb. 28 that it had struck a significant gas deposit at its Glaucus prospect, southwest of Cyprus in the eastern Mediterranean Sea. Initial assessments suggest the reservoir could have between 142 billion and 227 billion cubic meters (5 trillion and 8 trillion cubic feet) of gas in place. Though just how much of this gas is recoverable remains unclear, the discovery adds to the growing amount of natural gas found in Cypriot waters.

When coupled with Noble Energy's Aphrodite gas field, discovered in 2011, and Eni's Calypso, discovered in 2018, Cyprus could well possess 500 billion cubic meters of gas without taking future potential discoveries into account. Though this quantity of natural gas would justify the construction of an undersea pipeline or a gas liquefaction plant for shipping via tanker, the geopolitical complications of the eastern Mediterranean must be taken into account.