Ambitions clash in the Eastern Med - NGW MAGAZINE

July 6, 2017 11:00am

Unstable relations between the eastern Mediterranean countries threaten to make long-term gas deals impossible – even if there is enough gas to make them worthwhile.

The gas industry in the eastern Mediterranean has seen a lot of change in the last two years. Chief among the shifts have been:

• Egypt, which has experienced a severe shortage of natural gas and has become an LNG importer, is returning to self-sufficiency in two or three years;

Total: Drillship “West Capella” arrives in Cyprus on July 12 ahead of Block 11 drilling - FAMAGUSTA GAZETTE

Monday, 03 July, 2017

Preparations for drilling in Block 11 of the Cyprus Exclusive Economic Zone procced normally and are progressing according to the plan, told CNA General Manager of Total E&P Cyprus Yves Grosjean.

The drilling by French Total in consortium with Italian Eni which acquire last March 50% participating Interest of Block 11 was expected by mid July.

"We are on schedule”, said Grosjean and added that the drillship "West Capella” is on its way and will arrive in Cyprus on 12th of July. After arriving in Cyprus, he added, the drillship will carry out some testing, before starting the drilling at "Onisiforos” well. The tests are expected to last a few days and less than a week.

Cyprus problem and energy issues the focus of talks between Cypriot and French ministers - FAMAGUSTA GAZETTE

Monday, 26 June, 2017

The Cyprus problem, TOTAL`s energy plans in the Republic of Cyprus Exclusive Economic Zone, the deepening of the strategic cooperation between Cyprus and France, regional issues and Brexit will be on the agenda of talks which Foreign Minister Ioannis Kasoulides will have on Monday in Paris with his French counterpart Jean-Yves Le Drian.

According to PIO press release, Kasoulides will also meet with French President Emmanuel Macron`s diplomatic adviser and will have a meeting with the new Minister for Europe Nathalie Loiseau. TOTAL also has invited him to meet with high-ranking officials of the company. During the meeting the company`s drilling programme in the Republic`s EEZ will be reviewed.

As regards the meeting between Kasoulides and Le Drian, the press release said that discussions will focus on the latest developments in the Cyprus problem as France is one of the five UN Security Council permanent members as well as on TOTAL`s energy plans in the Republic`s EEZ.

Research and survey vessel Ramform Hyperion docks in Cyprus - FAMAGUSTA GAZETTE / CYPRUS NEWS AGENCY

Tuesday, 02 May, 2017

Research and survey vessel Ramform Hyperion has docked at Limassol port, on Cyprus` southern coast, to carry out seismic research in the Republic`s exclusive economic zone (EEZ).

The vessel arrived from the Mitsubishi shipyard, in Nagasaki in Japan, after she had carried out all the necessary tests in Singapore. She is expected to carry out three-dimensional seismic research and surveys until mid August this year.

The Republic of Cyprus has issued a navigational warning (Navtex) with the precise coordinates within which Ramform Hyperion will operate and called on all vessels to be vigilant within a distance of 10 nautical miles from the Ramform Hyperion.

Contracts with energy companies to be signed next month - FAMAGUSTA GAZETTE

Friday, 17 March, 2017

Cyprus is set to sign on April 5 and 6 contracts with the selected bidders of the third licensing round for explorations in blocks 6, 8 and 10 of its Exclusive Economic Zone, Energy Minister Yiorgos Lakkotrypis announced on Friday.

The three contracts were approved today by the Cabinet.

The body authorised the Minister to sign the contracts with the three companies. “The signing will take place on the 5th and the 6th of April and the details will follow very soon,” Lakkotrypis announced to the press after the meeting of the Cabinet.

Asked whether the contacts differ from those signed with companies in previous licensing rounds, the Minister noted that the contracts were negotiated on March 7, as announced. “Today we had the opportunity to present both the technical and the financial results, as well as the legal (results) of the negotiations, in detail to the Cabinet” he said.

ENI-TOTAL synergy on block “11” the best that could happen, says Executive Director of CHC - FAMAGUSTA GAZETTE / CNA

Thursday, 09 March, 2017

Speaking to CNA, he also said that the synergy between energy companies ENI and TOTAL is the best that could happen to the block `11`.

Executive Director of Cyprus Hydrocarbons Company (CHC) Panos Kelamis said Wednesday that he was very optimistic as to the prospects of Cyprus Exclusive Economic Zone (EEZ), following the successful completion of negotiations for the third licensing round.

Speaking to CNA, he also said that the synergy between energy companies ENI and TOTAL is the best that could happen to the block `11`.

"The prospects are very good," noted the Greek former staff member of Saudi Aramco, referring to the successful completion of negotiations for licensing of blocks "6”, "8” and "10” of the Cyprus EEZ, announced Tuesday by the Minister of Energy George Lakkotrypis. He added that from his background on the exploration he is "too optimistic", but noted that "we should all have patience."

We are committed to be in Cyprus, says ENI Managing Director-General - FAMAGUSTA GAZETTE / CNA

Tuesday, 22 November, 2016

ENI believes there is a sense in investing in Cyprus and it is committed to be here especially at this particular period of time, ENI Cyprus LTD Managing Director Alessandro Barberis has said.

Speaking on Monday during a conference organised by the PRIO Cyprus Centre, in collaboration with the Atlantic Council, the Friedrich-Ebert-Stiftung in Cyprus and Istituto Affari Internazionali and Strata Insight, Barberis said that ENI has a strong presence in this region and especially its activities in Egypt date back to 1954.

He added that after the discovery of Zhor gas field off the coast of Egypt, the position in the country has been reinforced. The finding of Zhor, he pointed out, opened a completely new era that was unknown. Barberis said that the company struggled a lot to find partners in Zhor and ended up drilling it 100% alone, but the risk was well paid by the results, he pointed out.

EP: Development of gas resources in Cyprus should be actively pursued - FAMAGUSTA GAZETTE / CNA

The MEPs call for the prioritisation of gas production in the Mediterranean, Black Sea and Caspian regions, as well as for interconnecting landlocked countries in Central and South-East Europe to these new capacities in order to diversify supply sources in those regions.
FAMAGUSTA GAZETTE CYPRUS•
Tuesday, 25 October, 2016

The development of the domestic conventional gas resources discovered in Cyprus should be actively pursued, a resolution adopted on Tuesday by the European Parliament in its plenary session, in Strasbourg, stresses.

The resolution further notes that new LNG capacity being developed in the Mediterranean could form the basis of an infrastructure hub.

The MEPs call for the prioritisation of gas production in the Mediterranean, Black Sea and Caspian regions, as well as for interconnecting landlocked countries in Central and South-East Europe to these new capacities in order to diversify supply sources in those regions.

Cyprus funding, budget, natural gas, EC and Turkey on agenda of EP plenary - FAMAGUSTA GAZETTE / CNA

Monday, 24 October, 2016

The plenary session of the European Parliament, that convenes this week in Strasbourg, is expected to vote on prolonging top-up in EU funding for projects in Cyprus.

The members of the European Parliament are expected to vote on Tuesday on a special provision whereby the EU would pay up to 85% of project costs in Cyprus until the closure of the 2014-2020 programmes.

They will also vote on plans to prolong a 10% increase in the EU contribution towards project costs in Greece until 30 June of the year following the end of its economic adjustment programme.

Hochstein: US supports Cyprus' rights to develop its offshore natural resources - FAMAGUSTA GAZETTE / CNA

Joe Biden, VP, USA (left), Nicos Anastasiades, President, Cyprus

Monday, 12 September, 2016

US Special Envoy for International Energy Affairs (S/CIEA) Bureau of Energy Resources, Amos Hochstein, has said that the US government firmly supports the rights of the Republic of Cyprus to develop its offshore natural resources.

He was replying to questions during a joint subcommittee hearing by the US House Committee on Foreign Affairs’ Subcommittee on the Middle East and North Africa and the Committee on Science, Space and Technology’s Subcommittee on Energy entitled "Eastern Mediterranean Energy: Challenges and Opportunities for US Regional Priorities”.

Moreover Hochstein expressed his country`s support to the third licensing round for offshore exploration in Cyprus` Exclusive Economic Zone.

Cyprus Energy Minister to address a Natural Gas Europe event in Brussels - FAMAGUSTA GAZETTE

Wednesday, 25 May, 2016

Cyprus Minister of Energy, Commerce, Industry and Tourism, Yiorgos Lakkotrypis departs for Brussels where he will be a key speaker in an event titled “Cyprus: A Key Player in the Eastern Mediterranean Region”organised by Natural Gas Europe on Wednesday.

EU Commission Vice President, Commissioner for the EU Energy Union Maros Sefcovic will also address the event. The event will be attended by high ranking hydrocarbon industry executives, as well as by EU member-state officials.

Turkey slammed for 'provocative move ' over Cyprus drilling - FAMAGUSTA GAZETTE

The new licensing process is not affected by the dialogue for the solution of the Cyprus problem which is under way, since the Republic does not suspend exercising its sovereign rights because of the talks, it adds.

CYPRUS - FAMAGUSTA GAZETTE•Saturday, 26 March, 2016

The Cyprus Ministry of Foreign Affairs has said that Turkey's statement on the new process regarding hydrocarbons' exploration within the Republic's Exclusive Economic Zone (EEZ) is an expression of Ankara`s provocative and destabilising attitude.

Furthermore it stresses that the process is not affected by the UN-led peace talks which are underway to resolve the Cyprus problem and reunite the country, divided since the 1974 Turkish invasion.

BG Group seals deal over 'Aphrodite' gas field share - FAMAGUSTA GAZETTE

US-based Noble Energy remains the main operator of "Aphrodite" with a 35% share, while BG acquires another 35% and Delek Group retains the remaining 30%, split equally between Delek Drilling and Avner Oil.
CYPRUS - FAMAGUSTA GAZETTE•Wednesday, 27 January, 2016

A deal with BG Group for a 35% equity in the "Aphrodite" gas field, offshore Cyprus, is expected to be sealed this afternoon in Nicosia.

According to an official announcement, Energy Minister Yiorgos Lakkotrypis and representatives of Noble Energy International Ltd, Delek Drilling Limited Partnership, Avner Oil Exploration Limited Partnership and BG Cyprus Ltd will sign, at the Ministry, a deal for conferring to the latter a 35% share of their Exploration License at block 12, in the exclusive economic zone of the Republic of Cyprus.

British Gas get green light from Cyprus for exploration | Famagusta Gazette

CYPRUS, Monday, 18 January, 2016

A proposal put forward by Energy Minister Yiorgos Lakkotrypis before the Council of Ministers for participation of British Gas Group for the purpose of hydrocarbons exploration in block 12 within Cyprus` Exclusive Economic Zone (EEZ) has been approved.

The proposal stipulates that American owned Noble will continue to be the main operator in the block with a share of 35% while BG will also hold 35% and Israeli group Delek 30% (Delek Drilling has 15% and Anver Oik 15%.)

In statements after the Cabinet`s meeting Lakkotrypis said that in the coming days certain conditions put before the ministerial body will have to be implemented in order to go ahead with the final signature of the deal.

Energy agenda will be quite extensive in 2016, Minister says | Famagusta Gazette

Yiorgos Lakkotrypis, Cypriot minister in charge of energy

Tuesday, 05 January, 2016

Energy Minister Yiorgos Lakkotrypis has said that the energy agenda will be quite extensive in 2016.

In statements, on Monday, on the sidelines of the Cyprus Organisation for Storage and Management of Oil Stocks (COSMOS) General Meeting, Lakkotrypis referred to “Aphrodite” gas field development plan saying that within the next weeks British Gas (BG) accession into the joint venture for block 12 of Cyprus` Economic Exclusive Zone is expected to be concluded.

He added that there will be several developments as regards the research programme as well. “We hope to have at least another drilling and more research activities by the rest licensed companies,” he added.

Referring to the Trilateral Meeting of Cyprus, Greece and Israel that will take place on January 28, in Nicosia, Lakkotrypis said that its agenda is being drafted by the Presidency of the Republic.

He stressed that “it is very important to promote geo-politically our bilateral, trilateral and probably our quadripartite relations,” he added.

Meanwhile, COSMOS Chairman Stelios Efstratiou, speaking during the General Meeting, said that the organisation`s priority is to establish its own oil terminal in Vassiliko Energy Centre, something which will reduce its costs.

Efstratiou noted that COSMOS has received approvals to implement the first phase of the oil terminal in the Vassiliko Energy Centre, adding that the first phase provides for a total capacity of 210,000 metric tons, the second phase for a total capacity of 270,000 metric tons and the third phase for a total capacity of 330,000 metric tons.

Efstratiou said that COSMOS has applied for a loan from the European Development Plan, which will cover the cost of the project by 50%. The first phase is expected to cost 45 million euros.

On his part, addressing the Meeting, Lakkotrypis noted that the establishment of the terminal is the next major step for COSMOS, noting that the Energy Ministry has allocated COSMOS a plot of land in Vassiliko, an offer which was accepted by its Board and now procedures are under way with a view to design and build the terminal. Moreover he noted that 2015 was a year of intensive developments and important progress for COSMOS.

Efsratiou said that in 2015 COSMOS managed to keep most of its stock in Cyprus. The Organisation has its own reserves stored in Cypus and Greece and leased reserves stored in Cyprus and the Netherlands and reserves of oil companies, the Electricity Authority of Cyprus and the Vassiliko Cement Company. In 2015, 84.3% of the reserves were stored in Cyprus, 5.5% in Greece and 10.2% in the Netherlands.

For 2016, COSMOS maintains reserve reports in Malta, the UK, Finland, Belgium, Italy and the Netherlands, in an effort to reduce costs.
— (KYPE)

SOURCE

Anastasiades and Netanyahu talk prior to Athens meetings | Famagusta Gazette

They also spoke about issues of regional cooperation.

Nicos ANASTASIADES of CYPRUS & Benjamin NETANYAHU of ISRAEL

CYPRUS - FAMAGUSTA GAZETTE • Tuesday, 08 December, 2015

President Anastasiades and Israeli Prime Minister Netanyahu have spoken about their bilateral relations, issues concerning the preparation of the tripartite meeting between Cyprus, Greece and Israel in January, as well as the latest developments of the Cyprus issue.

The two leaders held a phone conversation Tuesday morning.

The two discussed the tripartite meeting between Cyprus, Greece and Egypt that will take place in Athens tomorrow. 

They also spoke about issues of regional cooperation.

— © FAMAGUSTA GAZETTE CYPRUS

Source

Egypt - Israel gas spat does not affect Cyprus, says Minister | Famagusta Gazette

Egypt - Israel gas spat does not affect Cyprus, says Minister

Lakkotrypis said the Egyptian Prime Minister Ibrahim Mahlab called him on Sunday to tell him that Egypt's interest in buying Cypriot gas was unaffected by its row with Israel.

Yiorgos Lakkotrypis, Minister of Energy, CYPRUS (EU)

By Petros Petrides • Tuesday, 08 December, 2015
Egypt has told Cyprus that its decision to freeze negotiations with Israel to purchase natural gas does not affect its intention to buy Cypriot gas, Energy Minister Yiorgos Lakkotrypis said on Monday.

The Egyptian government ordered a freeze on imports of Israeli natural gas after the International Chamber of Commerce ruled that Egypt was liable to pay 1.76 billion U.S. dollars in compensation to Israel's Electric Corporation after it canceled their bilateral gas deal in 2012.

Egypt said the freeze would last until at least after an appeal against the ruling.

Lakkotrypis said the Egyptian Prime Minister Ibrahim Mahlab called him on Sunday to tell him that Egypt's interest in buying Cypriot gas was unaffected by its row with Israel.

"Negotiations on the gas purchase are continuing on a commercial level," Lakkotrypis added.

Meanwhile, the British Gas (BG) Group, which owns a liquefaction plant at Idku, is negotiating with U.S.-based Noble Energy to buy gas from a field it discovered in Cyprus' offshore economic zone.

BG Group has also made an offer to buy a 35-percent share in the field for 186 million dollars, which Noble Energy said contains at least 127 billion cubic meters of gas.

Lakkotrypis said BG's request was currently being processed following its approval by the Cypriot government.

He also said that a planned three-party summit between Egypt, Cyprus and Greece on Dec. 9 in Athens would go ahead as planned.
— (Xinhua)

Source

Energy Minister: Natural gas in Eastern Mediterranean could help EU | Famagusta Gazette

He noted that this amount could significantly contribute towards altering the sources of supply for the EU, which in 2014 consumed 400 bcm of natural gas.

Energy Minister: Natural gas in Eastern Mediterranean could help EU

CYPRUS - FAMAGUSTA GAZETTE•
Friday, 27 November, 2015

In the Eastern Mediterranean, there are currently around 1,600 bcm of natural gas ready for exploitation, Minister of Energy, Yiorgos Lakkotrypis has said.

He noted that this amount could significantly contribute towards altering the sources of supply for the EU, which in 2014 consumed 400 bcm of natural gas.

In an intervention at the EU Energy Council meeting, which took place in Brussels, Lakkotrypis welcomed the acknowledgement by the European Commission in its document on the progress in creating an Energy Union, that the increasing discoveries of natural gas in the Eastern Mediterranean enhanced the ability of the region to contribute to the energy supply of the EU.

In this context, the Minister referred to the excellent cooperation and talks between Cyprus, Greece and the neighbouring third countries, noting the key role of Cyprus, which stands ready to contribute towards further promoting cooperation between the EU and the countries of the region.

Regarding the internal energy market, Lakkotrypis said that energy isolation remains a substantive problem for the regional member states, such as Cyprus, and this fact should be taken into consideration in the projected legislation the Commission will be adopting in the coming year.

The Council focused on progress in creating the Energy Union, the re-engineering of the energy market, and the new regulation on the Energy Labelling of Products. Furthermore, conclusions were adopted on the Governance Mechanism of the Energy Union.

During the working lunch, the Energy Ministers were briefed on the latest preparations for the 21st Paris Climate Conference (COP21), to be held from November 30 to December 11, 2015.

(KYPE/CNA)


Source: http://famagusta-gazette.com/energy-minister-natural-gas-in-eastern-mediterranean-could-help-eu-p31189-69.htm

Cyprus to reassess Exclusive Economic Zone | Famagusta Gazette

As regards the supply of Cypriot gas to the Egyptian market, the Minister noted that his recent visit to Cairo reaffirmed the necessity of Egypt for the Cypriot gas, both for the domestic market as well as for export and said that negotiations continue.

Monday, 09 November, 2015

The Ministry of Energy will proceed with a reassessment of Cyprus` Exclusive Economic Zone, before making any decisions for a third licensing round, Minister of Energy, Commerce, Industry and Tourism Yiorgos Lakkotrypis has said.

Presenting the Ministry`s 2016 budget before the House Committee for Finance, Lakkotrypris said that the discovery of the `Zohr` natural gas field in Egypt`s EEZ has created a new and more positive outlook for the Cypriot EEZ.

Lakkotrypis told MPs that the Ministry of Energy has asked its advisers for a reassessment of the Exclusive Economic Zone, following the discovery of the huge gas field `Zohr` in Egypt`s EEZ, and given the great interest demonstrated by companies which have seismographic data of the Cypriot EEZ.

As regards the supply of Cypriot gas to the Egyptian market, the Minister noted that his recent visit to Cairo reaffirmed the necessity of Egypt for the Cypriot gas, both for the domestic market as well as for export and said that negotiations continue.

Referring to the construction of a gas liquefaction terminal in Cyprus, he said that this is not a choice for now, given the existing quantities of the gas field Aphrodite. But he noted that the terminal could become a necessity in case more quantities are discovered. For now, he said, the only viable option are regional pipelines.

Regarding tourism, the Minister said that since the events in Sharm el-Sheikh, there is now interest for nine new flights per week from Russia to Cyprus, adding that there is also interest from the British market to begin flights in February.

Stressing the need for the tourist season to be extended and cover the period November – March, the Minister said that this year there has been an increase of 18% in tourist arrivals from England and an increase of 35% from Germany.

These positive developments, he said, are due to agreements made with major tour operators, as well as the fall in fuel prices and the exchange rate of the British pound in relation to euro.

The Minister said that according to estimations, tourist arrivals in 2016 from London will top one million.

Lakkotrypis also referred to the government`s plans for a casino, saying that on the 18th of December the procedure for expression of interest will close, while the licensing is expected in August/September 2016.

Regarding exports, he said that an increase of 15% was recorded in the first six months of 2015, despite the Russian embargo.

The Minister also referred to the Renewable Energy Sources, noting that their contribution to energy supply stands at 8,7%, noting that the goal is that it reaches 13%.

SOURCE

Cyprus not too small to play role in european energy market | Famagusta Gazette

Cyprus not too small to play role in european energy market

Amos Hochstein

CYPRUS - FAMAGUSTA GAZETTE • Tuesday, 18 November, 2014

AN OFFICIAL from the US government has said that Cyprus is not too small to play a part in the European Energy Market.

Acting Special Envoy and Coordinator for Energy Affairs at the US State Department Amos Hochstein has said that the best way to commercialize Cyprus` natural gas is by looking at the Eastern Mediterranean as a whole.

"We have to identify a way for taking advantage of existing infrastructure," he said.

Asked if natural gas resources in Cyprus are too small to play any role in the European supply, he replied that "I do not think it is too small”, noting that "we are at the beginning of the process of identifying what the size of the reservoirs of recoverable gas is in Cyprus”.

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Link to source: http://famagusta-gazette.com/cyprus-not-too-small-to-play-role-in-european-energy-market-p26617-69.htm