Cyprus missing out on a good gas deal, expert says - CYPRUS MAIL

October 16, 2018

Elias Hazou

Greek oil and gas company Energean, which has offered to pipe gas to Cyprus from its Israeli offshore leases at a highly competitive price, has responded to the energy minister who said the company does not have an export permit from the Israeli government and that therefore its proposal is invalid.

In a press release last Friday, Energean Oil & Gas Plc said it has submitted to the government a proposal “to supply Cyprus with natural gas as of the first quarter of 2021, without the investment cost burdening Cypriot taxpayers, and at a particularly competitive price”.

It added: “The company respects and complies with regulations and the regulatory framework in each country where it operates and, evidently, we have confirmed our capability to supply Cyprus with natural gas on the basis of the already-submitted offer.”

Energean was responding to energy minister, Giorgos Lakkotrypis, who a day earlier appeared to dismiss outright the company’s offer.

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.”

Israel comes to Houston, seeking partners to develop gas reserves - HOUSTON CHRONICLE

Aug. 22, 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. 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, Noble Energy of Houston, 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 here to recruit American and international oil and gas firms to explore Israeli waters in the Eastern Mediterranean Sea. About year after opening an office here, 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.

EGX, Oil Ministry officials begin deliberations over setting up natural gas futures exchange - ENTERPRISE

Tuesday, 7 August 2018

EGX, Oil Ministry officials begin deliberations over setting up natural gas futures exchange: Bourse officials have reportedly started talks with the Oil Ministry to set up a futures exchange for natural gas, banking sources tell Al Mal. Officials met last week to begin discussing their vision for the establishment of energy-oriented futures exchanges, beginning with natural gas, according to the sources, who add that the gas exchange market will be the main platform used for striking gas sale and purchase agreements and determining prices, quantities, and delivery dates. The framework is still in the early drafting stages, the sources said, hinting that we’re still a long way from seeing the market turn into a reality.

Background: The recently-amended Capital Markets Act and its executive regulations included provisions that allow for the establishment of futures exchanges and the introduction of other financial instruments, such as green bonds, sukuk, and margin trading. We had heard in May that Financial Regulatory Authority boss Mohamed Omran had tasked a committee with drafting the rules and regulations that would govern futures exchanges, which are part of a four-year strategy to develop Egypt’s non-banking financial sector. New regulations to govern short-selling are also in the works and expected to be complete by 3Q2018.

Edison stops gas exploration in Israel - GLOBES

6 Aug, 2018 18:47
Amiram Barkat

The market sees the decision as proof that gas exploration in Israel is not attractive due to restrictions on gas exports.

Italian company Edison, owned by a French group, one of the oldest foreign investors in the Israeli gas exploration market, has closed down its activity in Israel in recent weeks. The market is interpreting the decision as proof that gas exploration in Israel is not attractive and that the restrictions on gas exports imposed by the Tzemach Committee should be eliminated. Government sources argue that the company closed its office because of strategy changes, not because of anything involving the Israeli market.

Edison's office, managed by Octavio Viglione, was active in Israel for five years and was closed two months ago. As far as is known, the company is maintaining its connection with Lavi Capital, managed by former Ministry of Finance director general Yarom Ariav, which provided it with consultation services and representation for years. As of now, Edison is continuing its activity in the Royee license in which it is a partner with Israeli partnership Ratio Oil Exploration (1992) LP (TASE:RATI.L).

Natgas market regulator sets fees for private sector’s use of the state grid at USD 0.38 MMBtu - ENTERPRISE (Corrected)

Sunday, 5 August 2018

The Natural Gas Regulatory Authority set on Thursday the fee that private sector players will have to pay to use the state’s national grid to transport gas at USD 0.38 / MMBtu, according to its official website. The rate applies for the first year of the program, suggesting a revision could be in the works after the initial trial period. License fees will be calculated based on the amount of gas transferred and can be settled in EGP. The regulator will be issuing permits for different types of commercial gas market activities, including grid operations and maintenance, supply, distribution, and shipping, with different fees set for each type as follows:

• USD 0.57/MMBtu for transmission licenses;
• USD 0.31/MMBtu for shipping licenses;
• USD 0.23/MMBtu for distribution licenses;
• USD 0.08/MMBtu for supply licenses.

Permit requests must be processed within 10 working days of application and any additional documents required by the regulator must also be submitted within 10 working days. The regulator will then have 45 days to approve or deny the request and fees must be deposited within seven days of that date.

Elections in Turkey and Gas Discoveries in Egypt Bode Ill for Israel’s Natural-Gas Industry - MOSAIC

JULY 13 2018

While the dictates of economics, geography, and technology suggest that Turkey would be the best possible market for the natural gas beneath Israel’s coastal waters, politics dictate otherwise. Recep Tayyip Erdogan, recently reelected to the Turkish presidency, has been hostile to the Jewish state since first coming to power, and is unlikely to be eager to set up a gas pipeline between the two countries. But, write Oded Eran and Elai Rettig, further gas extraction is only worthwhile if the gas can be exported, and it is now unclear whether Egypt, the only viable alternative to Turkey, will be any more receptive:

Egypt issues regulations allowing private sector gas imports - REUTERS

FEBRUARY 13, 2018 / 5:38 PM

Reporting by Momen Saeed Attallah. Writing by Eric Knecht. Editing by Jane Merriman

CAIRO, Feb 13 (Reuters) - Egypt has issued long-awaited executive regulations that will allow the private sector to import natural gas directly, according to a statement from the prime minister’s office on Tuesday.

Egypt’s parliament last year passed a law establishing a gas regulatory authority that the government hopes will attract greater private sector participation in the country’s rapidly expanding gas sector.

The executive regulations issued on Tuesday make this law active.

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.

Pipeline Puzzle: Who Will Consume Israel’s Natural Gas? - THE ALGEMEINER

DECEMBER 26, 2017 12:04 PM
Alex Traiman /JNS.org

By 2019, Israel’s large Leviathan natural gas field is expected to transform a once resource-poor developing economy into a major energy exporter. Yet for a politically-isolated Jewish state — in a region of oil-rich Arab nations that have often sought Israel’s destruction — finding viable consumers of Israeli natural gas is proving both difficult and expensive.

Parliament approves extending SUMED work for 27 years - DAILY NEWS EGYPT

November 20, 2017 

Mohamed Farag

Company executes oil projects with investments of $415m

The Energy and Environment Committee of the House of Representatives, headed by MP Talaat Al-Suwaidi, approved on Sunday a draft law of the government to extend the term of the Arab Petroleum Pipelines Company (SUMED).

Hisham Lutfi, representative of the Ministry of Petroleum, said that the company has established a port for liquefied natural gas vessels in Ain Sokhna, in the context of maintaining relations with investors.

During the meeting, Al-Suwaidi said that under the proposed draft law, SUMED’s terms are lengthened by 27 years, starting from the end of the term in Law No. 10 for 1992.

Eni's Giant Gas Field Prompts Egypt to End Imports in 2018 - BLOOMBERG

November 15, 2017, 9:52 AM GMT+2Salma El Wardany — With assistance by Hussein Slim, Fatma Abusief, and Tracy Alloway

• Zohr field will start production at 350,000 cubic feet a day
• New gas laws to be adopted in days: Oil Minister El-Molla

Egypt's El-Molla on Zohr Gas Field, Attracting Investors

Egypt will stop importing liquefied natural gas in 2018 and may eventually export gas after it starts producing this year at the giant Eni SpA-operated Zohr field off the country’s Mediterranean coast, Oil Minister Tarek El-Molla said.

Zohr’s output will mostly supply the domestic market, and the nation’s two existing gas-liquefaction facilities are large enough to process any available surplus into LNG for international sale in 2019, El-Molla said Tuesday in an interview in Abu Dhabi. If Zohr and other gas fields generate enough supplies, Egypt may consider adding a third LNG-exporting terminal, he said.

Expanding Israeli Corruption Probe Batters Energy Shares - BLOOMBERG

September 10, 2017, 5:17 PM GMT+3
David Wainer, Yaacov Benmeleh

• Probe could widen beyond investigation of submarine purchases
• Delek, Israel’s largest gas company, falls 4.3 percent

Israeli gas company shares plunged on Sunday after a news report suggested that police investigators scrutinizing the purchase of submarines may expand their probe to the gas industry.

Delek Group Ltd., Ratio Oil Exploration 1992 LP and Isramco Negev 2 LP were all sharply down in Tel Aviv after Channel 2 reported on Friday that police may begin to question politicians in connection with decisions regarding the energy sector.

Reasons why companies choose Cyprus - CYPRUS MAIL

A section of the VTTI fuel terminal at Vasiliko

SEPTEMBER 6TH, 2017

Michael Theodoulou

The number and range of companies choosing to locate their regional or global headquarters in Cyprus have risen steadily in recent years. The trend is set to continue because of growing demands from global regulators that companies have a physical presence and substance in the country where they are registered – and both are easily established in Cyprus.

It came as no surprise that Cyprus’ location played a leading part in their decision. In one direction, the island is the eastern gateway into the EU’s market of 500 million people. In the other, it provides an ideal springboard into the evolving markets of the Middle East and Asia and enjoys excellent relations with the oil and gas-rich Gulf states.

Cyprus’ location also means that it enjoys business-friendly time zones. Companies can do business with the East in the morning, Europe throughout the day and with the West in the afternoon.

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.

Two Israeli natural gas fields to start pumping in 2020 - TIMES OF ISRAEL / AFP

Part of a platform being taken from the coast of Israel toward
the Tamar gas field (courtesy Noble Energy)

August 8, 2017, 5:11 pm

Energy minister says development of Karish and Tanin deposits will lead to increased competition, lower gas prices

The Energy Ministry officially presented its plan Tuesday for developing the Karish and Tanin natural gas fields, which sit alongside the larger Tamar and Leviathan deposits in Israel’s economic waters in the Mediterranean.

The development plan “shows [Israel’s ability] to keep to the schedule” of development,” Energy Minister Yuval Steinitz said in a statement. Once the new fields are operational, “competition will increase and prices… will fall.”

The plan calls for Karish, or “shark,” to be developed first, followed by Tanin, or “crocodile,” if there is sufficient demand in the Israeli market.

EU rule on government payments: implications for oil & gas industry - CYPRUS MAIL / PwC

Cyprus' president, Nicos Anastasiades

June 19, 2017

An estimated 3.5 billion people live in countries endowed with oil, gas and mineral reserves. Despite the fact that the citizens of these countries are the legal owners of the natural resources, in many cases governments have hindered the efficient exploitation of such resources resulting in unequal wealth distribution, poverty and lack of sustainable economic development. Evidence suggests that this occurs mainly in under-developed countries, with high level corruption and lack of transparency considered among the main factors culpable.

There are a number of examples of nations with a long history of poor governance and corruption where, despite significant hydrocarbon discoveries and initial hope for long term development, an almost total economic collapse was experienced. Per capita income dropped to half of what it was before the hydrocarbons were discovered and only a fraction of total oil & gas revenues accruing to the government was transferred to the budget, with the majority not properly accounted for.

Few takers for Israel's new gas exploration tenders - GLOBES

11 May, 2017 10:30
Nati Yefet

Burdensome regulation, limited export opportunities and geopolitical isolation mean there is scant interest in the licenses on offer.

The Ministry of National Infrastructure, Energy, and Water Resources' tender is likely to yield meager results, even though the deadline for participating in it was postponed from April until July. According to various energy market sources, three to five companies are expected to take part in the tender, even though it involves 24 marine blocks, and despite the grandiose declarations issued when the tender was announced last November. The Association of Oil and Gas Exploration Industries in Israel termed the tender a "historic decision," and Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz has since repeated at every opportunity his intention of turning Israel into a "regional natural gas power."

New natural gas regulator to fall under cabinet’s jurisdiction, not Oil Ministry - ENTERPRISE / AL BORSA

Sunday, 19 March 2017

The House of Representatives’ Energy Committee amended clauses of the Natural Gas Act placing the new market regulator under the jurisdiction of the cabinet and not the oil ministry, committee member El Sayed Hegazy tells Al Borsa. 

He expects the committee to vote on the much-anticipated law — which deregulates the gas market and limiting the government’s role to that of regulator — next week before sending it over to the House general assembly for a vote.

MEDREG calls for integrated, competitive Mediterranean gas market - NEW EUROPE

MARCH 14, 2017, 23:38 
By New Europe Online/KG

One of the priorities of the Maltese EU Presidency will be to draw attention on the region
The implementation of a stable regulatory framework is a prerequisite to attract investors and ensure energy security of supply, Turkish energy regulator (EMRA) Vice President and MEDREG representative Mehmet Erturktold a seminar in the European Parliament in Brussels on March 8.

He mentioned MEDREG report mapping out current and projected gas and electricity infrastructures in the Mediterranean basin, identifying the main barriers for investments and drawing a set of recommendations to overcome them. A survey submitted to Mediterranean regulators has revealed that the lack of clear institutional framework and regulatory obstacles constitute some of the biggest barriers to investments, Erturk said.