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.

Energean's challenges in Israel's upstream - NATURAL GAS EUROPE

August 18th, 2016
Ya'acov Zalel

For Greek E&P company Energean, the $148.5mn acquisition of Karish and Tanin from Delek Group, is a big bet and a strategic turning point.

Energean is a small upstream company with operator's capabilities and no ambitions to become a global player in the energy sector. Its efforts are concentrated in Greece, the Balkans, Egypt and now in Israel's Karish and Tanin gas fields, the biggest undertaking in its history. Energean will be allowed to sell its Israeli output only in the Israeli market.The two fields together hold 60 bn m³ which are valued at about $10bn at a price of $5.00/mn Btu.

Energean’s point man and representative in Tel Aviv is Shaul Zemach, formerly the general manager of the energy ministry and famous for heading the Zemach Committee, which set gas export quotas.

With the acquisition of Karish and Tanin, Energean has undertaken its biggest ever challenge: a development of deep water natural gas resources. Energean has never carried out such a technically complicated and challenging project. However, as in any project of this kind the quality of the project is dependent also on the contractors' capabilities and experience. So Energean will have to choose experienced and trusted contractors.

A Short History of the Regulatory Natural Gas Framework in Israel | Natural Gas Europe

December 24th, 2015

Last week Israeli Prime Minister Benjamin Netanyahu signed Article 52 to the Israeli anti-trust law, enacting an article that enables the government to abolish competition in the Israeli natural gas market in order to improve Israel's energy security, security, and foreign relations interests. In doing so Mr. Netanyahu set a precedent; it was the first time Article 52 was enacted since the law was passed.

In recent times, the regulatory framework, known in Hebrew as the Mitveh Hagaz, became the most talked about topic in Israel. In certain circles of the Israeli public, mainly in the civil society, the framework has provoked outrage. For the last few weeks, rallies and demonstration have been held against its implementation in many cities and town around the country. The organisers, including NGOs and civil associations, tried to distance themselves from any political affiliation and identification. Politicians, although a few of them attended rallies and supported the framework's opponents, were not allowed to address the public from the podiums.

Israeli gas in a wider regional context: interview with Shaul Zemach - NATURAL GAS EUROPE

September 14th, 2015

Natural Gas Europe had the pleasure to speak again with Shaul Zemach, Former Director General of Israel's Ministry of Energy and Water Resources. We spoke about how ENI’s discovery off Egypt is a game changer. “With two Majors substantially investing in the Egyptian offshore gas targets it would be reasonable to anticipate results in new discoveries. The amazement was due to the scale of the discovery at Zohr field, given its location and interesting geological structure.” At the same time, according to Zemach, the Zohr discovery could “modify certain terms and conditions of future regional gas supply contracts, including gas prices and contracts duration.”
Among specialists, the announcement of ENI’s giant discovery offshore Egypt has casted doubts over Israel’s attractiveness as a natural gas supplier for Egypt. For instance, consultancy WoodMackenzie wrote that Eni's giant discovery is set to transform Egypt's gas outlook. On the other hand, Egyptian authorities confirmed their interest for Israeli gas at least in the short-run. What should we think?