Egypt, Cyprus agree in to build natural gas pipeline, connect electricity grids - ENTERPRISE

Sisi, Anastasiades, Tsipras, Nicosia, 21 Nov 2017

Tuesday, 21 November 2017

Egypt and Cyprus agreed to begin talks in December on a natural gas pipelineconnecting the two countries, Xinhua reports, citing Cypriot state radio. The new connection will use an existing pipeline connecting “depleted Egyptian gas fields to liquefaction plants at Idku and Damietta.” Egypt will also be inking an agreement with Greece, Cyprus, and Italy in early December over an EU-sponsored gas pipeline connecting eastern Mediterranean fields to Italy via Cyprus and Greece, according to the radio report. “These gas discoveries can contribute to the European continent’s search for alternative energy sources, taking advantage of the position of Egypt and Cyprus,” President Abdel Fattah El-Sisi said after talks with his Cypriot counterpart President Nicos Anastasiades in Cyprus yesterday, the Associated Press reports.

The Electricity Ministry is also conducting a feasibility study on linking the electricity grids of Egypt, Cyprus and Greece, chairman of the Egyptian Electricity Holding Company (EEHC) Gaber El Desouki said on Monday. He added that the project (in the same vein as the Egypt-Saudi electricity grid interconnection project) would become part of a larger power linkage project between Europe and Africa, the local press reports.

Petroceltic Sells Egyptian Licenses to Edison - RIGZONE

by Rigzone Staff|Thursday, February 18, 2016

Petroceltic International plc has completed the sale of the North Thekah, North Port Fouad and South Idku exploration licenses in Egypt to its joint venture partner Edison International S.p.A, for a cash consideration of $9.5 million.

Following government approvals and the waiver of pre-emption rights held by the Egyptian Natural Gas Holding Company, the transaction has now formally completed and funds have been received. The company first announced that it had reached an agreement to sell the licenses to Edison in December last year.

Commenting on the transaction, Petroceltic Chief Executive Brian O’Cathain said in a company statement:

“This sale continues our strategic initiative, announced in early 2015, to focus the company on the Ain Tsila development in Algeria.”

Petroceltic moves to restructure Mediterranean footprint | Forbes

December 31, 2015, Christopher Coats

The sustained decline of global oil prices is forcing one company to reassess their position in the Eastern Mediterranean, despite strong potential in neighboring projects.

According to media reports, Petroceltic has initiated a “strategic review” of its operations and assets to address looming debt payments in the New Year.

Specifically, this includes efforts in Egypt and Greece in hopes of dealing with the more than $200 million in debt it currently faces.

For the company’s presence in Egypt, this means the sale of its interests in the North Thekah, North Port Fouad and the onshore South Idku licenses to joint partner Edison International.

According to a company statement, the “transaction remains subject to the receipt of Government approvals and the waiver of pre-emption rights held by the Egyptian Natural Gas Holding Company (“EGAS”) and is expected to complete in the first quarter of 2016. The sale of these interests will reduce Petroceltic’s exploration expenditure obligations in 2016 by approximately US$20 million. Petroceltic expects to record a loss of approximately $1.5 million on this transaction and the proceeds of the sale will be applied to repayment of debt.”

The exit comes at a time when Egypt’s natural gas fortunes appear to be improving after several years of declining output and mounting debt. Earlier this year, Italy’s Eni announced the discovery of a “super giant” offshore well that some have argued could reshape the region’s energy landscape.

According to a Bloomberg report on the discovery, Eni outlined a potential “super giant” field that could potentially be home to 30 trillion cubic feet of gas, making it the biggest find in the Mediterranean. The discovery was initially thought to provide significant momentum to regional energy development, especially among those operating in Egypt.

However, that push may have come too late for Petroceltic as the company looks for lucrative means to exiting the country to address its debt obligations.

For the company’s efforts in Greece, this means taking leave from its interest in the Patraikos license in the Gulf of Patra.

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