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.

TotalEnergies and ENI make major gas discovery off the shore of Cyprus - REUTERS / UPSTREAM ONLINE

August 22, 202212:08 PM GMT+3

PARIS, Aug 22 (Reuters) - Energy companies TotalEnergies (TTEF.PA) and ENI (ENI.MI) said they had made a significant gas discovery at the Cronos-1 well, in Block 6, offshore Cyprus.

Cronos-1 probe in Block 6 has found at least 2.5 Tcf of gas in place, with significantly more potential, according to the operator, as per UpStream Online

Cronos-1 encountered several good quality carbonate reservoir intervals and confirmed overall net gas pay of more than 260 meters, said TotalEnergies in a statement.

"This successful exploration well at Cronos-1 is another illustration of the impact of our Exploration strategy which is focused on discovering resources with low technical cost and low carbon emissions, to contribute to energy security including to provide an additional sources of gas supply to Europe," said Kevin McLachlan, Senior Vice President, Exploration at TotalEnergies.

PGS gathering seismic data for Egypt’s West Mediterranean Bid Round in 2019 - ENERGY EGYPT / UPSTREAM ONLINE

JUNE 11, 2018 AT 2:34 PM

PGS to gather seismic data for Egyptian frontier licensing round.

Oslo-listed player to acquire 2D and 3D data in West Mediterranean ahead of licensing exercise.

Oslo-listed Petroleum Geo-Services (PGS) is set to acquire further seismic data off Egypt’s Western Desert this year in preparation for a planned West Mediterranean frontier licensing round.

According to geophysician Matthew Pyett of PGS, the company will collect nearly 14,000 kilometers of 2D data, as well as 7,000 square kilometers of 3D data, reports industry papers. According to Pyett, the West Mediterranean licensing round is set to be launched “sometime next year” and also suggested the licensing exercise could be split into two phases.

EastMed gas disputes could play into Egypt’s favor where European exports are concerned - ENTERPRISE

Sunday, 11 March 2018

Disputes over natural gas reserves in the Eastern Mediterranean could play into Egypt’s favor where exports to Europe are concerned, Yigal Chazan suggests in a piece for the Financial Times (paywall). The competition between Mediterranean neighbors over natural gas could “complicate plans to build pipelines linking producer countries to consumer markets,” he says, arguing that Egypt’s idle liquefaction plants “could offer Cyprus and Israel a cost-effective and secure distribution route to Asia, through the Suez Canal, and Europe.” Egypt’s Dolphinus Holdings has already inked an agreement that will see Egypt receive USD 15 bn-worth of Israeli gas. Cyprus is on its way to singing a similar-style pact with Cairo, which is gearing up to sign an agreement with the EU before mid-2018 that will see it export LNG through its liquefaction plants.

This comes as the Turkey-occupied Turkish enclave of Cyprus threatened to throw fuel to the fire. Its so-called "Foreign Minister" Kudret Ozersay said that they would launch their own exploration efforts if the internationally recognized Cyprus government doesn’t sit down for negotiations, Reuters reports.

On a related note, Egypt will soon be at liberty “to fish for the next giant cache to satisfy its growing domestic appetite” for LNG, with Eni close to finalizing work on Zohr and BP wrapping up its activities in Atoll and the Giza and Fayoum concessions, says Upstream Online.

SDX Energy fully funded for South Disouq exploration - ENERGY EGYPT / UPSTREAM ONLINE

September 6, 2017

Successful equity issue to finance fast-track development and fresh exploration wells at Nile Delta find onshore Egypt.

SDX Energy aims to drill two further exploration wells near its South Disouq discovery onshore Egypt where it is now targeting first gas in the first quarter of 2018 after raising cash in a successful equity issue.

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.

Energean to tender for $500m FPSO - TRADEWINDS / UPSTREAM

FPSO Mystras operating offshore Nigeria

May 8th, 2017 12:56 GMT
Gary Dixon

Greek group wants unit for Karish gas project off Israel.

Greece's Energean Oil & Gas is tendering for a new $500m FPSO.

The company wants the unit for its $1.3bn Karish gas and condensate project off Israel.

The FPSO must be ready by 2020 when the first gas is pumped.

Energean chief executive Mathios Rigas told TradeWinds' sister publication Upstream:

"I think we will be looking to go to the market probably in the summer, towards the start of the third quarter. If we are able to contract yards soon we will get a lot better prices rather than waiting."

SCPX pipeline network on track for completion next year - UPSTREAM ONLINE

6 Apr 2017 09:47 GMT
Kama Mustafayeva

The Azeri and Georgian pipeline network that will feed Shah Deniz gas to the Trans Anatolian Pipeline (Tanap) is likely to be completed next summer, writes Kama Mustafayeva.

The pipeline, known as SCPX, will be ready to receive production from Shah Deniz 2 in late June next year, according to Tanap managing director Saltuk Duzyol. "We plan to make our first gas delivery at the end of June 2018 if everything goes according to schedule. We are keeping costs relatively low," Duzyol said.

About 77% of the so-called "phase zero" of Tanap , which runs from the Turkish-Georgian border to Eskisehir has already been completed.

Wildcats drive East Med to world stage - UPSTREAM ONLINE

30 Mar 2017 10:42 GMT
Iain Esau

Hopes Total's Onesiphoros West-1 probe off Cyprus could match Eni's gaint Zohr find off Egypt

The East Mediterranean's status as a key global gas play could be further enhanced this year if a wildcat to be drilled off Cyprus this year fulfils expectations.

France's Total is preparing to spud the Onesiphoros West-1 probe in Block 11, targeting a huge carbonate prospect that is geologically comparable to Eni’s 30 trillion cubic foot Zohr discovery just across the maritime border in Egypt.

For years the area had been dominated by Egypt’s well-known Nile Delta gas play extending from the swamps into ultra-deep waters.

Post-Zohr reforms to boost appeal - ENERGY EGYPT / UPSTREAM ONLINE

February 11, 2017

With first production from Eni’s giant discovery likely to be less than a year away and other finds on the path to development, the country is taking the chance to revamp and streamline the bidding process.

Egypt’s upstream sector was given a much-­needed boost when Italian operator Eni discovered the ­giant Zohr field in the summer of 2015.

With first production from Zohr now likely to be less than a year away and other significant discoveries also on their way to production, there is a much more optimistic view of the country’s potential, despite the economic and political challenges it still faces.

Now, though, with Eni having attracted new investors to Zohr in the form of UK supermajor BP and Russian state-owned giant Rosneft, plus new acreage having been awarded from outstanding rounds, Egypt is pausing its licensing rounds in both the promising gas-prone Mediterranean Sea and the mature oil-bearing onshore areas.

Players’ healthy interest outside Egypt’s Nile Delta - ENERGY EGYPT / UPSTREAM ONLINE

February 11, 2017

Future upstream licensing in Egypt’s Nile Delta offshore province may be facing a hiatus, but the most recent round to have been completed by state-owned Egyptian General Petroleum Corporation signalled healthy interest by players in other acreages.

Smaller, cash-strapped players were not much in evidence during the 2016 round, covering acreage in the Gulf of Suez and Western Desert, but US player Apache, a stalwart in the latter play, Anglo-Dutch supermajor Shell and its UK counterpart BP all took on acreage.

Apache won the North-West Razzak and South Alam El Shawish blocks in the Western Desert, where it is the dominant oil producer, while in the same region Shell picked up North Umbaraka.

BP took on North-East Ramadan in the mature Gulf of Suez, where it has long been dominant.

One newcomer in the round was US private equity-backed Apex International Energy, which won South-East Meleiha and West Badr El Din in the Western Desert.

Egyptian state gas operator EGAS, on the other hand, missed a bid round last year.

Its most recent tender in 2015, carried out before the Zohr discovery, was regarded as disappointing by some as it saw only four out of the 12 blocks on offer taken up.

However, any disappointment was tempered by the fact that the acreage awarded was taken on by major European companies, including a significant newcomer.

France’s Total made its debut in Egypt by earning a share in the North El Hammad block in partnership with BP and Eni, while the latter two also took on North Ras El Esh and BP went solo at North El Tabya.

The final block, Northeast Hapy, was secured by Edison of Italy.

SOURCE/Upstream Online

DOF lands two contracts in Egypt - ENERGY EGYPT / UPSTREAM ONLINE

February 7, 2017

Norwegian player awarded two contracts with a large international contractor.

Oslo-listed marine services player DOF has been awarded two contracts with a large international contractor in Egypt.

The work, which is expected to start in February, will involve the Skandi Saigon and Skandi Sotra vessels, DOF said on Monday. [Skandi Sotra is a PSV, MT 6000 and Skandi Saigon an AHTS, Vard AH08 design.]

Both contracts have a duration of 75 days and a 30 days options. The value of the deal was not disclosed.