Turkey’s Rise Sparks New Friendship Between Israel and Greece - THE WALL STREET JOURNAL

B.Netanyahu (L), N.Anastasiades (C), A.Tsipras, May 2018,Cyprus

July 21, 2018 7:00 a.m. ETYaroslav Trofimov

Greece’s leftist Syriza party ditches its antagonism toward Israel and cooperates with Netanyahu’s government as Ankara asserts power in region

ATHENS—It’s hard to find a better example of how geopolitical realities trump ideology than the blossoming friendship between Israel and Greece.

As the leader of Greece’s leftist Syriza party before gaining office in 2015, Prime Minister Alexis Tsipras called to expel Israel’s ambassador and close Greek ports to U.S. arms shipments heading to Israel.

Syriza’s leftist allies in Europe still demonize Israeli Prime Minister Benjamin Netanyahu and his right-wing government. Many of them back the boycott, sanctions and disinvestment campaign against Israel.

Not Mr. Tsipras—who intensified cooperation with Israel instead. The leaders of Israel, Greece and Cyprus are holding regular trilateral summits—the fourth was in May—and the Israeli air force uses Greek airspace for training. The three countries, plus Egypt, are jointly developing the eastern Mediterranean’s natural-gas reserves.

The key reason for all this: Turkey.

Egypt’s USD 15 bn gas import agreement unlocked East Med to E&P majors - ENTERPRISE

Wednesday, 14 March 2018

Egypt’s Dolphinus Holding’s USD 15 bn agreement to import gas from Israel could have unlocked the East Mediterranean gas field for oil and gas majors who have long eyed the fields, according to the Wall Street Journal (paywall). “ExxonMobil, Shell, Total and others are planning to invest in exports and exploration in the Eastern Mediterranean. Their prospects were buoyed by a landmark contract last month between U.S., Israeli and Egyptian firms that breathed new life into the regional market.” Eni, which discovered Zohr, is trying to get in on Lebanon, while ExxonMobil is looking to be the latest entrant. As we noted on Monday, Shell is reportedly nearing a USD 25 bn agreement to bring gas from Israel and Cyprus to its liquefaction plants in Egypt. This comes despite political and hurdles that have traditionally kept these companies away from the region, with Turkey’s harassment of Cyprus and Lebanon-Israel disputes over areas being the latest of these. The piece somehow draws the connection between these discoveries and US diplomatic efforts to help bring regional powers, especially Israel and Egypt together.

Mediterranean Gas Bounty Suddenly Seems Within Big Oil’s Reach - THE WALL STREET JOURNAL

March 13, 2018 5:23 p.m. ET
Rory Jones in Tel Aviv,Sarah Kent in London and Bradley Olson in Houston

Activity follows years of work by U.S. diplomats to harmonize economies of once-hostile nations such as Israel, Egypt and Jordan

Big oil companies are pushing into Mediterranean waters off Israel, Lebanon and Egypt after years of U.S. diplomacy helped break open a political logjam around giant Middle Eastern natural-gas discoveries.

Exxon Mobil Corp. XOM -0.94% , Royal Dutch Shell RDS.B -0.81% PLC,Total SA TOT 0.33% of France and others are planning to invest in exports and exploration in the Eastern Mediterranean. Their prospects were buoyed by a landmark contract last month between U.S., Israeli and Egyptian firms that breathed new life into the regional market.

Shell is in talks with investors in natural-gas fields off Israel and Cyprus to supply its Egyptian liquefaction facility, according to people familiar with the matter. If the deal advances, it would allow Israel to quickly export some of the extensive reserves of natural gas found in the Mediterranean Sea west of Haifa.

Italy’s Eni E 0.59% SpA and Total last month announced a new discovery off Cyprus. The two oil giants are also working together to explore in disputed waters off Lebanon. Exxon, too, is set to explore nearby.

OPEC’s ‘Problem Children’ Are Holding Down Oil Prices - THE WALL STREET JOURNAL

Monthly crude-oil production, percentage above or below October 2016 levels

Sept. 22, 2017 12:33 p.m. ET

Benoit Faucon and Summer Said

Rising output in strife-torn Libya and Nigeria is threatening the cartel’s bid to cut off oil supplies and balance the market
VIENNA—The Organization of the Petroleum Exporting Countries is scrambling to contain output from its strife-torn members Libya and Nigeria, where surging production could threaten to derail the oil cartel’s efforts to withhold crude supply and raise its price.

Libya and Nigeria were exempt from OPEC’s agreement last year to join with Russia and other producers to cut about 2% of the world’s oil production. The countries’ oil industries at the time were crippled by civil unrest and weren’t expected to recover soon.

Both have since struck deals with militants, allowing the spigots to be turned on again.

Libya Halts Relaunch of Oil Production at Western Fields - WALL STREET JOURNAL

Dec. 18, 2016 2:19 p.m.
BENOIT FAUCON and HASSAN MORAJEA

Opposition from local militia led to risk of a blockade, oil official says

Libya’s National Oil Co. has for now stopped the relaunch of production at oil fields in the country’s west, Libyan officials said Sunday, after a militia threatened to block the petroleum from reaching the market.

The aborted restart is a blow for Libya’s oil industry, which has been counting on the country’s big western fields to kick-start its comeback. A pipeline that can transport over 400,000 barrels a day from two western fields had partly reopened on Wednesday, but efforts to send that oil to coastal ports are now off, oil officials said.

Oil traders are closely watching Libyan output. The country is a member of the Organization of the Petroleum Exporting Countries, but it was exempted from the cartel’s recent deal to cut production because its output has been disrupted in recent years, falling to less than 300,000 barrels a day at times this year, compared with its height of over 1.6 million barrels a day during dictator Moammar Gadhafi’s reign.

Greece Will Not Sell Stake of Natural-Gas Operator to Azeri Firm Socar - WALL STREET JOURNAL

George Stathakis, Greek minister of energy and environment

Nov. 30, 2016 3:53 p.m. ETNEKTARIA STAMOULI
ATHENS—Greece said Wednesday it had failed to reach an agreement with Azerbaijan’s state energy company, Socar, to sell a 66% stake in Greek natural-gas operator Desfa, creating another obstacle in the country’s efforts to reach the privatization targets dictated by its bailout agreement.

The Azeri company proposed reducing the price of its investment, whose initial amount was €400 million. The proposal “was legally unfeasible and would cancel the tender,” a statement from Greece’s Energy Ministry said.

“The Greek government will decide on how it will re-launch the tender next week after consultation with its international creditors,” an energy ministry official said.

Israel Supreme Court Rules Against Offshore-Gas Deal - THE WALL STREET JOURNAL

Deal to be suspended for one year; government required to amend terms

By ORR HIRSCHAUGE and RORY JONES

March 27, 2016

TEL AVIV—Israel’s Supreme Court on Sunday ruled against a landmark deal to develop and export the country’s offshore gas reserves, a major setback for Prime Minister Benjamin Netanyahu, who campaigned for it.

The panel of judges called the deal unconstitutional, citing a clause in its framework that gave energy companies pricing and regulatory stability for 10 years regardless of potential shifts in the government. The main stakeholders in the fields, U.S.-based Noble Energy Inc. and Israeli partner Delek Group Ltd, had argued that the stability clause was required for them to make the investments necessary to develop the fields.

Natural Gas Suppliers Consider Suspending Egypt Contracts - THE WALL STREET JOURNAL

The headquarters of state-run Egyptian Natural Gas Holding Company in
Cairo, Egypt, as photographed in 2012. PHOTO: KHALED ELFIQI/
EUROPEAN PRESS PHOTO AGENCY

By MIRIAM MALEK, Updated Jan. 22, 2016
All companies with active Egas supply positions affected by payment delays, two suppliers say

LONDON—Egyptian state-owned natural gas company Egas has missed payment deadlines for liquefied natural gas, as the country struggles to build up foreign reserves after blows to its tourism industry over the past year.

Two suppliers to Egas have confirmed to The Wall Street Journal that all companies with active supply positions in Egypt have been affected by payment delays.

An Israeli Gas Pipeline to Turkey? Bad Idea | National Review

December 20, 2015
DANIEL PIPES

News that the Turkish and Israeli governments are about to renew full diplomatic relations after years of tensions causes me to smile cynically — and to worry again about Israeli gullibility. 

The two states enjoyed close relations in the 1990s, when a common world outlook led to a strong military bond, growing trade, and exchanges of people and culture. Writing in 1997, I characterized this bilateral as having “the potential to alter the strategic map of the Middle East, to reshape American alliances there, and to reduce Israel’s regional isolation.” 

Israeli Gas Field Owners Eye $2 Bln in Bonds to Finance Leviathan Project | Wall Street Journal

11:14 am ET
Apr 29, 2014

Israeli Gas Field Owners Eye $2 Bln in Bonds to Finance Leviathan Project

By

• Joshua Mitnick

Israel has yet to ink any deals to export its offshore natural gas finds to countries overseas, but the local owners of the giant Leviathan field are hoping Israeli, U.S., and European bond investors will help finance the project to the tune of $2 billion.

According to a press release late Monday, Leviathan partners Delek Drilling and Avner Oil and GasAVOGF 0.00% — which partnered with Houston-based Noble Energy Ltd.NBL +0.08% in the gas find — have started a road show to sell dollar-denominated bonds to investors in Israel, the U.S., and Europe over the coming weeks.

The two companies have formed a separate firm “Delek and Avner Ltd.” under which the bonds will be sold.
“Once completed, this will be the biggest capital raise [sic] held by an Israeli company,” the statement said.

The stock exchange notice cautioned, however, there is no certainty that the offering will be a success.
Still, the sum reflects bullish expectations for the export potential of the Leviathan reserves. Noble Chief Executive Charles Davidson said  after the company reported first-quarter results on April 24 that the consortium was close to a regional export agreement, but didn’t say with whom, the Israeli business daily Globes reported.

A 127-page report on the natural gas market included with the Monday bourse statement said the prospects that Israeli off-shore gas will reach overseas markets are “significantly’’ more than 50 percent, or “highly likely.’’

In the dossier, prepared by Israeli consultancy Economic Models’ Ltd., on top of the 875 billion cubic meters of expected demand for natural gas from the Israeli, Palestinian and Jordanian markets over the next 26 years there’s potential to export an additional 370 billion cubic meters over the same period
Leviathan, discovered in 2010, has 19 trillion cubic feet, or 538 billion cubic meters, of proven reserves and is the largest off shore natural gas find in the Mediterranean. The discovery left Israel with a surplus of domestic gas reserves and spurred export talks.

The partners already signed deals to supply the Palestinian territories and Jordan, but export potential via Egypt, Cyprus or Turkey is much larger. The Economic Models report said that underutilized liquefied gas facilities in Egypt hold an “economically attractive immediate outlet for Israel’s gas export.’’

Gideon Tadmor, chairman of Delek Drilling and chief executive of Avner, said at a natural gas conference in March that Israeli natural gas exports to neighboring countries have the potential to stabilize the region.
The announcement of the bond sale comes a month after negotiations to sell a stake valued at some $2.6 billion to Australia’s Woodside Petroleum Ltd.WPL.AU -0.49% hit a snag hours before a signing ceremony in Jerusalem over a tax dispute with the Israeli government.

Noble Chief Executive Charles Davidson told investors, that even though he wants Woodside to join, “we and our existing partners are moving forward and we are starting to take steps to make sure we can deliver on this project,’’ according to the Sydney Morning Herald.

The bond roadshow will be led by investment banks JP Morgan, Citi and HSBC., and accompanied by the Israeli underwriter Leader Capital Markets.


Link to source: http://blogs.wsj.com/middleeast/2014/04/29/israeli-gas-field-owners-eye-2-bln-in-bonds-to-finance-leviathan-project/

Woodside output rises, but no Leviathan deal yet | Wall Street Journal

April 16, 2014, 8:26 p.m. EDT

Woodside output rises, but no Leviathan deal yet

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By Ross Kelly

SYDNEY--Woodside Petroleum Ltd. (WPL.AU), reporting a 16% rise in first-quarter production, said it continues to be frustrated in its efforts to finalize a deal to buy part of a giant natural gas discovery offshore Israel.

Woodside said it remains in talks with the Israeli government and partners in the Leviathan gas field, which include Noble Energy Inc. and Delek Drilling LP, after a March 27 deadline to seal a revised deal slipped.

The negotiations have already dragged on for more than a year, adding to investor worries about Woodside's ability to continue growing in its oil and natural gas production in the longer term. Last year, Woodside and partners including Royal Dutch Shell PLC (RDSB) delayed a decision on the multibillion-dollar Browse gas-export project offshore Western Australia state by at least two years.

In February, Woodside agreed to reduce its planned stake in Leviathan to 25% from an earlier plan struck in late 2012 to take a 30% stake.

"Discussions continue with the parties and the Israeli government with a view to resolving the remaining issues and executing definitive agreements," Woodside said.

Talks were drawn out last year as the Israeli government drew up a policy for gas exports. It finally approved the export of up to 40% of Leviathan's reserves in the middle of last year, with the rest earmarked for domestic supply.

The update on Leviathan came as Woodside--Australia's second-biggest oil company by production behind BHP Billiton Ltd. (BHP.AU) -- said revenue for the three months through March rose to US$1.68 billion. The increase was driven largely by its Vincent oil project offshore Western Australia coming back online after repairs last year.

Also on Thursday, Australian oil company Santos Ltd. (STO.AU) said its first-quarter revenue rose by 28% to 913 million Australian dollars (US$856 million), despite lower production, due to higher oil sales.

Write to Ross Kelly at ross.kelly@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires 

Link to source: http://www.marketwatch.com/story/woodside-output-rises-but-no-leviathan-deal-yet-2014-04-16

Link to source:

Ukraine Crisis Has East Med Energy Executives Bullish | Wall Street Journal

9:17 am
Mar 12, 2014

Ukraine Crisis Has East Med Energy Executives Bullish

By Joshua Mitnick
Ripples from the Ukraine crisis are being felt in the eastern Mediterranean, as energy executives in the region say they anticipate heightened demand for Israel’s off-shore gas reserves as Europe looks for ways to reduce dependence on Russia.

The stand-off over Ukraine offers a new “new opportunity’’ for energy companies in the region because it shifts the spotlight to recently discovered resources in the Levantine basin as way to help Europe diversify supply, said Gideon Tadmor on Tuesday, the chairman of Delek Drilling, an Israeli partner in a exploration consortium with Houston’s Nobel Energy that made two major Israeli discoveries in recent years and is searching for gas in economic waters belonging to Cyprus.

“This could transform our story into a global one,’’ said Mr. Tadmor, whose consortium has discovered nearly 40 trillion cubic feet of gas in recent years.

Similar expectations exist in Cyprus which plans to build a liquefied natural gas facility to export energy reserves from both Israel and the hoped-for future finds off the shore of the island nation. Amid talk of the U.S. beefing up natural gas exports to Europe, Mediterranean energy companies believe they might also have a strong pitch for potential customers.

“That’s exactly what we are saying,’’ said Nasos Kyriakides, an energy lawyer from Cyprus on the sidelines of a conference in Tel Aviv. “This is what we are trying to promote.’’

Still, before the Israeli gas can reach overseas markets like Europe there are still many hurdles to be overcome, including finalizing local regulations on energy producers and putting in place the necessary infrastructure to transmit the reserves to foreign countries.

Charles Davidson, the CEO of Noble Energy, said that even though his company is bullish on the potential for more reserves to be discovered in the region, foreign companies won’t invest in projects if Israel’s government doesn’t give them “certainty’’ that regulatory policy will not be overhauled periodically. Mr. Davidson said he expects to reach an agreement to bring Woodside Petroleum of Australia into the consortium in “very short time.’’

Mr. Tadmor told the conference that he considers geopolitics to be the most formidable obstacle in the way of exporting Israeli gas, in reference to Israeli tensions with Turkey and Egypt.
While Turkish importers and energy officials are very keen on a potential supply deal to slake that country’s energy demands and to ship through a pipeline to Europe, Israeli and Turkish administrations haven’t reached a reconciliation deal over the 2010 killing of Turkish nationals on a ship that challenged Israel’s maritime blockade on the Gaza Strip.

And even though Egypt, which has under-utilized liquefied natural gas plants, could serve as a transit hub where Israeli gas would be converted to LNG for shipment to customers outside the region, such an agreement would face strong anti-Israeli sentiment among the public.

Despite those complications – Israel and Egypt have already seen one natural gas deal collapse — Mr. Tadmor insisted that natural gas deals would eventually create economic interdependence in the region, helping to strengthen ties between regional neighbors.

“The gas not only brings huge economic benefits to this country but it also becomes a big bridge and a stabilizing factor,’’ he explained.



Link to source: http://blogs.wsj.com/middleeast/2014/03/12/ukraine-crisis-has-east-med-energy-executives-bullish/