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.

Turkey slammed for 'provocative move ' over Cyprus drilling - FAMAGUSTA GAZETTE

The new licensing process is not affected by the dialogue for the solution of the Cyprus problem which is under way, since the Republic does not suspend exercising its sovereign rights because of the talks, it adds.

CYPRUS - FAMAGUSTA GAZETTE•Saturday, 26 March, 2016

The Cyprus Ministry of Foreign Affairs has said that Turkey's statement on the new process regarding hydrocarbons' exploration within the Republic's Exclusive Economic Zone (EEZ) is an expression of Ankara`s provocative and destabilising attitude.

Furthermore it stresses that the process is not affected by the UN-led peace talks which are underway to resolve the Cyprus problem and reunite the country, divided since the 1974 Turkish invasion.

Cyprus Declares Third Offshore Round - NATURAL GAS EUROPE

March 24th, 2016

Cyprus formally declared a third offshore licensing round for hydrocarbon exploration in its exclusive economic zone (EEZ) March 24.

This calls for bids to be submitted by 21 June. It appears that the intention is to award licenses for blocks 6, 8 and 10. The choice of these blocks is based on the results from total re-evaluation of the energy potential of Cyprus EEZ following the discovery of the giant Zohr gas field.

The key criteria to be used in the evaluation of bids and award of licenses are:

Shell's talks with Cairo hit choppy waters - NATURAL GAS EUROPE

March 24th, 2016

Royal Dutch Shell and the Egyptian government have been at pains to downplay reports this week that talks on developing the West Delta Deep Marine (WDDM) concession 9B have reached an impasse. This comes as Italy's Eni is gearing up to develop an even bigger offshore gas field, Zohr.

Daily News Egypt reported that BG, now part of Shell, had demanded a price of $7/mn Btu from the government for gas to be produced at 9B, whereas the latter had agreed to pay $5.88. Its March 22 report cited a source close to the talks who said that Shell would only resume negotiations if the government gave into its price demand or else immediately paid $1bn back dues owed to BG. If Cairo agreed, the $7 could be negotiated downward once back dues were paid, the source added.

Official launch of 3rd Exploration Licensing Round - TWITTER ACCOUNT OF CYPRIOT MINISTER

Official launch of 3rd Exploration Licensing Round in Cyprus' Exclusive Economic Zone (EEZ). 

Available blocks 6, 8, 10.

Eni’s Zohr sale causes concern for Cairo - INTERFAX

By Rachel Williamson 24 March 2016

Italy’s Eni has indicated it is looking to sell down its stake in its giant Zohr field in Egypt, a scenario that is causing concern among Egyptian stakeholders.

Eni Chief Executive Claudio Descalzi said on a conference call last week that Zohr was among assets the company was considering targeting for disposal. He said Eni had had to change its strategy for Zohr as the requirement to bring the start of production forward to 2017 had resulted in extra upfront capex costs in the form of another onshore processing facility.

Medserv results exceed targets by 38% - TIMES OF MALTA

Thursday, March 24, 2016, 00:01

Medserv has reported a profit before tax of €6 million representing an increase of 38 per cent over forecast. Reported group revenue for the year was €42.2 million.

The group said that its performance in 2015 was attributed to a number of factors, including the strong business flow conducted out of Malta in support of the ongoing operations offshore Libya, and to the performance of Medserv (Cyprus) Ltd which continues to service ENI out of the company’s shore base in Larnaca. Finally, engineering and maintenance services continued to grow in 2015.

As the global oil and gas sector continues to suffer from the effect of oversupply of oil to the market, the company has refocused and moved ahead with its investment plans to ensure it can continue to be of service to its growing list of blue chip customers in the Mediterranean and beyond.

Egypt: Oil ministry rebuffs reports on BG spat - OFFSHORE ENERGY TODAY

23 March 2016

BG Egypt, a subsidiary of BG Group, a UK company recently taken over by Shell, has reportedly stopped work on some Mediterranean Sea projects, offshore Egypt.

According to a Reuters report on Tuesday, which cited an official at the Egyptian General Petroleum Corp (EGPC), the company couldn’t reach a deal with the Egyptian government on the price of gas. He reportedly said that BG Egypt had abandoned “work at 9A+ and 9B” project and removed the drilling rigs earlier this month.

Offshore Energy Today has reached out to Shell, given that the Anglo/Dutch oil giant now owns assets previously controlled by BG Group.

TAP gas pipeline to go ahead despite low oil prices - executive - REUTERS

Tue Mar 22, 2016

Construction of the Trans-Adriatic Pipeline (TAP) to take gas from Azerbaijan to Europe will go ahead despite low oil prices, but costs will be in sharp focus, a senior executive for TAP said on Tuesday.

The 870-km (540-mile) pipeline, which will link Azerbaijan's Shah Deniz II field with Italy, crossing through Georgia, Turkey, Greece, Albania and the Adriatic Sea, is the largest project to bring new supplies to European consumers.

Asked about the impact of plunging oil prices on the project, TAP's country manager for Greece, Rikard Scoufias, told an energy conference in Athens: "The project will not have an impact in terms of challenging the realisation of TAP in any way."

"The financial investment decision has already been taken," he said. "But it does put an additional emphasis on cost management."

BG Egypt halts some development wells over price dispute -source

Tue Mar 22, 2016, By Ehab Farouk

BG Egypt has suspended work at some Egyptian development projects after it failed to agree with the government on the price of gas, an Egyptian General Petroleum Corp (EGPC) official told Reuters on Tuesday.

"BG has stopped work at 9A+ and 9B after failure to reach an agreement on the fixed price to be paid for extracted gas, and it withdrew rigs working on the 9A+ wells on the seventh of March," the EGPC official said.

Egypt's Ministry of Petroleum denied BG Egypt had stopped development as a result of price disagreements and said in a statement that "negotiations over timelines for the projects" are ongoing.

The development areas include several deepwater wells in the West Nile Delta.

Turkey hits historic gas consumption record in Jan. - ANADOLU AGENCY

Turkey's monthly natural gas consumption reached historic high at 5.78 bcm in Jan. 2016, Turkish Energy Watchdog says

22.03.2016 ANKARA

Turkey's monthly natural gas consumption reached a historic record high at 5.78 billion cubic meters (bcm) in January 2016, according to data from Turkish Energy Watchdog.

In January 2016, 5.78 bcm of natural gas was consumed, Turkish Energy Market Regulatory Authority, EMRA, announced on Tuesday in its monthly natural gas report for January.

The new monthly record is 5.7 percent higher than the previous highest consumption which was seen in January 2015 with 5.47 bcm.

Turkey's daily highest consumption was also seen in January 2016 with a consumption rate of 235 million cubic meters of gas, Turkey's Energy Ministry had announced in February 2016

Egypt signs 5-year oil agreement with Saudi Arabia - AHRAM ONLINE

Monday 21 Mar 2016

A $1.5 billion deal was signed at the fifth Egyptian-Saudi cooperation council meeting in Riyadh to fund Sinai's development. (Photo Courtesy of the Ministry of International Cooperation.)

Egypt signed an agreement with Saudi Arabia, under which the North African nation will meet its needs of oil products for five years, Egyptian international cooperation ministry stated on its website on Sunday.

The signing is part of the fifth meeting of the Egyptian-Saudi coordination council held in Riyadh and chaired by Egyptian minister of international cooperation Sahar Nasr.

In January, Saudi Arabia pledged $20 billion worth of petroleum products to Egypt over five years with facilitated payments.

Russian interest in East Med and Cyprus gas - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 20/03/2016

In a week that saw Russia pulling some of its armed forces out of Syria and signs of increasing cooperation between Russia and the US in the region, it is important to examine Russian interest in energy, and particularly gas, in the wider East Med and Cyprus.

Many in the past tried to explain this interest on the basis of Russia protecting its global energy interests and particularly its dominance of the EU gas market. However, the contention that Russia’s involvement in Syria is driven by natural gas interests may be far-fetched.

Russia’s deep involvement in Syria, and cooperation with the US, has changed the East Med regional reality, redirecting the bloody conflict from a dead end to another path.

These issues are examined in this article.

Four companies apply to import natural gas - DAILY NEWS EGYPT

Mohamed Adel March 19, 2016
EGAS is studying their credentials, official says

Number of factories owners decided to cease operations until a recent decision to increase the price of mazut and natural gas was rescinded. (AFP Photo)

The Egyptian Natural Gas Holding Company (EGAS) has received applications from four companies seeking to import natural gas to supply to the domestic market through the national grid.

An EGAS source told Daily News Egypt that the holding company is negotiating with the four companies to provide them with the necessary data in order to give them the initial approval until the law regulating gas imports is issued.

Cyprus’s geology similar to Zohr area – minister - INTERFAX

By Verity Ratcliffe 18 March 2016 

Cypriot Energy Minister Yiorgos Lakkotrypis is optimistic about his country’s third licensing round. (PA) Cypriot Energy Minister Yiorgos Lakkotrypis is optimistic about his country’s third licensing round. (PA)

Cyprus’s imminent third licensing round will offer offshore acreage with similar geology to the area in which Egypt’s Zohr field was discovered, according to Yiorgos Lakkotrypis, Cyprus’s energy minister.

Lakkotrypis spoke to Natural Gas Daily about the country’s energy potential, developing the Aphrodite field and routes to market for Cypriot gas.

Russian interests to dictate Israel-Turkey deals - NATURAL GAS EUROPE

Israel President Reuven Rivlin (left) with the Russian President
Vladimir Putin in Moscow 

March 17th, 2016

Israel and Russia are about to agree upon a modus operandi in the East Mediterranean concerning weapons and natural gas deals, several Israeli media reports indicate. According to various assessments, the bottom line of such an agreement would be that Israel will not sell natural gas to Turkey and, in return, Russia won't supply S-300 anti-aircraft missiles and other advanced weapon systems to Iran and other regional enemies of Israel.

The basis for the agreement all started about six months ago when, in a surprise move, Russia deployed about 50 jet fighters, helicopters, and ground forces to a Syrian air base in the northwest of the country. It was the first time in a generation that the Israeli Air Force had to confront an adversary as formidable as the Russian air force, and worse, Israel's interests were threatened by the might of the Russian state on its borders.

Energy Ministry says EU keen on receiving Israeli natural gas - JERUSALEM POST

By MICHELLE MALKA GROSSMAN \ 03/17/2016

The National Infrastructure, Energy and Water Ministry said on Wednesday said that the European Union is interested in receiving natural gas from Israel.

According to a statement issued by the ministry, National Infrastructure, Energy and Water Minister Yuval Steinitz met with EU Ambassador to Israel Lars Faaborg-Andersen on Wednesday in order to “be updated on the time line regarding the development of gas reservoirs and the possibility of exporting natural gas from Israel to Europe.”

3D Seismic Programme on South Disouq, Egypt - SDX ENERGY

LONDON, March 16, 2016 /CNW/ - SDX Energy Inc. (“SDX”) (TSX VENTURE: SDX) is pleased to provide an update on its activities at its South Disouq asset located onshore Nile Delta Egypt.

Further to the announcement on 10 November 2015, regarding the signing of contract for the seismic acquisition of 300km2 of 3D data on the South Disouq concession (SDX 55% WI), the Company announces that the programme has commenced.

The seismic acquisition programme is expected to take approximately three months after which a 3-4 month period of processing and interpretation will be undertaken. The data obtained through this programme will be used to determine the prospectivity on the block followed by the selection of a location for a high impact exploration well forecast to be drilled in Q4 2016.

Noble CEO says next step is to line up customers - CYPRUS MAIL

 

MARCH 16TH, 2016 STAFF REPORTER

Noble Energy CEO David Stover said on Wednesday, the company’s main next steps would be its marketing effort to identify potential customers for the gas from the Aphrodite field.

“I think that is one of the key things that we are focused on, so that can support the development economics of the project,” Stover said after a meeting with President Nicos Anastasiades in Nicosia.

Asked if Noble had a timetable, Stover said the timing would depend on having the customers lined up, and then negotiations with the customers.

US Politicians, Noble Meet Israeli Ministers ahead of Stability Ruling - NATURAL GAS EUROPE

March 15th, 2016

Noble Energy CEO David Stover and senior company executives visited Israel’s energy minister Yuval Steinitz and prime minister Benjamin Netanyahu on March 14 to chivvy things along with the Leviathan field development.

He arrived a few days before the High Court of Justice is due to release its decision on the petitions objecting the natural gas regulatory framework, but the ministry said that was a coincidence.

In a statement the ministry said Stover presented Steinitz with the timetable and data in an effort to accelerate the development of the Leviathan reservoir." The ministry said the visit had been planned in advance and had no connection to the legal process.

"Noble's executives have reassured [us] that despite the turmoil in the global energy markets it will be possible to complete the development of Leviathan in accordance with the framework's timetables and even to shorten the duration," the spokeswoman said. "Steinitz said that the Israeli government is committed to the gas framework and the ministry will act to solve the bureaucratic processes in order to enable the gas field development in an orderly manner."

Circle gets respite from Egypt Woes - NATURAL GAS AFRICA

March 15th, 2016

Circle Oil, the London-based independent with modest North Africa oil and gas production, last month blamed its tight cash flow and financial pressure on the ongoing “uncertainty and irregularity of US dollar receipts" from state-owned Egyptian General Petroleum Corporation (EGPC).

On March 15, however, it had some positive news. Negotiations with the World Bank’s International Finance Corporation (IFC) on suspending a redetermination by December 2015 of its Reserve Based Lending had been postponed, said Circle, “until 15 April 2016, with any repayments required under the RBL facility, which is currently drawn to $57.5 million, being postponed until that date.”

IFC had further, said Circle, indicated its willingness to consider further waivers as may be required while the company’s strategic review, led by the UK bank Investec, continues. Options for that include sale of one or more assets, a merger, raising fresh capital, or an outright sale of Circle.

Turkey and Ukraine find common ground on gas - INTERFAX

Turkish President Erdogan, left, and Ukrainian President
Poroshenko at the summit in Ankara last week. (PA)

By Joshua Posaner and Staff reporter 14 March 2016

 Turkish President Erdogan, left, and Ukrainian President Poroshenko at the summit in Ankara last week. (PA) Turkish President Erdogan, left, and Ukrainian President Poroshenko at the summit in Ankara last week. (PA)

Turkey and Ukraine signalled a closer alliance on energy last week, but analysts say market realities are likely to restrict short-term cooperation when it comes to gas.

The leaders of the two countries took part in a bilateral summit in the Turkish capital late last week. One key suggestion from Ukraine’s President Petro Poroshenko was for Turkey to use his country’s gas storage facilities as a means of boosting national supply security.

"Poroshenko and [Turkish Prime Minister Ahmet] Davutoglu agreed to establish closer cooperation on issues relating to joint participation in developing energy infrastructure and international energy corridors," Ukraine’s presidential media service said following the talks.

Global LNG market and Europe - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 13/03/2016

LNG

The global liquefied natural gas (LNG) market is going through difficult times due to the glut of LNG coming into the market and the slow increase in demand. If it sounds similar to the oil story it is, because there is a linkage and there are similarities.

Some say that the LNG business will not make money for a long time to come. When many of the projects coming now on-stream were sanctioned, gas in Japan was above $16 per million British thermal units (mmBTU) and in Europe it was above $13/mmBTU. Now prices in Europe have gone down to $4/mmBTU. This has profound implications on gas trading globally and in Europe and plans to develop and export Eastern Mediterranean gas.

Petroleum marine services provider PMS wins 4 bids in Egypt - AMWAL ALGHAD / ZAWYA

By Mahmoud Shaaban, 13 March 2016

Egypt-based Petroleum Marine Services Company (PMS) won executing four large projects including the expansion project of the third basin in Ain Sukhna port for Armed Forces Engineering Authority.

Chairman El-Sayed El-Badawi stated Sunday that PMS is to execute the developmental project of platform Amal C for PICO International Petroleum (PIP), Egypt's largest private sector oil and gas company.

The third project is establishing shipping services for propylene and polypropylene for the Egyptian Propylene and Polypropylene Company (EPPC).

El-Badawi stated that PMS also won the developmental project of HH and NAO fields of the General Petroleum Company (GPC).

Oil pipeline agreement with Iraq, Jordan should be implemented: former minister - EGYPT INDEPENDENT

Sat, 12/03/2016, Al-Masry Al-Youm

Former Petroleum Minister Osama Kamal has praised plans to build a two-way oil pipeline linking Egypt to Iraq via Jordan, carrying high-quality Iraqi crude to Egypt's refineries.

During an interview on al-Ghad television news channel on Thursday evening, Kamal said that the project, which is still under discussion, would give Egypt access to Iraqi crude, which is among the best in the world.

Late last year, a memorandum of understanding was signed between Iraq, Egypt and Jordan to construct the pipeline, and further discussions were held on Thursday between the oil ministers of the three nations.

The deal would include pumping 1 million barrels per month of Iraqi crude oil through the pipeline, according to Kamal. He pointed out that Iraq's crude oil production is up to 5 million barrels a month, most of which is exported.

Israel-Jordan gas pipeline to begin operating in 2017 - THE JERUSALEM POST / GLOBES

By HEDY COHEN/GLOBES, 03/11/2016

Israel Natural Gas Lines CEO Samuel Tordjman says pipeline in Dead Sea area will be operational next year.

The first natural gas pipeline to Jordan is scheduled to begin operating in 2017, Israel Natural Gas Lines CEO Samuel Tordjman announced Thursday. The pipeline, currently being constructed in the Sdom area by the Dead Sea, will supply gas from the Tamar reservoir to private customers in Jordan. A second pipeline to be built in the Beit Shean area is due to supply gas from the Leviathan reservoir to the Jordanian National Electric Power Company (NEPCO).

In February, the Tamar partners signed a letter of intent with private customers in Jordan to supply 1.8 BCM over 10 years. In September 2014, the Leviathan partners also signed a letter of intent to supply 45 BCM of gas to NEPCO over 15 years; the value of the contract is estimated at over $15 billion. The discussions of the gas plan in Israel, however, which have been taking place for a year, have stalled the negotiations between the two countries.

Eni succeeds with the first production test of Zohr field - ENI

10/03/2016

Eni successfully performed the production test of Zohr 2X, first appraisal well of Zohr discovery, which is estimated in a deliverability of up to 250 MMScfd in production configuration.

San Donato Milanese (Mi), 10 March 2016 - Eni successfully performed the production test of Zohr 2X, first appraisal well of Zohr discovery, in the Shorouk block, offshore Egypt.

During the test, 120 m of the reservoir were opened to production. The well, constrained by surface facilities, delivered up to 44 million standard cubic feet of gas per day (MMscfd). The comprehensive set of data collected and analyzed have proved that the well has a great production capacity, which is estimated in a deliverability of up to 250 MMScfd in production configuration (about 46 thousand barrel of oil equivalent per day).

Beware False Hopes in the East Med - NATURAL GAS EUROPE

March 09th, 2016

The Eastern Mediterranean contains a cluster of proven gas fields that are capable of contributing significantly to both national and regional energy security. But there is a very real danger that the peoples of all three countries that have so far discovered gas in their waters -- Egypt, Israel and Cyprus -- may suffer from false expectations.

In Israel, there is a need to explain the paradox that export-led development is necessary if the giant Leviathan field is to be harnessed for domestic use as well; in Egypt, it concerns the government's desire to eliminate domestic price subsidies at the same time as the country's biggest gas discovery is due to come on stream; in Cyprus, it's about the contrast between finding a relatively modest field, Aphrodite, and officially-raised hopes that Cyprus may be able to replicate discoveries on the scale of Egypt's Zohr or Israel's Leviathan and the role this could play in furthering a settlement to the island's 40-year-old partition.

Orascom Construction signs $20m contract for West Nile Delta gas project - DAILY NEWS EGYPT / ENERGY EGYPT

March 9, 2016

National Steel Fabrication, a subsidiary of Orascom Construction (OC), was awarded a $20m contract to manufacture and supply structural steel for the West Nile Delta gas development project.

“We [OC] are also pleased to receive a large order to fabricate and supply the steel structure for an important gas development in Egypt, and look forward to further participating in this sector through our construction group and NSF,” he added.

In January, the company signed contracts to covert two power plants, in Assiut and West Damietta, from simple cycle to combined cycle.

The capacity factor of the Assiut power plant is 1,000 MW, while West Damietta’s capacity factor is 500 MW. Converting the plants will increase their combined capacity factor by 50%, to reach 2,250 MW. OC stands to earn a reported $420m in the deal.

Egypt SUMED Pipeline Yet to Accept Iran Oil After Sanctions - BLOOMBERG / ENERGY EGYPT

March 8, 2016

Egypt and Gulf Arab crude producers have yet to let Saudi Arabia’s regional rival Iran resume oil shipments through a pipeline they operate to supply customers in Europe and the Mediterranean Sea region, more than a month after international sanctions against Iran were lifted.

Arab Petroleum Pipelines Co., which operates the link known as SUMED, is still reviewing terms of the agreement that removed sanctions on Iran in January, according to a company official. The operator is seeking to ensure Iran complies with sanctions regulations before resuming oil shipments halted since August 2012, said the official, who asked not to be identified, citing company policy.

Egyptian General Petroleum Corp. owns 50 percent of SUMED, which connects the Red Sea with the Mediterranean. State-run Saudi Arabian Oil Co., known as Aramco, owns 15 percent of the link; International Petroleum Investment Co. of the United Arab Emirates, 15 percent; three Kuwaiti companies, 15 percent; and Qatar Petroleum, 5 percent, according to SUMED’s official website.

Hopes of Larnaca port vote dashed as irate councillors walk out of meeting - CYPRUS MAIL

MARCH 8TH, 2016 Andria Kades

Larnaca mayor Andreas Louroutziatis extended an invitation to ENI, Noble and Total to operate out of the city’s port on Monday night, flying in the face of AKEL, DIKO, EDEK and Citizens Alliance councillors who stormed out of the session after the council failed to reach a decision to vote.

Louroutziatis and DISY councillors pleaded with them not to, asking them to stay and discuss the company requests.

The marathon meeting, which wrapped up shortly before midnight was punctuated by fighting and shouting matches, between councillors themselves, but also the loud yells of logistics company MedServ employees. According to state radio, workers joined forces with the Nicosia Chamber of Commerce in a bid to force decision makers to approve an extension which would allowing the logistics company offering support services to energy giants to stay in Larnaca.

Egypt’s Ethydco finishes 97% of its $1.9bn ethylene complex - ENERGY EGYPT / THOMSON REUTERS ZAWYA

March 7, 2016

Egyptian Ethylene and Derivatives Company (Ethydco) has finished 97.2 percent of its petrochemicals complex, Chairman Abd El-Rahman Zeid announced Saturday. The total investment cost of the project is estimated at US$1.9 billion.

He made these remarks in his speech during the visit of Petroleum Minister Tarek El-Molla’s visit to the complex.

The complex encompass four projects: a project for producing ethylene with the capacity of 460,000 tonnes per year and another project for producing polyethylene with the capacity of 400,000 tonnes annually.

The complex also includes a project for producing butadiene with the capacity of 20,000 tonnes annually and other project for to produce 26,000 tonnes of butadiene derivatives per year.

Egypt's EGAS makes first LNG payments for year -sources - REUTERS

Mon Mar 7, 2016

• First payments since terms extended to 90 days-sources
• Traders estimate EGAS owes $1 billion to LNG suppliers

By Sarah McFarlane and Oleg Vukmanovic

LONDON/MILAN, March 7 Egypt's state-owned EGAS has made its first payments to liquefied natural gas (LNG) suppliers since payment terms for deliveries were extended, trade sources said.

Egypt imports around six to eight cargoes of LNG per month and traders said that until last week EGAS had not paid suppliers since December when it extended payment terms to 90 days from the usual 15 days, due to the country's foreign currency crisis.

EGAS head Khaled Abdel Badie told Reuters his company has made all payments that were due on LNG shipments but did not specify whether these were the first payments this year.

Zohr status confusion - IN CYPRUS / CYPRUS WEEKLY

05/03/2016

Remarks by the Energy Minister, George Lakkotrypis at an energy conference in Nicosia this week have sparked confusion about the status of the massive natural gas find in the Zohr field close to the Cyprus Exclusive Economic Zone (EEZ) but on the Egyptian side.

In August 2015, ENI made a mammoth natural gas find off Egypt’s coast, which was a game-changer in the industry but also renewed interest for the Eastern Mediterranean region.

The gas find is estimated at 30 trillion cubic feet (tcf) or 850 billion cubic metres, compared with around 4.7 tcf estimated for Cyprus’ Aphrodite field in Block 12.

Last Friday the Italian energy company ENI said that the Zohr find was “a single and continuous mega tank of natural gas, fully comprised in the Egyptian Exclusive Economic Zone (EEZ) and within the Shorouk Block”.

The Old Jewish Joke That Explains Israel's Dangerous Dithering on Natural Gas - HAARETZ

According to the opposition, whatever happens with the government's deal with the gas companies is bad. But any delay may cost Israel billions.

Nehemia Shtrasler Mar 04, 2016

A Polish woman decided to buy a present for her son-in-law. She bought him two ties, one red and one blue. One evening, she invited her daughter and son-in-law over for dinner, and the son-in-law, who wanted to make his mother-in-law happy, decided to wear the blue tie. But when she opened the door, the mother-in-law took one glance and complained, “I see you didn’t like the red tie.”

It’s the same story with the government’s deal with the natural-gas companies: Whatever happens with it is bad, according to the opposition. If Egypt found gas and no longer needs Israel, it’s proof the agreement is a bad one. But if Turkey, Greece and Cyprus are interested in buying Israeli gas that’s bad too, because we won’t have enough for ourselves.

Few outcomes in Cyprus-Greece-Israel trilateral summit - EXECUTIVE MAGAZINE

March 4, 2016 - Mona Sukkarieh

Despite being labeled “historic,” the trilateral summit held in Nicosia on January 28 among Cyprus President Nicos Anastasiades, Israeli Prime Minister Benjamin Netanyahu and Greek Prime Minister Alexis Tsipras did not yield concrete results. The 2013 Memorandum of Understanding (MoU) between Cyprus, Greece and Israel formally established the three countries’ will to strengthen energy cooperation and protect important infrastructure. The MoU also included a joint declaration of intent to lay an undersea electric cable linking Israel, Cyprus and Greece (Crete). But political wishes have yet to translate into actual projects. And on that front, the trilateral summit did not make significant advances.

In Nicosia, the three leaders reiterated their “readiness to further explore projects such as the EastMed Pipeline”. The carefully worded statement rules out any commitment, not surprising given the question marks that surround the project, even before a feasibility study is completed. Given the technical challenges, the project carries an exorbitant price tag, which makes its commercial viability doubtful in current conditions.

EU Clears Greek Subsidy for TAP - NATURAL GAS EUROPE

March 03rd, 2016

The European Commission on March 3 said it has found the Host Government Agreement between the Greek authorities and the Trans Adriatic Pipeline (TAP) to be in line with EU state aid rules.

"Today's decision opens the way for a multi-billion infrastructure project in Greece,” said EU competition commissioner Margrethe Vestager. TAP will invest €5.6bn over five years, of which €2.3bn will be in Greece. With an initial capacity of 10bn m³/yr, TAP will flow gas from the Shah Deniz II field in Azerbaijan to Italy starting 2020 and is a EU ‘project of common interest’ (PCI).

TAP CEO Ian Bradshaw said earlier this week that construction will start in late May or early June in Greece near Thessaloniki.

Israeli gov't to allow gas exports from Leviathan to Gaza - GLOBES

03/03/2016, 17:36
Hedy Cohen

The Ministry of National Infrastructure, Energy and Water Resources has authorized the sale of 0.25-0.4 BCM a year.

After almost seven years of attempts by the Palestinian Authority (PA) to import natural gas to the Gaza Strip, it appears that it is really happening. Sources inform "Globes" that intensive secret negotiations between Israel and the PA, led by the Quartet on the Middle East, have taken place in recent weeks for the supply of gas from the Leviathan reservoir to the Gaza Strip power station. The Israel Security Cabinet has agreed in principle to the measure, and the Ministry of National Infrastructure, Energy and Water Resources authorized the Leviathan partners several days ago to conduct negotiations. The Quartet announced that it was willing to pay for a gas pipeline to be laid by Israel up to the border.

Eratosthenes seamount Carbonate Play offers new prospects to Oil & Gas exploration - Twitter

March 2, 2016 - This map was tweeted by Cypriot Energy Minister Yiorgos Lakkotrypis. Concession blocks 2 (ENI-Kogas), 6, 7, 9 (ENI-Kogas), 10, 11 (Total) and 12 (Noble Energy, BG Group, Delek Group, Avner Exploration) appear to be made up of the same stuff as the giant 30 tcf Zohr discovery in Egypt's EEZ by ENI. Cyprus recently announced a 3rd Licensing Round.

The minister's tweet follows:

Georgios Lakkotrypis ‏@GLakkotrypis (around 16:00) Cyprus
Eratosthenes seamount Carbonate Play offers new prospects to Oil & Gas exploration in #Cyprus EEZ & #EastMed region.

Egypt doubles production of gas in Q2 of 2017: Prime Minister - DAILY NEWS EGYPT

Petroleum Minister Sherif Ismail (DNE Photo)

EGP 164bn for public investments, EGP 700bn to pay for the debt service, wages, subsidies in all forms

Mohamed Ayyad, 2 March 2016

According to Prime Minister Sherif Ismail, Egypt aims to double its current production of natural gas the second quarter (Q2) of 2017, driven by recent confirmed discoveries.

Eni Company has made discoveries of gas reserves of up to 15bn cubic metres of gas and condensates in the Delta region.

During a meeting Tuesday with members of 10 Ramadan Investors Association, Ismail stressed that this increase will contribute to augmenting the development processes in all areas, especially industrial expansion, according to a cabinet statement.

GE Oil & Gas ready to help Cyprus develop energy sector, executive says - BUSINESS MAIL / CYPRUS MAIL

MARCH 1, 2016

By Stelios Orphanides

GE Oil & Gas, a specialist in the natural gas technology, is in position to help Cyprus develop its natural gas and export it no matter which solution authorities will chose, a company executive said.

“Whether the option is pipeline, floating production storage and offloading, liquid natural gas, small-scale liquefied natural gas, floating liquefied natural gas, GE can provide the right solution that will meet specific requirements,” Bill R. Alashqar, managing director, US Independents, GE Oil & Gas and board member who also sits in the Cyprus Oil and Gas Association board, said in an interview on Tuesday.

Bill Alashqar “As the world will continue to need energy demand will continue to grow,” Alashqar said, adding that his company sees new possibilities in Cyprus and other eastern Mediterranean countries “in this volatile climate”.

Egypt signs military cooperation agreement with Cyprus - AHRAM ONLINE

Egypt's Defence Minister Sedki Sobhi (right) and his
Cypriot counterpart Christophoros Fokaides

Ahram Online , Tuesday 1 Mar 2016

Egypt's defence minister Sedki Sobhi and his Cypriot counterpart Christophoros Fokaides signed a joint military cooperation agreement Monday in Cairo, an Egyptian army spokesman said.

Sobhi and Fokaides, who is the first Cypriot defence minister to visit Egypt, also discussed previously signed memoranda of understanding for cooperation in defence, military trainings, and exchange of expertise, Brigadier General Mohamed Samir said in a statement.

Genel drops by a record after slashing Kurdistan’s Taq Taq reserves - WORLD OIL / BLOOMBERG

By RAKTEEM KATAKEY on 2/29/2016

LONDON (Bloomberg) -- Genel Energy Plc, a UK oil producer operating in Iraq’s Kurdish region, fell by a record in London trading after cutting the reserves estimate for its largest field by almost half.

Genel dropped as much as 25% on Monday, the biggest decline since the stock started to trade in June 2011, and was down 23% at 95.75 pence as of 9 a.m. local time.

The company reduced its estimate for gross recoverable proven and probable, or 2P, reserves at the Taq Taq deposit to 356 MMbbl from 683 MMbbl as of mid-2011 and will take a $1 billion charge, it said in a statement. Genel owns a 44% stake in the field.

Turkey backs Southern Gas Corridor project: Energy Min. - ANADOLU AGENCY

Berat Albayrak

Turkey will support Southern Gas Corridor project politically, financially and technically: Turkey's Energy Minister

29.02.2016
BAKU, Azerbaijan

Turkey's Energy and Natural Resources Minister declared the country's support for the Southern Gas corridor on Monday to carry Caucasian natural gas to Europe via Turkey.

During his visit to the second Southern Gas Corridor Advisory Council Meeting, which started in Baku on Feb. 29, Berat Albayrak said that Turkey will support the Southern Gas Corridor concept financially, technically and politically to ensure the country's supply security.

Israel-Turkey rapprochement - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 28/02/2016

Last December, soon after the downing of a Russian jet, and a bad year for Turkey, a flurry of diplomatic activity started with Israel aiming to restore full diplomatic ties with Ankara.

After years of false starts, Israeli and Turkish negotiators went to Geneva two weeks ago for talks aimed at ending this long-running conflict.

A consequence of Turkey’s confrontation with Russia is a threat to its gas supplies, which are heavily dependent on imports from Russia.

Turkey needs friends in its neighbourhood, but it also needs to secure alternative supplies of gas. Israel needs to export its gas, but it also needs friends to contain Iran’s increasing influence in the region. Any gas from Israel to Turkey has to go through Cyprus’ EEZ, putting Cyprus in the middle.

ENI says Zohr gas is all on Egypt’s side - IN CYPRUS / CYPRUS WEEKLY

28/02/2016

Cypriot hopes that the some of ENI’s massive natural gas find offshore Egypt last August might have crossed into the Cyprus Exclusive Economic Zone (EEZ) were dashed on Friday when the Italian oil and gas major made it clear that the gas was all on the Egyptian side.

“The comprehensive formation evaluation program confirmed the same gas-water contact and connection with the discovery well showing Zohr as a single and continuous mega tank of natural gas, fully comprised in the Egyptian Exclusive Economic Zone (EEZ) and within the Shorouk Block,” said ENI, referring to the results of the first Zohr appraisal well.

ENI said that the appraisal well had “excellent reservoir characteristics” with 305 metres ‘net pay’ – a measure of volume.

ENAP Sipetrol to complete $22m Western Desert pipeline next June - ENERGY EGYPT / AL BORSA NEWS

February 28, 2016

Chilean ENAP Sipetrol, the foreign JV partner in Egyptian Petroleum Sector subsidiary Petroshahd, plans to complete the construction of a 90 km pipeline in the Western Desert by next June at a cost of $22 million.

Eng. Sayed Rezk, ENAP Sipetrol’s General Manager, said that the company has completed 80% of the pipeline’s construction work, with the remaining work to be completed by next June according to the agreement with Qarun Company.

Eng. Rezk added that ENAP Sipetrol will start a development program of gas fields during the year with an initial investment of $15 million and to be increased later on through cooperation with Kuwait Energy Company. Eng. Rezk that the company plans to inject new investments worth $80 million through the end of next year to participate in gas fields development projects.

Israel Looks to Mediterranean Gas as Stabilizing Force in the Region - FORBES

FEB 28, 2016, Christopher Coats

Israel’s minister of infrastructure, energy and water, Yuval Steinitz promoted the idea of Eastern Mediterranean natural gas a stabilizing force in the region this past week, in remarks made at the IHS Energy CERAWeek in Houston.

The minister suggested that natural gas produced in the region and a functioning transport infrastructure could ease regional tension by providing ample energy resources to all those countries in need of it.

“I think it might serve stability at least in part of the Middle East,” said Steinitz.

Southern Gas Corridor remains priority for EU - TREND NEWS AGENCY

Baku, Azerbaijan, Feb. 27, 2016
By Elena Kosolapova

The Southern Gas Corridor project remains a priority for the European Union, a European Commission energy spokeswoman told New Europe.

“The immediate priority for the region remains the completion of the Southern Gas Corridor, including TANAP, the Greece-Italy Trans-Adriatic Pipeline and the Greece-Bulgaria IGB interconnector,” said the spokeswoman.

She noted that the Southern Corridor is successfully being put in place to supply gas from Azerbaijan to the EU by 2020.

The corridor also offers the potential, in the future, to facilitate the entry of other gas sources into the EU from the Eastern Mediterranean, the Caspian, and the Middle East, according to the spokeswoman.

The Southern Gas Corridor takes precedence over an agreement signed by Russia’s Gazprom, Italy’s Edison and Greece’s DEPA on February 24 to develop a natural gas pipeline between Greece and Italy to transport Russian gas to Europe, the EC spokeswoman added.

Subsea 7 awarded contract offshore Egypt - SUBSEA 7

Luxembourg - 26 February, 2016 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) announced today the award of a major(1) contract by BP, and partner DEA (Deutsche Erdoel AG), for the development of the Giza, Fayoum and Raven subsea fields offshore Alexandria, Egypt.

This is the second phase of the West Nile Delta project, where the field development will be at depths of up to approximately 800 metres.

The contract scope includes engineering, procurement, installation and pre-commissioning of the subsea infrastructure from twelve wells, with 80 kilometres of umbilicals and 220 kilometres of pipelines. It also includes the installation of the export lines from the subsea location to the Idku terminal.

Engineering and project management work will commence immediately and will be undertaken at Subsea 7's Global Projects Centre in London. Offshore installation is scheduled to commence in two stages.