Leviathan agreement opponents won't admit mistake - GLOBES

1 Mar, 2017 13:50
Amiram Barkat

Noble Energy's final investment decision (FID) disproves theories that the company has no intention of developing the field.

"The interest of the Leviathan owners is not to develop the reservoir, because they want to get as much money as possible out of Tamar. There won't be anything, because there is nothing. It's nothing but PR. The state should nationalize Leviathan and bring it back to state management, and put an end to this farce, in which Noble Energy and (Delek Group Ltd. (TASE: DLEKG) controlling shareholder) Yitzhak Tshuva do whatever they want with our gas" (television commentator Alon Nisser, January 19, 2017).

Who needs the Southern Gas Corridor? - ENERGY POST

February 28, 2017
Anna Roggenbuck

In its dogged pursuit of the Southern Gas Corridor, the European Commission is shutting its eyes to the human rights record of the Azerbaijani regime, writes Anna Roggenbuck, policy officer at CEE Bankwatch Network. According to Roggenbuck, there is no justification for this massive gas pipeline project, since it is also bad for the climate and, as recent events show, will not even help reduce Europe’s dependency on Russian gas.

Ministers, ambassadors and envoys from at least 15 countries, including Maroš Šefčovič, the European Commission’s Vice President for the Energy Union, gathered in the Azerbaijani capital last week to discuss the progress on the Southern Gas Corridor (SGC), the largest energy project the EU is currently pursuing.

But over the past couple of months, it seems the European Commission’s justifications for this controversial undertaking have been crumbling by the day.

Qalaa’s ERC in talks with Aramco, Shell over fuel imports - ENTERPRISE / YOUM7

Tuesday, 28 February 2017

Qalaa Holdings subsidiary Egyptian Refining Company (ERC) is in talks with Saudi Aramco, Kuwait National Petroleum Company and Shell to import an additional 1.2 mn tonnes of feedstock needed for its operations at USD 3.7 bn refinery in Mostorod, ERC’s Managing Director Mohamed Saad tells Youm7.

Eni’s offshore drilling gamble looks set to pay off - FINANCIAL TIMES

28.02.2017
Andrew Ward

Position of energy group’s chief is mired in uncertainty because of corruption probeEni chief denies wrongdoing in corruption case

Over a lunch of locally caught Mediterranean seafood, Claudio Descalzi delivers a pep talk to managers around a large dining table in the offices of a petroleum plant near Port Said, Egypt.

“We need to do more, more, more every day,” says the chief executive of Eni, the Italian oil and gas group.

EU's Move to Kill South Stream Cost Southeastern Europe Future Energy Security - SPUTNIK NEWS

28.02.201, updated 10:16

The countries of Southeastern Europe saw their future access to energy imperiled when EU bureaucrats decided to block the South Stream project, Srbijagas CEO Dusan Bajatovic told Sputnik Serbia; he stressed the importance of the Balkan region obtaining access to Russian gas via the Turkish Stream gas pipeline.

In an interview with Sputnik Serbia, Srbijagas chief executive Dusan Bajatovic said that EU bureaucrats' decision to block the South Stream project had cost Southeastern Europe its future access to energy.

He also underscored the significance of the Russian gas reaching the Balkan region via the Turkish Stream gas pipeline.

Delek Group Dusting Off Plans to Split Itself Into Two - HAARETZ

Delek Group controlling shareholder Yitzhak Tshuva. Tomer Appelbaum

Feb 27, 2017 3:49 AM
Eran Azran 

As sale of Phoenix stalls, conglomerate weighing plan to spin off non-energy businesses into separate company.

Delek Group, the holding company controlled by Yitzhak Tshuva, is reviving plans to split itself into two groups amid expectations that the sale of its insurance company Phoenix to China’s Fujian Yango Group will not win approval from regulators, The Marker has learned.

Delek has sought to reposition itself as a wide-ranging conglomerate, with holdings in everything from energy to real estate, vehicles and insurance, into a group focused on energy exploration.

Egypt to receive first shipment from Iraqi oil deal in March: Ambassador - AHRAM ONLINE

Monday 27 Feb 2017Menna Alaa El-Din

Iraq is expected to deliver in March the first oil shipment to Egypt as part of a one-year agreement reached by the two countries in late 2016, Iraqi Ambassador to Cairo Habib Al-Sadr said on Monday.

In an interview with Al-Ahram daily newspaper, Al-Sadr said the first batch, set at one million barrels per month, would be delivered at the end of March 2017, adding that the deal should bridge the gap between oil production and consumption in Egypt.

The ambassador, who took office two months ago, said he had been working "behind closed doors" to speed up the shipment's delivery, given its importance for both countries.

The Biggest-ever Infrastructure Project in Israel Gets Under Way - HAARETZ

Feb 27, 2017 6:38 AM
Eran Azran 

Plans to develop Phase 1 of the Leviathan gas field were approved last week. TheMarker answers who, what, where, when, why and how much

The largest infrastructure project in Israel’s history is about to get under way, after the partners in the Leviathan offshore natural gas field announced on Thursday the approval of a final investment decision of $3.75 billion in phase one of the project. Gas should be available to the Israeli market by the end of 2019, according to the plan.

It was a long road to the decision, which comes nearly seven years after gas was first discovered at the giant Mediterranean Sea field. During the intervening period, global energy prices collapsed, potential customers came and went and Israel underwent the long and painful process of sorting out its regulatory regime.

Phase one of the plan agreed upon by Noble Energy, Delek Drilling, Avner Oil Exploration and Ratio Oil Exploration involves drilling four subsea wells.

Egypt turning the corner - IN CYPRUS / CYPRUS WEEKLY

February 26, 2017
Charles Ellinas

Tarek El Molla took over his role as Egypt’s Minister of Petroleum in September 2015, just after the discovery of the giant Zohr gas field. Since then, Egypt’s natural gas fortunes have been undergoing a massive transformation.

Firstly, gas from Zohr is expected to be achieved end of this year, and Egypt is now boldly predicting that it will achieve self-sufficiency by end of 2018, and re-start exports by 2020.

Egypt is in the process of implementing a modernisation programme with six major objectives to reform and transform all aspects of its oil and gas industry over the next four years:

How Will Jordanian Activists Reconcile ‘No Normalization With Israel,’ ‘Lower Fuel Prices’? - THE ALGEMEINER / JORDAN TIMES

FEBRUARY 26, 2017 4:08 PM

Elder of Ziyon

From the Jordan Times:

Activists have vowed that 2017 will be a year of “increased activism” against Jordanian normalisation of ties with Israel, with a particular focus on the two countries’ recent gas deal.

Activists from anti-normalisation campaigns have marked the beginning of what they predict will be an “eventful year” of activism, aimed at cancelling the gas deal with Israel and forcing the resignation of the government.

They said 2017 will be a period of concerted “anti-normalisation” activities which Jordanians from all backgrounds engage in, including protests against the gas deal, both on campuses and in the streets.

Video: EGYPS coverage, interview with BP's CEO, Bob Dudley - DMC TV CHANNEL / EGYPS

Osama Kamal interviews Bob Dudley - CEO of BP (approx. 12 minutes, @1:07:14) at the recent (14-16 Ferbruary 2017) Egypt Petroleum Show EGYPS 2017. Among other things he explains the reasoning behind a farm-out agreement after a find has already been made, OPEC's balancing act with the advent of shale gas and his great optimism on Egypt. BP's 2016-2017 investments were the largest in Egypt than in any other part of the world (BP operates in over 40 countries). 

Video: EGYPS coverage, interview with CEO of ENI - DMC TV CHANNEL / EGYPS

Osama Kamal interviews Claudio Descalzi (approx. 9 minutes, @57:50), CEO of ENI at the recent (14-16 Ferbruary 2017) Egypt Petroleum Show EGYPS 2017. Among other interesting things Descalzi says he expects the Zohr farm-out deal with Rosneft to be finalised by end of March 2017. Both BP (10%, signed) and Rosneft (30%) have an option by end of 2017 to increase their share in Zohr's Shoruk block by an additional 5%, which would leave Shorouk's owners as follows: 50% ENI, Rosneft 40%, BP 10%. 

Turkey's natural gas imports down by 4.5 pct in 2016 - DAILY SABAH / IEA

26.2.2017

Turkey has imported 46.164 billion cubic meters (bcm) natural gas in 2016, 2.2 bcm less compared to the total 48.266 bcm in 2015, according to the International Energy Agency (IEA).

The main decrease was seen in the gas imported from Russia, which decreased by 2.25 bcm from 26.623 bcm to 24.373 bcm.

The imports from Turkey's second largest gas provider Iran slightly decreased from 7.926 bcm to 7.704 bcm.

Imports from Azerbaijan increased by 312 mcm to a total of 6.48 bcm.

Around 15 percent of the total natural gas was imported in the form of LNG through the LNG terminals located in Turkey's western Izmir and northwestern Tekirdağ provinces.

Eni starts extraction of 200m cubic feet of gas per day from Zohr in October - DAILY NEWS EGYPT

Saturday February 25, 2017

Mohamed Adel

Company to rent a temporary gas processing plant until the completion of the permanent unit, says source

The Italian company Eni aims to begin pumping 200m cubic feet of gas per day from the deep-water Zohr field in the Mediterranean by October, through a temporary ground gas processing station.

A source at the Egyptian Natural Gas Holding Company (EGAS) told Daily News Egypt that Eni will rent a temporary station until it completes the establishment of the permanent treatment plant.

He added that Eni is set to complete the first phase of the treatment plant with a capacity of 650m cubic feet of gas per day by the end of 2017.

Aircraft Carrier ‘USS George H.W. Bush’ Docks at NATO’s Base in Crete

USS George H.W. Bush

Feb 25, 2017
A. Makris

U.S. aircraft carrier USS George H.W. Bush sailed into Souda’s port in western Crete on Saturday, for the second time in the last few days.

The warship, which docked at NATO’s harbor in Marathi, was accompanied by three more vessels of the U.S. Navy and is expected to stay in Chania for about ten days. Its crew started disembarking after noon.

USS George H.W. Bush, nicknamed the “Avenger”, can carry 85 aircrafts and helicopters and about 6,000 crew members.

Egypt emerging from the doldrums - FREE PRESS JOURNAL

Feb 25, 2017 09:36 am

Sunanda K Datta-Ray

WITH about 28 per cent of the population languishing below a low poverty line, the best news lately was that foreign exchange reserves rose by $2.1 billion in January to touch $26.4 billion against December’s $24.2 billion. More intensive and efficient exploration of oil can make all the difference to a country that was seen at one time as a leader of the Afro-Asian world but has taken a back seat in recent years mainly because of domestic political problems.

Almost as if to repudiate this column’s somewhat gloomy comments about Egypt last week, the country is now celebrating what is billed as the first ever Egypt Petroleum Show. It is the largest oil and gas industry event to take place in North Africa, with over 40 British companies participating. Oil, we are told, might yet overcome all disadvantages and help to revive Egypt’s economy and restore its traditional leadership role.

International Conference in Cyprus to focus on Mediterranean gas - FAMAGUSTA GAZETTE

Saturday, 25 February, 2017

Fourth Eastern Mediterranean Gas Conference (EMGC) to take place on 14-15 March in Nicosia aims to explore the region’s potential natural gas resources and the path to production.

The conference organized by Gulf Publishing Company is sponsored by Deloitte and Cyprus Hydrocarbons Company and supported by Tiger Offshore, Petroleum Economist, World Oil, and Gas Processing.

Trans-Caspian Subsea Gas Pipeline Project Vital For Turkey – OpEd - EURASIA REVIEW

FEBRUARY 24, 2017

Haluk Direskeneli

Turkmenistan has 20+ trillion cubic meters of proven natural gas deposits. Annual gas production is around 60 bcm, where 20 bcm is used in domestic consumption. In the past, neighboring countries Russia and Iran bought natural gas, but these sales are now stopped. Today Turkmenistan can sell gas only to China, which is situated at their east border.

Earlier, Turkmen gas was priced 160 US Dollars per 1000m3, now the gas export price is reduced to 100 US dollars per 1000m3. Natural gas sales revenues have drastically decreased in time. Turkmenistan used to export natural gas to Russia and Iran in the past. Export gas volume was around 40-50 bcm. Now the export figure is down. State agencies plan to build new gas pipelines to reach Afghanistan and Pakistan. But there is no financing secured yet for this important project.

Hellenic Petroleum reports record profits in 2016 - ANA-MPA

24/ 02/ 2017

Hellenic Petroleum announced record profits, production and exports in 2016 and said that last year it managed to lower its debt and to raise its domestic market share.

Net profits totaled 329 million euros in 2016, from 45 million in the previous year and a loss of 369 million in 2014, while EBITDA amounted to 836 million euros.

Comparable results showed an EBITDA of 731 million euros in 2016 and net profits of 265 million euros, from a loss of 117 million euros in 2015 and a profit of 2.0 million in 2014.
Hellenic Petroleum's board will seek shareholders' approval to a plan to pay a 0.20 euros per share dividend.

Southern Gas Corridor Advisory Council prioritizes TANAP - ANADOLU AGENCY / DAILY SABAH

BAKU, 24.2.2017

Energy and Natural Resources Minister Berat Albayrak attended the third ministerial meeting of the Southern Gas Corridor Advisory Council in Azerbaijan, where he was welcomed by Azeri President Ilham Aliyev.

In addition to cooperation in the energy sector, the meeting addressed the Southern Gas Corridor, consisting of the South Caucasus Pipeline, the Trans-Anatolian Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP), which will transport Azerbaijani natural gas to Europe.

President Aliyev stressed the importance of Turkey's high-level representation in the Southern Gas Corridor Advisory Council in the admission at the Haydar Aliyev Center in Baku.

Leviathan partners ratify $3.75-billion gas-development plan - WORLD OIL

FEB/23/2017Yaacov Benmeleh

TEL AVIV (Bloomberg) -- The companies that own the rights to Leviathan, Israel’s largest natural gas reservoir, approved a plan to allocate $3.75 billion to develop the offshore site. Israel’s main gas equity index rose the most in almost five months.

The partners, led by Delek Group Ltd. and Houston-based Noble Energy, have agreed on a final investment decision, which lays out how the companies intend to spend the funds to develop Leviathan over the next three years, according to a Tel Aviv Stock Exchange filing Thursday.

The decision allows the partners to “launch the largest energy project in the history of Israel, that will also serve as one of the region’s energy anchors,” Yossi Abu, chief executive officer of Delek Drilling, said in an e-mailed statement. Delek Drilling holds a 22.7% stake in Leviathan and is a unit of Delek Group. “We will continue our activity to develop and expand our oil and gas assets in Israel and Cyprus,” Abu said.

Iraq to supply Egypt with 1 million barrels monthly: ambassador - EGYPT INDEPENDENT / REUTERS

Thu, 23/02/2017 - 05:00

The Iraqi Oil Marketing Company SOMO has signed a contract for oil exports with the Egyptian government, al-Ahram quoted Iraqi ambassador to Cairo Habib Mohamed Hady al-Sadr as saying on Thursday.

The company forwarded the contract to the Petroleum Ministry for final approval, he added.

Sadr told al-Ahram newspaper that the first batch of oil, estimated at 1 million barrels, will be handed over to Egypt in the last 10 days of March 2018.

Egypt, Iraq and Jordan are preparing for a major strategic joint energy project, he added. The three countries will extend oil and natural gas pipelines from Basra oil fields through Aqaba port in Jordan to Egypt.

Noble Energy sanctions Leviathan project offshore Israel - NOBLE ENERGY

Houston, Feb. 23, 2017 (GLOBE NEWSWIRE)

First gas sales targeted for the end of 2019

Noble Energy, Inc. (NYSE: NBL) ("Noble Energy" or "the Company") announced today that it has sanctioned the first phase of the Leviathan natural gas project offshore Israel, with first gas targeted for the end of 2019. Noble Energy is the operator of the Leviathan Field, which contains 22 trillion cubic feet (Tcf) of gross recoverable natural gas resources.

David L. Stover, Noble Energy's Chairman, President and CEO, commented, "Leviathan marks our third major natural gas development offshore Israel. Bringing Leviathan online will expand Israel's supply of natural gas, further support the State's commitment to convert coal-fired power generation facilities to cleaner burning gas, and provide affordable energy resources to Israeli citizens and neighboring countries in the undersupplied region. Leviathan will provide a second source of natural gas for Israel through a separate tie-in location in northern Israel. Noble Energy's financial strength and capability, proven technical expertise, and phased Leviathan project development approach position us to commence first gas on schedule and within budget."

Turkey pipelines carried 500M barrels of crude oil in 2016 - DAILY SABAH

23.2.2017

Pipelines in Turkey carried a total of around 500 million barrels of crude oil for global markets in 2016, 50.9 percent of which was transported via the Baku-Tbilisi-Ceyhan Crude Oil Pipeline (COP).

According to data released by the Turkish Petroleum Pipeline Corporation (BOTAŞ), approximately 500 million barrels of crude oil were transported through Iraq-Turkey COP, Ceyhan-Kırıkkale COP, Batman-Dörtyol COP and Baku-Tbilisi-Ceyhan COP. The figure was around 1.2 percent less compared to the previous year's 505.3 million barrels. Last year approximately 254 million barrels were transferred through the Baku-Tbilisi-Ceyhan COP, some 50.9 percent of the total figure. In addition, 190 million barrels were transported through the Iraq-Turkey COP, 35.3 million were carried through the Ceyhan-Kırıkkale COP, and close to 20 million barrels were delivered through the Batman-Dörtyol COP during the same period.

Partners in Israeli Leviathan gas field okay $3.75 billion investment - REUTERS

Thu Feb 23, 2017 | 2:44am ESTReporting by Tova Cohen

The partners in the Leviathan natural gas field said on Thursday they approved a $3.75 billion final investment decision (FID) in the first phase of the giant reservoir, the largest energy project in Israel's history.

The reservoir, located 100 kilometers (62 miles) west of Haifa, was discovered in December 2010 and is one of the largest offshore natural gas discoveries in the world in the previous decade.

The project's $3.75 billion budget is in addition to $1 billion that has already been invested to date in various exploration, appraisal and planning activities.

According to the development plan that was approved last year by the government, the project will be completed within less than three years and the gas from Leviathan will be available to the Israeli market by the end of 2019.

Italy says no problem with construction of TAP pipeline - YAHOO FINANCE / REUTERS

February 23, 2017Reporting by Nailia Bagirova; Writing by Margarita Antidze; Editing by Joseph Radford

BAKU (Reuters) - Italy sees no problems with the construction of its section of the Trans Adriatic Pipeline (TAP), the country's economic development minister said on Thursday.

More than 200 olive trees in southern Italy stand in the way of a $45 billion pipeline designed to bring gas from ex-Soviet Azerbaijan and help wean the European Union off its dependence on Russian energy.

Local authorities want the pipeline re-routed away from the prized grove, which includes trees thought to be more than 400 years old. That may delay a project that is meant within three years to carry the equivalent of 10 percent of Europe's Russian energy imports.

NPP project more important for Egypt than resumption of Russian tourist traffic — expert - TASS

Cairo, February 22, 20:53 UTC+3

Egypt’s political thinker believes the country will face an energy catastrophe if the country abandons building the nuclear power plant

The project of nuclear power plant (NPP) construction with Russia’s participation is much more important for Egypt than return of Russian tourists, Egypt’s political thinker and international petroleum strategist Professor Tarek Heggy told TASS in an interview on Wednesday.

"The NPP construction project in El Dabaa near Alexandria is important in itself and it is a much more significant project in positive terms than return of Russian tourists to Egypt," the expert said.

"Egypt will face an energy catastrophe if the country abandons building the NPP," Heggy said. National authorities "overstate their reserves and sufficiency of such resources as oil and gas," he said. "Egypt is at a very low level in terms of oil reserves and at an average level in terms of gas reserves," the expert added.

EGL transports SAIPEM cargo to Zohr - BREAK BULK

FEBRUARY 22, 2017

Heavy transport firm Egyptian Global Logistics has delivered outsized components for the Zohr gas project via the port of Alexandria on the West Verge of the Nile Delta.

The firm transported cargo weighing up to 40 tonnes and measuring up to 28 meters in length for EPC contractor Saipem’s operations in the Zohr gas field. The offshore gas field is located 120 miles north east of Port Said in Egypt.

The team from EGL handled logistics for the project, initially discharging from a gearless vessel at Alexandria Port before trucking to a storage area for reloading at the Saipem’s base at Abu Qir Port.

Cyprus President calls Israel a ‘natural partner’ - SAN DIEGO JEWISH WORLD

22 February 2017

NICOSIA, Cyprus (Press Release) — The President of Cyrus, Nicos Anastasiades, on Wednesday delivered a forceful address to an almost 100-member delegation of the Conference of Presidents of Major American Jewish Organizations visiting the country as part of the Conference’s 43rd Annual Leadership Mission to Israel.

Describing the relationship between Cyprus and Israel, the President declared, “In a world characterized by the rise of turmoil, extremism, sectarianism, and terrorism, Cyprus, and Israel—two countries at the heart of the Mediterranean that share the same values and common vision – are beacons of stability, and natural partners of the West in the Middle East.”

Is Noble Energy getting cold feet? - GLOBES

22 Feb, 2017 12:28Amiram Barkat

TEKMOR Note: See here Noble's press release about its decision to go ahead with the project.

Noble Energy is unwilling to take an investment decision until the gas agreement with Jordan is finalized.

The next milestone in the Israeli gas sector is scheduled for mid-2017; the partners in the Leviathan natural gas reservoir must produce a commitment to a $1.5 billion investment in developing the resource by then. According to the partners' interpretation, this amount includes the $1.2 billion that had already been invested in Leviathan before the current gas plan was formulated. If this is correct, then the milestone inserted in the plan is meaningless, because the developers have already gone far beyond that. Beyond that, one simple question arises: why has there been no official and binding decision to develop the reservoir?

Bulgaria-Greece gas link construction to start in early 2018 - energy min - SEE NEWS

SOFIA (Bulgaria), February 22

Bulgaria's energy ministry said on Wednesday that the construction of the gas interconnector Greece-Bulgaria (IGB) will start in the beginning of 2018.

The 182 km long IGB pipeline will connect the northeastern Greek city of Komotini with Stara Zagora, in southern Bulgaria. The link is estimated to cost 220 million euro ($241.8 million).

"The energy minister of Azerbaijan, Natig Aliyev, confirmed before Bulgaria's caretaker energy minister Nikolay Pavlov his country's commitment to deliver 1 billion cu m of gas annually to Bulgaria," the energy ministry said in a statement. One of the conditions for the Azeri gas supplies is the construction of the IGB link.

Leviathan partners raise $1.75b from international lenders - JERUSALEM POST

February 21, 2017 17:30 

Sharon Udasin

The partners signed the financing agreement with a consortium of about 20 international and Israeli lenders, led by J.P. Morgan Limited and HSBC Pank Plc.

In a key step toward furnishing Israel and its neighbors with a robust natural-gas supply, the Leviathan reservoir partners have secured $1.75 billion in loans for the basin’s development.

The partners signed the financing agreement with a consortium of about 20 international and Israeli lenders, led by J.P. Morgan Limited and HSBC Bank PLC, according to a report submitted to the Tel Aviv Stock Exchange on Tuesday morning. The funds are expected to support the A1 development stage of the Leviathan project.

TransGlobe Energy Corporation Announces an Operations Update

CALGARY, ALBERTA--(Marketwired - Feb. 21, 2017)

TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:TGL)(NASDAQ:TGA) announces an operational update. All dollar values are expressed in US dollars unless otherwise stated.

EASTERN DESERT - ARAB REPUBLIC OF EGYPT
North West Gharib, Arab Republic of Egypt (100% working interest, operated)

The Company is pleased to provide an update on the NWG exploration and development activities.

Russia's Rosneft, Libya's NOC sign oil offtake deal - REUTERS

Tue Feb 21, 2017 | 5:23am EST
Aidan Lewis; additional reporting by Dmitry Zhdannikov; editing by Jason Neely

Libya's National Oil Corporation (NOC) has signed a crude oil offtake agreement with Russia's Rosneft as it looks to encourage foreign investment and bolster Libyan output, the NOC said on Tuesday.

The NOC and Rosneft also signed a cooperation framework agreement which the NOC said "lays the groundwork for investment by Rosneft in Libya's oil sector".

Ganoub El-Wadi Petroleum Holding Company is negotiating with five companies to collect geophysical data at a value of $1bn - DAILY NEWS EGYPT

Tuesday, February 21, 2017
Mohamed Farag

Ganoub El-Wadi Petroleum Holding Company (GANOPE) is negotiating with five companies on collecting geophysical data in open areas in the company’s business scope at a value of $1bn.

Osama Farouk, vice chairperson for agreements and exploration at GANOPE, said that the value of the offers received by the company is estimated at $758m. The value has increased to $1bn, and two offers to collect data are expected to be merged.

The company is negotiating with PGS, CGG, KGS, Schlumberger, and Nageco companies. Discussions with them are being held every day about the offered data and technology.

Shell, Petronas begin working on Borollos gas field 9B - ENTERPRISE / AL SHOROUK

Tuesday, 21 February 2017

Shell and Malaysia’s Petronas have begun working on phase 9B of the Borollos gas field, an unnamed EGAS official tells Al Shorouk. The USD 950 mn project involves drilling eight new wells with a daily capacity of 387 mcf. BG, since acquired by Shell, had suspended work on phase 9A+ and 9B of the gas field last March after the government rejected paying USD 7 per mmBtu for phase 9B, and eventually reached an agreement with the government to maintain a price cap of USD 5.88 per mmBtu for gas from the phase.

Work on the gas field later stalled as the state fell behind on payments to Shell and BG, but Shell ultimately ramped-up exploration and drilling activity on the back of promising data. As we reported last week, the government is reportedly gearing up to repay USD 500 mn-1 bn to IOCs including Shell.

Signing of an Agreement for the Financing of the Delek Group Partnerships’ Share in the Costs of Development of the Leviathan Project - DELEK GROUP

Tel Aviv, February 21, 2017. 

Delek Group (TASE: DLEKG, US ADR: DGRLY) ("the Company") announces that further to immediate report dated November 27, 2016 (Ref No. 2016-01-132058), with regard to a signature of a Commitment Letter for the signing of a financing agreement, the Compnay provides below an Immediate Report submitted by each of Delek Drilling - Limited Partnership and Avner Oil Exploration - Limited Partnership (jointly the 'Partnerships'), concerning signature of a Commitment Letter for the signing of a financing agreement for limited recourse project financing of the Partnerships' share in the development of the Leviathan project.

Petroleum Minister meets with Sinopec head, Apache VP - ENTERPRISE / AL MASRY AL YOUM

Tuesday, 21 February 2017

Petroleum Minister Tarek El Molla met with the head of China’s state-owned Sinopec, Wang Yupu, who said his company is mulling a petrochemical project in the Suez Canal Economic Zone, Al Masry Al Youm reports. Also present at the meeting was the vice president of Apache, which previously sold a one-third stake in its Egyptian oil and gas assets to the Chinese company in a USD 3.1 bn transaction. China’s ambassador to Egypt also attended.

Construction contract signed for second string of TurkStream’s offshore section - GAZPROM

Blue Stream gas pipeline facilities

February 20, 2017, 19:20

South Stream Transport B.V. and Allseas Group today signed in Amsterdam a contract to build the second string of the TurkStream gas pipeline’s offshore section. The document was signed as part of the option included in the construction contract for the pipeline’s first string, which had been inked in 2016.

In a similar fashion to the construction of TurkStream’s first string, Allseas plans to use Pioneering Spirit, the world’s largest construction vessel, to lay more than 900 kilometers of pipes across the seabed for the second string of the pipeline.

Background

TurkStream is the project for the construction of a transit-free export gas pipeline stretching across the Black Sea from Russia to Turkey and further to Turkey’s border with neighboring countries. The first string of the gas pipeline is intended for Turkish consumers, while the second string will deliver gas to southern and southeastern Europe. Each string of TurkStream will have the throughput capacity of 15.75 billion cubic meters of gas per year. On October 10, 2016, Russia and Turkey signed the Intergovernmental Agreement on the TurkStream project. South Stream Transport B.V., a wholly-owned subsidiary of Gazprom, is responsible for the construction of TurkStream’s offshore section.

Allseas Group S.A. is the world’s leading company in offshore pipe-laying and subsea construction. The company is focused on comprehensive project implementation, including design, material and equipment procurement, construction, and commissioning.

SOURCE

Security of Leviathan Gas field on NATO’s southern flank: an issue in Middle Eastern geopolitics - FOREIGN POLICY NEWS

February 20, 2017

Mehmet Bildik

NATO has been an institution that has expanded its sphere of influence exclusively toward east which NATO’s southern flank poses a complex threat that requires multi-dimensional strategies for territorial defense, cooperative security and crisis management. For the last 25 years of NATO’s history, the Alliance has constantly committed itself to provide security for Middle East and Mediterranean Energy fields.

Regarding counter terrorism and stabilization in the energy fields, the Warsaw Summit of 2016 has underlined importance of the Middle East. To this end, NATO’s Incirlik Airbase is crucial point for Middle East energy security and providing military and strategic capability for Turkey , United States and NATO’s Mediterranean partner Israel.

Cyprus tops EU list for fossil fuel dependency - CYPRUS MAIL

February 20, 2017
Jean Christou

Cyprus saw the biggest increase in energy demand among the EU 28

Cyprus has the highest dependency, and the biggest share of reliance on fossil fuels for energy within the EU, according to a Eurostat report released on Monday.

The island also saw the biggest increase in energy demand among the EU 28, growing 41 per cent since 1990 from 1.6 Mtoe (million tonnes of oil equivalent) to 2.3 Mtoe in 2015.
The number is low compared with larger EU countries; for instance, Germany’s demand is 314 Mtoe. But a more accurate comparison is Malta where total consumption in 2015 was only 0.8 Mtoe.

Compared with 1990, the largest decreases in overall energy consumption in 2015 were recorded in the three EU Baltic States – Lithuania (-57 per cent), Latvia (-45 per cent) and Estonia (-37 per cent).

In contrast, the highest increases were registered in Cyprus (+41 per cent), Ireland (+38 per cent), Spain (+35 per cent) and Austria (+33 per cent), Eurostat said.

Concerns over future gas fund spending - CYPRUS MAIL

February 20, 2017

Elias Hazou

An annual revenue of up to €600m is expected from the sale of hydrocarbons, 12 years after production begins at the Aphrodite gas field (in block 12).

Questions still hang over the precise manner in which investments will be made using future oil and gas revenues, MPs said on Monday.

Lawmakers were continuing discussion of a finance ministry bill on the establishment and operation of the National Investment Fund, which will manage hydrocarbons proceeds.

They asked the ministry to come back next time with specifics on how revenues would be invested.

Turkey to become natural gas hub, says former Gazprom executive - DAILY SABAH

20.2.2017

TurkStream necessary for region's natural gas supply

[Alex] Barnes said that Turkey, receiving natural gas from different sources such as Iran, Russia and Azerbaijan, would become a regional hub by putting the necessary rules into practice.

"Natural gas, which will pass through TurkStream, will be needed by Europe since the U.K. and the Netherlands are slowing their natural gas production. In addition, Europe should also increase its use of gas to reduce coal use. If they want to buy Russian gas via Turkey, they will pay and receive it," said Barnes, as he evaluated the second pipeline in the TurkStream natural gas pipeline project.

House to vote on Natural Gas Act in March - ENTERPRISE / AL BORSA

Monday, 20 February 2017

House to vote on Natural Gas Act in March: The House of Representatives’ Energy Committee expects to complete reviewing the Natural Gas Act — which would largely deregulate the sector — this week and move it to the floor of the House for a vote in March, Al Borsa reports. 

The committee, which has been reviewing the bill since December following preliminary approval from the House general assembly, downplayed the “minor amendments” that they reportedly introduced, MP Hamada Ghallab said, without explaining further. Progress from a regulatory standpoint has been taking place, with the Oil Ministry beginning a draft of the executive regulations and EGAS setting a preliminary toll of USD 0.4 per mmBtu for private companies looking to use the national gas grid last month.

Greek minister: Southern Gas Corridor promotes co-op between gas suppliers and transit countries (interview) - TREND NEWS AGENCY

Baku, 20 February 2017 08:00 (UTC+04:00)
Leman Zeynalova

Trend’s exclusive interview with Giorgos Stathakis, Minister of Εnergy and Environment of Greece, on the occasion of the Southern Gas Corridor Advisory Council’s meeting to be held in Baku Feb.23.

Q: What are your expectations from the upcoming meeting of the Southern Gas Corridor Advisory Council?

A: I believe that the third meeting of the Advisory Council in Baku will deepen further the practical realization of the Southern Gas Corridor. It will send a strong signal that the EU strategic aspiration of diversifying gas supply routes works not only on paper but in real practice. Three years after its initial inception, this priority project promoted the cooperation between gas suppliers and transit countries and led to tangible results. The next step is to consolidate further this cooperation by combining the expansion of the corridor with the gradual creation of what I call a South-Eastern Energy Crossroad.

Energean: A Greek success - IN CYPRUS / CYPRUS WEEKLY

February 19, 2017
Charles Ellinas

Energean is a private exploration and production group focused on Greece, the Adriatic, the East Med and North Africa. It is the only oil and gas producer in Greece. It has been much in the news recently following its acquisition of the Tanin and Karish gas-fields offshore Israel.

Energean has its roots in the successful development of the Prinos oil-field offshore Kavala in Greece. At a time of crisis in the global oil and gas sector, Energean managed to grow into a leading player in the region with a balanced portfolio of oil and gas production, low-risk development projects and high-impact low-cost exploration assets.

Oil Minister meets with IOC delegations - ENTERPRISE / AL SHOROUK

Sunday, 19 February 2017

Oil Minister Tarek El Molla met with delegations from several international oil companies, including France’s Total and the French Institute of Petroleum (IFP Energies nouvelles, IFPEN), to discuss increasing the scope of their Egyptian investments, Al Shorouk says.

Total are looking to increase investments at their North El Hammad concession, he said, while the French Institute of Petroleum are interested in entering the Egyptian market. Additionally, Halliburton confirmed they are committed to their operations in technology, training, and increasing machinery efficiency.

ECHEM considering implementing four projects worth $5bn - DAILY NEWS EGYPT

18.2.2017
Mohamed Farag

Propylene production studies to be completed next month in cooperation with Technip, Salah

The Egyptian Petrochemicals Holding Company (ECHEM) is considering the implementation of four projects to produce derivatives of propylene, ammonium, formaldehyde, and medium density fiberboard (MDF) with investments amounting to $5bn.

Business development engineer at the company Nouran Salah said that ECHEM will complete the technical and financial studies for the propylene production projects next month, in cooperation with the consulting firm Technip.

Wells in Turkey are Outperforming the STACK: TransAtlantic Petroleum CEO - OIL & GAS 360

February 17, 2017

It’s like being in the Midland, but with better financial terms – TransAtlantic discusses its operations in Turkey

The last nine years have been marked by explosive growth in the North American oil and gas sector, but many companies continue to exploit hydrocarbon resources successfully in other parts of the world as well. TransAtlantic Petroleum (ticker: TAT) is one such company, with operations in Turkey, Albania and Bulgaria, and some of the well results reported by the company have outperformed those in some of the most prolific plays in the United States.

“These are high net-revenue, large contiguous lease blocks at the center of a petroleum basin, which would be similar to being in the center of the Midland Basin,” TransAtlantic Chairman and CEO Malone Mitchell III told Oil & Gas 360® speaking about the company’s assets in Turkey.

Gazprom wants to keep EU market share, block Trans-Balkan pipe route - NEW EUROPE

FEBRUARY 17, 2017, 13:34 
Kostis Geropoulos

Russia is likely to maintain some gas transit through Ukraine even if Turkish Stream and Nord Stream 2 pipelines are built, energy expert Peter Poptchev told New Europe.

“Russia would not mind transiting ‘some’ gas through Ukraine – after it would have realised – if at all – Turkish Stream and Nord Stream 2,” said Poptchev, who served as ambassador-at-large for energy security at the Bulgarian Ministry of Foreign Affairs when the Balkan country negotiated the now-cancelled South Stream pipeline with Gazprom.

Mideast Monitor: What's next for Sisi's Egypt? - JERUSALEM POST

Egyptian president Abdel Fattah al-Sisi (REUTERS) 

February 16, 2017, 15:19
Bruce Maddy-Wetzman

While Sisi’s rule does not appear to be in imminent danger, it is unwise to ignore the real and multiple difficulties confronting Egyptian society.

EGYPT’S PRESIDENT Abdel Fattah al-Sisi has now been in power for three and a half years. In consolidating his rule, Sisi has based his claim to legitimacy on a formula familiar to authoritarian regimes: wrapping oneself in the flag of patriotism, along with promises for economic betterment and stability for the population in return for its acquiescence to a de-politicization of society. Also in use is harsh repression of political opposition, severe checks on independent civil society organizations, including the media, and restrictions on judicial independence.

Israel's gas royalties up 8.5% in 2016 - GLOBES

16 Feb, 2017 7:06
Nati Yefet

Royalties from the Tamar reservoir rose 7%, despite the fall in the price of natural gas.

Natural gas royalties from the Tamar reservoir totaled NIS 819 million in 2016 (Note: €1=3,93 NIS, $1=3,70 NIS), accounting for most of the royalties from natural resources in that year. 2016 natural resources royalties totaled NIS 854 million, up 8.5%, compared with NIS 788 million in 2015. Additional natural gas royalties came from the Yam Tethys (NIS 1.8 million), Meged (NIS 4.7 million), Heletz (NIS 313,000), and Tamrur Cliff (NIS 11,000) gas fields.

According to the Ministry of National Infrastructure, Energy, and Water Resources, royalties from Tamar grew 7%, despite the fall in the price of natural gas. Fees from various projects totaled NIS 5 million.

Egypt oil production needs 21st century revamp: executive - PLATTS

Cairo (Platts) 16 Feb 2017 842 am EST/1342 GMT

Nick Coleman, Edited by Maurice Geller

Egypt needs to rethink the joint venture model that has governed its onshore oil industry for the past half century as part of wider reforms to the economy, according to James House, senior region vice president for the country's largest international oil producer, Apache.

At a conference in Cairo this week, House told journalists Apache would increase its capital spending in Egypt this year from last year's level, which was around $300 million, as it takes on new concessions and steps up seismic acquisition.

Egypt will reach natural gas self-sufficiency by 2018 -EGAS - ENTERPRISE / REUTERS

Thursday, 16 February 2017

Egypt aims to reach natural gas self-sufficiency in 2018, EGAS Chairman Mohamed El Masry told Reuters’ Arabic Service. The private sector will be able to import natural gas for industries through new regulations by 2018 or possibly before then, he added. A large portion of the gap between supply and demand will be filled when the Zohr field begins production at the end of the year, he said.