3 Israeli cos buying gas from Karish, Tanin reservoirs - GLOBES

7 Dec, 2017 12:13

Sonia Gorodeisky

Israel Chemicals, Oil Refineries, and OPC will buy 39 BCM over 15 years.

Israel Chemicals (TASE: ICL: NYSE: ICL), Oil Refineries Ltd. (TASE:ORL), and OPC Energy Ltd. (TASE:OPCE), all Idan Ofer-controlled companies, have signed an agreement with Greek company Energean to buy natural gas from the Karish and Tanin reservoirs. The deal includes the supply of 39 BCM of gas over 15 years to the companies: 17 BCM to Oil Refineries, 13 BCM to Israel Chemicals, and 9 BCM to OPC Mishor Rotem. The deal also includes an 18-year extension option.

The price for the deal is believed to total $5.7 billion. Energean estimates that gas will begin flowing from its two reservoirs in 2020. The average price for the deal is about $4.10 per million Btu, 20% lower than the price in the agreements signed for gas from the Leviathan reservoir and 30% lower than the price that Israel Electric Corporation (IEC) (TASE: ELEC.B22) is paying from gas from the Tamar reservoir.

The three companies negotiated jointly with Energean in order to leverage their purchasing power to obtain better terms. At the same time, now that the negotiations have been concluded, each of the companies in the group has a separate agreement that is independent of the agreements with the others.

BASF agrees oil unit merger with Fridman's DEA to spur expansion - REUTERS

DECEMBER 7, 2017 / 9:13 PM

Dmitry Zhdannikov, Ron Bousso, Ludwig Burger

FRANKFURT/LONDON (Reuters) - Chemical giant BASF agreed to merge its oil and gas unit Wintershall with DEA, a vehicle of Russian billionaire Mikhail Fridman, to create one of the largest independent oil and gas firms in Europe, the companies said.

Fridman and his partners in the LetterOne investment vehicle made billions by selling their Russian oil empire in 2013 but have since struggled to expand in the United States and Britain due to sanctions imposed on Moscow despite not being under sanctions themselves.

By folding DEA into Wintershall and creating Germany’s first oil champion, cash-rich Fridman could create new opportunities for growth in large Western markets.

Siemens signs deal to build two gas-fired power plants in Libya - REUTERS

DECEMBER 7, 2017 / 11:40 PM

Reporting by Georgina Prodhan; writing by Douglas Busvine; editing by Andrew Roche

FRANKFURT (Reuters) - Siemens, the German industrial group, plans to build two gas-fired power stations in Libya, in a fillip for its struggling power division which is shedding staff as developed economies shift to renewable sources of energy.

Siemens Power and Gas signed the agreements on Thursday with Libyan state utility GECOL on the plants, a company spokesman said without elaborating.

The deal follows an announcement by Siemens last month that it would cut 6,900 jobs, or around 2 percent of its global workforce. Most of the jobs would be shed by 2020 at its energy unit as demand for gas turbines fades.

Edison takes on Shah Deniz gas supply contract - OFFSHORE MAGAZINE

DEC/06/2017

MILAN, Italy – Edison has agreed to acquire Gas Natural Vendita Italia (GNVI) from Gas Natural Fenosa for Eu192.8 million ($228 million).

GNVI supplied gas and electricity last year to 420,000 residential and 14,000 SME users in Italy.

Under the agreement, Edison will also assume an 11-TWh long-term gas supply contract from the Shah Deniz II development project in the Azeri sector of the Caspian Sea.

Gas imports from the project are set to begin at the end of 2020 following the completion of the Trans Adriatic Pipeline (TAP).

Total consideration payable for the gas supply contract is Eu30 million ($35.5 million), starting from 2021 subject to the first delivery of gas to Italy through the TAP pipeline.

Noble Energy VP: We'll meet our timeline of delivering gas - JERUSALEM POST

December 6, 2017 16:57 
MAAYAN HOFFMAN

The Leviathan offshore natural gas field has brought Israel into a new era, according to Binyamin A. Zomer, vice president for regional affairs for Noble Energy, which operates Leviathan.

Speaking at Wednesday’s Jerusalem Post Diplomatic Conference, Zomer said that since February, when Noble Energy announced a “final investment decision” – a commitment to fully invest in the development of the Leviathan natural gas field off the Haifa coast, Israel’s biggest-ever infrastructure project – the company has completed almost 30% of the project.

“We will meet our timeline of delivering gas to Israel and neighboring countries before the end of 2019,” said Zomer.

Israel expects gas to flow from east Mediterranean to Europe - THE WASHINGTON POST

From left, Cyprus’ energy minister Yiorgos Lakkotrypis, Greece’s Energy minister Giorgos Stathakis, Israel’s Energy minister Yuval Steinitz and Italian ambassador in Cyprus Andrea Cvallari  after the East Med Pipeline agreement signing at “Filoxenia” conference center in capital Nicosia, Cyprus, on Tuesday, Dec. 5, 2017. 

By Menelaos Hadjicostis | AP December 5 at 9:24 AM

NICOSIA, Cyprus — A potential undersea pipeline carrying natural gas from deposits in the eastern Mediterranean to Europe is “very realistic” and could help secure the continent’s energy future, Israel’s energy minister said Tuesday.

Yuval Steinitz said that a study on the “strategic” EastMed Pipeline Project shows that the pipeline is feasible, even though it presents technical challenges due to the depths involved.

Egypt's Atoll gas field begins test production - minister - REUTERS

DECEMBER 5, 2017 / 2:15 PM

Reporting by Abdel Rahman Adel; Writing by John Davison; Editing by Greg Mahlich

CAIRO (Reuters) - Test production at Egypt’s Atoll offshore gas field began on Tuesday with a production capacity of 300 million cubic feet per day, Petroleum Minister Tarek El Molla said.

Actual production would begin in the third week of December, El Molla told Reuters.

BP decided in November 2015 to fast-track the development of Atoll, estimated to contain 1.5 trillion cubic feet of gas and 31 million barrels of condensates.

Lebanon sets 80% local worker requirement - OIL & GAS JOURNAL

DEC/05/2017HOUSTON

Lebanon will require that the workforce of its prospective oil and gas industry be 80% Lebanese.

Energy Minister Cesar Abi Khalil said in a news conference in Beirut that the requirement is part of legislation to be submitted soon to the Cabinet, according to Lebanese press reports.

The country in October concluded its first offshore licensing round after nearly 4 years of delay caused by political conflicts and a vacancy in the presidency.

The round drew bids from two of five blocks on offer from a consortium of Total SA, Eni SPA, and Novatek (OGJ Online, Oct. 13, 2017).

Exclusive: Exxon eyes Egypt's offshore oil and gas - sources - REUTERS

A view of the Exxon Mobil refinery in Baytown, Texas Sept 15, 2008
REUTERS/Jessica Rinaldi

DECEMBER 4, 2017 / 2:10 AM
Ron Bousso, Ernest Scheyder

LONDON/VIENNA (Reuters) - Exxon Mobil (XOM.N) is considering a foray into Egypt offshore oil and gas, seeking to replicate rivals’ success in the country and boost its reserves, officials and industry sources said.

Officials from the world’s largest listed oil producer recently held talks with Egypt’s petroleum ministry to discuss investments in oil and gas production, known as upstream operations, Petroleum Minister Tarek El Molla told Reuters.

“We have been discussing with them, visiting them. They’ve visited us... We are exploring all opportunities for having more and further upstreamers in Egypt,” Molla said on the sidelines of an OPEC meeting in Vienna.

“I would be happy to have them with us,” he said, adding that no decision has been made yet.

MOU for Israel-Europe gas pipeline to be signed Tue - GLOBES

3 Dec, 2017 12:48
Sonia Gorodeisky

The world's longest underwater pipeline from Leviathan to Italy will allow Israel to export gas to Europe.

A memorandum of understanding for the laying of an underwater gas pipeline from Israel to Europe will be signed on Tuesday in the Cypriot capital Nicosia, sources inform "Globes." The world's longest underwater pipeline will allow Israel to export gas to Europe.

The energy summit in Cyprus on Tuesday will be attended by Israel's Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz and his counterparts from Cyprus, Greece, Italy and the EU. The last such energy summit was held in Israel in April when the sides signed a declaration to move forward with the project.

Israel's Ministry of National Infrastructures, Energy and Water Resources says that the pipeline will be 2,000 kilometers long and will be completed by 2025.

Egypt, Cyprus reach preliminary agreement to implement gas import pipelines - AMWAL AL GHAD / DAILY NEWS EGYPT

Sunday, 03 December 2017 10:27

Egypt has reached a preliminary agreement to extend natural gas transmission pipelines from Cypriot fields to Egyptian liquefaction plants, according to an official source at the Ministry of Petroleum and Mineral Resources.

According to the source, the two sides agreed on some details related to the import of Cypriot gas, most notably, the extension of natural gas pipelines from Cypriot fields to the natural gas liquefaction plant in the area of Idku, although distribution of the pipeline construction cost has not yet been agreed.

Egypt's Zohr gas field to yield 350 mln cubic feet daily by end-2017 -ministry - REUTERS

DECEMBER 1, 2017 / 2:39 PM

Reporting by Ehab Farouk, writing by John Davison; editing by Susan Fenton

CAIRO, Dec 1 (Reuters) - Egypt’s giant new offshore Zohr gas field in the Mediterranean is set to begin production by year-end and would initially yield 350 million cubic feet per day, the petroleum ministry said on Friday.

Production would increase to around 1 billion cubic feet per day by mid-2018, it said.

Prime Minister Sherif Ismail said in September Zohr was set to produce 500 million cubic feet per day by the end of 2017.

The Zohr field was discovered in 2015 by Italy’s Eni with an estimated 30 trillion cubic feet of gas.

Egypt’s own natural gas output rose to about 5.1 billion cubic feet per day in 2017 from 4.4 billion cubic feet in 2016 with the start of production from the first phase of BP’s North Alexandria project.

The country has been seeking to speed up production from recently discovered fields, with an eye to halting imports by 2019 and achieving self-sufficiency.

Thyssenkrupp to build two major polymer plants in Turkey - HYDROCARBON PROCESSING

NOV/30/2017

Thyssenkrupp Industrial Solutions’ subsidiary Uhde Inventa-Fischer has signed a contract to build two new world-scale polymer plants for SASA Polyester Sanayi A.Ş in Adana, Turkey. One plant is planned to produce 380,000 tpy of polyethylene terephthalate (PET) for low-viscosity applications.

The second plant will use Uhde Inventa-Fischer’s proprietary patented MTR technology to produce 216,000 tpy of resin for the production of PET bottles. Both new plants are among the largest single-line production plants for their respective products.

The scope of delivery for both projects will include basic and detail engineering, the delivery of all necessary components, and technical services for erection, pre-commissioning and commissioning supervision.

Delek's Q3 profit soars above NIS 1b after Tamar sale - GLOBES

Asi Bartfeld, CEO, Delek Group

29 Nov, 2017 14:16
Globes correspondent

Delek Group also announced that it intended to cash in its super royalties from the Tamar and Dalit reservoirs in the near future.

Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG), whose share price has fallen 30% this year, today reported that its net profit had risen steeply to NIS 1.024 billion in the third quarter. NIS 873 million of this came from the sale of 9.25% of Delek Drilling Limited Partnership's (TASE: DEDR.L) holding in the Tamar natural gas reservoir to the Tamar Petroleum partnership. Delek Group's net profit in the third quarter of 2016 was NIS 85 million.

Indian, Greek E&P groups bid for licenses offshore Israel -OFFSHORE MAGAZINE

11/29/2017

HAIFA, Israel – Israel’s government has closed the country’s 1st offshore licensing round.

The Ministry of Energy received bids from Athens-based Energean, which is currently developing the offshore Karish and Tanin gas fields; and from a consortium of Indian companies comprising ONGC Videsh, Bharat PetroResources, Indian Oil Corp., and Oil India.

Dr. Yuval Steinitz, Minister of Energy, said: “This bid round is the first step in a long-term process that would lead to full exploitation of gas and oil resources in the Israeli EEZ for the benefit of the Israeli citizens.

“We are planning to launch a 2nd licensing round in 2018, where lessons learned from the 1st bid round will be incorporated, and thus continue the effort to develop these strategic assets in the Israel’s exclusive economic zone.”

NOC’s Sanalla in Cairo seeking Egyptian help - LIBYA HERALD

Sanalla with Egyptian oil minister Tarek El Mollah (Photo: NOC)

Tunis, 28 November 2017

National Oil Corporation (NOC) chief Mustafa Sanalla has been in Cairo seeking to ginger up cooperation with Egypt to help repair and expand Libya’s creaking oil and gas infrastructure.

The meeting with Egyptian oil minister Tarek El Mollah looked at ways that Egyptian oil services companies might become involved in rehabilitating oil and gas infrastructure as well as building new tanks, plus a host of other services such as training and organising conferences and exhibitions.

Sanalla’s talks with El Mollah came seven months after he and Presidency Council (PC) deputy head Ahmed Maetig separately hosted Egyptian oil chiefs in Tripoli.

It was agreed then that Egyptian companies that had withdrawn after 2014 should return. A joint working group was created to see how this could best be managed.

Israel and Cyprus: Untying the Gordian Knot on East Mediterranean Gas - MODERN DIPLOMACY

NOV 27, 2017

Antonia Dimou

Gas exploration and drilling activities in Israeli and Cypriot waters along with licensing rounds for blocks near the super-giant Zohr gas field raise the likelihood for large gas discoveries in the East Mediterranean. Israel and Cyprus speed up efforts for the development of energy resources to be primarily channeled to Europe.

Europe is considered as prime export destination for regional supplies of liquefied natural gas given that the continent is seeking to enhance energy supply and transit security.

Israel seems to be taking two steps forward and one step back on natural gas. A renewed Israeli gas regulation framework has portended a competitive market as new companies acquire offshore drilling rights. It is in this context that a Greek company, Energean Oil and Gas has secured full ownership of Israeli Karish and Tanin gas fields at the price of 148 million dollars aiming to deliver 88 billion cubic meters (bcm) of natural gas to the Israeli market in the next forty years. The Greek company has submitted a field development plan to the Israeli government and secured sales agreements for more than 3 bcm annually at a 20 percent price discount compared to Leviathan partners’ pricing to Israeli power provider Dalia Power Energies and its sister company Or Power Energies. This arrangement has set the stage for competition that will benefit consumers and the Israeli economy.

Aramco likely to begin refining fuel in Egypt in 1Q2018 – officials - ENTERPRISE

Monday, 27 November 2017

Aramco likely to begin refining fuel in Egypt in 1Q2018 -officials: Saudi Aramco is likely to begin refining crude oil in Egyptian refineries in 1Q2018, an official from the Oil Ministry tells Al Shorouk, initially at the Middle East Oil Refinery (MIDOR). Egypt will receive the 700k tons of fuel per month from Aramco — under the existing five-year fuel supply agreement — for MIDOR’s refineries, with excess output being exported, the official stated. He noted that talks are still ongoing with the Saudi’s largest oil producer. Oil Minister Tarek El Molla had confirmed earlier this month that talks had been taking place with Aramco to refine fuel here and that refining would begin at some point in early 2018. This follows other reports that Aramco had agreed to a plan last month to ship crude through the SUMED pipeline and use Sidi Kerir as a center for exporting refined output to Europe.

Israel, Egypt government ministers said to discuss gas exports - WORLD OIL / BLOOMBERG

NOVEMBER/26/2017
DAVID WAINER

TEL AVIV (Bloomberg) -- Government ministers from Egypt and Israel held a call last week to discuss the potential sale of Israeli gas to Egypt, according to a person with direct knowledge of the matter.

Egyptian Oil Minister Tarek El-Molla and Israel’s energy minister, Yuval Steinitz, spoke after an interview El-Molla gave to Bloomberg earlier this month sent shares of Israeli gas companies tumbling on speculation Egypt would halt talks on buying gas from Israel, the person said. El-Molla told Steinitz that Israeli gas exports to Egypt, which would be carried via pipeline, are still on the table, the person said.

Shares of Israeli gas producers extended their gains, with Delek Group Ltd. up 7.8% to 550 shekels at 3:26 p.m. in Tel Aviv.

Door still open for East Med-Egypt gas - PETROLEUM ECONOMIST

24 November 2017

Gina Cohen

Despite the country's natural gas sector booming, it could eventually need to import the fuel again

On 14 November, Egypt's oil minister Tarek El-Molla, told Bloomberg that "Egypt will stop importing liquefied natural gas in 2018 and may eventually export gas". This statement appeared to signal an end to the prospect of Eastern Mediterranean gas exports—from Israel and Cyprus—finding a market in Egypt. In Israel, much of the media interpreted his remarks as a sign that the country's hopes of exporting gas from the offshore Leviathan and Tamar gas fields to Egypt were dead.

At present, it's hard to imagine a day when Egypt would again be looking abroad for supplies. The second half of 2018 will be a golden moment, with its legacy gasfields still producing strongly, and the first phase of the mega-giant offshore Zohr field ramping up towards full production of around 76m cubic metres a day.

On the export front, even today, despite the shortage of gas supply for the local market, Egypt has allowed small volumes of liquefied natural gas sales, via Shell's Idku facility (0.8bn cm/d in 2016 and an expected 1.2bn cm/d in 2017).

Italian firm to drill 2 wells off Cyprus in next 2 months - ASSOCIATED PRESS / YAHOO FINANCE

November 24, 2017Menelaos Hadjicostis

NICOSIA, Cyprus (AP) -- The top executive of ENI said Friday that the Italian oil and gas company will drill two exploratory wells off Cyprus over the next two months, expressing confidence that significant reserves can be found for possible export to Europe.

ENI CEO Claudio Descalzi described Cyprus as a "natural bridge" linking existing and potential gas deposits in the eastern Mediterranean with Europe, which is looking to diversify its energy sources amid increasing gas consumption.

"We believe in Cyprus," Descalzi said after talks with Cypriot President Nicos Anastasiades. "Cyprus is a natural bridge to Europe and Europe is importing more than 70 percent of its gas and gas consumption is growing."

Gas consumption rose 5 percent in Europe last year and it will increase annually by 100 million cubic meters (3.5 billion cubic feet) each of the next two years, said Descalzi.

The first exploratory well will be drilled in partnership with France's Total next month in an area off the island's southwest. ENI and South Korea's Kogas will start drilling for the second well in January in the island's southeast.

Descalzi said ENI has a "strategic" interest in the region as waters around Cyprus remain largely unexplored. ENI has invested 450 million euros ($533 million) in exploratory drilling, seismic and geological surveys.

He said Italy is in talks with Cyprus, Egypt and Greece to possibly create a new energy corridor to Europe, with options including processing newly found gas at Egypt-based plants for export to the continent. Another option is to supply Cyprus' domestic needs.

Previous drilling had failed to locate sizeable gas deposits off Cyprus, but that hasn't disheartened companies licensed to drill in Cypriot waters. Descalzi said companies drilled 11 times in nearby Egyptian waters and found nothing before ENI discovered Zohr, the largest gas deposit ever found in the Mediterranean.

"You have to continue, and Cyprus is still a virgin area because we didn't drill a lot of wells, just 2-3 wells, so we're optimistic," said Descalzi.

Earlier, Texas-based Noble Energy discovered a field off Cyprus estimated to contain over 4 trillion cubic feet in reserves.

ExxonMobil said it will go ahead with drilling two wells in the second half of next year.

SOURCE

Medserv’s interim statement highlights delays in Q4, strong 2018 - TIMES OF MALTA

Friday, November 24, 2017, 07:49

Medserv’s update issued to the market highlights that the group’s business pipeline remains robust with a strong outlook for 2018, while earnings for the second half of the reporting year are lower than forecast due to delays in projects both in integrated logistics support services (ILSS) and oil country tubular goods (OCTG).

Further to the company announcement, Edison Investment Research also issued an update where they state that although the project delays will see H217 miss expectations, contracted projects underpin their FY18 estimates and for this reason this remains unchanged. The DCF-based fair value provided by Edison currently stands at €1.64 per share. The full Edison report may be viewed on the company’s website.

The group reported that the second ILSS base recently opened in Cyprus will become fully active in the coming month. Four to five wells are expected to be drilled in the waters offshore Cyprus in the next 12 months. Medserv Cyprus will support the upcoming exploratory drilling campaign planned by ENI Cyprus from both its shore bases in Limassol and Larnaca.

The group’s Cypriot subsidiary has also recently participated in a tender for the provision of ILSS to a second International Oil Company (IOC) which is planning to drill next year.

ENI announces exploratory drills in next couple of months (updated) - CYPRUS MAIL

NOVEMBER 24, 2017

George Psyllides

Italian energy firm ENI is planning two exploratory drills for natural gas in the island’s exclusive economic zone in the next couple of months, officials said on Friday.

The announcement was made by Energy Minister Giorgos Lakkotrypis and ENI CEO Claudio Descalzi after a meeting with the president.

The first drill will take place in a field in block six named Kalypso in December, followed by a one in Cuttlefish, in block three in January.


“We have agreed on the drilling only nine months after licensing and this is record time,” Descalzi said.

Asked if he was optimistic, the CEO said his company was investing €150m and that meant it believed in the prospect and the geology of Cyprus.

“We are optimistic, we are present, and we are investing a lot,” he said.

Hellenic Petroleum sees adjusted EBITDA above $947 MM euros this year - HYDROCARBON PROCESSING

 11/23/2017

Reporting by Angeliki Koutantou; Writing by Michele Kambas

ATHENS (Reuters) — Greece’s largest oil refiner Hellenic Petroleum expects its core profit to exceed $947.84 MM this year, Chairman Efstathios Tsotsoros said on Thursday.

Tsotsoros was speaking at an energy conference in Athens. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), which strips out oil inventory holdings, came in at 731 MM euros in 2016.

Egypt Starts Talks With Cyprus on Natural Gas Pipeline as Prospects for Israeli Exports Dim - HAARETZ

Nov 22, 2017 10:41 PMEran Azran

Some have proposed that Israel, Egypt and Cyprus combine their offshore Mediterranean gas reserves to create a giant gas hub and sell to Europe, but progress has been halting
Egypt and Cyprus have agreed to start talks next month towards an agreement to build a pipeline to deliver natural gas to Egypt from Cyprus’ Aphrodite gas field, Xinhua news agency reported, citing Cypriot news sources.

The agreement, which came during a visit by Egyptian President Abdel-Fattah al-Sissi on Monday, calls for making use of an existing pipeline system from depleted Egyptian gas fields to liquefaction plants at Idku and Damietta.

The news comes amid warnings from Egyptian officials in recent weeks that the prospects for Israeli or other gas exports to Egypt are getting slimmer. Some have proposed that Israel, Egypt and Cyprus combine their offshore Mediterranean gas reserves to create a giant gas hub and sell to Europe, but progress has been halting.

Cabinet approves purchase of land from UK for new port - CYPRUS MAIL

The power plant in the Vasilikos area

NOVEMBER 22, 2017

Evie Andreou

Cabinet approved on Wednesday a proposal by Transport Minister Marios Demetriades to sign an agreement with the United Kingdom to acquire a piece of land near Vassilikos, in Limassol to construct an industrial and energy port that could be used by the hydrocarbon industry.

Following the cabinet meeting, Demetriades said that the approval of his proposal was “of great importance” for the country, and opened great prospects for development. He said the decision is part of the government-integrated plan for port infrastructure and the wider policy of making Cyprus a regional infrastructure management centre.

SDX announces completing a number of projects in Egypt in 3Q2017, attributes rise in profit to Circle Oil acquisition - ENTERPRISE

Wednesday, 22 November 2017

SDX Energy announced completing a number of projects in Egypt during 3Q2017. The company concluded a twelve-well program at North West Gemsa, which should allow it to achieve its 5,000 boepd target for the year, in addition to finalizing the expansion of a processing facility at its Meseda project by increasing treatment capacity to 20,000 bfpd from 10,000. In South Disouq, SDX is in talks with Natural Gas Holding Company to drill an additional two wells and add 10 km of pipe to the main export line, which it hopes to complete in 1H2018. SDX has also completed development plans for its South Ramadan concession and should begin moving forward on the project soon. The company attributed the rise in its 3Q2017 net revenues to USD 10.1 mn, from USD 2.9 mn in 3Q2016 to “the acquisition of the Egyptian and Moroccan businesses of Circle Oil” in January this year.

SDX assessing commercial potential of Gulf of Suez permit - OFFSHORE MAGAZINE

11/21/2017

LONDON – SDX Energy expects to soon conclude a commercial evaluation of the South Ramadan development concession in the Gulf of Suez offshore Egypt.

It follows approval this summer of an extension to the drilling commitment by the General Petroleum Co. until October 2018.

SDX has assessed the prospectivity of the area and completed development plans.

Once it has finished its commercial evaluation it expects to hold a meeting with the authority to discuss the way forward in the concession.

The 26.2-sq km (10.1-sq mi) South Ramadan concession, in 27 m (88.6 ft) of water, contains two proven productive horizons in the Eocene age Thebes and Senonian age Matulla carbonates.

Its location is between the 550-MMbbl Ramadan oil field 5 km (3 mi) to the northwest, and the 1.5-Bbbl Morgan field 6 km (4 mi) to the southeast, both of which produce light oil from Lower Cretaceous age Nubia sandstones.

Cyprus, Egypt to start work on agreement to construct gas pipe - XINHUA

2017-11-21 00:27:20

Mu Xuequan

NICOSIA, Nov. 20 (Xinhua) -- Cyprus and Egypt have agreed to start discussions in December on an agreement to build a gas pipe from a Cypriot natural gas field to take gas to Egypt, Cypriot state radio reported on Monday.

It said the agreement came during talks when Egypt's President Abdel Fattah al-Sisi made an official visit to Cyprus on Monday.

The gas pipe will make use of an already existing pipe system from depleted Egyptian gas fields to liquefaction plants at Idku and Damietta.

State radio also reported that a four-party meeting of Cyprus, Greece, Egypt and Italy will be held on early December to sign a memorandum of understanding for building a gas pipe from gas fields in the eastern Mediterranean to Italy via Cyprus and Greece, a project supported by the European Union.

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

Sisi, Anastasiades, Tsipras, Nicosia, 21 Nov 2017

Tuesday, 21 November 2017

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

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

Two new FSRU facilities to be launched in Turkey - ANADOLU AGENCY

20.11.2017

Ebru Şengül

Ankara - Two new Floating Storage Regasification Units (FSRU) will be put into operation in Turkey, one in Hatay/Dortyol in southern Turkey and the other in Saros Bay on the Gallipoli peninsula in the northwest, Turkey's Energy and Natural Resources Minister Berat Albayrak said on Monday.

Speaking at the Turkish Grand National Assembly [Parliament] Plan and Budget Commission, Albayrak said the Hatay FSRU will have a regasification capacity of 29 million cubic meters (mcm) per day and will become operational by the end of the year.

Turkey's natural gas storage capacity will rise to 10 billion cubic meters (bcm), or equal to 20 percent of annual natural gas consumption, he said.

Egypt Says Gas Discoveries Can Be EU's New Energy Source - NEW YORK TIMES

Sissi hosted by Anastasiades, Nicosia, 20-11-2017

NOV. 20, 2017, 8:27 A.M. E.S.T.

NICOSIA, Cyprus — Newly discovered gas deposits in the eastern Mediterranean can offer Europe the alternative sources of energy that it's searching for, Egypt's president said Monday.

President Abdel-Fattah el-Sissi said that Europe can take advantage of the proximity of both Egypt and Cyprus to the continent in that energy search.

"These gas discoveries can contribute to the European continent's search for alternative energy sources, taking advantage of the position of Egypt and Cyprus," El-Sissi said after talks with his Cypriot counterpart.

Cyprus President Nicos Anastasiades said his country will promote closer relations between Egypt and the European Union, calling Egypt an "absolutely necessary strategic partner" for the 28-member bloc on issues like energy, migration and combating extremism.

Egypt, Cyprus and Greece: Consolidating a Mediterranean alliance - AL AHRAM

Monday 20 Nov 2017
Dina Ezzat

“We cannot be exploring the potential fields without reaching an agreement on the demarcation with Greece,” explained an Egyptian official.

President Abdel-Fattah El-Sisi is expected to arrive Monday afternoon in Cyprus' capital Nicosia for talks with his counterpart Nicos Anastasiades.

During his visit to Egypt’s northern Mediterranean neighbour, El-Sisi is also expected to meet with Alexis Tsipras, the prime minister of Greece, considered in Egyptian diplomacy circles as one of the closest possible allies of Egypt in the European Union and in the Mediterranean zone.

The three leaders of Egypt, Cyprus and Greece were expected to hold a three-way summit to discuss their planned two-path cooperation: energy and security.

A top issue for the Egyptian president in Nicosia is the conclusion of a process to define maritime borders between Egypt and Greece. According to Egyptian and Greek sources, this process was launched a few years ago with firm support form both El-Sisi and Tsipras, who both wish to see this demarcation as a beginning for the full exploitation of the eastern Mediterranean's natural gas reserves.

Parliament approves extending SUMED work for 27 years - DAILY NEWS EGYPT

November 20, 2017 

Mohamed Farag

Company executes oil projects with investments of $415m

The Energy and Environment Committee of the House of Representatives, headed by MP Talaat Al-Suwaidi, approved on Sunday a draft law of the government to extend the term of the Arab Petroleum Pipelines Company (SUMED).

Hisham Lutfi, representative of the Ministry of Petroleum, said that the company has established a port for liquefied natural gas vessels in Ain Sokhna, in the context of maintaining relations with investors.

During the meeting, Al-Suwaidi said that under the proposed draft law, SUMED’s terms are lengthened by 27 years, starting from the end of the term in Law No. 10 for 1992.

Is the World Bank telling us to get a sovereign wealth fund of our own? - ENTERPRISE / AL AHRAM

Monday, 20 November 2017

Is the World Bank telling us to get a sovereign wealth fund of our own? World Bank Group Senior Vice President Mahmoud Mohieldin reportedly suggested that it “was imperative” for Egypt to benefit from the revenues of the Zohr gasfield by establishing a sovereign wealth fund, Al Ahram reports. Mohieldin’s comments came at an AmCham talk held yesterday. Last we heard on the Ismail cabinet’s plans to form such a fund was in November of last year, with the economic group approving the drafting of a law to establish a EGP 5 bn sovereign fund dubbed Amlak. Ashraf Al Araby, the planning minister at the time, had even narrowed down the sectors the fund would be investing in, including industry, agriculture, mining, and tourism. Al Araby had been the sole voice behind the move, and we haven’t heard peep about it since he was replaced in the last cabinet shuffle.

NPCC Signs a Memorandum of Understanding (MoU) with Petrojet of Egypt - NPCC

19, Nov 2017

NPCC, part of Senaat Abu Dhabi, signed a memorandum of understanding (MoU) with Petrojet of Egypt, to partner and cooperate for identification and execution of new projects in Egypt and wider region.

NPCC was founded in 1973 in Abu Dhabi, UAE, and has delivered Offshore & Onshore Oil & Gas EPC projects for National and International Oil Companies in the region. It has over 1200 Engineers in 4 Engineering Centres across Europe and Asia, a fleet of 22 Offshore Construction Vessels and the largest yard of 1.3 Million square meters in MENA region.

The MoU was signed by Mr Aqeel A. Madhi, MD & CEO of NPCC and Mr Salah Ismail, Chairman and MD of Petrojet, in presence of senior members of the management team, at ADIPEC in Abu Dhabi. MoU will come into effect immediately and both parties plan to enhance cooperation to win and execute new projects.

Mr. Aqeel A. Madhi, MD & CEO of NPCC said “This partnership, with an established organization in Egypt, is a golden opportunity for NPCC to win and execute projects in Egypt and near-by markets. It will help us grow in new markets, Egypt in specific and other markets in general. This strategic partnership and cooperation will also support our strategy of growing in new markets.

Investors to discuss solution for rising natural gas bills for industry with MPs on Tuesday - ENTERPRISE

Gas tanks at Suez city north of Cairo. (Reuters)

Sunday, 19 November 2017

Industrialists to discuss rising natural gas bills with House on Tuesday: A delegation from the Union of Egyptian Investors Association (UEIA) will meet with the House of Representatives’ Industry Committee on Tuesday to discuss challenges they’re facing due to rising natural gas bills, UEIA boss ad Oriental Weavers founder Mohamed Farid Khamis said on Thursday, Al Shorouk reports. 

Natural gas supply has been interrupted at a number of factories that fell behind on bill payments, which they say they are unable to make, Khamis said. We had heard last week that the House was looking into repricing gas for industry and canceling real estate taxes on factories following complaints from industry figures. Egypt’s manufacturing sector has been pushing for years to lower gas prices, but officials had hinted in August that it was unlikely the Ismail Cabinet would follow through on the decision.

Fugro deploys vessel for coring at Zohr - ENTERPRISE / OFFSHORE MAGAZINE

Sunday, 19 November 2017

Geotechnical and survey services provider Fugro is sending its vessel MV Kobi Ruegg on it first project in the Egyptian sector of the Mediterranean, Offshore Magazine reports. 

“The three-year-old, 58-m (190-ft) long vessel, contracted by Saipem, will deploy a large diameter piston core system to obtain soil samples from the ultra-deepwater Zohr gas field. 

Its next assignments will be geophysical surveys for Pico and Shell… From its new home port of Abu Qir, it will undertake marine site characterization services for Fugro’s clients in the Eastern Mediterranean and Red Sea.” 

The values of the contracts were not disclosed.

Egypt's Sisi to fly to Nicosia Monday for tripartite summit with Cyprus, Greece - AHRAM ONLINE

SISI, TSIPRAS, ANASTASIADES, DECEMBER 2015,ATHENS

Friday 17 Nov 2017

President Abdel-Fattah El-Sisi is set to fly to Cyprus on Monday to participate in a tripartite summit between the two states and Greece.

State agency MENA said the upcoming summit would include talks on coordinating stances, as well as boosting cooperation between the three countries as regards politics, economics and trade, security, and tourism.

The meetings will also include discussions on regional issues, including the Syrian and Libyan crises, and combating terrorism and extremism.

The upcoming tripartite meeting will be the fifth such meeting between El-Sisi, Cypriot President Nicos Anastasiades, and Greek Prime Minister Alexis Tsipras in recent years.

ADES wins contract for ADMARINE III jackup with Egypt's GPC - WORLD OIL

11/16/2017

LONDON -- ADES International Holding Ltd., the London-listed company providing offshore and onshore oil and gas drilling and production services in the Middle East and Africa through its subsidiaries, is pleased to announce that it has been awarded a new contract for its ADMARINE III offshore jackup rig.

The contract was awarded by General Petroleum Company (GPC), the first national oil company in Egypt. The contract entails an initial two-year engagement of ADMARINE III with an option to extend for a further two-years. No significant additional capex is anticipated for the ongoing deployment of the rig.

Maridive & Oil Services wins $20m contract to provide services at Zohr - ENERGY EGYPT

November 16, 2017

Maridive & Oil Services signed a USD 20 million agreement with an unnamed Egyptian company to lease three maritime units to provide maritime and oil services at the Zohr gas field, Al Mal reports.

Maridive & Oil Services (MOIL) announced in a statement sent to EGX, maritime support sector has won a new contract with one of its clients in Egypt worth $20 million.

The deal encompasses leasing 3 maritime units to present maritime petroleum service in Zohr field in North Delta.

The Company said the contract would be signed by the end of the current year for 3 years, adding the total signed contracts of the company are amounting to $370 million from 2017 till 2019.

ADES, Vantage Drilling form JV to provide deepwater drilling services in Egypt - WORLD OIL

11/15/2017

LONDON and DUBAI -- ADES International Holding Ltd., the London-listed company providing offshore and onshore oil and gas drilling and production services in the Middle East and Africa through its subsidiaries, has announced that its subsidiary ADES S.A.E has entered into a long-term joint venture (JV) agreement with a subsidiary of Vantage Drilling International (Vantage).

The new JV company will leverage Vantage’s world-class offshore deepwater drilling experience and ADES International’s leadership position within the Egyptian offshore drilling market to provide deepwater drilling services in Egypt’s Mediterranean basin.

The agreement will enable ADES to generate additional revenue without incurring the significant capital expenditure associated with deepwater drilling. As part of the JV, Vantage will gain access to the attractive Mediterranean basin, optimize access to local workforces and service providers and increase the marketability of its ultra-deepwater fleet.

Eni's Giant Gas Field Prompts Egypt to End Imports in 2018 - BLOOMBERG

November 15, 2017, 9:52 AM GMT+2Salma El Wardany — With assistance by Hussein Slim, Fatma Abusief, and Tracy Alloway

• Zohr field will start production at 350,000 cubic feet a day
• New gas laws to be adopted in days: Oil Minister El-Molla

Egypt's El-Molla on Zohr Gas Field, Attracting Investors

Egypt will stop importing liquefied natural gas in 2018 and may eventually export gas after it starts producing this year at the giant Eni SpA-operated Zohr field off the country’s Mediterranean coast, Oil Minister Tarek El-Molla said.

Zohr’s output will mostly supply the domestic market, and the nation’s two existing gas-liquefaction facilities are large enough to process any available surplus into LNG for international sale in 2019, El-Molla said Tuesday in an interview in Abu Dhabi. If Zohr and other gas fields generate enough supplies, Egypt may consider adding a third LNG-exporting terminal, he said.

Russia's Rosneft says to invest over $2 bln in Egypt's Zohr in 2018-2021 - REUTERS

NOVEMBER 14, 2017 / 2:29 PMReporting by Polina Devitt; writing by Vladimir Soldatkin; Editing by Christian Lowe

MOSCOW - Russia’s largest oil producer Rosneft will invest more than $2 billion in Egypt’s Zohr gas field in the next four years, the company said in a presentation on Tuesday.

It also said the production plateau at the field, where Rosneft may increase its stake to 35 percent, is seen at 29 billion cubic metres of gas a year. 

Gov’t will only approve gas imports from Israel after disputes are resolved -El Molla - ENTERPRISE

Tuesday, 14 November 2017

The government will not issue permits to companies to import natural gas from Israel until the arbitration cases between Egypt and Israel are resolved, Oil Minister Tarek El Molla said, according to Reuters. The government will sign off on agreements to import from our eastern neighbor only once the disputes are resolved and under the condition that the agreements “add value,” El Molla say. “Delegations [from Israel] are healthy as it means there are discussions and negotiations, but they have to meet the conditions put by the government as that is only fair,” he says. “In 2015, the International Chamber of Commerce ordered Egypt to pay USD 2 bn in compensation after [an agreement] to export gas to Israel via pipeline collapsed in 2012 due to attacks by insurgents in Egypt’s Sinai peninsula,” the newswire notes.

El Sokhna Refinery secures USD 1.4 bn in funding for its refinery - ENTERPRISE

Sunday, 12 November 2017

Soukhna (El Sokhna) Refinery & Petrochemicals has secured USD 1.4 bn in funding for phase one of its refinery plant from an unnamed consortium of European and Chinese lenders, company sources tell AMAY. 

The funding will cover the development of 85% of phase one, and the company plans to finance the rest through loans from local banks.

Fuel subsidy spending rises 68% y-o-y in 1Q2017-18, El Molla says - ENTERPRISE

Sunday, 12 November 2017

Fuel subsidy costs rose 68% y-o-y to EGP 23.5 bn in 1Q2017-18, up from EGP 14 bn in the same quarter of the previous fiscal year, Oil Minister Tarek El Molla told reporters yesterday, Reuters reports. The minister reaffirmed that the government would not raise fuel subsidies again during this fiscal year, but said gasoline subsidies will be lifted altogether within five to ten years; some form of subsidy will remain in place for diesel fuel and gas cylinders, according to Ahram Online. The partial lifting of fuel subsidies since November 2016 has trimmed EGP 4 bn off the state’s expenditures this year, El Molla says. As we noted previously, the government is projecting that spending on fuel subsidies this fiscal year will record EGP 110 bn.

Court orders East Mediterranean Gas Company to pay $174 mln in debt to Egypt's National Bank- AHRAM ONLINE

Sunday 12 Nov 2017

El-Sayed Gamal El-Din

Egypt's Court of Cassation has rejected an appeal by the East Mediterranean Gas Company against a 2016 ruling obliging the company to pay off $174 million in debt to Egypt's National Bank.

The company was founded and previously headed by Mubarak-era business tycoon Hussein Salem.

The court did, however, accept an appeal by Egypt Insurance Company, which was also involved in the case.