Egyptian minister sets conditions for approval of Israeli gas import deal - THE TIMES OF ISRAEL

21.2.2018

Egypt’s oil minister said Tuesday Cairo would set some conditions before approving the import of Israeli natural gas to the country, as agreed between US Noble Energy, Israel’s Delek and Egypt’s Dolphinus Holdings.

Tariq al-Mulla, quoted by Turkey’s Anadolu news agency, said the gas imports must “add value to the Egyptian economy” — a likely reference to pricing — and that “arbitration between the two countries” must be settled.

He was apparently alluding to a debt of $1.76 billion Egypt owes Israel for a 2015 court judgment that found Cairo violated an agreement to supply natural gas.

The ruling, made by three arbitrators at the International Chamber of Commerce, came after the Israeli Electric Corporation claimed over $4 billion in damages stemming from Egypt canceling their bilateral gas deal in 2012.

Egypt's potential gas surplus could feed global LNG glut - WORLD OIL

FEB/20/2018
SALMA EL WARDANY

CAIRO (Bloomberg) -- Egypt faces a possible over-abundance of natural gas after two Israeli companies proposed a $15 billion supply deal, raising the prospect that the Arab nation may turn its surplus into liquefied natural gas and export it to a market currently glutted with LNG.

Egypt was already expecting to become self-sufficient in natural gas by the end of this year with the start of Eni SpA’s giant Zohr field, Oil Minister Tarek El-Molla said last month. Noble Energy and Delek Drilling-LP said Monday they plan to supply around 64 Bcmg over 10 years to Egypt’s Dolphinus Holdings from Israel’s Tamar and Leviathan reservoirs, in a $15 billion export arrangement.

The most populous Arab country has facilities to turn gas into super-chilled LNG, which can be exported by ship. The global LNG oversupply is unlikely to end before the mid-2020s, the IEA forecast in October.

Noble Energy announces execution of gas sales agreements for export of gas to Egypt - WORLD OIL

FEB/19/2018

HOUSTON -- Noble Energy, Inc., has announced that it has signed agreements to sell significant quantities of natural gas from Leviathan and Tamar fields to Dolphinus Holdings Limited to supply gas in Egypt. These agreements, one for natural gas from Leviathan and one for Tamar, each provide for total contract quantities of 1.15 Tcf of natural gas. The natural gas is anticipated to supply industrial and petrochemical customers, as well as future power generation in Egypt.

Sales volumes under the agreement associated with Leviathan field are anticipated to begin at a firm rate of approximately 350 MMcfd at the startup of the Leviathan project at the end of 2019. For the Tamar agreement, sales volumes are anticipated to begin at an interruptible rate of up to 350 MMcfd, dependent upon gas availability beyond existing customer obligations in Israel and Jordan. Noble Energy will have an option to convert the Tamar interruptible quantity to a firm-basis with a significant take or pay commitment. Both contracts are for a 10-year term.

Partners sign deal to export $15 billion in Israeli natgas to Egypt - REUTERS

FEBRUARY 19, 2018 / 2:42 PMReporting by Tova Cohen and Ari Rabinovitch

TEL AVIV (Reuters) - The partners in Israel’s Tamar and Leviathan natural gas fields have signed 10-year agreements to sell $15 billion worth of natural gas to Egyptian company Dolphinus, Delek Drilling said on Monday.

Various possibilities for transmission of the gas to Egypt are being examined, including use of the East Mediterranean Gas pipeline. Delek Drilling and its partner, Texas-based Noble Energy, intend to begin negotiations with EMG for the use of the pipeline to Egypt, Delek said in a statement.

Arbitrator: EMG Due $1.03b From Egypt Over Canceled Gas Contract- HAARETZ

Feb 19, 2018 12:43 AM
Eran Azran 

A lengthy dispute over compensation after Egyptian gas companies cut off the supply of natural gas to Israel six years ago is moving forward in Israel’s favor, thanks to a ruling that the Egyptians had violated their country’s trade treaty with Poland.

The Cairo Regional Centre for International Commercial Arbitration ruled that East Mediterranean Gas, the company that operated the pipeline that had been delivering the gas to Israel, should be awarded $1.033 billion plus interest.

If the award is paid out, that could enable the bondholders of Ampal-American – an Israeli holding company controlled by Yossi Maiman that owned 12.5% of EMG – to collect on the 800 million shekels ($225.8 million at current exchange rates) still owned them after Ampal went bankrupt after EMG’s supply of gas was ended.

The decision by the Cairo-based arbitrator came after the United Nations Commission on International Trade Law, or UNCITRAL, ruled that the Egyptian Natural Gas and Egyptian General Petroleum Corporation had violated the terms of the Egyptian-Polish trade treaty’s clauses protecting investors.

Despite Turkish reservations, Qatar, ExxonMobil plan oil drilling off Cyprus - AL ARABIYA

Sunday, 18 February 2018 KSA 13:26 - GMT 10:26

Following Qatar’s signing of a deal with US petroleum company ExxonMobil in 2017 to explore oil and gas off the coast of Cyprus, a Turkish energy expert said that Turkish President Erdogan should warn Qatar of going ahead with the deal as Turkey is known for blocking oil exploration on their territory, according to Ahval News newspaper.

Turkish Coast Guard vessels had prevented the Italian energy company, Eni, from drilling near Cyprus, which caused tensions to rise between both countries.

The Turkish president had also issued a warning to energy companies, Greece and Cyprus from drilling on Turkish territory, the newspaper reported.

However, the Qatari company, Qatar Petroleum, will now go ahead with their plans of drilling operations along with ExxonMobil according to their deal which they announced in 2017.

Turkey had protested for sovereignty over the 10th parcel as an exclusive economic region, Pamir, who is a world energy politics professor at Bilkent University in Turkey, told the newspaper. Turkish vessels had collided with Greek vessels in that area.

“A potential conflict over the 10th block will further escalate the already shaky international relations between Turkey, and the US,” the newspaper reported Pamir as saying.

EGAS to hold exploration tender for nine blocks by June - ENTERPRISE

Sunday, 18 February 2018

EGAS to hold exploration tender for nine blocks by June: EGAS plans to hold an international exploration tender for nine blocks “before the end of 1H2018,” EGAS Vice Chairman for Agreements and Exploration Ahmed Salah Abdel Wahed said on Thursday, Youm7 reports. The tender includes six offshore and three onshore blocks. Though he did not specify where these blocks will be, the offshore ones are expected to include areas in the Mediterranean as EGAS has put a plan to issue tenders for natural gas exploration annually, with a focus on the Mediterranean. Last week, Oil Minister Tarek El Molla said that the ministry plans to float tenders in the West Mediterranean once seismic mapping of the area is complete and a marketing strategy for the field has been developed. He added that the Red Sea and South Egypt areas will also see tenders — for the first time — once geological data has been collected.

Will the impact of the early launch of the Atoll gas field be minimal? Analysts speaking to chemical industry news firm ICIS appear to think so, adding that LNG imports are likely to continue to the end of the year. “The Atoll field is a reasonably significant addition to the trend of growing domestic gas production in Egypt, but on its own it would only have a limited impact,” said Andy Flower, an independent LNG consultant. BP had announced the launch of the Atoll gas field seven months early last week.

Egypt to import 3 LNG cargoes from France's Engie for Q2 2018 -sources - REUTERS

FEBRUARY 18, 2018 / 9:03 AM

Reporting by Ehab Farouk; Writing by Nadine Awadalla; Editing by Susan Fenton

CAIRO, Feb 18 (Reuters) - Egyptian Natural Gas Holding Company (EGAS) has arranged for the delivery of three liquefied natural gas (LNG) cargoes from France’s Engie in the second quarter of 2018, EGAS sources said on Sunday.

Trade sources told Reuters last month that Egypt was looking to import five cargoes of LNG at competitive pricing.

Two trade sources said the purchases were arranged through bilateral deals and not via a standard tender process.

Egypt plans to stop importing LNG by the end of the 2017/18 fiscal year ending in June as it speeds up production at recently discovered gas fields, the petroleum minister said in January. 

Athens Energy Forum: 'There is more natural gas' in the East Med - IBNA

16-02-2018, 09:37

Nefeli Tzanetakou

Energy is the reason why U.S. ambassador to Greece, Geoffrey R. Pyatt, went to Ankara yesterday, Thursday, said Steven Bitner, an economist at the US Embassy in Athens, speaking at the Athens Energy Forum conference.

The latest developments in the Eastern Mediterranean region due to Ankara's choices have been a cause for concern.

The goal, as agreed by all participants at the Athens Energy Forum, as gas demand will increase steadily in the coming years, is transnational co-operation so that all involved sides make the most of the energy game in progress in the Eastern Mediterranean.

However, the remaining "thorns" are the Cyprus issue, the war in Syria, and the Israeli-Palestinian conflict.

Greece gets two binding bids in gas grid sale - REUTERS

FEBRUARY 16, 2018 / 7:01 PMReporting by Angeliki Koutantou; Additional reporting by Stephen Jewkes in Milan; Editing by Karolina Tagaris and Jane Merriman

ATHENS, Feb 16 (Reuters) - Greece has received two binding bids for a 66 percent stake in its gas grid operator DESFA, the Greek privatisation agency (HRADF) said on Friday, a sale that is a key condition of the country’s international bailout.

The agency said bids were submitted by a consortium of Italy’s Snam, Spain’s Enagas Internacional and Belgium’s Fluxys, and a consortium of Spain’s Regasificadora del Noroeste (Reganosa), Romania’s Transgaz and the European Bank for Reconstruction and Development (EBRD).

Friday’s deadline for binding bids comes ahead of a euro zone finance ministers’ meeting in Brussels on Monday which will assess Greece’s bailout progress and decide on disbursing more bailout loans.

A share purchase agreement and a shareholders’ agreement for DESFA are due to be signed by April for the sale to conclude by June, before Greece exits its third bailout in August.

First private sector LNG import license to be issued at the end of Feb -sources - ENTERPRISE

Tarek El Molla interviewed by CNBC - Feb 2018 Egypt

Thursday, 15 February 2018

New natgas regulator to issue first LNG import license before the end of Feb? The newly-established natural gas market regulator is expected to issue the first LNG import license to the private sector before the end of February, when its board meets for the first time, sources close to the matter tell Al Shorouk. While it remains unclear which company will make the first draw, we had heard last year that EGAS gave BB Energy, Fleet Energy, and Qalaa Holdings’ TAQA Arabia preliminary approval on natural gas import licenses, following the issuance of the Natural Gas Act, which reduces the state’s role to regulator and opens the market to the private sector. Four other unnamed companies are reportedly also seeking import licenses.

Fees for using state infrastructure also to be announced: The board, whose full lineup will be announced next week, will also discuss the fees private sector players will have to pay to use the state’s natural gas grid under the act, the sources also said. News of the meeting comes one day after Ismail Cabinet issued the executive regulations to the Natural Gas Act, officially bringing it into effect. Oil Minister Tarek El Molla, who will chair the board, had previously said that the state will fully exit the market by 2022.

Egypt says signs seismic survey deal with Schlumberger - REUTERS

FEBRUARY 14, 2018 / 1:47 PM

Reporting by Ehad Farouk; Writing by Sami Aboudi, editing by David Evans

CAIRO (Reuters) - Egypt has signed a deal with oilfield services company Schlumberger to conduct a seismic survey in the Gulf of Suez, the oil ministry said on Wednesday, part of efforts to encourage firms to invest in exploration work in the area.

The oil ministry announced an agreement with an international company on Monday to conduct a seismic survey of the Gulf of Suez to attract exploration investment, but did not identify the company and gave no details.

The deal, signed on the sidelines of an energy conference in Cairo, allows Schlumberger to start work on the survey.

The ministry did not give the value of the deal.

FDI in oil and gas sector has hit USD 10 bn so far this fiscal year; El Molla sounding the right note on payments to IOCs, but what about mid-sized players? - ENTERPRISE

Wednesday, 14 February 2018

FDI in oil and gas sector up to USD 10 bn this year: Investment by international oil companies reached USD 10 bn so far in FY2017-18, Oil Minister Tarek El Molla said in an interview with Al Borsa. This will likely increase, as the ministry plans to issue exploration tenders, including in the East Mediterranean and in the Nile Delta region sometime in 2H2017-18, said El Molla. The ministry plans to float tenders in the West Mediterranean once seismic mapping of the area is complete and a marketing strategy for the field has been developed. He added that the Red Sea and South Egypt areas will also see tenders for the very first time once geological data has been collected.

El Molla once again reassured IOCs that Egypt is committed to paying its arrears, noting that they now stand at USD 2.3 bn since the last USD 2 bn payment was made in June 2017. He noted that these were lowest levels of IOC-debt since 2013. (The question remains, though: What about small- and mid-sized players, who have seen their receivables balloon at the same time as the global majors are being paid out?)

Kuwait Energy Announces Oil Discovery at Area A, Egypt - KUWAIT ENERGY

Kuwait City – 13 February 2018

Kuwait Energy is pleased to announce an oil discovery in the Area A concession situated in the Eastern Desert, Egypt.

The South Kheir-1X (SK-1X) well spud on 11 December 2017 and tested successfully on 28 January 2018 at an initial oil flow rate of 2,452 barrels of oil per day (bopd) from the Hamman Faraun MBR/Belayim formation at 128/64-inch choke size. On 6 February 2018 the well stabilized at an oil rate of 1,900 bopd on 64/64-inch choke size.

Abby Badwi, Chief Executive Officer of Kuwait Energy, said:

“I am pleased to announce this oil discovery, which is a direct result of our technical team reprocessing old 2D/3D seismic and identifying drillable exploration opportunities. The Area A concession has been producing since the 1960s and this discovery demonstrates Kuwait Energy’s ability to continue to find hydrocarbons in mature fields. Kuwait Energy is proud of its track record of around 50% exploration success rate in Egypt. These achievements could not have been possible without the ongoing support of the Egyptian General Petroleum Corporation, General Petroleum Company (GPC) and our non-operator partner Petrogas.”

Kuwait Energy holds a 70% revenue interest and is the operator of the Area A concession under a Service Agreement with GPC while Petrogas holds 30%.

Egypt issues regulations allowing private sector gas imports - REUTERS

FEBRUARY 13, 2018 / 5:38 PM

Reporting by Momen Saeed Attallah. Writing by Eric Knecht. Editing by Jane Merriman

CAIRO, Feb 13 (Reuters) - Egypt has issued long-awaited executive regulations that will allow the private sector to import natural gas directly, according to a statement from the prime minister’s office on Tuesday.

Egypt’s parliament last year passed a law establishing a gas regulatory authority that the government hopes will attract greater private sector participation in the country’s rapidly expanding gas sector.

The executive regulations issued on Tuesday make this law active.

Eni CEO: Cypriot gas reservoir could contain 230 BCM - GLOBES

13 Feb, 2018 10:53
Sonia Gorodeisky

Claudio Descalzi, CEO of Italian energy giant Eni, announced yesterday that the new gas reservoir discovered by Eni and French energy company Total off the coast of Cyprus could contain more than 230 BCM of gas, and contains not less than 170 BCM. Speaking at a press conference in Cairo, he said that the geological structure of the Calypso field was similar to that of the Egyptian Zohr field, which Eni developed.

Descalzi added that the region could become a natural gas power if everyone pooled their resources. "The new reservoir may be connected to Zohr, depending on its dimensions," he said. Assuming that it is not substantially larger than 230 BCM, the newly discovered reservoir is medium-sized by Israeli standards, between the size of the Karish and Tanin reservoirs and that of Tamar.

Descalzi: Calypso 1 holds minimum 6-8 tcf - ENTERPRISE

Tuesday, 13 February 2018

Production from the Zohr offshore gas field will reach 2.9 bcf/d by mid-2019, said Eni CEO Claudio Descalzi at the conference. The goal was to reach output of 1.8-2 bcf/d by the end of 2018 and then ramp up to 2.9 bcf/d by mid-2019, he added, according to Reuters.

Descalzi also spoke on the potential giant discovery in Cyprus’ Calypso 1 reservoir, saying that an appraisal well would have to be drilled to understand the real volumes there and that Eni would decide alongside France’s Total when to commit to that campaign. Asked whether it is believed to hold around 6-8 tcf, Descalzi said: “It could be more or in that range… for sure it cannot be less, but we have to understand it … It’s a good find that has merit to go ahead with additional investment.” He did not mention Turkey’s latest acts of aggression to hinder the development of Block 6.

Energean extends Prinos development offshore Greece - OIL & GAS JOURNAL

HOUSTON, Feb/12/2018
Tayvis Dunnahoe, OGJ Exploration Editor

Energean Oil & Gas will drill as many as 25 wells and install two platforms as part of an investment program on the Prinos license offshore northeastern Greece. The $180-million investment will increase production from Prinos and Prinos North oil fields through 2021, as well as develop Epsilon oil field.

Energean announced the plan as an extension of the Prinos long-term offtake agreement with BP Oil International Ltd. through Nov. 1, 2025. The group’s Prinos basin oil production is currently sold to BP under the offtake agreement, which was originally signed in 2013 and covered the period until July 31, 2021. The 4-year extension will safeguard the group’s cash flow, Energean said.

The Energean Force offshore drilling rig will execute the proposed development wells, and the GSP Jupiter jack up rig will drill the first three Epsilon wells.

Energean also plans to develop its Katakolon field alongside the Prinos development. In September 2017, the operator said drilling and production would commence in 2019-20 pending government approval later this year

Eni Says To Produce 2.9 Bcf Per Day From Zohr Field By Second Half 2019 - RIGZONE /REUTERS

Monday, February 12, 2018

Reporting By Eric Knecht and Nadine Awadallah; Writing By Maha El Dahan; Editing by Adrian Croft

CAIRO, Feb 12 (Reuters) - Production from Egypt's huge Zohr offshore gas field in the Mediterranean will reach 2.9 billion cubic feet per day by mid-2019, Italy's Eni said on Monday.

Speaking at an industry event in Cairo, CEO Claudio Descalzi said the goal was to reach output of 1.8 bcf to 2 bcf per day by the end of 2018 and then ramp up to 2.9 bcf per day by mid-2019.

Discovered in 2015 by Eni, the field contains an estimated 30 trillion cubic feet of gas.

Descalzi confirmed that by mid-2019, seven trains would be operating.

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

The country's petroleum minister said on Monday Egypt's current gas production stood at 5.5 billion cubic feet per day.

BP begins production from Egypt’s Atoll gas field seven months ahead of schedule - BP

12 February 2018

BP today announced the start of gas production from the Atoll Phase One project, offshore Egypt. The project, in the North Damietta concession in the East Nile Delta, was delivered seven months ahead of schedule and 33% below the initial cost estimate.

The project is now producing 350 million cubic feet of gas a day (mmscfd) and 10,000 barrels a day (bpd) of condensate. Gas production from the field is directed to Egypt’s national grid.

Atoll is the first new project to come into production for BP in 2018, adding to the series of higher-margin projects successfully brought online over the past few years. The 13 projects that started-up through 2016 and 2017 provided more than 500,000 barrels of oil equivalent a day (boed) of new net production capacity and total net production from BP’s new projects is now expected to be 900,000 boed by 2021.

BRIEF-Energean, BP extend long-term offtake agreement for Prinos to 2025 - REUTERS

FEBRUARY 12, 2018 / 12:28 PM
Reporting By Karolina Tagaris

Energean says:

• Extends long-term offtake agreement for Prinos oil field with BP by four years until Nov. 2025

• Current agreement signed in 2013

• Extension helps safeguard cash flow 

SOCAR to keep on diversifying its business portfolio in Turkey - MENAFN / AZER NEWS

2/12/2018 3:34:09 AM
Kamila Aliyeva

Azerbaijan's state oil company SOCAR will continue to diversify its business portfolio and make new investments in Turkey in the future, the company told Trend and Azernews.

SOCAR has invested in several countries, as well as in Turkey during the last decade in order to optimize its revenues and create added value for Azerbaijan's economy, the company noted.

"The modernization and reconstruction of Petkim Petrochemical Complex and the construction of Petlim container port have already been completed successfully and we are happy to announce that two of our strategically important projects in Turkey, namely the Trans-Anatolian Natural Gas Pipeline (TANAP) and Star Oil Refinery will be commissioned this year," SOCAR said.

All of these projects are a part of SOCAR's vertical integration strategy, according to the company.

Energy group DEA to invest $500 mln in Egypt oilfields - REUTERS

CAIRO, FEBRUARY 11, 2018 / 9:46 AM

Energy group DEA plans to invest nearly $500 million in developing its oilfields in Egypt over the next three years, its chief executive office said.

“We intend to pump around $500 million over the next three years in Egypt to develop the West Delta, DIsouq and the Gulf of Suez fields,” Maria Moraeus Hanssen told journalists in Cairo on Saturday evening.

The Hamburg-based company has been involved in exploration and development for oil and gas in Egypt since 1974. It is a partner of BP in the West Nile Delta gas fields.

The need to import gas has now become urgent - CYPRUS MAIL

FEBRUARY 11, 2018 Charles Ellinas

THE European Commission (EC) agreed to partially fund the cost of infrastructure to enable Cyprus to import LNG. This was one of the 17 projects selected under the framework of the European support programme for trans-European infrastructure Connecting Europe Facility (CEF) on 25 January.

The specific project is known as CyprusGas2EU and its purpose, according to the EU list of projects, is to ‘remove internal bottlenecks in Cyprus to end isolation and to allow for the transmission of gas from the Eastern Mediterranean region.’

In fact, as far as Cyprus is concerned, the main purpose of the project, at least initially, is to enable the import of LNG for power generation. The island must switch its electricity generation from burning heavy fuel oil (HFO) to natural gas by 2020 if it is to avoid hefty fines by the EC.

If at a later stage, sufficient gas discoveries are made and if it is commercially feasible to build a greenfield LNG liquefaction plant at Vasilikos, the LNG import facilities could be modified to facilitate export of LNG.

The EC appears to understand and support this position.

“Extensive strain of gas” discovered off Cypriot coast - ENTERPRISE

Sunday, 11 February 2018

“Extensive strain of gas” discovered off Cypriot coast: President Abdel Fattah El Sisi held a call with re-elected Cypriot President Nicos Anastasiades on Thursday to discuss cooperation “under agreements signed by them or those with Greece,” said a statement from Ittihadiya. Reading between the lines, this is a reaffirmation of the Economic Exclusive Zone (EEZ) demarcation agreement, which Turkey’s foreign minister had called “illegal” a few days earlier. Turkey’s statement came after reports started emerging last week that the consortium was on the precipice of a major discovery at the Calypso reservoir in Block 6 off the coast in Cyprus.

On that front, Eni and Total discovered an extensive strain of natural gas southwest of Cyprus, Cypriot Energy Minister Yiorgos Lakkotrypis said, according to Reuters. “An extensive column of clean natural gas was discovered in … the Cypriot EEZ.” The geology is similar to that at the Zohr supergiant field.

In other East Med gas disputes, Lebanon signed its first offshore oil and gas exploration and production agreements for two blocks, including a block disputed by neighboring Israel, with Total, Eni and Russia’s Novatek, Reuters reports.

Turkey slams Cyprus for gas search, blocks rig with warships - CNBC / ASSOCIATED PRESS

11 FEB 2018

TEKMOR Note: For a nation that does not allow its own 20 million Kurds to speak even their native language Turkey sure goes out of its way to protect the "rights" of a minority of another country. We predict that exploration activities will resume soon, for two reasons: first, Turkey's arguments have no basis in international law whatsoever; second, Cypriot finds are de-facto EU finds and vital for EU's energy security & diversification strategy.

Cyprus was split into an internationally-recognized Greek Cypriot south and a breakaway Turkish Cypriot north in 1974.

The Turkish ministry said the Cyprus government was acting like "the sole owner of the island" and warned it would be responsible for any consequences.

Turkey's foreign ministry has criticized Cyprus for a "unilateral" offshore hydrocarbons search after Turkish warships prevented a rig from reaching an area off Cyprus where it's to start exploratory drilling for gas.

In a statement Sunday, the ministry said Greek Cypriots were disregarding the "inalienable rights on natural resources" of Turkish Cypriots and jeopardizing the region's stability.

Cyprus was split into an internationally-recognized Greek Cypriot south and a breakaway Turkish Cypriot north in 1974. The Turkish ministry said the Cyprus government was acting like "the sole owner of the island" and warned it would be responsible for any consequences.

Turkey also urged foreign companies not to support the Cyprus' government's activities.

Italy's ENI, France's TOTAL and ExxonMobil of the U.S. are licensed to search for hydrocarbons off Cyprus' southern coast.

Turkey and the Law of the Sea: some facts - CYPRUS MAIL

FEBRUARY 11, 2018
Andrew Jacovides

IN HIS interview with “Kathimerini” on February 4, 2018, Turkish Foreign Minister Mevlut Çavuşoğlu asserted certain positions on the Law of the Sea in relation to Cyprus, which cannot remain unanswered.

The legal position of Cyprus on the Law of the Sea is solidly based on the provisions of UNCLOS III of December 10 1982, in which the Republic actively participated.

Article 121, Regime of Islands, expressly provides in Paragraph 2 that “the territorial sea, contiguous zone, the exclusive economic zone and the continental shelf of an island are determined in accordance with the provisions of the Convention applicable to other land territory”.

This negates the Turkish position that these zones of maritime jurisdiction should be determined by criteria such as size, population, geomorphology, etc. (Legislative History, Article 121, published by the UN Secretariat).

Similarly, Articles 122 and 123, “Enclosed or Semi-enclosed Seas”, negate the Turkish proposal that special rules should apply in such areas in terms of maritime delimitation and jurisdiction. On the basis of these and the other provisions of the Convention, Cyprus and the vast majority of states, as well as the European Union, signed and ratified UNCLOS III, thereby lending to its provisions the force of customary law.

Saipem 12000 will remain in position until the situation is resolved, ENI spokesman tells CNA - CYPRUS NEWS AGENCY

CYPRUS/Nicosia 11/02/2018 09:24 CNA - Maria Myles

A vessel, conducting drilling operations on behalf of Eni in Cyprus’ Exclusive Economic Zone, will remain in position until a situation, created by Turkish military activity in the area of the Eastern Mediterranean, is resolved, a spokesman for ENI has told CNA.

The spokesman also said that the vessel Saipem 12000 has planned drilling operations on behalf of ENI in block 3 in the Republic of Cyprus’ EEZ.

“Eni can confirm that on Friday afternoon the Saipem 12000 vessel had to stop the transfer journey to a new location as it was stopped by Turkish military ships with the notice not to continue because there would be military activities in the destination area,” a spokesman from ENI told CNA last night.

Kasoulides: Turkish interference expected to increase in Cyprus’ EEZ - CYPRUS MAIL

FEBRUARY 10, 2018

Turkey’s interference in Cyprus’ energy plan is expected to increase following new discoveries in Cyprus’ EEZ, Foreign Minister Ioannis Kasoulides said on Saturday in the wake of harassment reports of a drillship on Friday by Turkish navy vessels.

In statements to public broadcaster CyBC, Kasoulides said the Turkish vessels that had harassed Italian giant ENI’s ‘Saipem 12000’ drillship had forced the captain to manoeuvre out of their way and eventually come to a stop 15 nautical miles from the ‘Soupia’ (Cuttlefish) Block 3 plot, to which it was heading. ENI on Thursday announced promising findings in Block 6 of Cyprus’ exclusive economic zone (EEZ).

TEKMOR Note: It's about time Turkey realized that Cypriot EEZ is EU EEZ; it's no longer a cat chasing mouse game in and around Cyprus; there's a dog present.

Total strengthens its position in the Mediterranean region by entering two exploration blocks offshore Lebanon - TOTAL

2018/02/09
TOTAL Press release

Paris - Total-led international consortium (Total 40%, ENI 40%, Novatek 20%) and the government of Lebanon have signed two Exploration and Production Agreements covering Blocks 4 and 9 located offshore Lebanon, in the eastern part of the Mediterranean Sea. These agreements provide for the drilling of at least one well per block in the first three years.

“An established player in Lebanon’s marketing sector, Total is delighted to expand its presence in the country to the exploration & production segment. These agreements are part of the Group’s exploration strategy in the Mediterranean region”, stated Stéphane Michel, Senior Vice President Middle East/ North Africa, Exploration & Production at Total.

The consortium's priority will be to drill a first exploration well on Block 4 in 2019.

What Does Calypso Mean for Cyprus and Eastern Mediterranean Gas? - CENTER FOR STRATEGIC & INTERNATIONAL STUDIES

February 9, 2018

Nikos Tsafos

Facts

• On February 8, 2018, Eni announced a gas discovery, Calypso, in Cyprus. Per the company, the find “confirms the extension of the ‘Zohr like’ play” into Cyprus, a reference to the massive Zohr field found in Egypt in 2015. The company did not release estimates on how much gas might be in place but promised “additional studies” to delineate the resource and assess its options.

• If confirmed, this would be the second major discovery in Cyprus, the first being Aphrodite, made in December 2011. It would also mark a reversal for Cyprus’s hydrocarbon fortunes after some bad news; previously, appraisal drilling had led companies to reduce how much they thought Aphrodite might hold, and earlier exploration wells either came up dry or led only to a “small gas discovery” (as per the operator).

Turkish vessels harass drillship in EEZ - CYPRUS MAIL / CyBC

FEBRUARY 9, 2018

Andria Kades

Turkish vessels are in the area surrounding Cyprus’ block 3 in the island’s EEZ (exclusive economic zone), it was reported on Friday.

According to government sources quoted by the state broadcaster Cybc, Turkish vessels were harassing the Saipem 12000 drillship shortly before it entered the Cuttlefish plot in block 3.

The area is an exploration target for Italian energy giant ENI.

Egypt’s LNG imports nosedive in January - LNG WORLD NEWS

9 FEB 2018

Egypt’s imports of liquefied natural gas (LNG) declined dramatically in January as the country is gearing towards halting the imports due to increase in domestic gas production.

The country’s LNG imports in January dropped 66% year-on-year, pursuing the downward trend registered in the fourth quarter last year when they declined 40 percent as production from new fields ramp up, according to the France-based international association for gas, Cedigaz.

The Cedigaz infographic shows that only Qatar and Norway supplied LNG to Egypt in January.

Egypt that has turned a net importer over the course of 2016, due to falling production, has deployed two FSRUs in Ain Sokhna that serve as the country’s import terminals.

Egypt’s West Kalabsha concession receives high-density 3D survey - OIL & GAS JOURNAL

HOUSTON, FEB/08/2018
Tayvis Dunnahoe

CGG and Ardiseis, subsidiary of Arabian Geophysical & Surveying Co. (Argas), have delivered 2,000 sq km of what the partners refer to as reservoir characterization-ready broadband seismic data on the West-Kalbsha survey on behalf of Apache Corp. in Egypt’s Western Desert.

The ultradense survey represents 72 million traces/sq km, which is 2-3 times denser that any survey acquired to date. In what the companies are calling a step-change, CGG deblended the data through an algorithm. The company’s CleanSweep and EmphaSeis acquired low-frequency-rich broadband data starting from 1.5 hz, which is free of the harmonic noise contamination that is known for hindering broadband high-productivity Vibroseis acquisition.

Eni/Total find natgas off Cyprus in field close to Zohr - REUTERS

FEBRUARY 8, 2018 / 12:34 PM

Reporting by Michele Kambas; editing by Jason Neely and David Evans

ATHENS (Reuters) - Italy’s Eni and France’s Total have discovered a promising natural gas field off Cyprus, Eni said on Thursday, saying the find looked geologically similar to the mammoth Zohr field off Egypt.

Further analysis was required to determine the range of gas volumes and define further exploration and appraisal operations, Eni said.

“Calypso 1 is a promising gas discovery and confirms the extension of the ‘Zohr like’ play in the Cyprus Exclusive Economic Zone (EEZ),” Eni said in a statement.

Eni is the operator of the offshore block with a 50 percent participation interest, while Total is a partner with the remaining 50 percent.

The Italian oil and gas group reported the Zohr discovery in 2015. Located in the Egyptian offshore Shorouk block about 190 km north of Port Said, Zohr holds an estimated 30 trillion cubic feet of gas, the largest ever discovered in the Mediterranean.

Calypso in Cyprus’s waters is an estimated 80 km away.

In Nicosia, Cypriot Energy Minister Yiorgos Lakkotrypis said an “extensive column” of clean natural gas was discovered.

Eni announces a gas discovery Offshore Cyprus - ENI

San Donato Milanese (Milan), 8 February 2018

Eni has made a lean gas discovery in Block 6 Offshore Cyprus with Calypso 1 NFW. The well, which was drilled in 2,074 meters of water depth reaching a final total depth of 3,827 meters, encountered an extended gas column in rocks of Miocene and Cretaceous age. The Cretaceous sequence has excellent reservoir characteristics. Calypso 1 is a promising gas discovery and confirms the extension of the “Zohr like” play in the Cyprus Exclusive Economic Zone.

An intensive and detailed data collection (fluids and rock samples) has been executed on the well. Calypso 1 is a promising gas discovery and confirms the extension of the “Zohr like” play in the Cyprus Exclusive Economic Zone (EEZ).

Israel says seeks diplomatic solution to Med gas spat with Lebanon - REUTERS

FEBRUARY 7, 2018 / 4:14 PM
Writing by Dan Williams; Editing by Alison Williams

JERUSALEM (Reuters) - Israel seeks a foreign-mediated diplomatic resolution with Lebanon over a disputed Mediterranean gas field, the Israeli energy minister said on Wednesday after a surge in hostile rhetoric between the enemy countries.

“We hope for, and are prepared to move forward on, a diplomatic resolution to this matter,” Yuval Steinitz told the Ynet news site when asked about the Block 9 field, for which Lebanon has issued an oil and gas exploration tender, drawing condemnation from Israel’s defense minister last week.

Tamar partners won't cut IEC gas prices until 2021 - GLOBES

7 Feb, 2018 14:20
Kobi Yeshayahou

A report ahead of next month's bond issue by Tamar Petroleum says the partners will only revise down the price at which it sells gas to Israel Electric in 2021 and only by 12.5%.

Ahead of next month's planned bond issue by Tamar Petroleum for the purpose of completing the deal for the acquisition of 7.5% of the rights in the Tamar natural gas reservoir from Noble Energy, the partnerships in Tamar today published a revised report on the reservoir, including its projected cash flow.

Egypt warns Turkey over eastern Mediterranean economic interests - REUTERS / JERUSALEM POST

FEBRUARY 7, 2018 13:26

CAIRO - Egypt on Wednesday warned Turkey against any infringement of its economic rights in the eastern Mediterranean under a maritime border demarcation agreement signed in 2013 with Cyprus that allows exploration for gas in the area.

The discovery of the massive Zohr gas field in 2015 has spurred a race for exploration in the eastern Mediterranean, an area that is believed to hold big natural gas deposits crucial for energy-hungry Europe.

Turkish Foreign Minister Mevlut Cavusoglu appeared to raise objections over the 2013 agreement when he announced that Turkey was planning to start exploration work in the eastern Mediterranean soon.

Egypt raps Turkish comments on EEZ delimitation with Cyprus - CYPRUS MAIL

FEBRUARY 7, 2018

No party can question the legitimacy of the delimitation agreement between Egypt and Cyprus and any effort to undermine Egyptian sovereignty in its exclusive economic zone is dismissed and will be addressed, the Egyptian foreign ministry said on Wednesday.

In a statement in response to recent comments by Turkish Foreign Minister Mevlut Cavusoglu questioning the correctness of the delimitation of the exclusive economic zones of Cyprus and Egypt, Spokesman for the Egyptian foreign ministry Ahmad Abu Zeit said, “no party could question the legitimacy of the agreement given that it is in line with the regulations of international law and has been submitted to the United Nations”.

Replying to questions, Abu Zeit warned that any effort to undermine the sovereign rights of Egypt in the region is considered to be rejected and will be addressed.

Are Eni and Total at the precipice of a giant gas discovery in Cyprus? - ENTERPRISE

Wednesday, 7 February 2018

Are Eni and Total at the precipice of a giant gas discovery in Cyprus? Reports have begun to emerge in the Israeli and Cypriot press this week that Eni and Total are on the brink of a major gas discovery at the Calypso reservoir in Block 6 off the coast in Cyprus. The find is reported to be 6-8.1 tcf, according to Israeli daily Globes. However, Cypriot Energy Minister Yiorgos Lakkotrypis said, “The findings are encouraging, but we need more time for analysis in order to provide final confirmation that there is a gas discovery. Meanwhile, I am unwilling to talk about quantities or any other matter.” The final results of the drilling are expected to be published within a few days. Lakkotrypis added that the geologic structure of the sea bottom at Calypso was similar to that of Egypt’s Zohr discovery. Globes notes that this doesn’t bode well for Israel’s Leviathan field, which remains without any contract to develop it.

Lebanon’s oil and gas sector: A roadmap for 2018 - MESP / EXECUTIVE MAGAZINE

February 6, 2018 / Lebanon

At the end of January, Lebanon signed its first exploration & production agreements (EPA) with a consortium of companies composed of France’s Total (as operator), Italy’s Eni, and Russia’s Novatek. The consortium had placed two separate bids on October 12, 2017, the only ones received in Lebanon’s first offshore licensing round, for Block 4 and Block 9. With the contracts signed, Lebanon can now look forward to the exploration phase. The consortium has committed to drill two wells in 2019, one in each block. But what can Lebanon expect prior to drilling?

EIB approves 1.5 bln euro loan for TAP gas pipeline - REUTERS

FEBRUARY 6, 2018 / 7:39 PM
Alissa de Carbonnel, Editing by Jane Merriman

BRUSSELS, Feb 6 (Reuters) - The European Investment Bank on Tuesday approved a 1.5 billion euro loan for the Trans-Adriatic Pipeline (TAP), part of a $40 billion project to bring new gas supplies to Europe.

The European Union is trying to reduce its dependence on Russian gas by developing the so-called Southern Gas Corridor which is expected to bring around 16 billion cubic metres of gas per year to Europe by 2020.

The gas would come from the Shah Deniz 2 field in Azerbaijan via several routes, including the Trans-Adriatic Pipeline (TAP) to Greece, Albania and Italy.

TAP is slated to bring up to 10 billion cubic metres of gas to Italy from Shah Deniz 2 - one of the world’s largest gas fields developed by a BP-led consortium.

EIB Vice President Andrew McDowell told Reuters the TAP project would help to offset declining European production, provide a diversified source of gas and displace coal-fired power generation in central and south eastern Europe.

Delek Shares Tumble on Report That Israel-Turkey Gas-export Deal Is in Jeopardy - HAARETZ

TheMarker Feb 06, 2018 1:10 AM

Eran Azran

Shares of Yitzhak Tshuva’s Delek Group tumbled Monday after Bloomberg News reported that plans to develop an undersea pipeline to deliver Israeli natural gas to Turkey looked increasingly troubled amid fraying bilateral relations. Israel has shifted its priorities to exporting to Egypt and Europe, markets with their own political problems or high costs, Bloomberg said, citing two unnamed sources. Turkish pipeline company Botas canceled a December visit to Israel, Bloomberg said. None of the companies involved would comment. 

In another setback for Delek, Moody’s lowered the outlook for the B3-rated debt held by Ithaca, Delek’s wholly owned North Sea energy company, to Negative. Moody’s said it was concerned about the low output rate at Ithaca’s Stella field, the cash flow from which is supposed to help repay the company’s $750 million in debt and reduce its leveraging. Shares of Delek, which owns 45.3% of Israel’s giant Leviathan gas field, finished down 7.45% at 542 shekels ($156.97).

EGAS to issue natural gas exploration tender in 11 blocks before June - ENTERPRISE

Egypt's 2015 Eastern Mediterranean (Onshore & Offshore) Bid Round Results

Tuesday, 6 February 2018

The Egyptian Natural Gas Holding Company (EGAS) is planning on issuing natural gas exploration tenders in 11 offshore and onshore blocks before June, an unnamed EGAS source tells Al Shorouk. 

EGAS Chairman Osama El Bakly had previously announced the company’s plans to have a bid round for oil and gas exploration in east Mediterranean and onshore Delta blocks in 1H2018, but had not disclosed the number of areas up for exploration.

Fraying Israel-Turkey Ties Threaten Planned Gas Venture - BLOOMBERG

February 5, 2018, 5:49 PM GMT+2Yaacov Benmeleh and David Wainer

• Israeli companies said to shift deal focus to Egypt, Europe
• Erdogan’s public condemnations have angered Israeli officials

A U.S.-backed initiative to build an undersea natural gas pipeline between Israel and Turkey looks increasingly troubled as Turkish President Recep Tayyip Erdogan escalates his public denunciations of the Jewish state.

Israel has shifted its priorities to exporting to Egypt and other markets because of the growing discord with Turkey, according to two people familiar with the matter, who spoke on condition of anonymity because the issue is sensitive. Efforts to reach governmental understandings with Turkey continue but the pace of talks has fallen off sharply, one of them said.

EBRD to loan SOPC USD 200 mn - ENTERPRISE

Monday, 5 February 2018

The European Bank for Reconstruction and Development (EBRD) is provisioning a USD 200 mn loan to the Suez Oil Processing Company (SOPC) “to finance a package of energy efficiency investments and other refurbishments and installations at the Suez refinery,” according to the EBRD project website. 

The loan is classified as a sovereign loan to Egypt and will be brought before the board for a vote on 28 March. A technical cooperation fund will allocate EUR 83k to environmental and feasibility studies.

2 million Iraqi oil barrels to arrive in Egypt on Feb. 15 - EGYPT TODAY

CAIRO – Mon., 5 February 2018

The first 2 million-barrel crude oil shipment coming from Iraq will arrive in Egypt’s capital of Cairo, on February 15.

The crude oil shipment left Iraqi ports days ago and the ships are on their way to Cairo, according to an Egyptian General Petroleum Corporation (EGPC) source.

In January, Egypt renewed a contract to import 12 million barrels of Iraqi crude oil over the coming year, an official at EGPC stated.

The official, who declined to be named, said that six 2-million barrel cargoes of crude would be supplied over the course of a year, starting this month.

The Iraqi deal was originally agreed last April with the first shipment arriving in May. Egypt has gone from exporting energy to being a net importer as domestic output has failed to keep pace with rising demand.

Egypt to accelerate Zohr gas field development, to be completed one year ahead of schedule - ENERGY EGYPT / AHRAM ONLINE / ENTERPRISE

February 4, 2018

Egypt to complete development on Zohr one year ahead of schedule: Egypt will complete the development of the Zohr gasfield at the beginning of 2019, instead of the end of the year, Oil Minister Tarek El Molla said on Thursday, according to Reuters. Egypt had been speeding up the development of the giant gasfield, with early phase production commencing ahead of schedule last December. Speedy development of the field had helped Egypt move forward its plans to cut imports of LNG from late 2018 to July.

Major Cypriot offshore gas field discovered - report - GLOBES

4 Feb, 2018 13:45
Sonia Gorodeisky

The Calypso field (TEKMOR Note: IF proven), containing an estimated 170-230 BCM, will make it even more difficult for the Leviathan partners to sign export deals.

The Cypriot media has reported the discovery of a major natural gas field in Cypriot economic waters, 75 kilometers off the island's southern coast. The reservoir reportedly contains 170-230 BMC of gas, 70% as much as the Tamar reservoir in Israel's territorial waters. The reservoir, which is located in bloc 6 and is called Calypso, will be developed by a European consortium composed of Italian company ENI and French company Total SA.

According to the reports, the drilling results confirmed "sufficient and encouraging signs" of a natural gas field. Cypriot Energy Minister Yiorgos Lakkotrypis said, "The findings are encouraging, but we need more time for analysis in order to provide final confirmation that there is a gas discovery. Meanwhile, I am unwilling to talk about quantities or any other matter." The final results of the drilling are expected to be published within a few days. Lakkotrypis added that the geologic structure of the sea bottom at Calypso was similar to that of Egypt's Zohr discovery.