Alexey Miller: Blue Stream serves as strong catalyst for Turkish gas market - GAZPROM

February 28, 2018, 15:00

This February marks the 15th anniversary of the start of commercial supplies via the Blue Stream gas pipeline, which conveys gas directly from Russia to Turkey across the Black Sea.

At the moment, Blue Stream accounts for over 50 per cent of Russian gas exported to Turkey. In 2017, the gas pipeline transmitted a record 15.8 billion cubic meters of gas to the Turkish market. Over the course of 15 years, upward of 158 billion cubic meters of gas was delivered via Blue Stream.

“Gas supplies via Blue Stream have served as a strong catalyst for the Turkish gas market. Prior to the pipeline’s launch, as few as 10 of Turkey’s 81 provinces had access to natural gas. By now, the number of provinces provided with gas has skyrocketed to 78.

Drawing on the successful experience of building and operating Blue Stream, Gazprom is constructing a new gas main stretching across the Black Sea – TurkStream. As the demand for Russian gas in Turkey keeps rising, TurkStream will make gas supplies to our Turkish and European partners even more reliable,” said Alexey Miller, Chairman of the Gazprom Management Committee.

Total, Edison get Greek go-ahead for oil and gas exploration - REUTERS

FEBRUARY 28, 2018 / 5:34 PMReporting by Angeliki Koutantou and Karolina Tagaris, editing by David Evans

• Majority of lawmakers approve lease agreements for exploration
• Licences for four blocks were pending parliament approval
• Energy minister says Greece turning new page in hydrocarbons

ATHENS, Feb 28 (Reuters) - Greece’s parliament gave the go-ahead on Wednesday for companies including France’s Total and Italy’s Edison to explore for oil and gas in the west of the country.

Licences for four blocks - one offshore and three on land - were awarded in 2016 but had to be ratified by parliament for exploration work to begin.

EKH studies investing USD 110 mn in North Sinai gas fields this year - ENTERPRISE

Tuesday, 27 February 2018

INVESTMENT WATCH- Our friends at Egyptian Kuwait Holdings (EKH) could invest USD 110 mn this year in developing five natural gas wells in North Sinai, the company said in a bourse statement (pdf). 

Four of the wells the company is studying this year will be in the Camus gas field, and one in the Tao field, the company added. 

The investment will be through subsidiary NSCO Investments Limited, in which EKH acquired a 99.99% stake last week. The company announced that NSCO had completed development of two wells in the Tao field recently.

Greek Energy Firm Secures $1.25b to Develop Two Israeli Natural Gas Fields - HAARETZ / REUTERS

Feb 27, 2018 8:53 PM

The Greek energy firm Energean has secured $1.25 billion in funding for the development of two natural gas fields offshore Israel, the company’s CEO said Tuesday. The company signed commitment letters with Morgan Stanley, French investment bank Natixis and Israel’s Bank Hapoalim, CEO Mathios Rigas told an energy conference in Tel Aviv, according to an official transcript. It’s unusual for institutions to lend money for an energy project, but Energean has lined up anchor customers for its gas, so the risk is relatively low. The company estimates it will cost $1.6 billion to put the two fields into production. Energean hopes to begin production at the Karish and Tanin fields, which contain an estimated 2.4 trillion cubic feet of natural gas, in 2021. The company is also planning to raise $500 million in an initial public offering in London and may dual-list its shares on the Tel Aviv Stock Exchange. (Reuters)

Egypt Signals That $15 Billion Gas Deal Will Hinge on Israeli Debt Concessions - HAARETZ

Feb 26, 2018 6:46 AM

Ora Cohen

Egyptian officials have signaled that a giant $15 billion deal to buy natural gas from Israel hinges on Israel’s backing down from rulings awarding it $1.8 billion or more of compensation when Egypt cut off its supply of gas to Israel in 2012.

In Israel, however, officials deny that there has been any agreement on compensation. “Israel hasn’t given up on the debt and the matter did not come up for discussion during talks on the Leviathan export deal to Egypt that was signed [last] week,” Israel’s Ministry of Energy said.

Likewise, state-owned Israel Electric Corporation, which won arbitration in 2015 awarding it $1.76 billion for the loss of Egyptian gas, similarly denied any concessions had been made. “The company is not aware of any concessions on the debt. There won’t be any backing down on the debt. The company continues to seek to collect it,” IEC said in a statement.

Egypt welcomes natural gas from all countries: PM - EGYPT INDEPENDENT

February 24, 2018, 12:50 pm

Edited translation from Al-Masry Al-Youm

Prime Minister Sherif Ismail said on Friday that Egypt welcomes any quantities of natural gas from any country for processing in the country’s liquefaction plants.

During a press conference, Ismail said that the natural gas agreement involving Israeli and Egyptian companies is a deal between private sector companies, not governments, but it nevertheless highlights Egypt’s pivotal role in the energy sector and its new role in the region.

He pointed out that the Turkish “harassment” of gas explorers in the Mediterranean Sea has been going on for a long period, saying that, with new gas discoveries, he expects conflicts to impose additional strain in relations between various regional countries.

He added that Egypt is currently working to receive natural gas from Cyprus.

Cyprus to Egypt gas pipeline deal to be signed: Petroleum Minister - EGYPT INDEPENDENT

President N. Anastasiades, President A.F. el-Sisi, PM A. Tsipras 

February 23, 2018 3:09 pm
Farah Tawfeek

Minister of Petroleum Tarek al-Mulla declared that before mid-2018, there will be a signing of an agreement with the European Union (EU) to build a Cyprus-to-Egypt gas pipeline, saying that the EU will be the main beneficiary of the energy produced.

During his participation in the ‘Petroleum Week’ conference in London, the minister announced that a preliminary agreement with Cyprus’s government has been signed to have a pipeline running from Cyprus to Egypt, and that further negotiations are underway between governments. Moreover, Egypt and Greece will be working closely in the fields of petroleum and gas through several agreements.

He also emphasized the close cooperation with Egypt, Jordan, and Iraq in the same field, announcing that Egypt has entered an agreement with Jordan and Iraq to transport crude oil and gas from Iraq, through Jordan, to Egypt.

Five Turkish warships halt SAIPEM 12000 anew from reaching target in Cyprus' EEZ - CNA

23/02/2018 13:51 
Nicosia, Maria Koniotou

SAIPEM 12000 drillship, commissioned by Italian energy company ENI, to start drilling operations in block 3 of Cyprus’ Exclusive Economic Zone (EEZ) was halted by five Turkish warships Friday morning while making a new effort to reach Soupia target, which it was unable to fulfill due to Turkish threats.

Deputy Government Spokesman Victoras Papadopoulos told the Cyprus News Agency, that after consultations between Italian company ENI and SAIPEM 12000, the captain of the drillship tried once again to drive the ship towards the Soupia (Cuttlefish) target to conduct its drilling operations.

“During its course towards block 3 and the Soupia target the drillship was halted by five Turkish warships and after threats of violence launched (by the Turks) and the threat of a collision with the drillship, despite the courageous and commendable efforts made by the captain.

Snam plans to ‘establish Athens as base for southeast Mediterranean’ - ENERGY PRESS

23/FEB/2018

Snam will aim to contribute to Greece becoming a regional energy hub in the southeast Mediterranean, Federico Ermoli, chief international assets officer at Italy’s Snam, heading one of two bidding teams vying for a 66 percent stake in DESFA, the natural gas grid operator, has stressed in an interview with Greek daily Kathimerini.

Snam and its bidding partners, Spain’s Enagás Internacional and Belgium’s Fluxys, submitted a binding offer to the DEFSA tender last Friday. Staged by TAIPED, the state privatization fund, its content is still being processed before offers are opened, probably late next week.

Another Spanish entry, Regasificadora del Noroeste (Reganosa Asset Investments) joined forces with Romania’s Transgaz and the EBRD, the European Bank for Reconstruction and Development, for the other offer.

“We aspire to further develop the company and contribute to making Greece an energy hub in the Mediterranean for natural gas stemming from various regions,” Ermoli remarked, while adding that DESFA requires strong partners capable of making investments for the future of the firm, country and its geopolitical role.

Commenting on Greece’s strategic importance for Snam, Ermoli said the firm intends to establish an office base in Athens to manage its activities concerning interests in the southeast Meditteranean region.

DEBATE: What Is the Best Way to Transport Levantine Gas to Europe? - BESA CENTER

February 22, 2018Dr. George N. Tzogopoulos

BESA Center Online Debate No. 7, February 22, 2018

Q: Energy discoveries in the Eastern Mediterranean are changing regional dynamics in the Basin. Key players – principally Cyprus, Egypt, and Israel – are taking steps to achieve energy independence and are exploring opportunities for exports. The EU, which is interested in reducing its energy dependency on Russia, could be a client in the future. BESA joins the debate by asking: How can natural gas from the Eastern Mediterranean be better transported to Europe?

Respondents: Michael Ratner, Gallia Lindenstrauss, Tim Boersma, Defne Sadıklar-Arslan, Marc-Antoine Eyl-Mazzega, Theodore Tsakiris, Sohbet Karbuz

Egypt resolving dispute, holding up $15-billion Israel gas deal - WORLD OIL

FEB/22/2018

ABDEL LATIF WAHBA

CAIRO (Bloomberg) -- Egypt said it was settling financial disputes with an Israeli electricity company and a key pipeline operator to turn a $15-billion deal to import gas from the Jewish state into reality.

The gas deal announced this week had been held up by arbitration rulings ordering Egypt to pay Israel Electric Corp. and East Mediterranean Gas Co. (EMG), which operates a section of pipeline, compensation for canceling an earlier contract.

“We reached an agreement to receive part of the gas in Egypt via its pipelines and this is part of the resolution to the arbitration,” Prime Minister Sherif Ismail told reporters in Cairo when asked about the EMG case. He said an understanding had also been reached with the power company but declined to give more details.

Noble Energy and Delek Drilling-LP announced on Monday they had agreed to export 64 Bcm of natural gas over 10 years to Egyptian company Dolphinus Holdings Ltd. from Israel’s Tamar and Leviathan reservoirs.

The deal adds an economic dimension to a relationship dominated by security and clouded by mutual suspicion since the two countries signed a peace deal four decades ago. It also takes Egypt a step closer to its goal of becoming an energy hub for the East Mediterranean.

Tamar Petroleum raising NIS 2.2b more on TASE - GLOBES

22 Feb, 2018 6:29

Omri Cohen

Yesterday's announcement of the agreement for exporting natural gas from Israel to Egypt is putting wind into the sails of the second bond issue by Tamar Petroleum, which own the Tamar natural gas reservoir. The Midroog rating company today announced that it had issued an A1 rating for up to NIS 2.178 billion in the Series B bonds to be issued by Tamar Petroleum. The rating is the same as for Tamar Petroleum's NIS 2.3 billion issue of Series A bonds last year.

Tamar Petroleum intends to use the amount to be raised to buy 7.5% of the rights in the Tamar reservoir from US company Noble Energy. The $800 million deal includes a $560 million cash payment, with the rest consisting of an allocation of shares, which will amount to 43.5% of Tamar Petroleum's share capital.

Midroog said that the bond issue would reach up to $605 million, but that any amount raised in excess of $560 million would be deposited in a special fund for early repayment of or buying back bonds.

Cyprus sees gas deal with Egypt as Cairo weighs Israeli supply - WORLD OIL / BLOOMBERG

FEB/21/2018
GEORGIOS GEORGIOU, PAUL TUGWELL, SALMA EL WARDANY AND TAREK EL-TABLAWY

NICOSIA, ATHENS and CAIRO (Bloomberg) -- Cyprus is nearing an agreement to sell natural gas to Egypt, marking the second potential supply deal in as many days with the North African country vying to position itself as a regional energy hub after the startup of the giant offshore Zohr field.

Cyprus would supply Egypt from Aphrodite field, which was discovered by Noble Energy Inc. and contains an estimated 4.5 Tcf of gas. Noble Energy, with Delek Drilling-LP, said Monday it plans to sell gas to Egypt’s Dolphinus Holdings Ltd. from Israel’s Tamar and Leviathan deposits. Egypt’s government still must approve the proposed 10-year deal for shipments from Israel, the Egyptian oil ministry said Tuesday in an emailed statement.

“Cyprus is close to selling natural gas to Egypt’s liquefied natural gas plants, and we could reach an agreement in the coming weeks,” Energy Minister Georgios Lakkotrypis said in a telephone interview from Nicosia. The Egyptian LNG plants of Idku and Damietta lie some 400 mi (645 km) south of Cyprus.

Schlumberger wins engineering, supply contract for Noble Energy's Leviathan platform - WORLD OIL

FEB/21/2018

HOUSTON -- Schlumberger today announced the award by Noble Energy of an engineering and supply contract for a 2,000-ton single-lift process module to be installed on the Leviathan platform in the Eastern Mediterranean.

The scope of the contract includes pre-treatment, salt removal and regeneration of monoethylene glycol (MEG) for re-injection in the subsea flowlines for hydrate inhibition. The Schlumberger PUREMEG reclamation and regeneration system is a proprietary technology that will be supplied as a single-lift module for installation on the production platform.

SDX Energy pursues Egypt, Morocco development in 2018 - OIL & GAS JOURNAL

HOUSTON, FEB/21/2018
Tayvis Dunnahoe

SDX Energy Inc. anticipates spudding the Ibn Yunus-1X exploration well at South Disouq, Egypt, in mid-March. The operator signed a contract with Sino-Tharwa Drilling Co. for the ST-6 rig, which includes agreement for four additional firm wells. The rig is on location in Egypt’s Western Desert completing drilling for a separate operator and is expected to be released this month.

SDX expects a 30-40 day drilling window targeting the Abu Madi conventional gas interval discovered in April 2017 in the SD-1X well, which tested 25.8 MMcfd and 43 b/d of condensate on a 48/64-in. choke (OGJ Online, Sept. 21, 2017). The Abu Maadi formation is at 7,100 ft. Once drilling is completed at Ibn Yunus-1X, the rig will move to the SD-1X discovery to drill two appraisal wells and then on to drill SDX’s Kelvin-1X exploration prospect.

The Ibn Yunus-1X and Kelvin-1X wells are targeting up to 150 bcf of gas and, if successful, SDX plans to tie back to the SD-1X processing facility.

Cyprus Says To Pursue Gas Exploration Amid Standoff With Turkey - RIGZONE /REUTERS

Wednesday, February 21, 2018

Reporting by Renee Maltezou and Michele Kambas; Additional reporting by Ezgi Erkoyun, Editing by William Maclean

ATHENS, Feb 21 (Reuters) - Cyprus said on Wednesday it would press ahead with oil and gas exploration, signalling resolve in a standoff with Turkey over access to potential energy riches after Ankara extended military exercises in the eastern Mediterranean to early March.

Cyprus has accused Turkey of obstructing a drill ship exploring for natural gas off the ethnically-split island on Feb. 9, highlighting tensions in the region over competing claims for offshore resources.

The Saipem 12000 vessel is contracted by Italy's state-controlled Eni which along with France's Total operates the Block 3 of Cyprus's economic zone.

The ship was headed to that area when it was blocked by Turkish warships. Turkey issued a new navigational advisory this week extending military training to March 10.

US: Cyprus ‘has every right’ to develop hydrocarbon reserves in its EEZ - KATHIMERINI

21.02.2018 15:26

The US Ambassador to Nicosia Kathleen Doherty has affirmed Washington’s position that Cyprus has every right to develop hydrocarbon reserves in its exclusive economic zone (EEZ).

After meeting with Cyprus President Nicos Anastasiades on Wednesday, Doherty said: “I relayed to the President that the United States feels very strongly that the Republic of Cyprus has the right to explore and exploit its resources in the exclusive economic zone.”

Washington is following events in the Eastern Mediterranean and is also engaging in these events, Doherty said, while expressing the hope that the ongoing problems will be resolved so that talks for the islands reunification can resume.

Turkish warships have blocked a rig from reaching a target inside Cyprus's EEZ where Italian company Eni is scheduled to conduct exploratory drilling.

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.