Eni to increase its investments in Zohr to USD 16 bn - ENTERPRISE

Monday, 8 October 2018

Italy’s Eni plans to increase its investments in the Zohr gas field to USD 16 bn, up from USD 12 bn, by the time it completes the field’s development in July 2019, according to an unnamed source. 

Production from the field reached 2 bcf/d last month and is expected to plateau at 2.7 bcf/d next year.

Good reasons why energy giants are eyeing the East Med - CYPRUS MAIL

October 7, 2018 

Charles Ellinas

Interest in the East Med has increased during the last ten years with the discovery of major gas fields such as Tamar, Leviathan and more recently the giant Zohr field in Egypt. These have opened up major opportunities for new discoveries, but also for oil and gas investments in the region.

This was confirmed at Gastech 2018 in Barcelona, the world’s largest gas conference, by Lapo Pistelli, head of international affairs at ENI, Walid Nasr, the chairman of the Lebanese Petroleum Authority (LPA) and myself.

News Analysis: Strategic location, improved infrastructure to turn Egypt into regional energy hub - XINHUA

2018-10-06 05:44:4
Marwa Yahya; Editor: Yang Yi

CAIRO, Oct. 5 (Xinhua) -- With Egypt's strategic location and improved infrastructure, the North African country is becoming a regional hub for energy trade, said experts.

"Egypt has all the conditions needed to turn into a regional hub for energy trade. It has a very unique location among the three continents, besides its Suez Canal and internationally standardized infrastructure," Salah Hafez, former deputy chairman of the General Authority for Oil, told Xinhua.

"Egypt also owns gas pipelines to Israel and Jordan, gas liquification stations in Damietta and Edko in northern Cairo, and sea ports," Hafez said.

The Egyptian government announced on several occasions a two-phase plan to turn Egypt into an energy hub. The first will be carried out by construction of electricity networks between Egypt and its neighboring countries.

The electricity connections with Libya and Jordan have been in operation, with other networks linking Egypt with Syria and Iraq still under construction.

By the end of 2018, the electricity links with Sudan will start working. Egypt also plans to establish a sea cable for electricity connection with Greece, Cyprus, and Saudi Arabia, the spokesman of the Electricity Ministry told Xinhua.

Israel-Egypt gas export deal shapes up - PETROLEUM ECONOMIST

5 October 2018

Gina Cohen

Practical steps have been taken that could eventually enable gas from Israel’s offshore to be piped to Egypt

Israel's Delek, the US-based firm Noble and Egypt's East Gas have established a company (Emed) to buy 39% of the 26in, 90km (56-mile) East Mediterranean Gas pipeline for $518m. This investment, combined with a transportation agreement, will provide the partners with the exclusive rights to use all the pipeline's capacity.

Of the $518m, the Leviathan and Tamar offshore gasfield partners will each pay $125m, whilst Delek and Noble will each pay another $60m. Most significantly, the East Gas company, which also owns the pipeline from Aqaba in Jordan to el-Arish in Egypt, will invest $148m, which is a considerable amount for Egypt. This strategic partnership with a leading Egyptian infrastructure owner provides "skin in the game" and an Egyptian umbrella for the entire transaction to sell Israeli gas to Egypt.

Leviathan gets first rights to transmit gas in the EMG pipeline. Namely, if capacity in the line is low, then the first 3.5bn cubic metres a year is for Leviathan and the second tranche of 3.5bn cm/y is for Tamar. If Tamar can't pipe all of this volume, the capacity automatically reverts to Leviathan.

This includes the ability to transmit additional Israeli gas in the 10bn-cm/y East Gas-owned pipeline from Aqaba to el-Arish.

Defa publishes tender documents for LNG terminal - CYPRUS MAIL

OCTOBER 5, 2018

Cyprus’ natural gas public company (DEFA) on Friday published the tender documents for the design, construction, and operation of an LNG import terminal that will be located at Vassilikos.

“This is an important milestone for DEFA, and for the people of Cyprus, who will soon benefit from the cost savings and environmental benefits from the use of natural gas. We expect to issue a request for expressions of interest for the supply of LNG in the coming weeks and a full tender early in 2019,” DEFA chairman Symeon Kassianides said.

The tender documents can be obtained from the e-procurement portal of the Republic of Cyprus.

The €300m LNG Terminal will include a floating storage and regasification unit (FSRU), a jetty for mooring the FSRU, a jetty-borne gas pipeline and related infrastructure.

The LNG Terminal will be completed in 2020 and 40 per cent of its cost, or €101m, will be funded by the EU.

ENERGY: ExxonMobil to drill offshore Cyprus in Q4 as Turkey renews threats - FINANCIAL MIRROR

05 October, 2018

US energy giant ExxonMobil said on Friday it plans to begin test drilling for hydrocarbons offshore Cyprus later this year despite Turkey warning international firms against such moves.

“Our plan is to drill some time in the fourth quarter, we haven’t got an exact date right now,” senior vice chairman of ExxonMobil Neil Chapman told reporters Friday.

He made the comments after holding talks with Cypriot president Nicos Anastasiades a day after Turkey advised energy firms not to bid for a license to explore for oil and gas in a new block offshore Cyprus.

Cyprus on Wednesday invited France’s Total, Italy’s Eni and ExxonMobil - already licensed to exploit oil and gas in Cyprus’ Exclusive Economic Zone (EEZ) - to bid for unclaimed block 7.

Chapman said, “we have not looked in any detail at block 7 yet”.

Cabinet looking for gas licensees for Block 7 (Updated) - CYPRUS MAIL

October 3, 2018 

George Psyllides

The energy minister announced on Monday Cyprus will be seeking bidders for a €300m project to facilitate natural gas imports and will also invite energy companies to express interest in another offshore field inside the island’s exclusive economic zone.

Rising Oil Bill May Erase Egypt's Savings From Gas Milestone - BLOOMBERG

October 3, 2018, 4:22 PM GMT+3

• Egypt faces hit to budget from oil after ending imports of gas
• Government was planning to phase out costly fuel subsidies

No sooner has Egypt achieved its milestone of regaining self-sufficiency in natural gas than another corner of the energy market threatens to deal a new blow to fragile government finances.

A six-fold increase in production at the giant offshore Zohr field means Egypt can now meet its own needs domestically. The government may now save some $2 billion a year after receiving what it said was the final shipment of expensive liquefied natural gas last week. But relief for the most populous Arab country -- a net importer of refined gasoline and diesel -- could be short-lived.

Egypt’s 2018-2019 budget assumes oil prices at $67 a barrel but crude has already surged past $80, threatening plans to cut the deficit under an economic overhaul program backed by a $12 billion International Monetary Fund loan. It also poses a dilemma for the government, which had sought to phase out fuel subsidies by mid-2019; burden the population by lifting prices higher and faster than expected or abandon its deficit target altogether.

Wood celebrates new partnership with ENPPI in Egypt - WOOD

London, UK, 01 October 2018

The British Ambassador in Egypt Sir Geoffrey Adams and His Excellency Minister of Petroleum Eng. Tarek El Molla celebrated a new signed subsea agreement between Egyptian Petroleum Company ENPPI and British company Wood. Both companies have been working together for the past two years on the Burullus project, providing subsea engineering and operations support services through an ENPPI/Wood Consortium Agreement.

The new agreement was signed by ENPPI Chairman Eng. Alaa Hegazy and Wood Technical Director Engineering Colin McKinnon. Together, both companies will continue to draw on a huge pool of talent and experience globally to provide the best independent technical solution for oil and gas projects as well as enable and facilitate subsea technology transfer and training through projects and training courses.

British Ambassador to Egypt Sir Geoffrey Adams said: “Today we celebrate a new chapter in the Egyptian- British partnership which brings together Egyptian talent and British expertise. New partnerships are the stepping stones for shared knowledge and benefit, new job opportunities for all Egyptians and fast track delivery for mutual economic success.”

EMG, Israeli Electric are withdrawing arbitration cases against Egypt - ENTERPRISE

Monday, 1 October 2018

EMG, IEC have begun withdrawing arbitration cases against Egypt: East Mediterranean Gas (EMG) and Israel Electric Corporation have officially begun proceedings to drop their international arbitration case against state energy companies EGPC and EGAS, according to Oil Ministry sources. The two cases would have seen Egypt pay a combined USD 1.988 mn in fines for failing to supply IEC with gas in 2012.

Key step in our energy hub transformation: The withdrawal of the claims are conditions of the USD 518 mn agreement Noble Energy and Delek — the operators of Israel’s Leviathan and Tamar gas fields — and their Egyptian partner East Gas signed last week. The transaction gives Nobel and Delek a 39% stake in EMG, paving the way for the gas field operators to export natural gas to Egypt under a USD 15 bn agreement signed in February with Alaa Arafa’s Dolphinus Holdings.

Advisers: Shahid Law Firm acted as sell-side legal counsel on the EMG transaction, while Alliance Law Firm had was on the buy-side.

EMG Transaction - Enabling Gas Export to Egypt - DELEK DRILLING

SOURCE

Egypt receives final LNG shipment, marking end of gas imports: Tarek El-Molla - DAILY NEWS EGYPT

29 September 2018

Egypt received the final liquefied natural gas (LNG) shipment, after which the country will halt natural gas imports, Petroleum Minister Tarek El-Molla said on Saturday.

According to the Ministry of Petroleum, LNG imports cost the state about $280m monthly, to meet domestic market demands.

Moreover, it is estimated that around $3bn this fiscal year will be saved following the connection of the new gas explorations to the production cycle.

Greece signed the Energy agreement for drilling in Crete with ExxonMobil, Total and HELPE - IBNA

28-09-2018, 06:28

Nefeli Tzanetakou

Greek Minister of Environment and Energy, George Stathakis, the Chairman of the Hellenic Management Company of Hydrocarbons, Ioannis Basias and the representatives of Total, Isabelle Gastineau, ExxonMobil, Tom McMahon and Yiannis Grigoriou of the Hellenic Petroleum S.A (HELPE) proceeded to the initiation of the concession contracts for the exploration and exploitation of hydrocarbons in two marine "plots" south and southwest of Crete and one in Kyparissiakos Gulf.

Delek, Noble and Egypt Sign $518 Million EMG Pipeline Deal - BLOOMBERG

September 27, 2018, 10:45 AM GMT+3
Yaacov Benmeleh and Mirette Magdy

• Purchase gives buyers the right to operate EMG’s gas pipeline
• Deal paves way for $15 billion Israel-Egypt gas export plan

The companies developing Israel’s largest natural gas fields and their Egyptian partner have bought control of a pipeline to Egypt, clearing legal obstacles to a $15 billion deal to export gas from the Jewish state to its former enemy. Shares of Israeli gas stocks rose.

Egypt sends Jordan natgas samples three months ahead of supply resumption - ENTERPRISE

Thursday, 27 September 2018

Egypt has delivered to Jordan samples of the natural gas it will export by January 2019, Jordan’s Energy Minister Hala Zawati said, according to Petra. 

Oil Minister Tarek El Molla and El Zawati had signed last month a natural gas sale and purchase agreement under which Egypt will supply 250 mcf/d of gas to Jordan. 

This quantity will cover 10% of the country’s gas needs to generate electricity and will restore Egyptian exports of gas to Jordan to pre-2009 levels.

Bulgaria interested in joining Egypt-Cyprus-Greece gas project - ENERGY EGYPT

SEPTEMBER 26, 2018 AT 5:32 PM

At a meeting in New York with Egyptian President Abdel Fattah al-Sisi, the Bulgarian Prime Minister Boyko Borissov said that Egypt is Bulgaria’s most important economic partner among the Middle East countries and Africa.

Bulgaria accepts Egypt as a potential supplier of natural gas and would benefit from joining its gas project with Greece and Cyprus.

Besides Bulgaria recognizes Egypt as a country playing a key role for stability in the region of the Middle East and Africa and is open for active cooperation with it in the fight against terrorism, cross-border crime and radicalization at all levels, Borissov also said.

Bulgarian Prime Minister Boyko Borissov said that Egypt is Bulgaria’s key economic and trade partner in the Middle East and Africa, citing the increase in trade exchange between the two countries.

Sofia is highly interested in cooperation with Egypt in the energy field, Borissov said during a meeting with President Abdel Fatah al-Sisi on the sidelines of the 73rd UN General Assembly meetings in New York.

Gas production of North Alexandria, West Delta fields to start in Dec. - EGYPT TODAY

Tue, Sep. 25, 2018

CAIRO – The second phase of gas production at North Alexandria and West Delta fields will start next December, according to Minister of Petroleum Tarek el-Molla.

Molla clarified that production will reach 400 million cubic feet of gas daily at Giza and Fayoum fields, to gradually hit 700 million cubic feet/day.

This came during Molla’s periodic meeting with the High Joint Committee of the West Nile Delta Gas Project (BP, DEA).

He further noted that production at Revine gas field will begin during the third quarter of 2019, with 450 million cubic feet per day, gradually increasing to reach its maximum capacity of 900 million cubic feet of gas per day.

The minister emphasized the importance of fully adhering to the timetables set for the implementation of the second phase to ensure starting production at these fields on schedule, adding new quantities of natural gas to raise the rates of domestic production.

Egypt's Enppi, UK's Wood Group sign partnership deal on gas exploration, production - AHRAM ONLINE

Monday 24 Sep 2018

Egypt’s state oil company Engineering for Petroleum and Process Industries (ENPPI) signed a deal on Monday with the UK’s Wood Group for a technical and engineering partnership on natural gas exploration and production through deepwater drilling.

In an official statement, Egypt’s petroleum ministry said the inking of the agreement was witnessed by Minister of Petroleum Tarek El-Molla, UK’s Ambassador to Egypt Sir Geoffrey Adams, and UK trade envoy Sir Jeffrey Donaldson.

It was signed by the Chairman of Enppi Alaa Hejazi and his counterpart at Wood, Colin McKinnon.

El-Molla said following the signing that the agreement aims to transfer technology and necessary experience between both sides to undergo the needed engineering work for natural gas exploration and drilling in the deep ocean, as Egypt continues to move forward with executing mega projects for the development and production of natural gas from the Mediterranean.

Rowan Norway awarded contract by Turkish Petroleum - ROWAN COMPANIES

Sep 24 2018

HOUSTON, Sept. 24, 2018 /PRNewswire/ -- Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announced today that the Rowan Norway, an N-Class ultra-harsh environment jack-up rig, has been awarded a two-well contract in the Mediterranean Sea by Turkish Petroleum with an estimated duration 100-140 days. The contract is expected to commence in late 2018. The Rowan Norway is currently warm-stacked in the United Kingdom sector of the North Sea.

Rowan is a global provider of contract drilling services with a fleet of 27 mobile offshore drilling units, composed of 23 self-elevating jack-up rigs and four ultra-deepwater drillships. The Company's fleet operates worldwide, including the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the North Sea, the Middle East, the Mediterranean Sea, and Trinidad. Additionally, the Company is a 50/50 partner in a joint venture with Saudi Aramco, entitled ARO Drilling, that owns a fleet of five self-elevating jack-up rigs that operate in the Arabian Gulf. The Company's Class A Ordinary Shares are traded on the New York Stock Exchange under the symbol "RDC." 

Italy's Eni to drill North Sinai exploratory oil well next week- EGAS official - ZAWYA / ENTERPRISE

23 SEPTEMBER, 2018

CAIRO - Italy's Eni and Egypt's Tharwa Petroleum will drill the first exploratory oil well in northern Sinai's offshore Noor field next week, an official at Egypt's gas company EGAS said on Thursday.

Egypt's cabinet approved in March a $105 million deal to explore the North Sinai region of the Mediterranean Sea. Tharwa Petroleum, which holds a 15% stake in Noor.

Expectations are high: Eni, which holds an 85% stake in the field, denied in recent months reports claiming that it had discovered 90 tcf of reserves there, or 3x as much as the supergiant Zohr field. The company signed two other agreements with the government last month for exploration in the Nile Delta and Western Desert.

Daily exportation of 250m cubic feet of gas to Jordan electricity plant to be resumed in early 2019 - DAILY NEWS EGYPT

Saturday September 22, 2018
Mohamed Adel

The Ministry of Petroleum has concluded the final negotiations with Jordan regarding signing a new agreement to export Egyptian gas to Jordan electricity plant, in order to supply nearly 250m cubic feet of gas starting next year.

An official at the Ministry told Daily News Egypt that a new agreement would be signed with the Jordanian side to export about 250m cubic feet of gas daily, with prices different from prices originally stipulated in the previous agreement.

The official pointed out that Egypt would continue exporting natural gas to Jordan in early 2019 through the pipeline linking Egypt and the Jordanian lands, which would be the start of turning the country into a regional hub to distribute energy, and then later achieve self-sufficiency of gas.

The recent talks between the Egypt’s minister of petroleum and his Jordanian counterpart included agreeing on the return of Egyptian gas to Jordan, in addition to amending some articles in the agreement of gas exportation.

The Jordanian Ministry of Energy said in a previous statement that the agreement stipulates that about 10% would be exported from Egypt to generate electricity. This came following the visit of the Jordanian Minister of Energy and Mineral Resources Hala Zawati to Egypt last week.

ExxonMobil exec says 'happy' to be in Cyprus for gas drilling - KATHIMERINI

FRIDAY SEPTEMBER 21, 2018 16:29

ExxonMobil is aware of the particular geopolitical situation in the region of Cyprus, Tristan Aspray, the company’s vice-president for Exploration in Europe, Russia and the Caspian, said during an investment forum hosted by the Cyprus Investment Promotion Agency at Bloomberg's European headquarters in London on Friday.

Asked about Turkey’s threats towards Cyprus for the planned drilling by an Exxonmobil-led consortium this autumn, Aspray said existing problems are a matter to be resolved by the governments in question.

“We are happy to be in Cyprus,” he said, adding his company is at the final stages of preparation for the two exploratory drills in Block 10, located southwest of the island.

Asked by Greek broadcaster SKAI when drills will start, he reiterated that they are planned for the last quarter of the year, but didn’t provide a specific date.

Turkey has repeatedly warned it would stop international oil companies from drilling for gas in Cyprus’ exclusive economic zone, claiming it should receive a share of any potentially lucrative findings.

Oil and gas company SDX Energy confirms talks with BP to buy assets in Egypt - NASDAQ / REUTERS

September 20, 2018, 09:38:00 AM EDT

North African-focused oil and gas company SDX Energy on Thursday confirmed that it was in discussions with BP Plc to buy a package of assets in Egypt.

London-listed SDX said the acquisition would constitute a reverse takeover.

SDX said its shares have been suspended from trading on London's junior market, AIM, with immediate effect and will remain suspended until an admission document has been published or the company confirms that a deal is not proceeding.

Reuters reported earlier in the year, citing banking sources, that BP is seeking buyers for its stake in a 50-year-old oil and gas business in Egypt, then estimated to be worth around $500 million.

It was not immediately clear which assets SDX was in talks with BP over.

Earlier in the day, oil and gas explorer and producer SOCO International said it signed a deal to buy privately-owned Merlon Petroleum El Fayum Company for about $215 million. Merlon holds the operated working interest onshore El Fayum in Egypt.

Cyprus Pipeline Deal With Egypt Brings Gas Step Closer to Europe - BLOOMBERG

September 19, 2018, 12:27 PM GMT+3

Georgios Georgiou and Ahmed Feteha

• Gas would flow from Aphrodite field to Egyptian LNG plants
• Countries committed to maintaining good conditions for project

Egypt and Cyprus signed a deal that will eventually allow natural gas found in the Aphrodite field to be sold to mainland Europe, boosting plans to turn the Eastern Mediterranean into an energy hub.

Cyprus and Egypt committed to establishing and maintaining good conditions for building a gas pipeline between the two countries, including the timely issuance of permits, Cypriot Energy Minister Georgios Lakkotrypis told reporters at a signing ceremony in Nicosia. The accord will allow further exploration in the region, Egypt’s Oil Minister Tarek El-Molla said.

Under the plan, gas will flow to Egypt from the Aphrodite field, which was discovered by Noble Energy Inc. and contains an estimated 4.5 trillion cubic feet of gas. Egypt is also nearing an agreement to receive gas from Israel’s Tamar and Leviathan deposits, operated by Israel’s Delek Drilling as well as Noble. Supplies would be directed to LNG plants in Egypt, some 400 miles (645 kilometers) south of Cyprus.

Remarks by the Minister of Energy, Mr Y. Lakkotrypis, at the signing of the agreement between Cyprus and Egypt for the submarine natural gas pipeline - PRESS AND INFORMATION OFFICE, REPUBLIC OF CYPRUS

19-SEPT-2018 12:01

On the occasion of the signing of the Intergovernmental Agreement, between the Republic of Cyprus and the Arab Republic of Egypt, concerning a direct submarine natural gas pipeline, I welcome to Cyprus my good friend, Egypt’s Minister of Petroleum and Mineral Resources, Mr Tarek El Molla, as well as his associates. I also extend a warm welcome, on behalf of the Government of Cyprus, to the Head of the International Relations and Enlargement Unit, of the Directorate-General for Energy of the European Commission, Mrs Anne-Charlotte Bournoville, and, of course, to the representatives of our partners in the “Aphrodite” natural gas field, the consortium of Noble Energy, Shell and Delek.

Today’s signing is an important milestone, not only for Cyprus but also the entire Eastern Mediterranean region. It constitutes, for Cyprus, another crucial step towards its goal to efficiently exploit the underwater wealth in its Exclusive Economic Zone (EEZ), and specifically gas from “Aphrodite”, for the benefit of all Cypriots. In addition, it reinforces the joint efforts by the countries in the Eastern Mediterranean to establish the synergies required for attracting the multibillion infrastructure investments for hydrocarbons production and transport.

Cyprus, Egypt sign gas pipeline agreement - CYPRUS MAIL

TEKMOR note: Great news for the region,not just Egypt & Cyprus.

SEPTEMBER 19, 2018

George Psyllides

Egypt and Cyprus on Wednesday signed an agreement for the construction of an underwater pipeline to export natural gas to Egypt.

The deal was signed at the presidential palace by Energy Minister Yiorgos Lakkotrypis and Egypt’s Oil Minister Tarek el Molla.

Lakkotrypis said the agreement aimed at ensuring the timely and safe development, construction, and operation of an underwater pipeline directly to Egypt through the two countries’ exclusive economic zones.

Cyprus, Egypt Set to Sign Deal for Offshore Gas Pipeline - NEW YORK TIMES / ASSOCIATED PRESS

Sept. 18, 2018

NICOSIA, Cyprus — Europe stands to gain from an agreement Egypt is set to sign with the Mediterranean island nation of Cyprus to pipe offshore natural gas to processing plants in the north African country where it will be liquefied for export, Egypt's oil minister said Tuesday.

Tarek el-Molla said that under the terms of the agreement, gas off Cyprus could also be used for Egypt's domestic needs.

"So it is really a way to have ... good, win-win positions for not only Cyprus and Egypt, but also for Europe," El-Molla told reporters after talks with Cypriot President Nicos Anastasiades.

Cyprus' energy minister, Georgios Lakkotrypis, called the agreement— to be signed Wednesday — a first of its kind for the region that could bolster Europe's energy security.

Lakkotrypis said the agreement could act as an example for other neighboring countries to offer oil and gas companies the kind of security on their investment so they can proceed with projects worth billions.

The Cypriot minister said the agreement concerns building a pipeline from the Aphrodite deposit — estimated to contain around 4.5 trillion cubic feet (130 billion cubic meters) of gas — to Egypt. But it can apply to other gas fields that may be discovered off the island in the future.

"This is a European pipeline because the natural gas that will be conveyed to Egypt from Aphrodite, after the commercial agreements are completed, will find its way to Europe in liquefied form," Lakkotrypis said.

Talks to hammer out a commercial deal for the pipeline will start soon, he said.

Italian company Eni has discovered another gas deposit southwest of Cyprus, but its size hasn't been determined yet. ExxonMobil will begin a hydrocarbon search off Cyprus later this year. France's Total is also licensed to search for gas.

Cyprus and Egypt geared up to sign pipeline agreement - CYPRUS MAIL

Lakkotrypis (R) welcoming El Molla (L) in Cyprus

September 18, 2018 

Peter Michael

Cyprus and Egypt will sign an agreement for an underwater natural gas pipeline on Wednesday, set to be the first of its type for the region, Energy Minister Yiorgos Lakkotrypis said on Tuesday.

Lakkotrypis and his Egyptian counterpart Tarek el Molla had held a meeting in the evening with President Nicos Anastasiades, where they informed him about the negotiations regarding the bilateral pipeline agreement.

A representative from the European Council will also be present at the signing ceremony to be held on Wednesday.

Following the meeting, the president said in a tweet that the agreement for the transfer of natural gas from the Aphrodite field in Cyprus’ exclusive economic zone “is an important milestone” for the field’s exploitation.

“We are looking toward the establishment of a dedicated corridor that will consist of different infrastructures to supply gas to the EU from the Eastern Mediterranean,” Anastasiades tweeted.

Socar, Qatari firm proposals for Crete energy sufficiency issue - ENERGY PRESS

17/SEPT/2018

LNG usage and the establishment of a floating regasification terminal for gas-fueled electricity generation at power stations are the common factors of at least two proposals to be presented this week to RAE, the Regulatory Authority for Energy, as possible solutions for the Crete’s looming energy shortage problem as of 2020.

An exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, is set to expire in December, 2019.

An Athens-Crete interconnection plan that would resolve resulting power insufficiency issues on the island has fallen behind schedule and prompted the need for solutions until the project’s launch.

Opinion writers are mad we are losing at int’l arbitration - ENTERPRISE

Monday, 17 September 2018

Opinion writers, unhappy Egypt is “losing” at int’l arbitration, simply miss the point: Since the USD 2 bn ruling handed down by the International Centre for Settlement of Investment Disputes in favor of Union Fenosa, opinion writers have expressed frustration at this “losing streak.” Ziad Bahaa El Din is urging in Al Shorouk the government to review all its oil and gas contracts to avoid losing future arbitration hearings. Mohamed Saleh concurs in AMAY, urging the government to seek the expertise of legal minds. AMAY’s Newton is complaining about the size of the loses, which he claims have reached EGP 38 bn, while AMAY’s Mohamed Abu Al Ghar is suggesting that the officials who have signed the contracts to be corrupt.

All four miss the point: None of them explain to their readers why we failed to meet our natural gas export obligations (it’s called “force [redacted] majeure” for a reason, people) —and none get the point that settling outstanding disputes is key to Egypt’s aim of emerging as the eastern Med’s premier energy hub.

Egypt signs two new oil drilling agreements - EGYPT INDEPENDENT

September 16, 2018 / 6:56 pmHend El-Behary

The Ministry of Petroleum and Mineral Resources has signed two new oil and gas exploration agreements to explore two deep water areas at the Mediterranean Sea and Western Sahara with Canadian, British, Dutch, Malaysian and Kuwaiti companies, for a minimum investment of more than US $ 1 billion.

The first agreement is with the Egyptian Petroleum Authority, Shell International and Malaysia’s Petronas companies in the deep West Delta maritime region at the Mediterranean, with investments of about $ 1 billion to begin drilling eight new wells.

The second agreement is with the Petroleum Authority, the Kuwaiti energy companies, the Canadian Dover and Rockhopper to explore the Western Sahara with investments of $10 million and a $2 million signing grant to drill four wells.

Egypt, Greece, Cyprus FMs hold talks in Cairo - EGYPT INDEPENDENT / AL-MASRY AL-YOUM

September 15, 2018 // 12:44 pm

Cypriot Foreign Minister Nikos Christodoulides and Greek Foreign Greek Foreign Minister Nikos Kotzias arrived in Cairo on Friday afternoon to meet Egyptian Foreign Minister Sameh Shoukry for three-way talks.

Israel, Greece, Cyprus plan underwater gas pipeline - ARUTZ SHEVA 7

13/SEPT/2018 // 23:00

Prime Minister Binyamin Netanyahu on Thursday, at the Prime Minister's Office in Jerusalem, held a trilateral meeting with Greek Foreign Minister Nikos Kotzias and Cypriot Foreign Minister Nikos Christodoulides. He also met with both men separately.

The three discussed, in continuation of previous meetings, the laying of a joint Israel-Cyprus-Greece East-Med gas pipeline in order to export gas to Europe. They also discussed – inter alia – regional issues, the deepening of cooperation and the initiative to establish a multi-national firefighting force.

"Foreign Minister Christodoulides and Foreign Minister Kotzias, this is one of our regular meetings between Israel, Greece and Cyprus. We have many things that we cooperate on—the environment, energy, security, emergency services, tourism, many others,” said Netanyahu.

“Our prime focus right now is on energy, on developing the eastern Mediterranean pipeline. It’s a great project, could be one of the great underwater projects in the world. And obviously it’s something that we think is important.

Bulgaria-Greece Gas Pipeline Project Receives Initial Bids - NOVINITE / REUTERS

September 13, 2018, Thursday // 09:53

Reporting by Tsvetelia Tsolova; Editing by Edmund Blair

Italy’s Saipem, a consortium including Azeri state firm SOCAR and nine other groups or firms have submitted initial bids to build a gas pipeline between Bulgaria and Greece, the company overseeing delivery of the project said.

ICGB launched a tender in April for design, procurement and construction of the 182-km (113-mile) pipeline that is estimated to cost 145 million euros (8 million). The contract winner will have 18 months to complete the project.

Other firms which have filed initial bids also include Italy’s Sicim, Greek company J&P Avax, Turkey’s Fernas, a group including Sicilsaldo, Nuova Ghizzoni and Inrakat, and a consortium of Germany’s Max Streicher and Greece’s Terna.

ICGB will draw up a shortlist of final bidders.

Sofia plans to use the pipeline to receive one billion cubic metres (bcm) of gas per year from Azerbaijan’s Shah Deniz 2 gas field after 2020, ending its almost complete reliance on Russian gas supplies.

Upgraded LNG terminal set for launch amid US interest - ENERGY PRESS

12 SEPT 2018

A third storage tank added to an LNG terminal at Revythoussa, an islet close to Athens, is set for its commercial launch between late October and early November, slightly behind schedule.

The new tank, which promises to increase the facility’s overall capacity to 225,000 cubic meters, almost double its previous size, is currently undergoing test runs.

The facility’s capacity upgrade represents a pivotal development for the LNG terminal, a key asset belonging to DESFA, the natural gas grid operator, whose 66 percent is being privatized. A consortium comprised of Italy’s Snam, Spain’s Enagás Internacional and Belgium’s Fluxys has emerged as the winning bidder with a 535 million-euro offer.

DESFA is already engaged in talks with Greek and foreign firms interested in utilizing the upgraded facility and reserving capacities. They include two US firms, Cheniere and Tellurian, amid initiatives being taken for American gas imports into Greece. Cheniere and Tellurian have enquired about usage fees, capacities, technical details and port capabilities.

All firms interested in utilizing the upgraded LNG terminal at Revythoussa have made clear they are eyeing both the Greek market and the wider region to the north.

Lebanon’s second licensing round: Lessons learned and the case for stability - MIDDLE EAST STRATEGIC PERSPECTIVES / EXECUTIVE MAGAZINE

September 12, 2018

Preparations for the launching of Lebanon’s second offshore licensing round have begun. The Lebanese Petroleum Administration has published a tentative timeline for the tender, which will be officially launched by the end of 2018. The process, including the pre-qualification phase, will extend over a period of one year.

Natural Gas Regulatory Authority postpones issuance of natgas import licenses - ENTERPRISE

Wednesday, 12 September 2018

The Natural Gas Regulatory Authority has postponed the issuance of natural gas import licenses to private sector companies, saying the private sector is “unprepared,”according to an EGAS source. EGAS has renewed preliminary approval to grant Qalaa Holdings’ TAQA Arabia, BB Energy and Fleet Energy the import licenses, effectively giving them additional time after all three allegedly failed to submit paperwork to obtain the final license, according to the source. The preliminary approvals, which are renewed every six months unless a permanent license is obtained, must be ratified by the authority.

Take this with a grain of salt: When all three companies fail to file paperwork on time, that’s not the private sector being “unprepared,” it’s the business sending a message to government about license terms — and the regulator putting on some pressure in public. We suspect we’re not the only ones who hear echoes here of round one in the solar energy feed-in-tariff imbroglio.

Background: The authority was given the green light in July to begin issuing and revoking licenses for private players in the natural gas industry, a move that was made possible by the deregulation of the sector through the Natural Gas Act. Sources had said at the time that the first import license would likely be issued before the end of 2018.

Greece on the energy map, with the support of big players - KATHIMERINI

Anastasiades, Tsipras (C), Netanyahu (R)

TUESDAY SEPTEMBER 11, 2018, 15:12

There has been a serious uptick in activity concerning the energy sector in the broader region in the past few months and Greece has a potentially pivotal role to play in developments.

This week, the foreign ministers of Greece and Cyprus will meet in Athens and then travel to Israel for talks with Benjamin Netanyahu, in his capacity as foreign affairs chief. Apart from the broader framework of cooperation in other areas, energy will be high on the agenda.

US energy giant ExxonMobil is planning to start exploratory drilling in Cyprus’s exclusive economic zone, and in the face of Turkey’s unpredictable behavior Nicosia is counting on the support of Israel, which it sees not just as a major player in the area and a member of the tripartite alliance with Greece, but also as a bridge with the United States, even more so thanks to the close personal relationship between the Israeli prime minister and the American president.

EGAS renews initial approvals for BB energy, Taqa, Energy Fleet for gas importation - DAILY NEWS EGYPT

10 September 2018

Mohamed Adel

EGAS has renewed the approvals for the companies BB, Taqa and Fleet Energy on the licenses for natural or liquefied gas importation to provide it within the local market, after the licenses expired and the companies did not submit the required data to obtain the licenses.

A source at EGAS told Daily News Egypt that the three companies that obtained the initial approvals for the licenses have not submitted the data related to the importation body and the supplied amounts, as well as the client, with which there is a contract to obtain gas in the local market.

He explained that the initial approval on the import licenses is renewed every six months, and the companies applying to import gas have not taken any real steps to obtain the final licenses.

The private sector companies that obtained initial approvals are Energy Fleet, headed by Essam Kafafy, located in Panama, in addition to BB Energy, owned by a Lebanese Family, located in London. In addition, Taqa Arabia, owned by several funding gulf companies, in cooperation with Egyptian Qalaa Company.

Italy's Eni boosts output at Egypt's Zohr gas field to 57 million cu m/d - PLATTS

10 Sep 2018 | 10:17 UTC
Author: Stuart Elliott; Editor: Jon Fox

London — Italy's Eni has increased production at its supergiant Zohr field offshore Egypt to 2 Bcf/d (57 million cu m/d) following the startup of the project's fifth production unit.

Zohr started production in December 2017 -- just 28 months after its discovery -- and is on track to reach plateau production of 2.7 Bcf/d next year.

The production peak -- the equivalent of almost 29 Bcm/year -- would represent more than half of Egypt's current gas demand of around 52 Bcm.

Egypt -- which until recently was a fairly stable exporter of both LNG and pipeline gas -- began importing LNG in April 2015 to fill a growing supply-demand gap caused by a major slowdown in domestic gas development.

But with the startup of Zohr and other gas fields in Egypt, the country expects to halt LNG imports by the end of 2018 and become an exporter of gas again in 2019.

"Zohr [...] is playing a fundamental role in supporting Egypt's independence from LNG imports," Eni said.

Zohr is the largest deepwater gas field offshore Egypt, and the biggest discovered to date in the Mediterranean with an estimated 850 Bcm (30 Tcf) of reserves.

It is located within the offshore Shorouk block 190km north of Port Said.

Eni holds a 50% stake in the block together with Russia's Rosneft (30%), BP (10%) and the UAE's Mubadala Petroleum (10%).

Egypt gas output at 6.6 bln cubic feet per day -official - REUTERS

SEPTEMBER 8, 2018 / 11:38 AM

Reporting by Ehab Farouk, writing by John Davison; editing by Alexander Smith

CAIRO (Reuters) - Egypt’s natural gas output has risen to 6.6 billion cubic feet per day after an increase in production at its mammoth Zohr offshore gas field, an energy official said on Saturday.

Output at Zohr rose to 2 billion cubic feet per day, the petroleum ministry said on Friday.

Egypt aims to be a regional hub for the trade of liquefied natural gas (LNG) after a string of major discoveries in recent years including Zohr, which holds an estimated 30 trillion cubic feet of gas.

Energy deals with US giants announced in Thessaloniki - KATHIMERINI

Mark Menezes addressed the AmCham energy conference
in Thessaloniki on Friday

07.SEPT.2018 : 21:28

Chryssa Liaggou

Major energy deals involving Greek and US interests were announced at Friday’s American Hellenic Chamber of Commerce conference held in the context of this year’s Thessaloniki International Fair, which officially opens on Saturday.

In the presence of US Under Secretary for Energy Mark Menezes, US Ambassador in Athens Geoffrey Pyatt and ExxonMobil representative Tristan Aspray, Greece’s Energy Minister Giorgos Stathakis announced the completion of negotiations for the concession contract regarding the surveying and utilization of hydrocarbons south and southwest of Crete with the Total-ExxonMobil-Hellenic Petroleum consortium. He added that the contract will be signed next week.

In the context of the conference in Greece’s second city, Public Gas Corporation (DEPA) and Gastrade also signed the agreement for the participation of DEPA with a 20 percent stake in the terminal floating storage regasification unit (FSRU) that Gastrade is developing off Alexandroupoli in Thrace. Sources say some issues on the price and the approval of board members are still pending, while DEPA’s final stake could change, depending on the other holdings that may emerge.

New Alliance Emerges in Eastern Mediterranean to Reshape Regional Security Landscape - STRATEGIC CULTURE FOUNDATION

07.SEPT.2018

PETER KORZUN

The military-political landscape in Europe and the Mediterranean is changing. NATO is not as unified as it once was, and Turkey’s membership has become more of a formality than a real thing. A pro-US group consisting of Great Britain, Poland, and the Baltic States has emerged as part of a North Atlantic Alliance that is divided by differences and the open rift over the 2% financial contribution, a decree that is largely ignored, along with the other divisions that are weakening the bloc. Other groups are arising that also have common security interests. A new pact, an Arab NATO allied with the United States, will soon materialize in the Middle East. Changes are coming, but they are hard to predict as everything is currently in a state of flux.

“The United States is interested in increasing its use of military bases and ports in Greece,” said General Joseph Dunford, the Chairman of the US Joint Chiefs of Staff (CJCS), on Sept. 4 during his visit to Athens. “If you look at geography, and you look at current operations in Libya, and you look at current operations in Syria, you look at potential other operations in the eastern Mediterranean, the geography of Greece and the opportunities here are pretty significant,” he added. According to the Military Times, “[N]o specific bases have been identified, but that Supreme Allied Commander Europe Army Gen. Curtis Scaparrotti is evaluating several options for increased US flight training, port calls to do forward-based ship repairs and additional multilateral exercises.” US Commerce Secretary Wilbur Ross came to Greece right after the CJCS’s visit to take part in the annual Thessaloniki International Trade Fair.

France looks to develop defenceco-operation with Cyprus - REGINA LEADER-POST / THE ASSOCIATED PRESS

Cyprus Foreign Minister Nikos Christodoulides, right,
and his French counterpart Jean-Yves Le Drian

September 7, 2018

NICOSIA, Cyprus — France’s foreign minister says his country is looking to bolster defenceco-operation with Cyprus that could help augment Europe’s presence in the east Mediterranean.

Jean-Yves Le Drian said Friday after talks with his Cypriot counterpart Nikos Christodoulides that France wants a more united, democratic and sovereign Europe “whose voice is heard with greater power in the world.”

Christodoulides said Cyprus is ready to work with France to fulfil the ambition of French President Emmanuel Macron that Europe takes more responsibility for its own defence.

French warships often use the east Mediterranean island-nation — some 100 miles (160 kilometres) from Syria’s coastline — as a resupply and refuelling stop.

The two ministers also discussed expanding energy co-operation.

French company Total is already licensed to search for hydrocarbons off Cyprus’ southern coast.

Gas pipeline deal reached with Egypt – CyBC - CYPRUS MAIL

AUGUST 6, 2018
Evie Andreou 

Nicosia has reached an agreement with Cairo on a pipeline to connect the Aphrodite gas field in block 12 to Egypt, it was reported on Monday.

According to state broadcaster CyBC, the inter-state agreement is expected to be signed in the autumn.

The two countries had signed in 2017 a preliminary agreement to transport natural gas from Cyprus to Egypt to be liquefied at Egypt’s LNG facilities and re-exported to Europe and other markets.

CyBC, citing diplomatic sources, said that the agreement has already been given the green light by the EU and it is being scrutinised for the final touches.

Cyprus demarcated its maritime border with Egypt in 2003. The Aphrodite gas field, discovered in December 2011 by Houston-based Noble Energy, is estimated to hold some 4.5 trillion cubic feet of gas.

Management Committee reviews progress of TurkStream project - GAZPROM

September 5, 2018, 16:40

The Gazprom Management Committee reviewed the current status of the TurkStream project.

It was noted that the project was going according to schedule. Specifically, the deep-water pipelaying for the offshore part of the gas pipeline’s first string had been completed in the Black Sea along with the construction of the second string in Russia’s exclusive economic zone. On June 26, 2018, the Pioneering Spirit vessel had started to lay the second string in the Turkish exclusive economic zone. As of today, over 1,520 kilometers of the two strings are ready, which translates into about 81 per cent of the overall length of TurkStream’s offshore section.

Particular attention at the meeting was paid to the efforts being taken on the coasts of Russia and Turkey. It was highlighted that the landfall near the Russian town of Anapa had been completed and the continuing start-up and commissioning operations would be finished in 2018 together with landscaping. In addition, a receiving terminal is being constructed in the coastal area near the Turkish settlement of Kiyikoy.

Gov’t hints at willingness to settle on Union Fenosa arbitration ruling - ENTERPRISE

Wednesday, 5 September 2018

Gov’t hints at willingness to settle on Union Fenosa arbitration ruling: It is the general policy of the government, and the Oil Ministry specifically, to seek a settlement in international arbitration cases, an Oil Ministry source told Al Mal. 

His statements are the first we’ve heard since news broke that the World Bank’s International Centre for Settlement of Investment Disputes ordered Egypt to pay USD 2 bn in settlements yesterday to Spanish-Italian JV Union Fenosa Gas (UGS) for the government cutting off supplies to UGS’ Damietta liquefaction plant. 

The source noted that the ministry is carefully studying the ruling before issuing an official statement on the matter, but added that the ministry was intending to resupply the plant and other liquefaction plants as its regional energy hub strategy gains steam. Supplies of natural gas will be restored by 2019, the source noted.

Israel's Ratio Oil expected to sign Philippines exploration deal - INDIA TIMES / REUTERS

REUTERS | September 04, 2018, 18:17 IST

TEL AVIV: Israel's Ratio Oil Exploration is expected to sign a long-awaited deal on Tuesday to search for oil and gas in the Philippines, a spokesman for Philippines President Rodrigo Duterte said.

Ratio was not available for immediate comment.

The company in 2015 was one of a number of foreign firms to be awarded an exploration deal. Ratio won the so-called East Palawan block, a 416,000-hectare oil and gas prospect off of Palawan, a southeastern province near the South China Sea.

But the award was delayed due to legal issues involving a previous exploration contract covering that block.

Duterte is visiting Israel this week. During his visit, Israel and the Philippines signed an agreement promoting foreign investments between the two countries.

Egypt to pay Spanish-Italian JV $2bn in natural gas dispute - FINANCIAL TIMES

3 September 2018
Myles McCormick and David Sheppard

Ruling by World Bank panel poised to accelerate resumption of country’s LNG exports
A joint venture between Spain’s Naturgy and Italy’s Eni has been awarded a $2bn settlement from Egypt over gas supplies by a World Bank arbitration body, in a move that could accelerate the resumption of the country’s liquefied natural gas exports.

The ruling by the International Centre for Settlement of Investment Disputes comes after Egypt stopped supplying gas to Unión Fenosa Gas joint venture’s Damietta LNG plant as the country faced internal energy shortages in the wake of the political turmoil unleashed by the Arab Spring.

Unión Fenosa Gas took its case to the ICSID in 2014. The arbitration body on Monday found that in stopping the gas supply Egypt had failed to grant Unión Fenosa Gas “fair and equitable treatment”, contravening the country’s bilateral investment protection treaty with Spain, Naturgy said in a statement.

The $2bn is likely to be paid in the form of renewed gas supplies to Damietta rather than in cash, according to people familiar with the matter.

Naturgy, formerly known as Gas Natural Fenosa, said the award would allow it to reach a “comprehensive agreement” with Egypt to resume gas supplies to the plant, which were halted four years ago.

A big bonanza, but a tough sell - SAN ANTONIO EXPRESS NEWS

September 3, 2018

Jordan Blum

At a time when energy companies are positioning themselves for a lower-carbon world by investing heavily in natural gas, it would seem relatively easy to sell them on developing huge reserves of the cleaner-burning fuel. That is, unless those reserves are in the territorial waters of Israel.

Nearly a decade after natural gas was discovered off its coast, Israel is still struggling to enlist foreign firms to explore its vast deposits in the Mediterranean Sea, in part because oil and gas companies are wary of alienating Arab countries in which they have long done business. So far only one foreign company, Houston-based Noble Energy, is operating there. And last year, when Israel launched its first-ever auction of offshore blocks, it attracted just two bidders — a Greek company and a group from India.

This history is what brought Shay Luvshis to Houston. Luvshis, 38, is Israel’s energy consul, sent to Texas to recruit American and international oil and gas companies to explore Israeli waters in the eastern Mediterranean Sea. About year after opening an office, the Energy Ministry’s first outside of Israel, Luvshis says he and other officials have held advanced talks with Exxon Mobil, the French oil major Total and the Australian oil and gas company Woodside Petroleum, among others.

Exxon Mobil and Total declined to comment. Woodside said it regularly reviews opportunities around the world.

“If everything had gone well” in the past, Luvhsis said, “we wouldn’t be here. Israel is the new kid on the block as an emerging energy region.”

Greece presses the E&P button - PETROLEUM ECONOMIST

3 September 2018

Gerald Butt

Plans for deep-water exploration have raised hopes of an eventual major natural gas discovery, while onshore oil development is progressing slowly

In a modest, modern building tucked away in a leafy residential street close to the centre of Athens a major energy transition is being managed. The building is home to Hellenic Hydrocarbons Resources Management (HHRM). Since 2011, this state-owned company has been revitalising what had become a near-moribund energy sector.

HHRM exudes vigour, taking its cue, perhaps, from president and chief executive Yannis Bassias. Not so, he insisted, in an interview with Petroleum Economist. He said the firm's youthful vitality stemmed not from him but from the staff themselves: "When you take me out of the statistics, the average age here is 34, so this is great. We have a staff of just 17, we don't need any more."

This lean team has just pulled off a considerable coup, hooking super-major ExxonMobil into Greece's upstream, in partnership with Total, which already had a presence there. The latest move, many believe, will eventually see Greece emerge as a significant player on the East Mediterranean energy stage. Greek deputy energy minister Michalis Verroiopoulos told Petroleum Economist that "these days we're focussing on promoting hydrocarbons exploration in Greece—there's a new dynamism to it. We're very happy having huge companies like Exxon and Total deciding to invest here."