Cyprus-Egypt Aphrodite Gas Field Lures Investors - THE NATIONAL HERALD

Cypriot Parliamentary Speaker Demetris Syllouris, center, with
counterparts Ali Abdel-Aal of Egypt, right, and Nikos Voutsis of Greece,
left, talk during a press conference i the parliament house in capital
Nicosia, Cyprus, Monday, Feb. 11, 2019. (AP Photo/Petros Karadjias)

February 11, 2019

NICOSIA – A deal between Egypt and Cyprus to develop the Aphrodite gas field off the island’s coast is drawing keen interest from international oil companies, Egypt’s Minister of Petroleum and Mineral Resources Tarek El-Molla said.

In an interview with the Cyprus News Agency, he said the gas pipeline between the countries will see a commercial agreement coming that would be lucrative for the countries as part of the East Mediterranean Gas Forum.

He said there are political benefits with money being an equalizer and that with so many countries linked to the field’s findings that the multi-national aspects could show the world that the often volatile region is “the most ready option with the least risk” for gas supply of Europe.

As for the option of East Med pipeline between Cyprus, Greece, Israel and Italy, he said that the feasibility study for the project would take up to two years, “which in itself is a luxury the region can’t afford any more,” saying the Egyptian model is better.

Israel attacks Total for investment stance - FINANCIAL TIMES

LONDON, 10 February 2019

David Sheppard and David Keohane

Israel has attacked French energy major Total after its chief executive told the Financial Times that it was too “complex” a country to invest in.

Israel’s energy minister Yuval Steinitz, who was visiting London to drum up interest in the country’s next gas licensing round and discuss energy co-operation, said companies such as Total that refused to invest in Israel were living in “past decades” and were in hock to the “tyranny and dictatorship” of Tehran.

“I reject it with two hands, I think this is a miserable view,” Mr Steinitz told the Financial Times.

“We will consider our reaction to this as it is totally unacceptable, to boycott [Israel].”

Patrick Pouyanné, Total chief executive, told the FT in an interview that it was too “complex” to invest in Israel despite the country’s growing role as a gas producer, indicating his company’s relationships with other states in the Middle East was a sticking point.

ExxonMobil’s drilling in context - CYPRUS MAIL

FEBRUARY 10, 2019

As ExxonMobil approaches the end its drilling campaign, rumours about the results abounded this week as have the extravagance of some of the claims. So let’s put what we know in context. What I present below is based on information, seismic data, satellite data, even hearsay, but we all need to be mindful that so far ExxonMobil has not made any announcements.

Results so far

It appears that Delphine has not struck commercial quantities of gas, but it is likely to have encountered gas presence. Even though disappointing, given expectations, this does not mean that there is no gas in the reservoir. This can only be ascertained by evaluating the results from Delphine and potentially carrying out further drilling in the vicinity of this target. Seismic and satellite data show a strong potential for a substantial gas reservoir at this location. We need to wait and see what ExxonMobil announces.

Serbia ready to begin construction of its TurkStream section — Srbijagas - TASS

February 08, 6:27 UTC+3

BELGRADE, February 8. /TASS/. The Serbian side is ready to begin the construction of its section of the TurkStream gas pipeine to run from the Bulgarian to the Hungarian border, national gas company Srbijagas has said.

"Serbia is ready for the construction of this project, the first 300 million euro have already been secured, the construction is to begin in late March or early April. The construction is to be completed by December 15," Srbijagas Director General Dusan Bajatovic said at a session of the parliamentary Committee on the Economy, Regional Development, Trade, Tourism and Energy on Thursday.

The official added that "there should be no obstacles" on behalf of the Energy Community, an international organization established between the European Union and a number of third countries to extend the EU internal energy market to Southeast Europe and beyond.

Earlier, the Energy Community’s secretariat has expressed its opinion on the project, which Serbia deemed favorable. This opinion should serve as a basis for a permission from Serbia’s energy authority. After that, the construction can begin.

Exxon reportedly discovers oil in Cyprus Block 10 - KATHIMERINI / KNEWS

07 FEBRUARY 2019 - 10:15

Apostolis Tomaras

A sufficiently large and commercially viable oil reservoir has been reportedly discovered in Cyprus's Block 10 Glaucus target, according to Kathimerini sources.

Official results from Exxonmobil are not expected until the end of next week. The information comes from sources with knowledge of the matter.

The news of the discovery comes following uncertain indications regarding natural gas deposits in an earlier exploratory drilling at Delphini target, also in Block 10.

A sufficiently large and commercially viable oil reservoir has been discovered in Cyprus's Block 10

According to 'technocratic sources', Kathimerini has learned that the geological formations of the Glaucus target are limestone sedimentary rocks. To confirm that oil has been found, it would mean, according to the same sources, that the Exxonmobil drill has reached about 6 km deep.

The Eastern Mediterranean Gas Forum: A Lebanese perspective - MIDDLE EAST STRATEGIC PERSPECTIVES / EXECUTIVE MAGAZINE

February 6, 2019

Energy Ministers from Egypt, Cyprus, Greece, Israel, Italy, Jordan and the Palestinian Authority took an important step in Cairo toward establishing an Eastern Mediterranean Gas Forum (EMGF) on January 14. According to the declaration that followed the meeting, the EMGF will, among other things, assist in the creation of a regional gas market, ensure security of supply and demand, optimize resource development, facilitate the use of existing infrastructure and build new ones if necessary, etc. Intra-regional cooperation in this part of the world was at best marginal before the discovery of major hydrocarbon resources. Since 2009, shared interests and a series of gas discoveries have encouraged dialogue. The EMGF appears to be the first tangible result of these new regional dynamics.

The Forum’s raison d’être is regional energy cooperation. Almost ten years to the day after the announcement of the discovery of Tamar (January 17, 2009) – the first major gas discovery in the Levant Basin – it has become increasingly clear that regional cooperation is needed to make the most out of the region’s resources. The Eastern Mediterranean’s gas potential is promising. But, beside Egypt, the countries in the region have to deal with a number of challenges to exploit their resources. First, these resources are mostly offshore, in deep and ultra-deep waters. When found in commercial quantities, their extraction is expensive. Second, the relevant infrastructure to monetize these resources is quasi-inexistent (outside Egypt).

Egypt’s natgas regulator to begin issuing licenses to private sector - ENTERPRISE

Wednesday, 6 February 2019

Natgas regulator to begin issuing licenses to private sector: The Natural Gas Regulatory Authority will reportedly begin issuing this month private sector gas import and distribution licenses, almost a year after it said it’s open for requests, a source from the Oil Ministry said, according to Al Shorouk. 

Licenses will come at a cost of EGP 50k alongside an EGP 500k deposit. News came after the regulator, which was made responsible last year licensing under the Natural Gas Act, postponed its first issuance in September, saying the private sector was “unprepared.” 

The authority is handling requests from at least 14 companies, including Rosneft. It also set fees last year for the private sector’s use of the state’s natgas grid.

Lebanon hopes to resume natural gas imports from Egypt - ENTERPRISE

Sunday, 3 February 2019

Lebanon is hoping to once again import natural gas from Egypt under the terms of a 2009 gas supply contract, Lebanese Energy Minister Cesar Abi Khalil said at a meeting on Thursday with Oil Minister Tarek El Molla, according to a ministry statement. 

Khalil did not provide a time frame for the potential move. 

France’s Total is due to begin drilling for natural gas in Lebanon’s offshore concessions later this year as part of the Lebanon’s plans to become a natural gas producer itself in the near future.

Beyond Energy: The Significance of the Eastern Mediterranean Gas Forum - INSS

February 3, 2019, INSS Insight No. 1133
Ofir Winter, Gallia Lindenstrauss

The Energy Ministers of Egypt, Cyprus, Greece, Israel, Italy, Jordan, and the Palestinian Authority met in Cairo in mid-January 2019 to discuss the establishment of the Eastern Mediterranean Gas Forum, which will serve as the umbrella for cooperation and dialogue regarding the development of gas resources in the region. While the subject of energy is the basis for the forum, there are also broader geostrategic processes that led to its establishment, and they reflect the regional states’ shared perceptions regarding the importance of the Eastern Mediterranean to their national security. The countries of the region could leverage these processes into additional partnerships in the Eastern Mediterranean, beyond the issue of gas resources. However, to serve as a base for long term regional strategic development, the Gas Forum must achieve other objectives: strengthen regional recognition – particularly in Arab countries – of the potential value of cooperative relations in the Eastern Mediterranean that include Israel; increase the human and civic interactions between all peoples of the region; and continue to foster the concept of a shared regional space.

Zohr offshore Egypt building to peak gas capacity - OFFSHORE MAGAZINE

FEB/01/2019

MOSCOW – Gas produced from the deepwater Zohr field in the Egyptian sector of the Mediterranean Sea totaled 12.2 bcm last year, according to partner Rosneft.

During the second half of the year, output increased almost fourfold compared with H1, when production amounted to 3.1 bcm.

Over the course of 2018, the treatment capacity was increased in stages from 11.3 MMcm/d (400 MMcf/d) to the current 56.6 MMcm/d (2 bcf/d), in line with the development plan and the gas sales agreement.

Rosneft expects gas output to reach the design capacity of 76 MMcm/d (2.7 bcf/d) by the end of 2019.

Zohr holds estimated in-place volumes of 850 bcm. Other partners are Eni, BP, and Mubadala Petroleum.

Cyprus Hydrocarbons Company Takes Strides Towards Country’s Emergence as Energy Hub - SOUTH EU SUMMIT

1 FEBRUARY 2019

The Cyprus Hydrocarbons Company was established in 2014, following natural gas discoveries in the Eastern Mediterranean, to be in charge of all hydrocarbon discoveries in Cyprus’ Exclusive Economic Zone. As the world’s youngest national oil and gas company, it is working diligently under the leadership of Dr. Toula Onoufriou, to support the development of Cyprus’ hydrocarbons’ sector, and make the vision of Cyprus as a regional energy hub a reality.

Leviathan gas rig reaches Israel - REUTERS

JANUARY 31, 2019 / 5:49 PM

DOR BEACH, Israel (Reuters) - Israeli Prime Minister Benjamin Netanyahu on Thursday inaugurated the foundation of the Leviathan natural gas rig, effectively stomping out protests from residents and environmentalists who say it is too close to shore.

Leviathan, discovered in 2010, is one of the world’s largest gas discoveries of the past decade. The rig’s foundation, known as a platform jacket, arrived on a barge that sailed from Texas. Its topside is expected in several months. It is expected to be completed by the end of this year.

“Israel is becoming an energy power. Israel is independent, and is not dependent on anyone for its energy needs,” Netanyahu told reporters at the site, about 120 km (75 miles) off Israel’s Mediterranean coast.

Hopes run high for the East Med - PETROLEUM ECONOMIST

31 January 2019
Charles Ellinas

Possible major new discoveries, along with rising production and simmering regional geopolitics, make 2019 a year of reckoning

Egypt will be forging ahead in the coming 12 months, building on the success of the past three years, with more gas finds and exports of LNG. Eni is expected to announce a major new discovery at the Noor prospect, about 50km (31 miles) offshore Sinai. Together with a number of smaller gasfields, this will bolster Egypt's gas production and support LNG exports.

Eni will raise output at the Zohr gasfield to 3.2bn cf/d by the end of 2019, up 0.5bn cf/d from the originally planned production plateau, the icing on the cake of a remarkable project. Following completion of the negotiations between the Damietta LNG plant partners and the Egyptian government to settle an arbitration award against the latter, this additional gas from Zohr will be destined for liquefaction and export, mostly to Italy.

In the meantime, BP will also be expanding its operations in Egypt, committing to spend another $1.8bn in 2019 to speed up gas production. It will bring the Raven gasfield, in its West Nile Delta concession, on stream adding another 350mn cf/d to the Egyptian gas grid.

Cabinet approves bill for Egypt pipeline deal - CYPRUS MAIL

January 31, 2019
Elias Hazou

The cabinet on Thursday approved a bill governing an inter-state agreement with Egypt for the construction of a subsea natural gas pipeline crossing through the exclusive economic zones of the two nations.

The legislation follows through from, and sanctions, the inter-state pipeline agreement signed between Cyprus and Egypt in September 2018.

Energy minister Giorgos Lakkotrypis was authorised to submit the bill to parliament.

The development came amid media reports on Thursday evening claiming that ExxonMobil has located gas at its second drill site, dubbed ‘Glafcos’, in Block 10.

The report carried by Sigma could not be confirmed. The outlet said announcements of a find could be made in about 10 days’ time.


ExxonMobil declined to comment.

Summit Declaration of the Southern European Union Countries - REPUBLIC OF CYPRUS

Nicosia, 29 January 2019 

1.We, the Heads of State or Government of Cyprus, France, Italy, Greece, Portugal, Malta, and Spain, have convened in Nicosia for the fifth Summit of the Southern European Union Countries.

2.Following our last Summit in Rome, we gathered today to reaffirm our profound commitment to the European project and our common values, such as the rule of law, freedom, democracy, human rights and solidarity and to address multiple challenges through continuous display of solidarity and collective responses at the EU level. We reaffirm our strong belief that, building our common European project upon a perspective for the Mediterranean as a region of peace, stability and prosperity, is in the interest of Europe as a whole.

3.Convinced that a strong and united European Union is the best way forward, we are determined to contribute constructively to the debate on our shared future. At the Sibiu Informal Summit, on 9 May 2019, we intend to provide guidance for the new legislative cycle and contribute to the Strategic Agenda for 2019-2024. We also anticipate a renewed commitment to a modernised EU that delivers on the issues that really matter to its citizens. We have paid close attention to the results of our intensive cycle of Citizens' Dialogues and Citizens' Consultations; in our work on the next Strategic Agenda, we will make our utmost in providing new and appropriate ways of engaging citizens and responding to their legitimate concerns.

MED-7 Summit in Nicosia set to focus on EU’s great challenges - CYPRUS NEWS AGENCY

CNA - Cyprus/NICOSIA 29/01/2019 08:08

The 5th MED-7 Summit which will take place on Monday afternoon, in Nicosia, is set to focus on the great challenges the EU is faced with today, including the migration crisis, Brexit, energy security, the next multi-annual fiscal framework, developments in the euro area and climate change.

Cyprus President Nicos Anastasiades will host French President Emmanuel Macron, Italian Prime Minister Giuseppe Conte, Greek Prime Minister Alexis Tsipras, Portuguese Prime Minister Antonio Costa, Maltese Prime Minister Joseph Muscat and Spanish Foreign Minister Josep Borrell, at the Filoxenia Conference Centre, in Nicosia.

In statements yesterday, Government Spokesman Prodromos Prodromou said that “the seven countries share common interests.

Leviathan rig foundations reach Israel - GLOBES

27 Jan, 2019 12:22
Sonia Gorodeisky

The Leviathan partners said that the Leviathan project was advancing as planned and on schedule.

After a month-long trip from Texas to Israel, the foundations for the Jacket drilling platform for the Leviathan natural gas reservoir have reached their destination in Israel's territorial waters about 10 kilometers off Israel's shore. A campaign has been waged recently to move the platform further offshore on grounds of alleged environmental damage.

The foundation legs will be placed on the sea bottom in the next week and set in place with huge stakes. Underwater specialists will use a crane ship and other vessels in the work.

Minister of National Infrastructure, Energy, and Water Resources Dr. Yuval Steinitz says that the arrival of the Leviathan platform base marks "the beginning of the last stage in development of the reservoir, the largest natural resource ever discovered in Israel.

Parliament committee approves gas pipeline construction between Egypt, Cyprus - EGYPT INDEPENDENT / AL-MASRY AL-YOUM

January 27, 2019, 1:49 pm

The Energy and Environment Committee of the House of Representatives on Sunday approved a presidential decree on an agreement between Egypt and Cyprus to build a direct natural gas pipeline, which was signed in Nicosia on September 19, 2018.

The agreement aims to facilitate the export of natural gas from Cyprus to Egypt through the establishment and operation of a direct sea pipeline from the exclusive economic zone of Cyprus, to natural gas liquefaction plants in Idku or Damietta in Egypt.

Mohamed Samir, member of the technical bureau of the Petroleum Ministry, said during the committee’s meeting that the ministry is working in full swing to turn Egypt into a regional center for natural gas trading.

Samir added that negotiations for the agreement lasted three years, and will encourage investors as it marks the beginning of further contracts and agreements to neighboring countries.

Head of the committee Talat al-Sewedy said that the agreement is very important as Cyprus is a gate for Egypt to export gas to EU countries.

Political cooperation will enhance East Med gas prospects - CYPRUS MAIL

JANUARY 27, 2019
Charles Ellinas

Politicians can’t do much about gas prices but removing political risk from a region certainly makes it more attractive to energy buyers

Commercial viability for gas in the East Med is market driven and not under the control of politicians, but the newly established East Med Gas Forum which includes Israel, the Palestinian Authority, Egypt, Greece and Cyprus can only contribute to geopolitical cooperation in the region.

The energy ministers and representatives from Egypt, Cyprus, Greece, Israel, Italy, Jordan and the Palestinian Authority met in Cairo on January 14 and set up the East Med Gas Forum (EMGF). European Commission and World Bank representatives also attended the meeting as observers.

The forum will be based in Cairo, with the aim to be “an international organisation that respects the rights of members with respect to their natural resources in accordance with the principles of international law, and support their efforts to benefit from their reserves and use of infrastructure”. This also includes “commitment to paving the way for fruitful cooperation in the technical and economic fields, with a view to efficient exploitation of the gas potential in the region”.

Neptune Energy, DEA bid for Edison's oil and gas assets - sources - REUTERS

JANUARY 25, 2019 / 4:18 PM

By Shadia Nasralla, Ron Bousso and Clara Denina

LONDON, Jan 25 (Reuters) - Private-equity backed Neptune Energy and Germany’s DEA are bidding for the oil and gas assets in Egypt, Italy and elsewhere being sold by EDF’s Italian unit Edison, industry sources said on Friday.

EGYPT PULSE Is new energy league an alliance against Ankara? - AL MONITOR

January 24, 2019
Mohamed Saied 

CAIRO — A new eastern Mediterranean alliance that includes Israel is moving to take advantage of the energy-rich region, which has natural gas reserves estimated at 122 trillion cubic feet (3.45 trillion cubic meters). Some observers say the coalition also wants to counter any efforts Turkey might make to control energy sources in the region.

The Egyptian Ministry of Petroleum announced Jan. 14 that six countries and the Palestinian Authority (PA) had agreed to establish the Eastern Mediterranean Gas Forum (EMGF), with Cairo as its headquarters. The presidents of Egypt, Cyprus and Greece had held a trilateral summit Oct. 10 on the Greek island of Crete during which they agreed to establish the forum.

Turkey began its first oil and gas exploration off the coast of Antalya by launching the drilling ship Fatih on Oct. 29.

Natural gas fields give Israel a regional political boost - THE WASHINGTON POST / ASSOCIATED PRESS

January 23 at 2:50 AM
Aron Heller

JERUSALEM — A decade after discovering natural gas fields off its Mediterranean coast, Israel is starting to feel the geopolitical boost.

Its newfound riches have fostered economic bonds with its neighbors, tightening relations with Arab allies, and built new bridges in a historically hostile region — even without significant progress being made toward peace with the Palestinians.

Last week’s inclusion of Israel into the Eastern Mediterranean Gas Forum in Cairo — a consortium aiming to cut infrastructure costs and lower prices — marked the first time Arab countries accepted Israel into such a regional alliance, sparking excitement in the country that its long-held hope of finally also making “economic peace” with Egypt and Jordan was fast approaching.

“I think this is the most significant economic cooperation between Egypt and Israel since the signing of the peace treaty 40 years ago,” Israeli Energy Minister Yuval Steinitz told The Associated Press during his visit. “The discovery of significant gas fields in the eastern Mediterranean has also political value because it brings all of us ... together to cooperate with each other.”

Dana Gas to invest USD 5 bn in Egypt in the coming few years - ENTERPRISE

Wednesday, 23 January 2019

INVESTMENT WATCH- Dana Gas to invest USD 5 bn in Egypt in the coming few years:Speaking of foreign players that have been vocal about dues owed by the government: Dana Gas is planning on increasing its investments in Egypt by USD 5 bn “over the coming few years,” CEO Patrick Allman-Ward said at a meeting with Prime Minister Moustafa Madbouly at the World Economic Forum. The investment will see the UAE-based company expand its exploration operations in Egypt, he added. The company has invested USD 2 bn in Egypt since 2007, he noted.

Paying off arrears pays off: Allman-Ward made sure to thank the Egyptian government for its efforts in paying off arrears owed to the company. This is a far cry from 2016, when Dana Gas said it was reevaluating its investments in Egypt in light of the government owing it USD 242 mn. The government slashed arrears down to USD 199 mn with a USD 35 mn payment earlier this month.

More good news for the energy sector and FDI watchers: Foreign players are expected to invest USD 10 bn FY2019-20 in oil and gas E&P, Oil Minister Tarek El Molla told local press. Dues to foreign energy companies fell to USD 1.2 bn and are expected to be completely paid by the end of this year, he said.

An end to flaring? Egyptian oil companies use associated gas for power - ENTERPRISE

Monday, 21 January 2019

Two Egyptian oil companies are bucking the industry trend of flaring associated gas by using it for power generation instead, an Oil Ministry source said, according to Youm7. 

Dana Petroleum-EGPC JV Petro Kareem and Vegas-EGPC JV Petro Amir began a project last March to process gas produced at oil fields either for on-site electricity or for the national grid. Fields operated by the companies produce 55 tonnes of gas and 112 tonnes of condensates, along with 10 mcf/d of gas worth around USD 27 mn. Egypt, which is the 11th biggest gas-flaring country in the world, is a signatory to a global initiative aimed at ending routine gas flaring by 2030.

Western Burullus production, Eni drilling at Zohr and EGAS exports - ENTERPRISE

Sunday, 20 January 2019

Natural gas production from the Mediterranean’s western Burullus field will begin in 2020, according to an Oil Ministry statement.

Italy’s Eni is expected to finish drilling the 14th well at Zohr natural gas field by the end of January, an EGAS source tells Al Shorouk. The company is currently drilling 12 wells to increase the field’s well count to 20, which is projected to increase production to 3 bcf/d by the end of 2019.

EGAS has exported around 80 bcf of gas in FY2017-18, exported in 10 shipments, according to a report by the company picked up by Al Shorouk. Egypt’s total production of natural gas reached 2.1 tcf in FY2017-18, with an average output rate of 5.8 bcf/d.

Eastern Mediterranean Gas Forum a powerful new global player - THE ARAB WEEKLY

EU Commissioner for Energy Miguel Arias Canete (C) visits the Zohr
gas field facilities in April 2018

Sunday 20/01/2019

Amr Emam

The EMGF creates a “systematic dialogue” between producers and consumers on gas policies.

CAIRO - A planned Eastern Mediterranean Gas Forum is expected to expand cooperation between natural gas producers and consumers in the region, creating a powerful global energy player and potentially providing Europe with an alternative supply of gas.

“This is particularly true with major producers in the region agreeing to join hands in maximising benefits from new finds,” said oil and gas expert Ramadan Abul Ela. “Regional discoveries will change the international map of energy supply but this will materialise only when producers join hands.”

The Eastern Mediterranean Gas Forum (EMGF) was announced January 14 in Cairo at a meeting of energy ministers from Egypt, Cyprus, Greece, Israel, Italy, Jordan and the Palestinian territories.

The forum, with headquarters in Cairo, is planned to ease exploitation of Eastern Mediterranean gas reserves to further economic development in the region.

“The forum will support producing countries by enhancing their cooperation with consumer and transitory parties in the region,” a statement from Egypt’s Ministry of Petroleum said. “It will take advantage of existing infrastructure and develop further infrastructure options to accommodate current and future discoveries.”

Israel Aims To Become An Energy Export Hub - OILPRICE.com / ZEROHEDGE.com

Jan 19, 2019, 2:00 PM CST

Israel has confirmed it is in extensive talks with Egypt to build a new sub-sea natural gas pipeline between the two countries as part of a previously agreed $15 billion deal to export Israeli gas to Egypt over a decade. Most significant is that the new line would hugely expand Israel's export capacity to its southern Arab neighbor, taking it far beyond the maximum 7 billion cubic meters per year currently able to flow through the existing EMG pipeline to Sinai. 

Israeli Energy Minister Yuval Steinitz proclaimed the ambitious project under negotiation to be part of broader "efforts to transform the eastern Mediterranean into an energy export hub on the doorstep of Europe," according to Bloomberg.

“There’s no final decision yet, but there are talks,” Steinitz told Bloomberg while attending the Cairo-sponsored first East Mediterranean Gas Forum, a cooperative forum aimed at expanding east Mediterranean energy transformation and joint ventures.

Cyprus: US to lift Cyprus arms embargo in security boost - THE REPUBLIC / AP

JAN/18/19 3:26 PM
Menelaos Hadjicostis

NICOSIA, Cyprus — The U.S. will soon start lifting a decades-old arms embargo on Cyprus because Washington acknowledges the Mediterranean island nation’s contribution to bolstering regional stability and security, the Cypriot foreign minister said Friday.

Foreign Minister Nikos Christodoulides said that Washington sees the “added value” of allowing Cyprus to acquire military equipment that would help enhance its capabilities to boost regional security.

The embargo was imposed in 1987 with the aim of preventing an arms buildup that would hamper diplomatic efforts to reunify divided Cyprus. The island was split along ethnic lines in 1974 when Turkey invaded in the wake of a coup aimed at union with Greece.

Christodoulides said the process to lift the embargo has been set in motion in the U.S. Congress, reflecting a “positive shift” in that Washington no longer views Cyprus solely as an unsettled conflict of ethnic division.

“This is proof, if you like, of the recognition by the U.S. administration of the positive role that Cyprus plays as a pillar of stability and security in the broader region,” Christodoulides told The Associated Press.

In First, Arab Countries Admit Israel Into a Regional Alliance. But There Is a Price - HAARETZ

Jan 17, 2019 2:05 PM
Ora Coren 

The announcement this week that many of the countries of the East Mediterranean, including Israel, agreed to set up a forum to create a regional gas market is a landmark development for Israel. It not only creates a framework for developing the region’s energy, but it marks the first time Israel has been admitted to a regional grouping that will give it official status in the Arab world.

The Eastern Mediterranean Gas Forum, announced on Monday after a meeting in Cairo, aims to “create a regional gas market that serves the interests of its members by ensuring supply and demand, optimizing resource development, rationalizing the cost of infrastructure, offering competitive prices and improving trade relations, among other goals,” Egypt’s Petroleum Ministry announced.

Besides Israel, the group includes Egypt, Cyprus, Greece, Italy, Jordan and the Palestinian Authority. The statement said that other Eastern Mediterranean countries may join the forum later, a hint that Lebanon may become a member.

Energean Oil & Gas sets sights on production growth, looks forward to 2019 drill programmes - PROACTIVE INVESTORS

16 Jan 2019, 08:37 

Energean Oil & Gas PLC (LON:ENOG), in a statement ahead of its full year results, told investors it increased revenues by 56% during 2018;

The company noted that, in Greece, it produced 4,053 bopd and that falls within the expected range of 4,000 to 4,250 bopd. Guidance for 2019 pitches production expectations at 5,000 to 6,000 bopd in Greece.

Meanwhile, Energean continues to advance the Karish and Tanin projects in Israel for ‘first gas’ in the first quarter of 2021.

This year, the company aims to expand the assets with the drill-bit. It plans to target some 2.3 trillion cubic feet of potential gas resources through the 2019 drill programmes.

"2018 was a very successful year for Energean. We increased revenues by 56% while reducing cost of production by 29%, made significant progress on our development projects and converted significant volumes of resources into reserves,” said Mathios Rigas, Energean chief executive.

Talks Underway to Build New Gas Pipeline to Egypt, Israel Says - BLOOMBERG

January 15, 2019, 2:20 PM GMT+2 

Mirette Magdy

• Israeli energy minister spoke in Cairo after gas forum
• East Med countries building gas export network to Europe

Talks are in progress to build a new underwater gas pipeline between Israel and Egypt, part of efforts to transform the eastern Mediterranean into an energy export hub on Europe’s doorstep, Israeli Energy Minister Yuval Steinitz said. Israeli gas stocks rose.

Construction could begin as early as next year on the pipe to transport gas from Israel’s offshore Leviathan and Tamar fields to Egypt’s existing liquefied natural gas plants for processing and re-export, Steinitz said.

The new line would allow Israel to export much more to Egypt than the maximum 7 billion cubic meters per year that can flow through the existing EMG pipeline connecting southern Israel to Egypt’s Sinai peninsula.

“There’s no final decision yet, but there are talks,” Steinitz told Bloomberg in an interview in Cairo, where he took part in the first East Mediterranean Gas Forum. The event was aimed at boosting cooperation among the region’s nascent gas producers, consumers and transit countries. The next meeting will take place in April.

East Med gas players vow to establish regional market, choose Cairo as HQ for new organization - ENTERPRISE

Tuesday, 15 January 2019

East Med gas players vow to establish regional market, choose Cairo as HQ for new organization: East Mediterranean gas producers will establish a regional gas market following an agreement in Cairo yesterday at what’s being billed as the first meeting of the East Med Gas Forum, according to an Oil Ministry statement. The forum agreed to “create a regional gas market that serves the interests of its members by ensuring supply and demand, optimizing resource development, rationalizing the cost of infrastructure, offering competitive prices and improving trade relations,” Reuters reports.

Who’s on board? The meeting was attended by representatives from seven countries including Israel, Cyprus, Greece, Italy, Jordan, Palestine and Egypt.

It’s not clear precisely what “regional gas market” means: Prior to the meeting, an anonymous source at the ministry said that countries would discuss ways to increase Egypt’s role as the region’s primary LNG exporter. However, the ministry’s statement does not elaborate on how yesterday’s agreement fits with the country’s gas hub ambitions. We’re also remain none the wiser on the shape the regional market could take or what steps the organization will take to get there.

Eastern Mediterranean countries to form regional gas market - REUTERS

JANUARY 14, 2019 / 3:21 PM

CAIRO (Reuters) - Eastern Mediterranean countries meeting in Cairo agreed to set up a forum to create a regional gas market, cut infrastructure costs and offer competitive prices, Egypt’s petroleum ministry said on Monday.

The organization aims to “create a regional gas market that serves the interests of its members by ensuring supply and demand, optimizing resource development, rationalizing the cost of infrastructure, offering competitive prices and improving trade relations,” among other goals, the statement said.

The announcement is part of efforts to transform the Eastern Mediterranean into a major energy hub.

The others involved are Cyprus, Greece, Israel, Italy, Jordan and the Palestinians. Other Eastern Mediterranean countries and transitory countries may join the forum later, the ministry said in a statement.

The Eastern Mediterranean Gas Forum will be based in Cairo and will be open to monitoring by international and regional organizations.

Israel will begin exporting gas to Egypt in a few months' time - energy minister - REUTERS

JANUARY 14, 2019 / 6:02 PM

CAIRO, Jan 14 (Reuters) - Israel will begin exporting natural gas to Egypt “in a few months’ time”, Israeli energy minister Yuval Steinitz said on Monday.

Steinitz did not give a specific target for initial exports, but said shipments will double after the huge Leviathan field in the eastern Mediterranean comes fully online in November.

As well as Leviathan, two smaller fields are expected to come online in the next few years. Steinitz said Israeli exports to Egypt were expected to reach 7 billion cubic meters annually over 10 years.

Steinitz was speaking on the sidelines of a regional gas forum in Cairo, where he said Israel and Egypt had discussed how to extend cooperation on natural gas, including through exports. .

Egypt is hoping to leverage its strategic location straddling the Suez Canal, its land bridge between Asia and Africa and its well-developed infrastructure to become a key trading and distribution centre in the region and beyond.

Egypt, Jordan amend natgas supply agreements as El Sisi visits Amman - ENTERPRISE

Monday, 14 January 2019

Egypt, Jordan amend natgas supply agreements: Oil Minister Tarek El Molla and his Jordanian counterpart Hala Zawati signed agreements amending prior natural gas purchase and sale agreements and MoUs, according to Al Shorouk. No details were provided as to what the amendments entail. Egypt began exporting natural gas to Jordan last September under a supply resumption agreement providing as much as 10% of Amman’s natural gas needs. Zawati later said her country is planning to increase the amount to eventually cover a third of the kingdom’s demand.

This comes as President Abdel Fattah El Sisi held talks yesterday with Jordan’s King Abdullah II during a short visit to Amman, according to an Ittihadiya statement. The two discussed natural gas exports to Jordan and the Palestinian peace process, as well as bilateral ties, countering terrorism, Syria, Libya, and Yemen.

Egypt in talks with UGS to drop USD 2 bn arbitration claim over Damietta liquefaction plant - ENTERPRISE

Sunday, 13 January 2019

Egypt is in talks with Spanish-Italian JV Union Fenosa Gas (UGS) in a bid to have the European outfit drop its arbitration claim over gas supply interruptions at the Damietta liquefaction plant, an industry source tells the domestic press. The World Bank’s International Centre for Settlement of Investment Disputes ordered in September that Egypt pay USD 2 bn to UGS in the case, which UGS filed after the state cut off flows to its Damietta liquefaction plant. UGS owns 80% of the facility, while state-owned EGPC and EGAS together own the remaining 20%. According to the sources, the Oil Ministry is looking to hammer out an agreement that would see Egypt gradually relaunch operations at the Damietta facility and compensate UGS for its losses through EGAS’ profits from the facility’s operations. Naturgy and Eni are in “advanced talks” over the relaunch of operations, Eni CFO Massimo Mondazzi said back in October.

Government seeks to transform Egypt into regional energy hub benefiting from sector growth - DAILY NEWS EGYPT

13.01.2019Ahmed Lamloum

The oil and gas sector has been a pillar to the Egyptian economy in the last few years, contributing about 15% to the GDP, especially after the 2011 uprising negatively affected the tourism and investment sectors, drying up foreign currency reserves.

The Executive Vice President of Operations at Egyptian Natural Gas Holding Company (EGAS), Magdy Galal, opened on Sunday the Egypt Energy Hub 2019 conference on behalf of Tarek El-Molla, the minster of petroleum and mineral resources, and delivered the opening speech.

Galal highlighted the importance of adopting the required technological elements that can give a real push to the energy sector.

He stressed the government’s keenness to transform Egypt into a regional oil and gas hub, benefiting from the recent discoveries in the Mediterranean and the Nile Delta.

New pipeline will weaken Turkish-Israeli relationship - ASIA TIMES

JANUARY 12, 2019 12:35 AM (UTC+8)

Joseph Dana

The relationship between Turkey and Israel has never been an easy one to understand. Since formal relations crystalized in 1949, with Turkey becoming one of the first Muslim-majority countries to recognize Israel, both countries have found themselves at arm’s length with the rest of the Middle East.

By the time Israel sent medics to assist victims of Turkey’s tragic earthquake in 1999, the two countries were sharing military technology and bilateral trade was booming. The relationship then took a sour turn, at least rhetorically. A war of words between Turkish President Recep Tayyip Erdogan and Israeli Prime Minister Benjamin Netanyahu reached a fever pitch over the last decade and seemingly threatened the foundations of this unique partnership.

Many observers, however, believed the alliance was never really at risk, due to the sheer amount of trade that moves between the two countries.

But now, all that has changed. The discovery of massive natural gas fields off Israel’s northern coast more than a decade ago and subsequent attempts to export this gas to Europe have highlighted the true fault lines in the Turkish-Israeli alliance. Recent events reveal that a fundamental shift in the alliance is undeniably underway.

Greece-Bulgaria Gas Interconnector Construction Should Start within 2-3 Months - NOVINITE

January 11, 2019, Friday // 15:15

The construction of the Greece-Bulgaria gas interconnector should start within 2-3 months, Energy Minister Temenuzhka Petkova told MPs in response to a question about gas supplies from Azerbaijan, Focus News Agencyreports. She said that building necessary infrastructure and concluding supply contracts were prerequisites for gas diversification. “In September Bulgargaz and Azerbaijani company Socar signed a contract for 1 billion cu m of gas. It is directly linked to two projects – the Southern Gas Corridor with the Greece-Bulgaria interconnector as an integral part. That 1 billion cu m is equal to 1/3 of our natural gas consumption. We can now talk about real diversification and a competitive environment,” Petkova said. She expects the procurement procedures for pipe supplier, engineering consultant and builder for the interconnector to be completed within a few days. The project is scheduled for completion in 2020.

Waha Adds Faregh Field to Libyan Totals - PETROLEUM AFRICA

Thursday, January 10, 2019

Waha Oil Company, a NOC subsidiary, completed preparations on another horizontal well in the Faregh field ahead of the planned start of second-phase experimental gas production. Waha is expected to start the second-phase of experimental gas production at the end of Q1 but was able to move the date forward by almost two months.

According to NOC, the initial tests indicate that the B B-14-59 well is expected to produce up to 24 Mmcf/d of gas, and 1,500 bpd of condensate. This well is in addition to the expected 33 Mmcf/d of gas, and 1,400 bpd of condensate production capacity of well B B-10-59, completed in November 2018.

NOC chairman, Mustafa Sanalla thanked staff dedicated to this project and underlined the importance of a refocused Faregh field to provide gas for local community use, and the fostering of further regional economic development.

Delphyne-1 Target Results in Block 10 of Cyprus Very Encouraging Sigmalive TV reports - SIGMA LIVE / TEKMOR MONITOR

10 January 2019 22:44

Cyprus' Sigmalive TV while covering Manfred Weber's, European People’s Party's (EPP) candidate for EU Commission's President, visit in Cyprus reported on a conversation between an unnamed high level Cypriot official and Wess Mitchell, US Assistant Secretary of State. Presumably ExxonMobil is extremely happy with the results from the drilling at the Delphyne-1 Target in Block 10. The Stena Icemax drill which has relocated to the Glaucus-1 Target will return in about a month to carry out additional drillings at Delphyne-1 in order to confirm the find's size and announce results. 

Greece moving closer to sales of ELPE and DEPA, minister asserts - ENERGY PRESS / BLOOMBERG

09/JAN/2019

Greece has crossed a key hurdle to the sale of a controlling stake in ELPE (Hellenic Petroleum) as it rushes to meet its privatization pledge after emerging from its third and final bailout.

In a Bloomberg interview, energy minister Giorgos Stathakis said Greece has reached an accord with potential buyers of the ELPE stake – valued at the current market price of 1.16 billion euros and seen as a flagship privatization – over the control of its wholly owned unit, ELPE Upstream. Under the accord, the state will own 50.1 percent of ELPE Upstream, which holds Hellenic Petroleum’s hydrocarbon exploration and concession rights.

“Talks with the potential buyers of the 50.1 percent stake in Hellenic Petroleum over Elpe Upstream have finished and all issues have been resolved,” Stathakis said in the interview in Athens.

First drilling in Block 10 completed - KNEWS / KATHIMERINI

The British drillship Stena IceMax at new target in Block 10 

09 JANUARY 2019 - 13:30
Apostolis Tomaras

Results to be announced after new exploratory drilling on target Glaucus-1

As expected, ExxonMobil's first exploratory drilling in Block 10 has been completed.

According to an official announcement from the Ministry of Energy, exploratory drilling on target Delphyne-1 by ExxonMobil Exploration and Production Cyprus (Offshore) Limited and Qatar Petroleum International Upstream O.P.C. has been completed.

The Ministry of Energy has announced that the British drilling rig Stena Icemax has already been relocated and work has started on the second target in Block 10 named Glaucus-1.

Kathimerini reports that Stena Icemax will continue its work on the new prospect until next month.

Omitted from the official announcement are the results of the drilling in Delphyne-1, which the Ministry of Energy and ExxoMobil decided to publish only after the completion of the new drilling in Glaucus-1.

Reaping the rewards of Egypt's reforms - PETROLEUM ECONOMIST

7 January 2019
David Butter

The Egyptian government is looking to 2019 as the year in which it will start to realise clear dividends from previously-enacted economic reforms. These have included changes to the petroleum regime that are already yielding benefits in the form of a rapid ramp-up in natural gas production. On the political front, one of the key issues will be whether President Abdel-Fattah el-Sisi prepares the ground to extend his mandate beyond 2022, when his second, and supposedly final, term is scheduled to end.

The $12bn IMF programme that commenced in November 2016 is now in its final year. The main elements have been putting in place a flexible exchange rate system, bringing down the fiscal deficit through increased taxation and cuts in energy subsidies, and seeking to improve the environment for private investment. The programme has also included social protection measures, in particular increases to food subsidies and the development of schemes targeting assistance at vulnerable groups.

The effects of the reforms, both positive and negative, have been evident in Egypt's main economic indicators. Real GDP growth has accelerated from 3–4pc to over 5pc, and the government is aiming for growth of 5.8pc in the fiscal year that ends in June 2019 and for 6.5pc the following year. These targets are achievable, partly thanks to the surge in gas output and the recovery of tourism, but the relatively weak rate of growth in private consumption is likely to persist, reflecting the pernicious impact of high inflation on living standards.

Elbit Systems (ESLT) Reports $15M Contract from Energean Israel to Provide a Security Solution for Karish-Tanin Gas Fields FPSO - STREET INSIDER

January 7, 2019 5:57 AM EST 

Elbit Systems Ltd. (NASDAQ: ESLT) announced today that it was awarded a $15 million contract from Energean Israel Ltd. ("Energean"), a subsidiary of Energean Oil and Gas plc (ENOG), to supply a comprehensive solution for the Floating Production Storage and Offloading (FPSO) platform of the offshore Karish-Tanin gas fields. The contract will be performed over an approximately two-year period, with warranty and logistic support continuing for an additional 10 years.

The technological suite to be supplied by the Company's subsidiary, Elbit Security Systems Ltd., (ELSEC), includes a wide range of sensors, among them electro-optic systems, radars, sonars, a command and control center as well as equipping rapid interception boats with a dedicated suite of sensors. The security solution will enable to detect and identify both surface and underwater threats and will assist security teams to respond efficiently.

The EastMed Pipeline Project in Perspective - GLOBAL RISK INSIGHTS

January 6, 2019
Ezra Friedman

The EastMed gas pipeline between Cyprus, Greece and Israel will revolutionise the economies and geo-politics of the region. The project comes from an emerging alliance between the three countries who must move forward cautiously in the face of neighbouring States’ opposition.

Eastern Mediterranean: the Bigger Picture

On December 20th, the Prime Ministers of Cyprus, Greece and Israel converged on the southern Israeli city of Beersheba. All three parties publicly committed to signing a high-level agreement in the near future. Such an agreement would solidify one of the longest and deepest underwater gas pipeline in the world.

It is expected to deliver approximately 10 billion cubic meters (BCM) of natural gas to the European Union (EU) through Greece and Italy. The EU is keen to support the project and diversify its natural gas imports away from the heavily sanctioned Russian Federation and declining North Sea gas production. The EastMed project would fulfil roughly 10-15% the EU’s projected natural gas needs. The United States is also supporting the project as it sees the growing trilateral alliance as a bulwark of democracy and stability in a largely authoritarian and war-torn region.

Egypt to launch E&P tenders for Red Sea blocks in 1Q2019 - ENTERPRISE

Sunday, 6 January 2019

The Ganoub El Wadi Petroleum Company is expected to launch exploration and production tenders for 10 oil and gas offshore blocks in the Red Sea during 1Q2019, after initially planning to issue the tenders last year, according to a local news outlet. 

The postponement is due to delays in the issuance of required permits.

Energy News Monitor | Volume XV; Issue 30 - OBSERVER RESEARCH FOUNDATION

JAN 05 2019

Israel, Greece and Cyprus will sign an agreement early next year to build a pipeline to carry natural gas from the eastern Mediterranean to Europe, while the United States pledged its support for the ambitious project. The $7 billion project, expected to take six or seven years to complete, promises to reshape the region as an energy provider and dent Russia's dominance over the European energy market. Israel has been developing natural gas fields off its Mediterranean coast for the past decade. Its "Tamar" field already is operational, while the larger "Leviathan" field is expected to be operational next year. While most of its gas is used domestically, it has signed export deals with Egypt and Jordan and has its eyes on the larger European market. The proposed pipeline would allow Israel and Cyprus to export their recently discovered offshore reserves to Italy and eventually to the rest of Europe. Greece, which would act as a conduit for the gas to the continent, could also use the pipeline to convey any hydrocarbons potentially found in its own waters.