Aphrodite revenue sharing at 57.1% - 42.9% - KNEWS / KATHIMERINI CYPRUS

06 JUNE 2019 - 10:48

The revenue sharing formula is pegged to the price of oil

Cyprus media reported on Thursday that based on the revised agreement reached between the Ministry of Energy and the Noble - Shell - Delek consortium 57.1% of net revenues from the Aphrodite gas field will be received by the Republic of Cyprus and 42.9% by the firms developing the Block 12 reservoir.

The deal is expected to be approved by the Council of Ministers in July as the government is eager to move forward with the project.

The 5% reduction comes amid falling commodity prices and the considerable cost involved in developing an ultra-high depth well

BP to Redirect Focus From Oil Assets in Egypt to Gas Reserves - YAHOO FINANCE / ZACKS EQUITY RESEARCH

June 5, 2019

BP plc BP recently announced its decision to divest Gulf of Suez oil concessions in Egypt to an upstream energy firm Dragon Oil. The value of the transaction has not been disclosed yet.

With the divestment, the British energy giant is planning to focus on gas reserves located off the coast of Egypt. The company has already produced first gas from the West Nile Delta development’s second stage. The project entails the production of natural gas from the Giza and Fayoum fields and the integrated energy firm expects peak production of 700 million cubic feet of gas per day.

BP commenced the first stage of the West Nile Delta project in 2017 and is expecting to start gas production from the final stage by the second half of 2019. Notably, in the first stage, BP developed the Taurus and Libra fields, while the final stage involves the development of the Raven field.

Overall, the West Nile Delta is a major upstream project and the company is expecting the full development — comprising the first, second and final stages — to produce roughly 20% of the current natural gas production volumes in Egypt. BP added that the national gas grid will utilize the entire gas being produced from the West Nile Delta.

ENERGY: Cyprus strikes $9 bln gas production deal - FINANCIAL MIRROR

05 June, 2019

Cyprus will earn $9.3 bln over 18 years from exploiting its Aphrodite gas field after Nicosia renegotiated a contract with industry giant Shell, US-based Noble and Israel’s Delek, the energy minister said Wednesday.

Energy Minister George Lakkotrypis told reporters that a re-working of the production contract ensures the Cyprus government receives an average yearly income of 520 million dollars over the lifespan of the gas field.

“We believe that it is a good deal under the circumstances, it will allow the Republic of Cyprus to earn significant commercial revenues estimated at over $9 billion during 18 years of the well’s lifespan,” Lakkotrypis told reporters.

He said the figures were based on the average price of oil being around $70 a barrel.

Lakkotrypis said under the new deal, the consortium was obliged to keep to a tight deadline to tap the gas reserves.

“Based on the development and production plan that we discussed, we expect the first gas to be extracted by 2024-25."

Previously the consortium had no obligation to stick to a timeline, no natural gas is expected to flow from Aphrodite and be pumped to Egypt via a pipeline.

Contract would see $9.5b revenue over 18 years from AphroditeJune 5, 2019 at 10:13am - IN-CYPRUS

June 5, 2019 at 10:13am
Bouli Hadjioannou

Cyprus should see a total net revenue of $9.5b from the sale of natural gas from the Aphrodite plot to Egypts’ Idku LNG terminal under an agreement between the Energy Ministry and the Noble-Shell-Delek consortium, Phileleftheros reported on Wednesday.

It said the calculations are based on projected average prices over a period of 18 years, beginning in 2024, it added.

The newspaper said that the state will receive an average of $525 m a year for each of the 18 years.

In the first years, and until capital investment made by the companies is paid off, state revenue is estimated at between $200m and $250m.

Once the infrastructure is paid off, the lion’s share will go to the state which can anticipate revenue of some $750m a year, the newspaper said.

Israel Expects U.S.-mediated Lebanese Sea Border Talks in Weeks - HAARETZ / REUTERS

Jun 04, 2019 8:02 PM

Israel expects to launch U.S.-mediated talks with Lebanon on setting their maritime border within weeks, a senior Israeli official said on Tuesday, naming a UN peacekeeper compound in southern Lebanon as a possible venue.

Lebanon has not commented publicly on whether it would attend talks or on any possible timeline.

The United States, which has been sending a senior envoy on shuttle missions between Lebanon and Israel, also has not announced a date or venue but said it is prepared to help them resolve the dispute.

Formally at war since Israel's 1948 founding, the neighbors have long disagreed on border demarcations in the eastern Mediterranean, an issue that gained prominence in the past decade when large deposits of natural gas were found there.

Cyprus’ gas export future uncertain, despite discoveries - OFFSHORE MAGAZINE

Jun 3rd, 2019

LONDON – Exploration to date offshore southern Cyprus has proven around 11 tcf of recoverable gas, according to Wood Mackenzie.

Whether the discoveries can be commercialized remains to be seen, said Robert Morris, senior analyst: Caspian and Europe Upstream Oil and Gas.

Cyprus has no domestic gas market only limited potential for development, he pointed out, but there are options for exporting the gas.

One would be through Egypt’s under-used liquefied natural gas (LNG) export infrastructure to the south. This would offer the lowest cost with the fastest time to market and potentially the best netbacks.

But Egypt’s own recent offshore gas finds, including the giant deepwater Zohr field, mean that the LNG facilities are getting busier. This means the earliest for significant spare capacity for Cypriot gas could be 2025 – further if Egypt’s run of successes continue.

Cabinet denies giving up stake in Zohr gas field to foreign company - EGYPT TODAY

Sun, Jun. 2, 2019

CAIRO - The Cabinet's media center revealed Sunday that Egypt did not give up its stake in Egypt’s gas field,Zohr,to a foreign company, stressing that all the rumors on social media are baseless.

Zohr is not the only gas field in Egypt; West Nile Delta (WND), Greater Nooros Area, Atoll Phase 1, and WDDM – Burullus Phase 9B are all important gas fields that add to the national gas production.

Egypt’s total gas production came to 6.6 billion scfd in September, compared to 2017’s average of 5.1 billion scfd and 2016’s 4.4 billion scfd, according to the Petroleum Ministry, meaning that between 2018 and 2017, there was a 29.4 percent year-on-year increase.

Italian Oil Company Eni discovered Egypt's giant gas field, Zohr, in 2015. In December 2017, the company delivered the first gas production from the field estimated at 30 trillion cubic feet, which makes it the biggest gas field in the Mediterranean region.

Delek hopes to start gas exports to Egypt by the end of June - ENTERPRISE

Monday, 3 June 2019

Delek looks set to meet its end-of-June target to start gas exports to Egypt: Israel’s Delek Drilling is on track to begin commercial sales of natural gas to Egypt by the end of the month, with technical testing on the pipelines that will carry the gas currently underway, Deputy CEO Yossi Gvura tells Reuters. 

Trial shipments from Israel’s Tamar and Leviathan gas fields were originally supposed to come in March of this year, but capacity restrictions posed by Israel’s domestic pipeline network meant that the imports had to be delayed.

Background: Under the terms of a USD 15 bn contract signed last year, Delek and its partner Noble Energy should supply Alaa Arafa-led Dolphinus Holding with 3.5 bcm from each of the Leviathan and Tamar gas fields for a combined total of 7 bcm. Delek, Noble and Egypt’s East Gas signed a USD 518 mn agreement for a 39% stake in Ashkelon-Arish pipeline operator Eastern Mediterranean Gas (EMG), intended to pave the way for Egypt to begin importing an initial 100 mn scf/d in 1Q2019. 

The government is badly mishandling our gas imports - CYPRUS MAIL

June 2, 2019

Charles Ellinas

By not considering other import options the government is condemning us to even higher electricity prices

The planned import of liquefied natural gas (LNG) to Cyprus is about to enter a new and worrying dimension which could stifle competition and likely lead to high gas prices and more expensive electricity than ever before.

During a public consultation organised by Cyprus Energy Regulatory Authority (Cera) between April 12 and May 13 regarding its draft ‘Statement of Regulatory Practice and Methodology of Natural Gas Tariffs’ it emerged that the government intends to declare the natural gas market in Cyprus as an emerging market for 10 years, giving monopoly rights to natural gas public company (Defa) and its subsidiary Etyfa, the Natural Gas Infrastructure Company – set up with 30 per cent participation by the EAC to manage the LNG reception, storage and regasification facilities. This is based on a view expressed by the Council of Ministers in 2007 that, under certain conditions, and taking advantage of EU regulations, it was then the government’s intention to declare the gas market in Cyprus as isolated and emerging.

Two companies responded to the consultation call: Greek company Energean and PEC Powerenergy Cyprus. The latter is in the process of building the first private gas-fired power generation plant in Cyprus. Not surprisingly both tabled multiple objections to the government’s intentions.

The fact that only two companies saw the need to take part in this consultation is by itself of concern. There could be many reasons for this lack of interest: lack of understanding, indifference and possibly a belief that the consultation is just a paper exercise that will not alter decisions already made. Whatever the reasons, it does not bode well. The end result could be higher energy costs for the already heavily burdened Cypriot consumer.

Bulgaria in first U.S. gas deals buys two LNG cargoes - REUTERS

MAY 31, 2019 / 12:52 PMReporting by Tsvetelia Tsolova; editing by Jason Neely

SOFIA, May 31 (Reuters) - Bulgaria has agreed to buy U.S. natural gas for the first time, signing a deal for a delivery in the second quarter and another in the third, the country’s energy minister said on Friday.

Dutch-registered trader Kolmar NL will deliver a 90 million cubic metre (mcm) cargo of liquefied natural gas (LNG) and a second of 50 mcm.

“The ship carrying LNG from the United States has arrived at the Greek Revithoussa LNG terminal,” Energy Minister Temenuzhka Petkova said. “This is yet another step towards liberalisation of the gas market and a clear sign of diversification.”

The first LNG shipment is from U.S. producer Cheniere and the second one from the U.S. unit of British Petroleum, she said.

Sofia at present buys almost all of its gas from Russia via one route.

It pledged to diversify after a 2009 dispute with Moscow disrupted winter supplies.

It is set to begin receiving mainly Azeri gas via a 182 km interconnector link with Greece expected to be ready by the end of 2020 with an initial annual capacity of three billion cubic metres. 

Presentation by Ambassador Tasos Tzionis, Permanent Secretary of the Ministry of Foreign Affairs, to Ambassadors of EU Member States accredited to Cyprus, regarding recent developments in the continental shelf/EEZ of the Republic of Cyprus (31.5.2019) - REPUBLIC OF CYPRUS

Egypt- Qalaa Holdings completes final $120m ERC funding round - MENAFN / DAILY NEWS EGYPT

MAY/30/2019 1:15:25 AM 

Qalaa Holdings, one of Africa's leaders in energy and infrastructure, revealed on Wednesday that it has completed a $120m funding round for its subsidiary, the Egyptian Refining Company (ERC), the final such round requested by ERC's project finance lenders, consisting of a $70m capital increase and a $50m shareholders' loan, bringing the total equity component up to $1.5bn and the total cost of the megaproject up to $4.4bn. 

According to Qalaa Chairperson and Founder, Ahmed Heikal, the new funding will be utilised to pay the first project finance debt instalment and part of the second debt instalment for ERC which is now 99.6% complete and set to begin full commercial operations during the third quarter (Q3) of 2019.

Cyprus reaches deal with Noble on modifying gas contract – reports - CYPRUS MAIL

May 30, 2019

The government is said to have clinched a deal with the Aphrodite gas field stakeholders to modify the production sharing contract, with energy minister Giorgos Lakkotrypis expected to brief political parties next week.

Daily Politis reports that the government has reached an agreement revising the production sharing contract (PSC) with Noble Energy and its joint venture partners, Delek Group and Shell.

The key revision in the PSC will result in redistribution of profit, increasing the share of the joint venture when oil prices are low, but conversely, when global oil prices rise, Cyprus’ share will increase.

The government had pledged to keep the parties in the loop about the talks. The following week the energy minister will be meeting with representatives of the parties to gauge their reaction to the revised PSC.

Bulgaria begins construction of gas link - PIPELINES INTERNATIONAL

30 May 2019

Kirkovo, Bulgaria, has started building a gas pipeline with Greece that will end the Balkan country’s total dependence on Russian gas.

According to Reuters, the 240 million euro ($268 million) gas pipeline will help diversify supplies in southeastern Europe. The 182-km interconnector link between Bulgaria and Greece will be ready by the end of 2020 to transport mainly Azeri gas to Bulgari.

The 32 inch (813 mm) diameter pipeline diameter has a projected capacity of up to 3 billion m3/a, with the option to increase its capacity up to 5 billion m3/a following market evolution.

Bulgarian Prime Minister Boyko Borissov says, “The project is of strategic importance not only for our two countries, but for the whole of Europe, including the countries in the Western Balkans”, according to Reuters.

“It will lead to real diversification of gas supplies”.

The Natural Gas Interconnector Greece-Bulgaria Pipeline is being constructed by the ICGB AD Joint Venture, comprising BEH EAD (50 per cent) and IGI Poseidon (50 per cent).

The construction will begin works near the village of Kirkovo, 15 km north of the border with Greece.

EGAS to auction up to 11 gas exploration blocks in Egypt’s West Med by 1Q2020 - ENTERPRISE

Thursday, 30 May 2019

EGAS plans fresh WestMed gas exploration tender: The Egyptian Natural Gas Holding Company (EGAS) plans to put some 11 natural gas exploration blocks in the western Mediterranean up for auction by 1Q2020, a source from the company told Al Shorouk. EGAS has finalized studies and seismic scans, and is waiting for the Oil Ministry to make a final decision on the timeline and the number of concessions on offer.

The great gas rush of 2019: The ministry in February handed five gas exploration concessions in the Mediterranean and Nile Delta to Shell, Eni, BP, DEA and Petronas in the largest bid round in the state gas company’s history. A month later, the South Valley Egyptian Petroleum Holding Company (Ganope) launched a tender for 10 oil and gas exploration blocks off Egypt’s Red Sea coast. It remains unclear when the ministry will announce the winning companies.

Eni Completes Zohr Gas Processing Unit - EGYPT OIL & GAS

Wednesday, 29th May 2019

Italian Eni finished establishing all the gas processing units for Zohr natural gas field in May 2019, boosting its processing capacity to 3.2 billion cubic feet per day (bcf/d) of gas, a source in the oil and gas sector told Al Borsa Newspaper.

The processing plants established for Zohr are combined into a 400 million standard cubic feet per day (mmscf/d) temporary processing unit, in addition to seven units with a capacity of 2.8 bcf/d, all of which had investments of $5 billion, the source noted.

Zohr gas field’s total output reached 2.3 bcf/d, compared to 2.1 bcf/d at the beginning of 2019, the source said, adding that each well in Zohr produces an average of 250 mmscf/d of natural gas.

Hydrocarbon licenses on hold as a result of snap elections - ENERGY PRESS

28/MAY/2019

The country’s ambitious hydrocarbon exploration and production plan appears set to be impacted by further delays as a result of the government’s call for snap elections, now expected to take place on July 7.

License agreements signed recently for offshore blocks in the Ionian Sea and west of the Peloponnese, will, as a result, not be pushed through for ratification in parliament until after the elections.

An Ionian Sea license has been acquired by a consortium comprising Repsol and Hellenic Petroleum (ELPE), while ELPE has also taken on Block 10, further south, west of the Peloponnese.

Licenses offered for blocks west and southwest of Crete to a consortium made up of Total, ExxonMobil and ELPE are also set to face delays as a result of the country’s political developments. The triple-member team will need to hold on for several more months before it can begin work at these promising spots. The consortium’s licences, still in the hands of a supervisory committee, have also yet to be ratified in parliament. No action on these is expected prior to the early general elections.

Gas for Peace - FOREIGN POLICY

MAY 28, 2019, 8:52 PM

MICHA'EL TANCHUM

A virtual gas hub could create real cooperation in the Eastern Mediterranean.

The strategic equilibrium that has kept the Eastern Mediterranean relatively calm for the past few years may be about to tip. On May 3, Turkey announced that it would commence natural gas drilling operations off the southern coast of Cyprus, in the exclusive economic zone claimed by the internationally recognized government in Greek-dominated south Cyprus. Ankara argues that it is defending the rights of Turkish Cypriots in the northern half of the ethnically divided island who are the legal co-owners of the island’s natural gas but are precluded from participating in its development. On May 12, Turkey doubled down and announced that it would send a second drill ship into Cypriot waters.

Turkey’s brinkmanship comes in response to attempts by Egypt, Greece, Cyprus, and Israel to create a regional energy architecture that will exclude Turkey from the marketing of Eastern Mediterranean natural gas. For example, in 2017 and early 2018, Egypt and Cyprus were in talks about a deal to sell gas from the Eastern Mediterranean to Europe using Egypt’s liquified natural gas plants—which would ensure that the region’s offshore gas bypasses Turkey’s pipelines en route to European Union markets. In February 2018, the Italian energy giant Eni, which in 2015 had discovered Egypt’s massive Zohr natural gas field adjacent to Cypriot territorial waters, announced a significant gas find in Cyprus’s nearby Calypso field.

TEKMOR Note: A virtual hub is a great idea. The most logical place for such a hub is Cyprus indeed. However, placing it in a stretch of land that symbolizes Turkey's invasion, ethnic cleansing & division amounts to nothing less than a Chamberlainian move to appease the beast (not that it would be enough either); the author might as well propose to allow Turkey to get just half the F-35s along with the Russian S-400s. More courageous actions are needed to defend western interests which clearly lie along the Israel, Egypt, Cyprus, Greece axis. 

Israel open to US-led talks with Lebanon over maritime border dispute - ISRAEL HAYOM / ASSOCIATED PRESS

2019-MAY-27 19:51

Israel says it’s willing to engage in U.S.-mediated talks with Lebanon to resolve a border dispute over a sliver of the Mediterranean Sea seen as rich with energy resources.

Energy Minister Yuval Steinitz said he met Monday with U.S. envoy David Satterfield, who has shuttled between the countries with the aim of demarcating their maritime boundary over past weeks.

Steinitz “expressed Israel’s openness'” to negotiations “for the benefit of both countries’ interests in developing natural gas reserves and oil.”

Israel and Lebanon, technically still at war, each claim some 860 square kilometers (330 square miles) of sea as within their own exclusive economic zones. Earlier this month, Lebanese President Michel Aoun said he presented Satterfied with Lebanon’s “united stance” and encouraged U.S. diplomatic involvement.

Satterfied returns to Beirut on Tuesday.

Bulgarian PM Borisov: IGB to Lead to a Real Diversification of Sources - NOVINITE

May 25, 2019, Saturday // 08:57

Interconnector Greece-Bulgaria (IGB), which envisages transportation of Azerbaijani gas to Bulgaria will ensure real diversification of sources, said Bulgaria’s Prime Minister Boyko Borissov, Trend reports.

He made the remarks during a meeting with Greek Prime Minister Alexis Tsipras before the groundbreaking ceremony of the interconnector that took place May 22 in Bulgaria’s Kirkovo.

“The realization of the project for construction of gas interconnection between Bulgaria and Greece will have a key role for the whole region and for Europe. The project is of strategic importance not only for our two countries but also for the whole of Europe, including the countries of the Western Balkans," said the prime minister.

Borissov pointed out that the interconnector will lead to a real diversification of the sources and routes for natural gas supply.

IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan's Shah Deniz 2 gas and condensate field. IGB is expected to be connected to TAP via which gas from the Shah Deniz field will be delivered to the European markets.

The initial capacity of IGB will be 3 billion cubic meters of gas.

Obscure Cypriot Plots $10 Billion Bet on East Med Gas - YAHOO FINANCE / BLOOMBERG

May 23, 2019Yaacov Benmeleh

A little-known investor group is planning a major shakeup of the Eastern Mediterranean natural gas industry in a bid to unlock hundreds of billions of dollars of sales stymied by the political and industrial complexities of the region.

Cynergy Group, an investment firm based in Cyprus, is looking to spend between $5 billion and $10 billion in the coming years buying under-utilized natural gas assets in the region, according to Chief Executive Officer Mike Germanos. The company is in talks with “some of the most respected global family offices, private equity firms and sovereign funds” about raising the cash, he said.

Germanos declined to give the names of his associates or the assets he’s targeting, citing the sensitive nature of the period before Cynergy provides a formal offer. He said the firm is in the final stages of putting its bid together, which it will reveal by mid-June.

Significant quantities of natural gas have been found off the coasts of Egypt, Israel and Cyprus over the past decade, which has united regional governments in the hope of developing an energy hub in the East Med. Still, companies have struggled to overcome longstanding political and legal hurdles and find viable export markets, leaving many investors to question whether these firms can realize the region’s full potential.

To overcome these hurdles, Germanos assembled a team of veteran oil, gas and finance industry executives and political operatives. Lou Montilla, for example, leads Cynergy’s energy projects after almost two decades of experience in liquefied natural gas with BP Plc, Glencore Plc and Morgan Stanley. Joshua Hantman, a former adviser at Israel’s defense and foreign ministries, manages corporate affairs for the firm.

Dana Gas spuds Merak-1 wildcat off Egypt - OIL & GAS JOURNAL

HOUSTON, May 22, 2019

Dana Gas PJSC, Sharjah, has spudded a deepwater wildcat on its North El Arish concession area offshore Egypt (OGJ Online, Feb. 18, 2014).

The company says the Merak-1 well is on one of three prospects it describes as “world class” in the area, also known as Block 6.

The ADVantage Drilling Services SAE Tungsten Explorer drillship is drilling the well in 755 m of water. The area is southeast of Eni’s giant Zohr natural gas discovery.

Dana Gas holds a 100% interest in the concession. It expects drilling of the Merak prospect to take 70 days.

Eastern Mediterranean Energy Center is Necessary - INTERNATIONAL POLICY DIGEST

22 MAY 2019
Robert M. Cutler and Theodore Karasik

U.S. Secretary of State Mike Pompeo’s visit to the eastern Mediterranean in March accentuates the American search for ways to integrate energy development into a broader security entente or organization. It came nearly at the same time that the bipartisan-sponsored Eastern Mediterranean Security and Energy Partnership Act of 2019 was introduced in the U.S. Congress. This bill mandates the establishment of a United States-Eastern Mediterranean Energy Center and requires the Secretary of State to report to Congress on a “plan to work with United States businesses seeking to invest in Eastern Mediterranean energy exploration, development, and cooperation.”

The international security aspects of the Eastern Mediterranean Security and Energy Partnership Act focus on cooperation with Cyprus, Greece, and Israel. The language proposing to establish the Energy Center, however, does not have that restriction.

According to the legislation, the center would be established by the Secretary of Energy in consultation with the Secretary of State. At least the initial funds would therefore presumably come from appropriations to the respective Departments in the executive branch. Yet it would not need to be based in Washington.

Minister: Gas drilling at 8 sites off Cyprus over 24 months - THE WASHINGTON POST / ASSOCIATED PRESS

E&P companies with rights/participation in Cyprus' EEZ

May 21 at 4:10 PM

LIMASSOL, Cyprus — Cyprus’ energy minister says energy companies will drill in search of natural gas in waters off the east Mediterranean island nation’s southern coast at eight separate sites over the next two years.

Georgios Lakkotrypis said Tuesday that exploratory drilling would take place at six of those sites, while the remaining two would be to confirm gas deposits already discovered there.

Lakkotrypis didn’t specify the exact locations where the drilling would take place. He said that drilling would start at the end of this year or early 2020.

Energy companies including ExxonMobil, Total and Eni are licensed to conduct a hydrocarbons search off Cyprus. Gas has been discovered at three locations.

Cyprus accuses Turkey of violating its sovereign rights by attempting to drill in waters where it has exclusive economic rights.

Egypt’s target for natgas production increases to 7.95 bcf/d in 2019-20 - ENTERPRISE

Tuesday, 21 May 2019

The government has raised its target for natural gas production to 7.95 bcf/d during FY2019-2020, up from 7.5 bcf/d in the current plan, an industry source told the press.

Linking the second development phase of wells at the North Alexandria field, as well as an expected increase in production from the Zohr field, will offset the annual 10% fall in production due to field maturation. 

The ministry is also planning to complete 11 natgas projects by 2023 at a combined investment value of USD 18 bn to increase production by some 2 bcf/d.

Egypt committed to working with US, highest standards in gas projects - ENTERPRISE

Tuesday, 21 May 2019

El Sisi meets with Noble Energy boss, says Egypt is committed to strengthening ties with the US: A meeting between President Abdel Fattah El Sisi and Noble Energy CEO David Stover tops the front pages of Al Ahram, Al Akhbar and Al Gomhuria this morning. El Sisi used the occasion to reaffirm Egypt’s commitment to strengthening strategic ties with the US and said the country was following the highest standards in its gas exploration and production projects.

Other coverage of the story: Noble, which is helping lead the charge to develop Israeli gas fields and sell the offtake to Egypt, is interested in a helping build a gas pipeline between Egypt and Cyprus, an unnamed Oil Ministry source told Youm7. No further details were provided on the company’s plans. Egypt and Cyprus signed an agreement last year, which would allow natural gas from the Aphrodite gas field to be transported to Egypt’s liquefaction facilities at Idku and Damietta, and re-exported as liquefied natural gas.

Libya's oil and gas revenues reach $1.87 billion in April -NOC statement - REUTERS

MAY 19, 2019 / 5:23 PM

DUBAI, May 19 (Reuters) - Libya’s oil and gas revenues reached $1.87 billion in April, up 22% from the previous month as oil prices rose, the country’s National Oil Corporation (NOC) said in statement on Sunday.

Egypt to attract $10bln of petroleum in FY2019/20 - industry head - ZAWYA

16 MAY, 2019
Marwa Abo AlMajd

Egypt’s petroleum sector is set to attract $10 billion of investment in its coming financial year, adding to the $30 billion that has been invested over the past three years, according to an industry head.

Mohamed Saad, head of the oil chamber at the Federation of Egyptian Industries, told Zawya last week investments in current and past financial years have “helped Egypt to achieve self-sufficiency” in natural gas production . Egypt’s new financial year begins on July 1.

Saad said that the natural gas sector had represented “an overload” on the state in the past as a result of weak production, but said the situation had now transformed, with the country transitioning from self-sufficiency towards becoming a natural gas exporter.

“During 2018 Egypt was able to achieve self-sufficiency of gas, where the volume of domestic production (rose) to 6.6 billion cubic feet per day, while the total volume of investments for oil and gas exploration and the development of fields producing them in 2018 amounted to about $10 billion,” he said.

“Shell , Eni And Mobil are playing an important role in pumping these investments in Egyptian petroleum sector,” he said.

U.S. trying to mediate Israeli-Lebanese maritime dispute to avoid war - THE JERUSALEM POST

MAY 16, 2019 13:09 ANNA AHRONHEIM

A senior American official mediating the maritime border dispute between Israel and Lebanon is in Tel Aviv in a push to resolve a maritime border dispute between the two enemy countries.

Acting US Assistant Secretary of State David Satterfield was in Beirut on Wednesday and met with Lebanon’s President Michel Aoun and discussed bilateral relations and the latest local and regional developments, Lebanon’s National News Agency reported.

The two also discussed a “working mechanism” to define maritime borders between Israel and Lebanon, NNA said.

"The demarcation of the southern territorial and maritime borders would reinforce stability along the frontier," Aoun was quoting as telling Satterfield, and called on Washington to "contribute to reaching this goal, especially to respect Lebanon's... right to drill for oil and gas.”

According to diplomatic sources quoted by Lebanon’s NNA, Lebanon had received "positive signals of an American desire to play the role of mediator between Beirut and Tel Aviv."

Lakkotrypis: Cyprus ‘ready for all scenarios’ - KATHIMERINI

15.05.2019 : 18:49
Katerina Sokou

‘We hope that the energy developments in the region, and in Cyprus in particular, will be an incentive for Turkey to return to the negotiating table and help solve the Cyprus problem,’ Yiorgos Lakkotrypis told Kathimerini in an interview.

As Turkey raises the stakes in the Eastern Mediterranean with violations and threats of drilling in Cyprus’ exclusive economic zone (EEZ), the Cypriot minister of energy, commerce, industry and tourism notes that “the best response is for us to continue to implement our energy strategy unfettered.”

Indeed, last weekend Yiorgos Lakkotrypis confirmed that the Republic of Cyprus is close to agreement with the Total-ENI joint venture for offshore drilling in another area. In an exclusive interview with Kathimerini, Lakkotrypis focused on the merits of regional partnerships such as the East Med Gas Forum and the role of the European Union and the United States in ensuring stability for investors. As for the Turkish claims, he stressed that Cyprus “is ready for all scenarios” but added that “we need to avoid playing the destabilization game that Turkey is pursuing.”

Cyprus Aphrodite gas field partners near deal - KATHIMERINI

14 MAY 2019 : 15:45

Kathimerini reports that stakeholders in the Aphrodite gas field have agreed to commit natural gas from Cyprus’ Block 12 to Egypt’s LNG facilities from where it will be exported to international markets. A few legal details remain and are expected to be clarified within days.

Noble Energy, Royal Dutch Shell and Delek Drilling aim to utilize Egypt’s existing LNG facilities to speed up commercialization of Aphrodite.

The Aphrodite field is located 160 km south of Limassol and 30 km northwest of the Leviathan field. The field was discovered following drilling of the A-1 discovery well, which began on 20 September 2011, continued for 116 days, and reached a depth of 5,860 meters below sea level.

Block 12 is expected to hold 3.6 to 6 trillion cubic feet of natural gas.

The field is estimated to produce about 800 million cubic feet per day in the first production phase, according to Delek.

Block 4 offshore drilling to start in December: Total report - LEBANON GAS NEWS / DAILY STAR

13 MAY 2019

Drilling the first exploration well in Lebanon’s offshore Block 4 is planned to start in December 2019 and Block 9 in December 2020, according to a report by French oil and gas company Total.

In April, Energy Minister Nada Boustani had announced the site in Block 4 where the first drilling would take place in Lebanon’s bid to discover offshore oil and gas resources in its territories.

The site sits just north of Beirut.

“A mobile offshore drilling unit will be mobilized to Block 4 and the exploration well(s) will be drilled vertically in [an] area … where depths range from 1,450 meters to 1,760 meters,” Total’s report said.

The target gas reservoir’s drilling operations will be supported by a logistics base in Beirut Port.

Block 4 will see the drilling of one exploration well, and possibly a second one. A potential appraisal well will also be drilled, “depending upon the results of the previous exploration wells,” the report said.

Energean renews Karish-Cyprus gas line bid - OIL & GAS JOURNAL

HOUSTON, May 10 2019

Energean Oil & Gas, London, has submitted an updated proposal to the Cyprus Energy Regulatory Authority to supply gas to the island nation from deepwater Karish field offshore Israel.

The operator proposes to lay a 200-km pipeline from the Energean Power floating production, storage, and offloading vessel, which will handle production from Karish and Tanin fields, to Vasilicos, Cyprus.

Energean first proposed a pipeline between the FPSO and Cyprus last year. The government rejected the proposal and solicited bids for a floating LNG import facility.

In a press release, Energean called its updated plan “supplementary to the LNG import procedures launched by the Cypriot government.” It said it has signed a letter of intent for supply of gas to “private power generation license holders in Cyprus.”

The FPSO, with treatment capacity of 800 MMscfd of natural gas and storage capacity of 800,000 bbl of liquids, is under construction at Zhousan, China (OGJ Online, Apr. 16, 2019).

Energean plans to develop Karish field before Tanin.

The fields are 40 km apart in water deeper than 1,700 m.

Total and ENI set to expand their presence in Cyprus’ EEZ, according to government sources - IN CYPRUS / CNA

May 10, 2019 at 3:23pm
Edited by Bouli Hadjioannou

Energy giants Total and ENI are set to expand their presence in the exclusive economic zone (EEZ) of the Republic of Cyprus, and according to government sources they are expected to cooperate in hydrocarbon activities in offshore block 7.

With official announcements on the matter still pending, the same sources told CNA that the French and Italian energy companies may also cooperate in other blocks, in Cyprus’ EEZ. Discussions are being held on multiple levels, with talks between experts still underway, the same sources said.

Last November, the Ministry of Energy announced that it received a single application from joint venture Total E&P Cyprus B.V. / Eni Cyprus Limited, for a licence to carry out explorations for hydrocarbons in block 7 of Cyprus’ EEZ.

Foreign Minister Nicos Christodoulides said on Thursday that developments should be expected in the next few days, concerning the energy programme of the Republic of Cyprus.

Offshore Deposits Offer New Horizons for Cyprus - SOUTH EU SUMMIT

May 9 2019

B. Lana Guggenheim

Thanks to new discoveries of offshore natural gas, Cyprus has a real opportunity to expand its reach in the energy market. But to do this, the island-nation needs to navigate tricky geopolitical realities - as well as expand its current infrastructure – or the opportunity may slip away.

Earlier this year, international energy players discovered two more sites rich in natural gas, just offshore of Cyprus, in Blocks 6 and 10, respectively led by Eni and Total on the one hand, and ExxonMobil and Qatar Petroleum, on the other. This follows previous discoveries in the area, starting as early as 2009, when prospectors discovered reserves of natural gas in the Tamar field off the coast of Israel. Subsequently came the discovery of the Leviathan field offshore of Israel, and the Aphrodite and Calypso fields in Cypriot waters. Altogether, these deposits contain an estimated 40 trillion cubic feet of natural gas – or more.

Currently, both Cyprus and Israel import their energy, but these gas fields have the potential to change all of that, as well as generate revenue via energy exports. Both Europe and Egypt are target markets for this new energy resource, especially as Europe’s demand for natural gas is likely to increase – in part to reduce its reliance on Russia, but also because gas is a cleaner alternative to coal, as the continent slowly transitions to renewable energy sources.

Sisi authorizes Oil Minister to sign contracts with DEA Suez GMBH Group - EGYPT INDEPENDENT

May 8, 2019, 3:01 pm

Egypt’s President Abdel Fattah al-Sisi authorized Minister of Petroleum and Mineral Resources Tarek al-Mula to sign contracts with the Egyptian General Petroleum Corporation and the German DEA Suez GMBH Group according to law no.9 of 2019.

According to the expected contracts, DEA Suez will explore, develop and take advantage of oil in the Ras Badran and Gulf of Oil development areas in the Gulf of Suez.

Egypt’s Minister of Petroleum and Mineral Wealth Tarek al-Molla signed an agreement in March with DEA for oil and gas exploration in the Gulf of Suez’s Ras Badran and Ziet Bay areas with investments totaling US$20 million.

Molla said in a statement that DEA will undertake drilling activities and the operation and maintenance of the liquefied Natural Gas (LNG) extraction plant in the Gulf of Suez area.

He mentioned that the ministry has been cooperating with DEA for more than 45 years to achieve higher oil and LNG production rates in areas of the Gulf of Suez, the Delta and the Mediterranean Sea.

DEA General Manager Sameh Sabry said that the company injected US$800 million for oil and LNG exploration in the Gulf of Suez, Desouk and North Alexandria’s fields during 2017 and 2018, adding that it would possibly inject another US$700 million in the coming three years.

DEA Suez GmbH operates in the field of exploration and production of natural gas and crude oil. The Company deploys state-of-the-art drilling and production technologies. DEA Suez conducts business worldwide.

SOURCE

Erdogan Crashes the Mediterranean Gas Party - HAARETZ

May 08, 2019 7:16 PM
David Rosenberg 

Last week Turkey sparked another crisis by starting drilling in Cypriot waters. That’s a problem not just for Cyprus but for Israel, too

Even the most avid Erdogan watcher has to work hard up with all the crises the Turkish leader has wrought. This week the No. 1 crisis was election officials caving in to his demand for new elections in Istanbul. There are also the crisis over Turkey’s buying Russian S-400 missiles, the simmering war in the Syrian province of Idlib and, of course, the collapse of the Turkish economy.

If that isn’t enough, add a crisis largely playing out off center stage, but which deserves a lot more attention. That’s because it threatens to upset all the plans Israel, Egypt and Cyprus have for exploiting the vast natural gas resources of the Eastern Mediterranean.

The latest installment of the gas crisis started last Friday when Turkey’s foreign minister, Mevlut Cavusoglu, said the Turkish seismic research vessel Barbaros Hayrettin Pasa would be drilling for oil and gas “in areas of Turkey’s continental shelf.”

So, finally Turkey is joining the East Med gas party? Not exactly. It’s more like crashing the party: The ship is drilling deep inside Cyprus’ exclusive economic zone.

Italy opposes Poseidon gas pipeline landfall - REUTERS

MAY 7, 2019 / 7:37 PM

ROME, May 7 (Reuters) - Italy will not allow the Poseidon gas pipeline being developed by Italy’s Edison and Greece’s DEPA to make landfall as planned in southern Italy, the Prime Minister said on Tuesday.

The Poseidon pipeline, which has permits to run from Greece to the southern town of Otranto, is the final section of the EastMed pipeline that aims to bring gas reserves from the east Mediterranean to Italy.

TEKMOR Note: The Poseidon pipeline was planned as the last leg of the Southern Gas Corridor (SGC) to transport gas from Azerbaijan via TANAP & TAP long before the idea of East Med Pipeline came into being!

“The government is certainly not interested at present in building the final tract of Poseidon as originally planned,” Prime Minister Giuseppe Conte said at an event near Rome.

Two years ago DEPA and Edison signed a cooperation agreement with Russia’s Gazprom to set up joint efforts to create a southern route for gas into Europe.

The United States has been pressuring EU member states to find alternative natural gas supply sources not involving Russia.

Case Study: iEPCI at Karish - OFFSHORE ENGINEER

Image: TechnipFMC

April 25, 2019

Willy Gauttier 

An integrated approach to subsea services is the driving force behind a major project being performed by UK-based TechnipFMC at the deepwater Karish field, offshore Israel, in the Mediterranean Sea.

The integrated engineering, procurement, construction and installation (iEPCI) award for Energean Oil & Gas’ Karish development at 1,750 meters water depth marks the largest iEPCI project the company has undertaken to date.

The $1.4 billion Karish gas project is one of 12 iEPCI projects TechnipFMC has been awarded throughout the globe. The company’s approach to comprehensive integrated solutions is designed to strengthen the economics of subsea projects and help unlock first oil and gas faster.

The integrated full-field subsea offer includes subsea architecture design; subsea development and integrated project execution; and optional performance enhancement via inspection, maintenance and repair.

“Bringing together complementary skills and advanced technologies through integrated solutions can boost efficiency, lower costs and accelerate schedules,” said Senior Project Director Steve Duthie.

KOGAS investment in Cyprus a 'new horizon' for economic ties - KNEWS / KATHIMERINI CYPRUS

07 MAY 2019 - 14:55
Newsroom / CNA

The Republic of Korea has been a steadfast and strong partner of the Republic of Cyprus’ efforts to reach a comprehensive settlement of the Cyprus issue, said Tuesday the country’s new ambassador, stationed in Athens, Soosuk Lim during a formal ceremony at the Presidential Palace.

Presenting his credentials to President of the Republic Nicos Anastasiades, the Ambassador said this year marks 24 years of diplomatic relations between the Republic of Korea and the Republic of Cyprus.

The major political concerns, respectively the Korean Peninsula issue and Cyprus problem have brought the two countries closer, based on the affinity out of same historical background of division and the common national vision for reunification, the ambassador said, adding that the two countries have also demonstrated solid cooperation in an international arena, sharing universal values of liberal democracy and human rights.

He said bilateral trade volume has increased by 25% for the past ten years from 1.2 billion dollars in 2009 to 1.5 billion dollars in 2018. The Korea Gas Corporation’s investment in the development of offshore natural resources in Cyprus is expected to open a new horizon for economic ties, the new ambassador said, while more Korean tourists find Cyprus as favourable travel destination.

Cyprus sends UN its EEZ coordinates over Turkey drilling - KATHIMERINI

06.MAY.2019 : 13:25

Cypriot authorities have submitted to the United Nations the coordinates delineating the boundaries of Cyprus' Exclusive Economic Zone (EEZ) and the continental shelf in the wake of Turkey's decision to start drilling within Cyprus' EEZ.

Cypriot Foreign Minister Nicos Christodoulides said on Saturday that President Nicos Anastasiades will be convening the National Council to discuss the latest Turkish actions off Cyprus.

The coordinates would also be published in the government gazette, he said.

Christodoulides added that Nicosia is in contact with European Union member states concerning Turkey’s illegal actions and discussions are under way about preparing countermeasures.

Meanwhile Cypriot authorities have launched procedures to have an international arrest warrant issued for the crew of Turkey's Fatih drillship off Cyprus.

US calls on Turkey to cancel drilling plans - KATHIMERINI

MONDAY MAY 6, 2019, 07:25

The State Department is calling on Turkey to reverse its decision to begin drilling operations within Cyprus’ Exclusive Economic Zone.

In a statement, State Department spokeswoman Morgan Ortagus calls the decision “highly provocative” that “risks raising tensions in the region.”

"The United States is deeply concerned by Turkey's announced intentions to begin offshore drilling operations in an area claimed by the Republic of Cyprus as its Exclusive Economic Zone," Ortagus said Sunday.

"This step is highly provocative and risks raising tensions in the region. We urge Turkish authorities to halt these operations and encourage all parties to act with restraint."

Foreign Minister says Cyprus monitoring Turkish vessel in cooperation with other states - CYPRUS NEWS AGENCY

06/MAY/2019 13:16 CYPRUS/Nicosia 

Athena Arsalidou

Minister of Foreign Affairs Nikos Christodoulides said on Monday that the Republic of Cyprus is monitoring the moves of Turkish vessel “Fatih” (Conqueror) in cooperation with other states, and announced that President of the Republic Nicos Anastasiades will be convening the National Council on Saturday.

Christodoulides also said that he informed the Council of Ministers that on May 4 the geographical coordinates of the exclusive economic zone and the shelf, on the basis of the mean line between the Republic of Cyprus and Turkey, were submitted to the UN Secretary General.

He added that on Monday a meeting will be taking place at the Ministry of Foreign Affairs, as a follow up of the meetings in the presence of the Attorney General, the Minister of Defence, the Minister of Energy, the Minister of Justice and Public Order, and the Deputy Minister for Shipping.

EU and Egypt warn Turkey against drilling off Cyprus - ARAB NEWS

May 04, 201918:37 

• Turkey said its vessels would be carrying out drilling operations in the Mediterranean until September
• According to reports in the Cypriot media, the operation will encroach on Cyprus’s exclusive economic zone

BRUSSELS: The EU and Egypt on Saturday urged Turkey to reconsider plans to start exploratory drilling for oil and gas off Cyprus, already condemned as illegal by the European Union.

The Egyptian foreign ministry warned of the repercussions of "any unilateral measures on the security and stability of the Eastern Mediterranean region."

"Any actions by states in the region need to abide by the rules of international law and its provisions," the ministry statement said.

The EU's diplomatic chief Federica Mogherini said: “We express grave concern over Turkey’s announced intention to carry out drilling activities within the exclusive economic zone of Cyprus”.

Statement by High Representative/Vice-President Federica Mogherini on Turkey's intended drilling activities within the exclusive economic zone of Cyprus - EUROPEAN UNION

Bruxelles, 04/05/2019 - 12:34, UNIQUE ID: 190504_2

Press releases

We express grave concern over Turkey's announced intention to carry out drilling activities within the exclusive economic zone of Cyprus. In March 2018, the European Council strongly condemned Turkey's continued illegal actions in the Eastern Mediterranean. In this context, we urgently call on Turkey to show restraint, respect the sovereign rights of Cyprus in its exclusive economic zone and refrain from any such illegal action to which the European Union will respond appropriately and in full solidarity with Cyprus.

New technologies for Eastern Mediterranean offshore gas exploration - EUROPEAN PARLIAMENT

Cyprus expects first gas output from Aphrodite field by 2025 - CYPRUS MAIL

MAY 4, 2019
Devika Krishna Kumar

Cyprus expects initial natural gas production from the Aphrodite field will begin between 2024 and 2025, Cyprus’ Minister of Energy Yiorgos Lakkotrypis said on Friday, after negotiations with operators and an ownership squabble delayed output.

Cyprus’ Aphrodite was first discovered in 2011, but production has been delayed since as stakeholders Noble Energy, Israel’s Delek Drilling and Royal Dutch Shell renegotiate a production-sharing agreement with the government.

There has been a flurry of successful exploration efforts in recent years that identified natural gas plays in the eastern Mediterranean, where gas output has begun to soar.

Eastern Mediterranean countries including Cyprus, Israel, Egypt and Italy have formed a partnership to deliver more natural gas to Europe and transform the region into a major energy hub.

Lakkotrypis said he will meet with Aphrodite’s stakeholders next week to discuss the revenue sharing mechanisms between the government and the companies, infrastructure plans and the price at which companies will sell the gas.

US strongly discourages any activity that could escalate tensions - CYPRUS MAIL

US Assistant Secretary of State for Energy Resources Francis Fannon
with Energy Minister Giorgos Lakkotrypis

MAY 3, 2019 

Assistant Secretary for the bureau of energy resources in the US Department of State Francis Fannon has said that the US was strongly discouraging any activity that could escalate tensions in the region.

He was commenting on the Turkish threats over its planned drilling activity within Cyprus’ exclusive economic zone (EEZ).

Energy diplomacy and the new geopolitical landscape in the Eastern Mediterranean, coupled with the transformation of the region into an energy hub, were the topics of the last panel of the EastMed-New York Investment Summit organised by The Economist.

Answering questions, Fannon reiterated the long-standing US position that the US recognises Cyprus`s right to develop its resources within its EEZ and that resources should be distributed fairly within the framework of an overall solution to the Cyprus problem. He added that the US was considering energy as a catalyst for dialogue.

Noble Energy posts $313M loss as it gears up for big growth - MySA / HEARST NEWSPAPERS

Friday, May 3, 2019
Jordan Blum

Houston's Noble Energy reported a $313 million quarterly loss Friday as it gears up for big growth from West Texas to the Eastern Mediterranean.

Noble's loss compares to a $554 million profit a year ago. Noble's first-quarter revenues also fell from $1.29 billion in 2018 down to $1.05 billion at the start of 2019.

However, Noble said it is growing production and keeping costs down as it develops its large acreage holdings in West Texas' booming Permian Basin that it has acquired within the last four years.

Also, Noble plans to bring its massive Leviathan natural gas project offshore of Israel online by the end of this year. Noble said Friday that the project is 81 percent complete.

Greece and Cyprus: Grand Challenges and Great Opportunities in East Mediterranean Gas - MODERN DIPLOMACY

May 1, 2019
Antonia Dimou

Greece is a country with many unexplored promising oil and gas fields.In fiscal terms, investments in hydrocarbon development and production throughout the country are highly competitive and attractive. From a hydrocarbon exploration perspective, offshore Crete in Southern Greece presents a frontier area that faces two major challenges namely a combination of very complex geological history and ultra-deep waters exceeding three thousand meters in most areas.

Following the “Call for Tenders for the exploration and exploitation of hydrocarbons Offshore West Crete and Southwest Crete” in March 2018, the consortium of French Total, American ExxonMobil and Hellenic Petroleum (Helpe) was granted by Ministerial Decision in July 2018 rights of hydrocarbon exploration and production for two offshore blocks in West and Southwest Crete. The exploration stage is expected to last up to eight years, and in the event of a commercial discovery, the production lease agreement is set tobe valid for 25 years plus two five-year extensions. Currently, the concessions awarded to the consortium are expected to pass in the Greek Court of Audit. This will prompt a swift parliamentary ratification permitting the initiation of exploration activities.

Additionally, the Hellenic Hydrocarbon Resources Management Authority intends to declare a new licensing tender for other offshore blocks in south Crete. To this end, the Authority published in February 2019 a tender for the Environmental Study that is prerequisite for companies to commence exploration once they are awarded certain concessions.

Cyprus ponders gas monetisation options - PETROLEUM ECONOMIST

Nicosia, 29 April 2019

Gerald Butt

New natural gas discoveries offshore Cyprus have revived the possibility of the island hosting an LNG plant

Cyprus is finally in a position where it can realistically start exploring a number of ways of getting natural gas to market. Seven years after the first discovery in Cyprus' offshore economic exclusion zone (EEZ) — the Aphrodite field in Block 12 (4.5tn ft3 of gas in place) — the island has notched up two more finds.

Last year, an Eni-Total consortium struck gas at Calypso in Block 6 (estimated 3-5tn ft3). The most recent newcomer is Glaucus-1 (5-8tn ft3) in Block 10, discovered by ExxonMobil, partnered by Qatar Petroleum.

Energy minister Yiorgos Lakkotrypis, addressing Gulf Energy's Eastern Mediterranean Gas Conference in Nicosia in early March, said the "quality of the reservoir in Block 10 allows us to be optimistic about the very high recoverability potential" of the ExxonMobil discovery. Last year, the first well drilled on Block 10 failed to find commercial reserves. With the Glaucos success, "we are waiting for the remodelling or re-calibrating of geological data and will look again at Block 10 targets".