US efforts to start Israel-Lebanon maritime border talks ‘failed’ - Report - THE JERUSALEM POST

July 3, 2019 23:50 

Herb Keinon

Acting Secretary of State David Satterfield’s efforts to get Israel and Lebanon around a negotiating table to discuss marking their maritime border has failed, according to Lebanese reports on Wednesday.

Satterfield, who was confirmed last Friday as Washington’s ambassador to Turkey and could be making his last visit to the region trying to deal with the maritime border issue, met in Beirut on Tuesday with Lebanese Foreign Minister Gebran Bassil and House Speaker Nabih Berri.

According to these reports, Satterfield told his Lebanese interlocutors that Israel has refused their request for UN sponsorship of the talks, and their demands that the discussions should deal not only with the maritime border but also the land border as well.

Israel and Lebanon have a dispute over an 860 sq. km. area that includes several blocs rich in natural gas.

One of the key sticking points holding up the launch of the negotiations has been whether they will be open ended – Lebanon’s demand – or whether there will be a six-month deadline, Israel’s position.

Lacking Regulatory Approval, Israeli Gas Fields Postpone Commercial Streaming to Egypt - THE ALGEMEINER

Noble Energy Interests

JULY 1, 2019 10:50 AM

Lior Gutman / CTech

CTech – The Tamar Gas Consortium, responsible for operating one of Israel’s largest natural gas fields — Tamar — has postponed the commercial streaming of gas to Egypt by several months, several people familiar with the matter who spoke on condition of anonymity told Calcalist.

Following Calcalist’s Hebrew report on Monday morning, Israeli energy company Delek Drilling, one of the major partners in the Tamar Consortium, filed a statement with the Tel Aviv Stock Exchange saying that commercial streaming to Egypt will begin by the end of 2019 from Israel’s largest gas field Leviathan. Delek said the delay is due to high demand for natural gas locally, which would exhaust Tamar’s resources in the near future.

According to a $15 billion deal with Egyptian company Dolphinus Holdings, signed by Tamar and the consortium operating Leviathan in February 2018, the two fields will provide Egypt with 64 billion cubic meters of gas over a 10 year period. Commercial streaming was scheduled to start by the end of the second quarter of 2019.

EMG gas pipeline to Egypt passes flow tests, targets end-year startup - PLATTS

01 Jul 2019 | 16:32 UTC
Lucie Roux, Editor: James Burgess

London — East Mediterranean Gas has successfully completed gas flow tests from Tamar's field in Israel, and exports to Egypt are expected to start by the end of the year, Israeli partner Delek Drilling said Monday.

"Today's announcement confirms that the technical side is now complete and the pipeline is now ready to handle up to 7 Bcm a year," a spokesman from Delek told S&P Global Platts.

Exports via EMG, together with the incremental production from BP's West Nile Delta and Eni's Zohr projects, should allow Egypt boost its LNG exports by the end of 2019.

The project's partners -- US-based producer Noble Energy, Delek Drilling and Egyptian-owned Sphinx EG -- have been working to bring the EMG back into service, with a reverse flow capability from the Leviathan field to Egypt, the spokesman said.

Medserv Cyprus awarded logistics contract by Total - MEDSERV

01/07/2019

Earlier today Medserv announced that Medserv (Cyprus) Limited has been awarded a contract by Total E&P Cyprus to provide Shore Base Logistics services for drilling activities taking place offshore Cyprus.

The contract duration is for a firm period of one year with options to extend. Medserv (Cyprus) Limited will provide these services from its facilities in the port of Limassol. The award of this contract makes Total the third major International Oil Company to be working with Medserv in Cyprus, another major step to broaden the Group’s oil and gas client portfolio within the Eastern Mediterranean region.

Eni and Total are lining up a multi-well drilling programme off Cyprus. The drilling is expected to begin by the end of this year or early 2020. The two European majors plan to drill five wells, with one probe in each of five blocks.

Egypt wants to almost quadruple the value of natural gas exports to USD 2 bn in FY2019-2020 - ENTERPRISE

Monday, 1 July 2019

Egypt wants to almost quadruple the value of natural gas exports to USD 2 bn in FY2019-2020: The government is looking to export 12 mn tonnes of natural gas worth USD 2 bn in FY2019-2020, compared to USD 580 mn in the past year, the local press reported, citing an unnamed EGAS source. Egypt is seeking to increase average daily exports to 1.56 bcf/d through LNG terminals in Idku and Damietta, and the Jordan pipeline. Natural gas exports averaged 500 mcf/d in FY2018-2019.

Higher gas production equals more gas to export: Additional gas flows from Zohr and other fields in the Mediterranean will allow energy companies to meet their supply obligations for the government and export the surplus, the official said.

Cheaper Natural Gas From July 1 - NOVINITE

June 28, 2019, Friday // 13:21

Natural gas has been cheaper starting from July 1. This is decided by the Commission for Energy and Water Regulation. The price of the blue fuel will drop by 0.6%.

The gas price approved by the Commission for the third quarter amounts to BGN 44.90 / MWh (excluding access, transmission, excise and VAT), which represents a decrease of 0.27 BGN / MWh or 0.60% compared to the current price for the second quarter of 2019.

At the approved gas price of BGN 44.90 / MWh, the "gas price at the entrance of the gas transmission grid" is included in the amount of BGN 43.97 / MWh, the "public supply" to 0.80 BGN / MWh.

During the approval of the price of natural gas KEVR takes into account the conditions under the current contract between Bulgargaz EAD and OAO Gazprom Export, the changes in the USD exchange rate against the BGN, the calorific value and the quantities of natural gas for the respective quarter.

Oil, Gas Production Reaches 6.8 MM Tons - EGYPT OIL & GAS

Thursday, 27th June 2019

The total production of oil and natural gas reached 6.8 million tons in 2019, compared to 6.1 million tons during the same month in 2018, Egypt Oil & Gas reports.

Data by the Central Agency for Public Mobilization and Statistics (CAPMAS) showed that the total consumption of petroleum and natural gas reached 6.1 million tons during April 2019, up from 6 million tons for the same month a year earlier.

Moreover, the consumption of petroleum products and natural gas reached 79.1 million tons in fiscal year (FY) 2017/2018.

CAPMAS indicated that the quantity of emissions from the consumption of petroleum products and natural gas reached 206.8 million tons in FY 2017/2018, down from 210 million tons in FY 2016/2017, with a decrease of approximately 1.5%.

Greece licenses Exxon, Total to explore untapped waters off Crete - REUTERS

JUNE 27, 2019 / 2:44 PM

ATHENS, June 27 (Reuters) - Greece on Thursday awarded licences to ExxonMobil and Total to search for hydrocarbons off the island of Crete, marking the country’s first major foray into an oil and gas search in the region.

The companies, in consortium with Hellenic Petroleum , have an eight-year research and exploitation licence in two offshore blocks lying south and south-west of Crete.

“Within two to four years we anticipate we will have a clear view of what and what kind of reserves are there,” Greek Prime Minister Alexis Tsipras said in a speech at the licensing ceremony.

Greece has a number of smaller concessions mainly off its western coast, but the Crete concessions represent 40,000 square kilometres of territory virtually unexplored.

Greece Inks Undersea Gas Deals Despite Environmental Warning - U.S. NEWS & WORLD REPORT / ASSOCIATED PRESS

June 27, 2019, at 11:10 a.m.
NICHOLAS PAPHITIS, Associated Press

ATHENS, Greece (AP) — Financially-struggling Greece signed contracts on Thursday for offshore gas exploration in large tracts of the Mediterranean, despite warnings from environmental groups that the project threatens marine life habitats.

The deal will allow a consortium of energy companies Total and ExxonMobil with Greece's Hellenic Petroleum to explore two areas that are together about the size of Switzerland - 40,000 square kilometers (15,000 sq. miles) - south and southwest of the island of Crete.

It's the latest and by far biggest in a series of concessions for oil and gas exploration in the west of the country.

Fears of confrontation with neighboring Turkey over energy extraction rights have precluded similar deals in the Aegean Sea and east of Crete. Turkey currently has a drilling ship, escorted by warships, in waters where Cyprus has exclusive economic rights, and has threatened to make similar moves further west.

Agreement signed with INGL for the transfer of near shore and onshore infrastructure - ENERGEAN OIL & GAS

London, 25 June 2019 - Energean Oil and Gas plc (LSE: ENOG, TASE: אנאג) is pleased to announce that it has signed a Detailed Agreement (“Agreement”) with Israel Natural Gas Lines (“INGL”) for the transfer of title (the “hand over”) of the near shore and onshore part of the infrastructure that will deliver gas from the Karish and Tanin FPSO into the Israeli national gas transmission grid. An MOU with INGL was signed in December 2018. 

As consideration, INGL will pay Energean 369 million Israeli New Shekels, approximately US$102 million, which will be paid in accordance with milestones detailed in the Agreement. 

EastMed gas: Paving the way for a new geopolitical era? - DW

24.JUNE.2019

Sergio Matalucci

The East Mediterranean gas project is often described as an explosive geopolitical initiative that's not without a number of hidden agendas. Sergio Matalucci looks at what's behind the current debates in the region.

Opening the newspapers in Cyprus these days, gas developments pop out as a priority issue. It is one of the most discussed topics in the media and by the local population. There are a number of reasons for this — on economic, political and security levels.

On June 5, the Cypriot government said it has reached a production sharing agreement (PSA) for the development of the Aphrodite field, claimed to be worth a staggering $9.5 billion (€8.35 billion), which is over $11,000 per citizen.

"Enough deals with other countries are marginalizing Turkey from the eastern Mediterranean. They are legal, unlike Turkish actions, but because of Turkey's reactions tensions arise," Zenonas Tziarras, a researcher with the Peace Research Institute Oslo, told DW from his office in Nicosia, located less than 200 meters (656 feet) from the Ledras-Lokmaci checkpoint, which divides the northern and southern parts of the city.

"Cypriot people need hope because they feel weak. They don't have the means to react to Turkish actions or to the results of the 1974 invasion. The natural gas and regional synergies provide some of that hope," added Tziarras.

US-mediated talks between Lebanon and Israel expected to begin in weeks - THE ARAB WEEKELY

Sunday 23/06/2019

Simon Speakman Cordall

TUNIS - Lebanon has agreed to enter US-brokered talks with Israel over a disputed maritime border.

Lebanon has not commented publicly on its participation in such talks; however, Israeli sources indicated that negotiations could begin in July. It is understood that discussions would concern only the maritime border.

Acting US Secretary of State for Near Eastern Affairs David Satterfield has been shuttling between both countries’ capitals for months and is believed to have achieved a breakthrough after meeting with Lebanese Foreign Minister Gebran Bassil in late May.

A statement, carried by Lebanese state media following a recent Satterfield meeting in Lebanon, said the Foreign Ministry confirmed that no major obstacles remained ahead of negotiations but that more trips were required.

“We started putting the final touches on the form of negotiations and the role of the concerned parties, including the United Nations, Lebanon and Israel, as well as the role of the United States,” the statement said.

Israel’s discovery of the Tamar and Leviathan gas fields in 2009 and 2010, respectively, increased the rate of exploration across the eastern Mediterranean, with discoveries later made in Cypriot and Egyptian waters.

Premier Tsipras Announces US’ ExxonMobil to Conduct Exploration South of Crete - GREEK REPORTER

Add caption

Jun 21, 2019Nick Kampouris

Greek Premier Alexis Tsipras announced on Friday that the Greek government and the American Energy giant ExxonMobil will sign an agreement regarding energy exploration and drilling next week.

Speaking to journalists in Brussels following the two-day European Council Summit, Tsipras said that Greece has reached an agreement with the US-based company, which will soon start to search for, and later exploit, natural gas deposits which are south and southwest of Crete, inside Greece’s Exclusive Economic Zone (EEZ).

”Greece goes ahead with the exploitation of its own Exclusive Economic Zone, in the same manner that Cyprus does with its own,” the Greek Prime Minister noted after the Summit.

Tsipras said that, following years of planning and conducting the proper foreign policy, ”It is time to bear the fruits.”

Warehouse co-owned by Italy oil company Eni destroyed in Libya - CONSTRUCTION WEEK ONLINE

21 Jun 2019Neha Bhatia

A warehouse owned by Mellitah Oil and Gas Co, a joint venture of Italy's Eni and Libya National Oil Company (NOC), was destroyed in an airstrike, with three of the company's employees suffering minor injuries and "significant" material losses noted from the event, including the destruction of "valuable equipment and materials" in addition to the structure itself.

Citing a statement by Libya NOC, Construction Week's sister title Oil & Gas Middle East reported the company's chairman, Eng Mustafa Samalla, as saying: “This is another tragic loss caused by this unnecessary conflict.

“NOC infrastructure is being destroyed before our eyes. The lives of oil sector workers are continually being put at risk, as is the prospect of maintained oil production.”

In May 2019, Libya NOC announced plans to develop the North Hamada oilfield, operated by Nafusa Oil Operations, but the company continues to face challenges due to attacks such as the latest one.

According to OGME, Samalla told reporters last month that the continuation of instability in Libya could lead it to lose 95% of its oil production.

“Unfortunately if the situation will continue like this I’m afraid that maybe 95% of production will be lost,” Mustafa Sanalla told reporters in Jeddah, according to Reuters.

SOURCE

Revythousa to help Bulgaria in LNG supply - KATHIMERINI

21.06.2019 : 20:30

Chryssa Liaggou

Less than a year after it was upgraded with a third tank, the gas terminal on the island of Revythousa is confirming its strategic role as a feeder of the broader Balkan market, as on August 31 it will receive the first liquefied natural gas load destined for Bulgaria that is procured directly by a Bulgarian company.

Energico, owned by a former official of gas grid operator Bulgartransgaz, will be the first Bulgarian company to make a direct LNG procurement through Revythousa to cover Bulgaria’s needs, as the islet off the Attica coast is the only facility that allows for the diversification of natural gas sources in Greece’s northern neighbor, which is almost 100 percent dependent on Russian gas.

That option will become even easier when the Interconnector Greece-Bulgaria pipeline starts operating, along with the Trans Adriatic Pipeline (TAP), in 2020.

EGAS refuses again to cut natural gas prices for heavy consumption factories - ENTERPRISE

Wednesday, 19 June 2019

The Egyptian Natural Gas Holding Company has once again refused another push for cutting natural gas prices for steel and ceramics factories, local press reported, citing an unnamed EGAS officials. EGAS said the current prices are appropriate for different industries. It said factories, who receive about 2.4 bcf/day of natural gas, are working at almost full capacity. Parliamentary sources quoted by local press said the government will continue to turn down requests in the meantime until it finishes studying the issue. Industry has been pressuring the government for years to cut natural gas prices saying that it is affecting their product prices and thus sales which is causing them to work under their full production capacity. The government had promised in 2016 to cut gas prices to USD 4.5 mmBtu from USD 7 mmBtu but didn’t deliver on it, with EGAS describing the decision at the time as a “waste”. Trade and Industry Minister Amr Nassar has said in March that it would currently be difficult to reduce gas prices for steel factories to USD 5 per MMBtu from USD 7.

Egypt grants Israel access to LNG plants after reaching gas settlement - ENTERPRISE

Wednesday, 19 June 2019

Israeli gas could start flowing to Egypt’s LNG plants as soon as next month at an initial rate of 150 mcf/d, rising to 700 mcf/d within two years, according to a domestic press report citing an unnamed government official. The news comes after a USD 500 mn settlement this week resolved a dispute longstanding dispute with the Israel Electric Corporation and will give the operators of Israel’s Leviathan field, Delek Drilling and Noble Energy, clear access to global export markets.

Damietta-bound? Look for the Leviathan gas to move through the Arish-Ashkelon pipeline to Damietta, one of two Egypt’s two LNG facilities as the Idku facility still has no link with Israel. The Arish-Ashkelon pipeline is set to be used to supply Alaa Arafa’s Dolphinus Holding with the first shipments under the USD 15 bn agreement signed last year. The shipments were planned to begin in 1Q2019 but sources told Bloomberg in March that the date had been pushed to mid-2019 as the pipeline still required further maintenance.

An Israeli investment still in the cards? We had noted last March that Delek was looking to acquire a stake in either the Idku or Damietta liquefaction facilities as part of its drive to “broaden its export footprint.”

Egypt to pay Israel USD 500 mn settlement to end seven-year gas dispute - ENTERPRISE

Monday, 17 June 2019

DISPUTE WATCH- Egypt to pay Israel USD 500 mn settlement to end seven-year gas dispute: Egypt has agreed to pay USD 500 mn over 8.5 years to the Israel Electric Corporation (IEC) as a settlement for halting natural gas shipments in 2012, the Egyptian General Petroleum Corporation (EGPC) and EGAS said yesterday in a statement picked up by Reuters. Egypt agreed to the reduced fine in exchange for the IEC dropping its other claims that arose from an arbitration decision in 2015, when the International Chamber of Commerce ordered Egypt to pay USD 1.76 bn.

Background: The IEC admitted in April that it was willing to accept a USD 500 mn settlement, amounting to a USD 1.3 bn write-off of the original USD 1.76 bn fine. Egypt had appealed against the International Chamber of Commerce’s ruling, and made reducing the settlement a key condition for accepting a gas agreement with Israel. The two countries signed a USD 15 bn gas pact last year, which will see Delek Drilling and its partner Noble Energy supplying the Alaa Arafa-led Dolphinus Holding with 7 bcm of natural gas from Israel’s Leviathan and Tamar gas fields. Delek’s deputy CEO Yossi Gvura said earlier this month commercial sales of natural gas to Egypt could begin by the end of June. The gas dispute originates from 2012 when terrorist attacks in the Sinai resulted in the Egyptian government suspending shipments of natural gas to Israel.

Russia Could Mediate Determination Of Lebanese, Syrian Maritime Borders -Lebanese Minister - URDU POINT / SPUTNIK NEWS

Sat 15th June 2019 | 02:16 PM

BEIRUT (UrduPoint News / Sputnik - 15th June, 2019) Lebanon is aware of Syria's desire to determine maritime borders and Russia can mediate in this process, Lebanese Defense Minister Elias Bou Saab told Sputnik.

"We have the information that Syria wants to determine the maritime borders with Lebanon. Russia is located in this region and specifically on these borders. And it has its own economic interests in this," Bou Saab said.

The defense minister recalled that Russia's Novatek company had won a contract along with other energy companies to develop and extract oil and gas in the territorial waters of Lebanon, adding that this company had also a share in the blocks located in the territorial waters of Syria.

"Given these facts, this company has an interest in delimitation of maritime borders, and thus Russia can play a positive role in this process," Bou Saab added.

Southern European leaders to discuss proposed EastMed pipeline at Med7 Summit - FOREIGN BRIEF

June 14, 2019
Joshua Clarkson

Heads of state from Cyprus, France, Greece, Italy, Malta, Portugal and Spain convene today in Malta for the sixth South EU Summit.

The group, informally known as the Med7, is expected to focus on energy security at today’s conference.

In January, six European and Middle Eastern leaders committed to creating an Eastern Mediterranean regional gas market. The biggest step, however, is the proposed EastMed pipeline, which would bring Levantine gas deposits to European markets via Cyprus, Greece and Italy. The potential 1,900-kilometre pipeline could satisfy 10% of Europe’s energy demand, diminishing the continent’s dependence on Russian energy.

While the EastMed pipeline is still in the planning stages, it could be a geopolitical boon for the EU. Without reliance on Russian energy, a more united front on Ukraine could be established, and Moscow would have less leverage in negotiations with Brussels.

Tests under way to flow Israeli gas via EMG pipeline to Egypt: source - PLATTS

13 Jun 2019 | 10:52 UTC
Stuart Elliott, Editor: Alisdair Bowles 

London - Tests to flow Israeli gas through the East Mediterranean Gas (EMG) pipeline to Egypt are now under way and are expected to be concluded at the end of this month ahead of the startup of significant exports later in the year, an industry source told S&P Global Platts Thursday.

US-based producer Noble Energy and its Israeli partner Delek Drilling -- together with Egyptian-owned Sphinx EG -- in September last year agreed to buy a 39% stake in the idled EMG pipeline for $518 million as part of plans to use the pipeline in reverse for Israeli gas to flow to Egypt.

"Tests are under way and are on track to be completed as scheduled by the end of June. Once that is done, gas from the Tamar field can start to flow through the EMG pipeline on an interruptible basis," the source said.

Noble could not be reached for comment, while Delek Drilling declined to comment.

The pipeline -- which runs for 90 km off the Israeli and Egyptian coasts -- connects the Israel pipeline network from Ashkelon to the Egyptian pipeline network near El Arish.

It started operations in 2008 to flow Egyptian gas to Israel until 2012 when operations were halted as Egypt's gas production began to decline after the Arab Spring the previous year.

Greece’s Energean Bids for EDF Oil & Gas AssetsBy - BLOOMBERG

June 13, 2019, 4:41 PM GMT+3Dinesh Nair and Yaacov Benmeleh

• EDF has been seeking a sale to focus on nuclear projects
• Some other potential suitors have dropped out of bidding

Energean Oil & Gas Plc, the Greek energy producer that sold shares in London last year, is bidding for the oil and gas business of Electricite de France SA’s Italian unit, people familiar with the matter said.

Energean has submitted a final offer for Edison SpA’s exploration and production assets, the people said, asking not to be identified as the matter is private. Some other suitors have dropped out of the process, the people said, asking not to be identified because the information is private.

The business had earlier attracted initial interest from potential bidders including Neptune Energy and Warburg Pincus’s Apex International Energy, Bloomberg News reported in January. Other competitors including Wintershall Dea GmbH, an arm of Mikhail Fridman’s L1 Energy, could also look at the business, people with knowledge of the matter said at the time.

Total mulls expanding exploration in Mediterranean and Red Seas - ENTERPRISE

Thursday, 13 June 2019

French energy giant Total is considering bidding for new oil and gas exploration concessions in Egypt’s Mediterranean and Red Sea territories, chairman and CEO Patrick Pouyanne told Oil Minister Tarek El Molla in a meeting yesterday, Al Shorouk reports. 

The company is also looking at increasing investments in expanding fuel stations and fuel transportation.

Cyprus's Natural Gas Public Company plans FSRU contract for October - PLATTS

10 Jun 2019 | 10:50 UTC
Gary Lakes, Editor: Dan Lalor

Nicosia — Cyprus's Natural Gas Public Company (DEFA) plans to finally sign a contract in October for the installation of an FSRU and relevant infrastructure, following closure of the tender on July 12, an official Cypriot source has informed S&P Global Platts.

In its fourth attempt to award a tender for the supply of natural gas, Defa opened a tender last year. It has extended the deadline several times since "to allow companies interested in bidding sufficient time to put together top-quality proposals so Defa has a better chance of success," the source said.

Last Tuesday, Defa invited expressions of interest for the supply of LNG for the FSRU, which will be connected to the country's main power station at Vassilikos.

"There are two processes in the EoI. One calls for expressions of interest in the LNG SPA, which will involve negotiations for mid-term, 3-5 year LNG SPAs. The second invites expressions of interest for master sales agreements that will enable Defa to procure cargoes from the spot market," the source said.

ICGB signs contract with owner's engineer for Greece-Bulgaria gas link - SEE NEWS

Jun 10, 2019 11:46 EEST
Mario Tanev

SOFIA (Bulgaria), June 10 (SeeNews) - ICGB, the company developing the Gas Interconnector Greece-Bulgaria project, said that it has signed a 5.67 million euro ($6.41 million) contract with the TIBEI consortium, which won the tender for selecting an owner's engineer for the project.

The contract was signed on May 20, according to a notice by the ICGB, published on Friday.

The TIBEI consortium comprises Belgium's Tractebel Engineering S.A, Italy's Tractebel Engineering SRL, Austria's Intber GmbH and Bulgarian companies Ipsilon Consult and Bulgaria Engineering.

"The commitment involves assisting the Contracting Entity in the implementation of the project during the construction phase until the pipeline enters into operation and management of all the main contracts related to the project - including the contract for the supply of line pipes and the contract for the award of design, procurement and construction," ICGB has said previously.

EGAS to Boost Natural Gas Production to 4.8 bcf/d by 2022 - EGYPT OIL & GAS

Sunday, 9th June 2019

The Egyptian Natural Gas Holding Company (EGAS) aims to increase gas production by 4.8 billion cubic feet per day (bcf/d) by June 2022, bringing the total gas production in Egypt to about 11.3 bcf/d, Amwal Al Ghad reports.

This comes as the oil and gas sector plans to develop gas fields through 19 projects with a production capacity between 4.5 and 4.8 bcf/d, a source from EGAS said.

The development work of gas fields in the past four years has contributed to unprecedented levels of increase in production, with the current total production of natural gas reaching 6.5 bcf/d, the source added, pointing out that the exploration work in the Red Sea will also bolster gas production.

Scrutinising the Aphrodite gas deal - CYPRUS MAIL

June 9, 2019

Charles Ellinas

This week’s deal with Noble, Delek and Shell divvying up the profits from the Aphrodite gas-field is not quite what it seems at first glance

The good news is that an agreement has been reached between the government and the Noble Energy, Delek and Shell joint venture (JV) on a revised Production Sharing Contract (PSC) for the development of the Aphrodite gas-field.

Based on published reports the agreed profit split is now about 57 per cent to Cyprus and 43 per cent to the JV, when the price of oil is $70/barrel – with Cyprus’ share going up when the oil price goes up and down when the oil price goes down. With long-term forecasts estimating the average oil price range to be $60-$70/barrel, there can only be a downside for Cyprus. That’s why the JV was so keen on this renegotiation.

There are also new provisions to ensure development of Aphrodite within a strict timetable, with penalties to the JV if it is not. This of course is what the JV wants too – to develop the project as soon as possible.

Egypt allows Eni, BP to export gas through Edco liquefaction factory - MENAFN / DAILY NEWS EGYPT

JUNE/9/2019 3:49:15 PM

(MENAFN - Daily News Egypt) The ministry of petroleum has allowed Eni and British Petroleum (BP) to export gas from Zohr and North Alexandria fields through Edco liquefaction factory (Damietta) in accordance with the development agreements of these projects.

A source from the petroleum sector told Daily News Egypt that the government has allowed Eni and BP to export gas after meeting the needs of the local market and achieving production surplus.

He added that Eni and BP's agreements to develop Zohr and North Alexandria stipulate that the foreign partners can export gas to international markets after obtaining the approval of the ministry of petroleum.

The source explained that the ministry's decision came after it ensured that the foreign partners will adhere to the development plan of the gas fields.

Foreign companies are keen to export part of their share in concession areas to make bigger profits because the liquefied gas shipments are sold according to international prices.

Italian Eni owns around 26% of the Damietta liquefaction plant after buying 50% of Union Fenosa's share, which makes it a shareholder of the liquefaction factory.

Legal measures against companies cooperating with Turkish TPAO in Cyprus' EEZ - REPUBLIC OF CYPRUS

iLancashire

Israel extends deadline for bids in second gas license round to mid-July - PLATTS

07 Jun 2019 | 10:40 UTC Author: Stuart Elliott, Editor: Dan Lalor 

London — Israel has extended by a month to mid-July the deadline for bids in its second international gas licensing round due to the number of requests for documentation from interested parties.

The round is offering licenses for 19 blocks within five zones as Israel looks to move forward with upstream developments to help feed an offshore gas pipeline to southern Europe.

"Due to the number of requests received from companies that purchased the documents of the competitive process, they are allowed another month to prepare for submission," the energy ministry said.

The round was launched in November by energy minister Yuval Steinitz who said he hoped to attract new international energy companies to the country's already proven offshore.

Any company holding over 20% of an existing production license will not be able to participate in the current bid round following criticism of work offshore Israel to date, which has been dominated by a handful of companies, including the US's Noble Energy and Israeli explorers Delek and Ratio.

Each of the 19 blocks measure up to 400 square km and each zone, consisting of multiple blocks, is as large as 1,600 sq km.

The zones are located in the southern extent of Israel's economic waters, an area which has been previously licensed in part and had previous seismic research and limited exploration activity.

What do closer Lebanon-Cyprus energy ties mean for Israel - THE JERUSALEM POST

JUNE 6, 2019 21:59 MICHAEL HARARI 

Interesting developments have occurred recently in the Mediterranean Basin. On April 11, the foreign and energy ministers of Cyprus and Lebanon met in Beirut and agreed to accelerate their contacts on energy issues. Specifically, they agreed on intense negotiations to conclude a unitization deal between their two countries. Such an agreement would set out terms for the development of joint resources and the running of joint gas and oil fields, located on both sides of the two states’ economic maritime border.

Lebanese Foreign Minister Gebran Bassil, formerly his country’s energy minister, noted that negotiations would be launched on May 7, at which point both sides would try to map out their points of agreement and disagreement to complete the talks by September. At the same time, a tripartite Lebanese-Cypriot-Greek summit is scheduled to take place in June. The Cypriot foreign minister added that a unitization agreement would send an important and calming message to international energy companies seeking to invest in the region.

The Lebanese are clearly interested in speedy progress on the issue, realizing that their country is lagging behind in developing its energy potential, compared to Israel and Cyprus. Moreover, according to the Lebanese minister, Beirut is planning to carry out an exploratory drill next year along or adjacent to its maritime border with Cyprus.

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.