Eni not interested in acquiring Dana Gas Egypt portfolio - ENTERPRISE

Tuesday, 12 November 2019

M&A WATCH- Italy’s Eni is not looking to acquire the Dana Gas’ assets in Egypt, Eni CEO Claudio Descalzi tells Bloomberg TV (watch, runtime: 7:14). 

Descalzi stressed that Eni is satisfied with its portfolio for the time being and plans to focus on developing current assets before biting off more. 

Dana Gas had received offers for buying its assets in Egypt and expects to make a decision on the sale after bidding closes by mid-November to focus its resources on its assets in Kurdistan. 

The company was looking to complete the sale in one transaction, but is also considering only a partial sale, which hinges on the offers presented.

Aphrodite feels the love - PETROLEUM ECONOMIST

Nicosia, 12 November 2019

Gerald Butt

Cypriot energy minister Georgios Lakkotrypis issues the country’s first exploitation licence to the Aphrodite consortium to export gas to Egypt

The discussion of exactly where the gas discovered back in 2011 in Cyprus' offshore Block 12, by a consortium including US independent operator Noble Energy, would end up has loomed for almost all the 2010s.

At his Nicosia office, the country's energy minister tells Petroleum Economist Middle East editor Gerald Butt that the question has now finally been resolved.

What is now the way ahead for Aphrodite?

Lakkotrypis: The plan is that we will transport the gas vis a subsea pipeline to Egypt, liquefying it at Idku, from where it will be shipped by Shell [another partner, along with Israel's Delek, in Aphrodite] to international markets, primarily Europe. We have spent the past 12 months or more discussing the details of a revised production sharing contract (PSC) and field development plan. So now we have the exploitation licence. First gas will be in 2025.

Why has it taken so long to get gas out of Aphrodite?

Larnaca fuel storage move on schedule - CYPRUS MAIL

November 12, 2019
Jonathan Shkurko

Larnaca mayor Andreas Vyras said Tuesday the conditions were now right for the relocation of the petroleum and LPG facilities from the coast to Vasilikos to take place.

Vyras said that the relocation of the facilities has always been a priority for the city of Larnaca.

A memorandum of understanding (MoU) was signed by the government and the fuel companies who own the storage facilities to move them to the new terminal by December 2019 and to gas stations around Cyprus by December 2020.

Vyras said the government and the companies were working tirelessly to move the units by the set date to the Vasilikos industrial area, where works have already begun.

Greece, Israel and Cyprus – with or without others - KATHIMERINI

12.NOV.2019 : 12:00

Locked in a region marked by uncertainty and risky endeavors, and amid widespread concern sparked by Turkey’s incursion into Syria, Greece, Cyprus and Israel are forging a web of stability. The project is designed to serve their own interests but at the same time serves those of Europe and the United States.

Here are three democratic states, each with its own comparative advantages, which have over the past 10 years made a systematic effort on a bilateral and trilateral level to establish a system of mutually beneficial cooperation across a wide range of activities.

A large number of plans are being implemented, or are under consideration – from the sharing of intelligence and know-how and the implementation of joint military drills to the use of unmanned aerial vehicles (UAVs), even satellites, and energy cooperation.

Turkey's illegal drilling activities in the Eastern Mediterranean: Council adopts framework for sanctions - COUNCIL OF THE EU

11 November 2019, 12:05

Today, the Council adopted a framework for restrictive measures in response to Turkey's unauthorised drilling activities in the Eastern Mediterranean. The framework will make it possible to sanction individuals or entities responsible for or involved in unauthorised drilling activities of hydrocarbons in the Eastern Mediterranean.

The sanctions will consist of a travel ban to the EU and an asset freeze for persons, and an asset freeze for entities. In addition, EU persons and entities will be forbidden from making funds available to those listed.

The framework for restrictive measures makes it possible to place under sanctions:

Steinmetz co slams Israel for giving Ishai rights to Cyprus - GLOBES

11 Nov, 2019 18:46
Amiram Barkat

"The government is allowing Delek Group, Noble Energy to humiliate it," says Ohad Schwartz, a director at Nammax Oil & Gas,

"It is embarrassing to see how the Israeli government is allowing Delek Group Ltd. (TASE: DLEKG) and Noble Energy to humiliate it, after having nurtured them and allowed them to take control of both the local and regional natural gas markets," Ohad Schwartz, a director at Nammax Oil & Gas, controlled by Beny Steinmetz, wrote to Ministry of National Infrastructure, Energy, and Water Resources director general Ehud Adiri. Schwartz represents the Israeli companies that are partners in the Yishai prospect and are claiming rights in the Aphrodite natural gas reservoir, most of which is in Cypriot territorial waters. Nammax was a partner in the Aphrodite 2 gas drilling, in which the reservoir was discovered by Noble Energy in 2011. The reservoir also extends into Israeli economic waters.

Our View: Gas deal is great news, but we must be realistic - CYPRUS MAIL

November 10, 2019
By CM: Our View

CONTRACTS for the first hydrocarbon exploitation licence were signed on Thursday and were described by energy minister Giorgos Lakkotrypis, as “another milestone in Cyprus’ energy programme”. It was the first real milestone of our energy programme because as we have learnt over the last few years, licensing rounds, surveys, exploratory drilling and discoveries of deposits might create big expectations, but until contracts for the exploitation of the findings are signed, their commercial value is theoretical.

This is an illustration of the extremely slow pace at which the oil and gas industry moves. The discovery at the Aphrodite field in block 12 was announced in December 2011, the exploitation licence was finalised in 2019 and production is scheduled to begin in 2025. It will be 14 years after the discovery before revenue will start coming in. Even then, it will be reduced because the bigger share will go towards covering the big investment by the oil companies, estimated to be in the region of €7 billion.

Petroleum Min. announces putting Silva gas well on production - EGYPT TODAY

Fri, Nov. 8, 2019

CAIRO – 8 November 2019: Ministry of Petroleum announced Thursday putting Silva natural gas well in phase 9B of the deep western delta concession area in the Mediterranean on production, at 60-80 million cubic feet per day in early November.

The ministry said in a statement that the Silva well is the third to be put on production within a month after the wells, Saphir East and East Swan, which were put on production last October with a production rate of up to 170 million cubic feet of gas per day.

It added that Burullus Gas Company, which is operating in the project on behalf of the Petroleum Authority, and Shell International completed linking the new well to production, bringing the total production of the three wells to about 240 million cubic feet per day of natural gas.

Cyprus signs deal for offshore gas concession - REUTERS

NOVEMBER 7, 2019 / 4:41 PM

ATHENS (Reuters) - Cyprus signed a 25-year concession on Thursday with a three-member consortium for the exploitation of a gas reservoir south-east of the island first discovered in 2011.

The contract with Noble Energy (NBL.N), Shell (RDSa.L) and Delek (DEDRp.TA) is the first commercial exploitation license signed by the Mediterranean island. The Aphrodite field is thought to hold an estimated 4.1 trillion cubic feet (tcf) of gas.

Cypriot authorities have said natural gas will start being extracted in 2025, with estimated earnings of 9.3 billion euros ($10.29 billion) over an 18-year period.

“The plan includes the implementation of what we consider the best possible option, transferring gas through an subsea pipeline to Idku in Egypt from where LNG will be exported to Europe and international markets,” Cypriot energy minister Yiorgos Lakkotrypis said in a statement.

In September last year Egypt and Cyprus signed an agreement to build an undersea natural gas pipeline from the Aphrodite field to a liquefaction plant in Egypt.

Noble Energy Closes on Acquisition of Interest in the Eastern Mediterranean Gas (EMG) Pipeline - YAHOO FINANCE

November 6, 2019

HOUSTON--(BUSINESS WIRE)--

Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the “Company”) announced today that the Company and its partners have closed on the acquisition of a 39 percent equity interest in the Eastern Mediterranean Gas Company S.A.E. (“EMG”), which owns the EMG Pipeline. The pipeline will be used to transport natural gas volumes into Egypt under the Company’s gas supply agreements with Dolphinus Holdings (“Dolphinus”). Noble Energy’s net acquisition investment in the EMG Pipeline totaled $185 million, and the Company’s effective interest in the pipeline is 10 percent.

J. Keith Elliott, Noble Energy’s Senior Vice President, Offshore, stated, “The closing of the EMG acquisition will support delivery of natural gas from the Tamar and Leviathan fields into Egypt, and represents a major milestone toward Egypt’s goal of becoming a regional energy hub. This acquisition, combined with our recently announced Dolphinus gas sales contracts offtake increases, provides further confidence in both the long-term export market and growing cash flows from our Eastern Mediterranean assets.”

IGI Poseidon signs MoU on Israeli gas pipeline - KATHIMERINI / REUTERS

05.11.2019

Israel Natural Gas Lines (INGL) is looking at building a natural gas pipeline to Europe under a memorandum of understanding signed with IGI Poseidon, it said on Tuesday.

The mooted EastMed pipeline could carry about 10 billion cubic meters of gas a year from the Eastern Mediterranean to Cyprus, Greece, Italy and other European markets.

INGL and IGI Poseidon will form a joint team to examine technical, regulatory and other issues involved in constructing the pipeline, INGL said in a regulatory filing.

IGI Poseidon is a joint venture between Greek natural gas firm DEPA and Italian energy company Edison. It has been promoting the project for several years with the backing of Israel and a number of European countries.

Vast offshore gas discoveries over the past decade have transformed Israel into an energy exporter, with export deals already signed with customers in Jordan and Egypt.

Greece's Energean reports successful Karish North Appraisal - FINANCIAL MIRROR

04 November, 2019

The oil and gas producer focused on the Mediterranean, said the appraisal “significantly enhances Energean’s discovered resource volumes across its Karish and Tanin leases”.

“Volumes are incremental to the 2.4 Tcf (68 BCM) and 33 million barrels of light oil / condensate discovered resources that Energean already has in its Karish and Tanin leases.”

The Karish North Discovery will be developed via a tie-back to the Energean Power FPSO, which is located 5.4km away and is being built with 8 BCMA of capacity.

Mathios Rigas, Chief Executive of Energean said: “This is an excellent result from the Karish North appraisal sidetrack, confirming in place volumes in the top half of pre-drill estimates and increasing our recoverable volumes in Israel by 0.9 Tcf (25 BCM) of gas plus 34 million barrels of light oil or condensate.”

Israel-Egypt gas pipeline deal seen imminent - REUTERS

NOVEMBER 3, 2019 / 11:32 AM
Steven Scheer

JERUSALEM (Reuters) - A deal that would transfer control of a natural gas pipeline between Israel and Egypt is expected to be closed in the next few days, the companies said on Sunday.

Texas-based Noble Energy (NBL.N), Israel’s Delek Drilling (DEDRp.TA) and Egyptian East Gas Co have partnered in a venture called EMED, which last year agreed to buy a 39% stake in the subsea EMG pipeline for $518 million that will carry Israeli gas exports to Egypt.

In a regulatory filing in Tel Aviv, Delek said the shares have already been transferred to the buyers while the funds are currently being held in a trust. It noted that no closing conditions remained.

“Upon the transfer of the full amount of the consideration to the sellers, which is expected to be performed in the coming days, the EMG transaction will be closed in practice,” Delek said.

Botas LNG purchase tender seeks US, Russian supply - OIL & GAS EURASIA

01.NOV.2019

Turkey’s Botas issued a tender to purchase 70 cargoes of LNG (liquefied natural gas) for delivery over 2020-2023, two days after the US lifted sanctions.

The US imposed sanctions earlier in October in response to Turkey’s military offensive in northern Syria. The LNG tender will close on Nov. 8.

Heavily dependent on pipeline gas imports from Russia, Turkey is aiming to reduce Russian imports and diversify its gas sources. It has already reduced flows from Russia’s Gazprom significantly this year, while increasing LNG purchases and gas imports from Azerbaijan.

Botas buys LNG on a long-term basis from Nigeria and Algeria. The contract with Nigeria expires in 2021, while a deal with Algeria’s Sonatrach runs until late 2024. There is also a mid-term contract with Qatargas expiring next year.

The degree to which Turkey will increase its LNG imports depends however on price. The Turkish news site yenisafak.com quoted Danila Bochkarev, a senior fellow at the EastWest Institute, as saying: “LNG should be cheaper than pipeline gas in order to gain an additional share of the Turkish market.”

New setback for plans to import gas - CYPRUS MAIL

November 1, 2019

George Psyllides

The island’s effort to import natural gas to power its electricity grid looked set to delay further on Friday after complications emerged in the tender process for the construction of an LNG import terminal at Vassilikos

The latest obstacle to the effort spanning some 14 years concerns an appeal lodged by a company against a decision to exclude it from the project because of links to an entity implicated in a waste treatment scandal.

Aktor SA is part of a consortium comprising China Petroleum Pipeline Engineering Co Ltd (CPPE), Aktor SA and Metron SA, Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Ltd that won the tender for the construction of a floating storage regasification unit (FSRU), a jetty for the mooring of the FSRU, pipelines, port and other facilities.

HELPE indicates possible existence of large gas field - KATHIMERINI

THURSDAY OCTOBER 31, 2019 12:48

Chryssa Liaggou

Seismic research conducted by Hellenic Petroleum (HELPE), the country’s biggest oil refiner, has indicated the possibility of the existence of a large reserve of natural gas in Greece, similar to Egypt’s gigantic Zohr gas field in the Eastern Mediterranean.

In a presentation on Wednesday, Yiannis Grigoriou, HELPE’s general manager for exploration and production of hydrocarbons, said that seismic depictions of the Zohr field bear similarities to an area that HELPE is exploring.

He did not reveal which region of the ones HELPE is exploring he was referring to [TEKMOR Note: SW Crete / local sources].

If these indications are confirmed by drilling activities, then the potential quantities may be 280 billion cubic meters, which would be able to cover Greece’s needs for 70 years.

Egypt- BP invests $2.7bn to develop North Alexandria's Giza and Fayoum gas fields - MENAFN / DAILY NEWS EGYPT

OCT/30/2019 8:10:12 PM

(MENAFN - Daily News Egypt) BP has invested $2.7bn to implement the second phase of the North Alexandria's Giza and Fayoum gas fields to produce about 680m cubic feet of gas per day (scf/day) during the last fiscal year.

A source at the Egyptian Natural Gas Holding Company (EGAS) told Daily News Egypt that BP has started the implementation of the third phase of the Raven gas project to bring its total production output to 1.5bn scf/day early 2020.

He explained that the third and final phase of the project involves connecting 850m scf/day from the Raven field in the deep water in the Mediterranean Sea, with an average production rate of 350m scf/day.

A gas processing plant, which will receive the output of Raven field, is under construction, with a capacity of 900m scf/day, he said.

The source pointed out that the natural gas produced from the Raven field has special specifications different from the previous two stages of Libra, Torres, Giza, and Fayoum fields, and the new treatment plant is being built next to Rashid treatment plant.

Egyptian Companies to Return to Libyan E&P Sector - PETROLEUM AFRICA

Tuesday, October 29, 2019

NOC chairman Eng. Mustafa Sanalla met with Egyptian Minister of Petroleum Eng. Tarek El Molla, and senior officials of the Egyptian Ministry of Petroleum, in Cairo on October 27, 2019. The meeting was held to further mutual cooperation between NOC, the Egyptian Ministry of Petroleum, and Egyptian oil companies.

Eng. El Molla stressed the importance of enhancing Libyan-Egyptian mutual cooperation and emphasized Egyptian companies’ aspirations to resume work in Libya. The Minister also confirmed that Egyptian oil companies have been directed by the Ministry to return to doing business and to proceed with currently suspended projects in Libya.

The NOC chairman briefed the Egyptian attendees on NOC’s plans to increase oil and gas production in Libya and invited Egyptian oil companies to contribute to the implementation of these plans both technically and commercially. Sanalla also commended Egyptian state-owned enterprise Petrojet, which previously completed the Wafa oilfield pipeline in western Libya.

EGAS resumes natgas exports to Jordan - ENTERPRISE

Sunday, 27 October 2019

EGAS resumed natural gas exports to Jordan at a rate of 290 mcf/d at the beginning of October, a source from the state-controlled company told the local press. 

The kingdom has been importing variable amounts since we resumed exporting natural gas to Jordan last September under a supply resumption agreement, which provides as much as 10% of Amman’s gas needs.

Libya’s Faregh Field Development Phase 2 to Boost Production - PETROLEUM AFRICA

Saturday, October 26, 2019

The Faregh field development Phase 2 is to boost daily production capacity to a quarter-billion cubic feet of gas and 15,000 barrels of condensates

In an important step toward achieving the production targets of the National Oil Corporation (NOC), Waha Oil Company (WOC) announced the beginning of operating tests of the Phase 2 of the Faregh field development project, starting on Wednesday, October 23, 2019 to pump gas to the Intisar 103 field. At a later date, gas will be shipped to the coastal network, to which the field is connected. This step is a significant achievement of NOC and WOC to serve Libyans and the national economy.

Faregh’s gas will be used to increase the efficiency of crude oil production at the Intisar 103 field and could supply the power plants in the Eastern Region, replacing subsidized liquid fuel, a measure that is both cost-saving and environmentally friendly. The project will also increase gas supply to methanol plants and the Libyan Norwegian Fertilizer Company (LifeCo) in Marsa El Brega.

NOC is awaiting the General Company for Gas Transmission & Distribution’s completion of gas pipeline installations to connect the Faregh field with the Sarir power plant, carried out in collaboration with Petrojet, an Egyptian company.

Eni purchases 70% stake in Habi offshore gas concession - OILFIELD TECHNOLOGY

Friday, 25 October 2019 12:00

As reported by Reuters, Eni has bought 70% of Edison’s stake in Block 12 of the offshore Habi gas concession in Egypt’s eastern Mediterranean, an official at state-owned Egyptian gas company EGAS said yesterday.

Edison won Block 12 in a bidding round run by EGAS in 2015.

From North Sea to Eastern Mediterranean: Collaborating to Maximize the Potential of Hydrocarbon Resources - INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS (IOGP)

24 October 2019

The International Association of Oil & Gas Producers (IOGP), the Cyprus Hydrocarbons Company (CHC), and Member of the European Parliament Costas Mavrides (CY, S&D), under the patronage of the President of Cyprus Nicos Anastasiades and the Ministry of Energy, Commerce and Industry of Cyprus, are pleased to invite you to the Conference “From North Sea to Eastern Mediterranean: Collaborating to Maximize the Potential of Hydrocarbon Resources”.

The aim of the conference is to bring together European National Oil & Gas Associations (NOIAs) and industry experts with policymakers and operators in the Eastern Mediterranean, to share success stories, challenges, and discuss how the right policy framework can help maximize the potential of the region’s oil and gas resources. Panelists will also discuss best practices in Safety, Environmental Permitting and Design Notification.

Cyprus is at the heart of a region experiencing an exciting growth story for producers of natural gas, following significant discoveries in the Eastern Mediterranean waters in recent years. New exploration and production in Cyprus and in the wider region offers strategic benefits – including for climate, energy security and industrial competitiveness – not just in the region but in the EU as a whole.

Egypt exported 172.8 bncf of natgas in FY 2018-2019 via 45 cargos from Idku - ENTERPRISE

Tuesday, 22 October 2019

Egypt exported 45 cargos of natural gas carrying a total of 172.8 bcf from the Idku liquefaction plant in FY2018-2019, according to the Egyptian Natural Gas Holding Company (EGAS). 

Egypt had hoped that returning Idku to full capacity would see exports increase to 1.13 bcf/d, but EGAS canceled several LNG tenders from the facility due to low bids and growing domestic demand. 

Idku’s natural gas exports fell by 80% between August and mid-October.

Shell Egypt to sell assets in Western Desert - REUTERS

October 20, 2019 / 1:55 PM

CAIRO, Oct 20 (Reuters) - Royal Dutch Shell plans to sell its onshore upstream assets in Egypt’s Western Desert to focus on expanding its Egyptian offshore gas exploration, Shell Egypt said on Sunday.

Having won three oil and two gas concessions in Egypt last February, senior executive last week told Reuters that the company would start operating the new areas in the second half of next year.

“We remain committed to Egypt and see our future in supporting the government’s energy hub vision by growing Shell positions across the offshore and LNG value chain,” Wael Sawan, Shell upstream director, said in a statement.

Zohr natgas output to surpass 3 bcf/d this month - ENTERPRISE

Wednesday, 16 October 2019

Zohr natgas production to exceed 3 bcf/d this month: Production from the 13 wells at the giant Zohr natural gas field is expected to surpass 3 bcf/d by the end of October, up from 2.7 bcf/d in August, Eni IEOC JV boss Luca De Caro said on the sidelines of the Mediterranean Offshore Conference in Alexandria, the Oil Ministry said in a statement. Eni originally estimated that production would peak at 2.7 bcf/d, but the ministry said earlier this year that output would rise above 3 bcf/d in 2019.

More wells on the horizon: Eni plans to drill 11 exploration wells in the Nile Delta, Western Desert and the Gulf of Suez regions this year and nine other wells in the coming year, De Caro said. Eni has also been producing 1.2 bcf/d of natural gas from its Nooros gas field since the end of 2017 when the two phases of the project were completed. High profile representatives from BP, Wintershall DEA, Shell and Edison also attended the conference, which kicked off yesterday.

Gas has a future but must cut costs, Cyprus could see delay amid EEZ furore - CYPRUS MAIL

October 13, 2019

Dr Charles Ellinas

DURING this week I participated in three important conferences in London, which covered global gas and LNG developments and markets, including developments around the East Med. The key conference was Oil & Money, addressed by the CEOs of Shell, BP, Total, Saudi Aramco, ADNOC, Qatar Petroleum and the Secretary-General of OPEC.

Bob Dudley, CEO BP, summed up the challenges and opportunities facing natural gas. He said that gas can play a vital role in the transition towards cleaner energy, helping to meet energy demand, but it will need to be decarbonised. However, he also warned that “one of my concerns is that gas is being increasingly marginalised, even vilified, and demonized.”

While gas is cleaner than oil and coal, it is still a fossil fuel and is coming under attack from environmentalists who are calling for a rapid shift to renewable energy to prevent global warming. If the oil and gas industry does not propose and support solutions to climate change, the climate activists will dictate the policies of the future.

ADES Teaming with Vantage Secures Second Deepwater Drilling Campaign in Egypt - ADES INTERNATIONAL HOLDING

London & Dubai, 11 October 2019

ADES International Holding PLC ("ADES" or the "Company"), a leading oil & gas drilling and production services provider in the Middle East and North Africa (MENA), is pleased to announce that it has entered, through its subsidiary ADES S.A.E., into a second deepwater drilling campaign with a top tier international oil company, for deepwater drilling services in the Egyptian Mediterranean area. The service will be provided using Vantage's Tungsten Explorer and covers one firm well, "Nigma 1", with the contract estimated to last 73 days.

The services will be subcontracted to ADVantage, a JV between ADES and Vantage Drilling International, leveraging ADES's pre-qualification for operations in the Mediterranean basin. ADVantage utilises ADES's experienced local workforce and Vantage's Tungsten Explorer drillship while combining the companies' extensive deepwater drilling experience.

The contract will operate on a profit-sharing basis, enabling ADES to generate additional revenue without incurring the significant capital expenditures normally associated with deepwater drilling.

Egypt reduces natural gas production amid lower demand - ENTERPRISE

Thursday, 10 October 2019

The Oil Ministry has reduced Egypt’s natural gas production to 6 bcf/d, from 7 bcf/d after lower domestic and international demand resulted in surplus production, an unnamed ministry source told the local press. 

It is expected that the production will gradually rise back to 7.5 bcf/d in this fiscal year.

Turkey’s Mediterranean Gas Plans Draw Fresh Criticism in Egypt - BLOOMBERG

October 8, 2019, 6:02 PM GMT+3Tarek El-Tablawy

Egypt, Cyprus and Greece on Tuesday renewed their condemnation of Turkey’s plans for oil and gas drilling in the eastern Mediterranean, with President Abdel-Fattah El-Sisi saying the move threatens to “destabilize the region.”

The Egyptian leader, speaking at a joint news conference with his Cypriot counterpart and Greece’s prime minister, said such “unilateral” plans could escalate regional tensions.

Cyprus has said Turkey’s exploration plans in the south of the divided island are illegal and a violation of its sovereign rights. Cyprus has an agreement with Total SA and Eni SpA for oil and natural gas exploration rights in Block 7 -- the area where Turkey wants to drill.

The meeting of the three leaders was the latest in a broader push by their countries to boost energy ties in the eastern Mediterranean.

Production at Shell’s Rashid and Burullus fields rises to 290 mcf/d in September - ENTERPRISE

Wednesday, 9 October 2019

Royal Dutch Shell’s natural gas output from the Rashid and West Nile Delta Burullus fields increased to 290 mcf/d in September from 220 mcf/d the previous month, an EGAS source told the local press. 

The company recently linked 80 mcf/d from a newly-developed well to the natural gas grid, offsetting the field’s natural depreciation. 

Shell aims to raise production to 320 mcf/d by the end of the fiscal year, the source said.

United Oil & Gas’ acquisition of Rockhopper Egypt on track to close by 4Q2019 - ENTERPRISE

Tuesday, 8 October 2019

United Oil & Gas’ acquisition of Rockhopper Egypt “progressing well”: Rockhopper Exploration’s sale of its Egypt business to Irish energy company United Oil & Gas is on track to be completed by the end of 4Q2019, Rockhopper said in a statement yesterday. Rockhopper and United had signed a USD 16 mn share purchase agreement in July, which would see the Irish company acquire a non-operating 22% interest in the onshore Abu Sennan oil concession, among other assets. The agreement “will be satisfied” once United makes a cash payment of at least USD 11 mn. BP had previously agreed to provide USD 8 mn to partially fund the acquisition after it entered an offtake agreement for United’s future oil and gas production.

Redrawing Europe's energy map will fuel multifaceted benefits for Israel's future - JERUSALEM POST

OCTOBER 5, 2019 19:17 JESSE BOGNER 

As the recent drone attacks on Saudi oil facilities as well as ongoing US-Iran tensions threaten the stability of energy markets worldwide, the opposite trend is taking hold in Israel, a nation that has long grappled with the challenges of being surrounded by hostile oil-rich neighbors.

The once-unthinkable notion of Israeli gas exports to Egypt is on the verge of becoming a reality following an agreement reached this month that enables the East Mediterranean Gas Company to operate Europe Asia Pipeline Co.’s coastal terminal in Ashkelon. At the same time, the $7 billion Israeli-Greek-Cypriot EastMed pipeline has the potential to forge Israel’s presence as an energy provider to Europe.

Yet a different pipeline project which is rarely mentioned in the same breath as Israel carries a dual promise – propping up the Israeli economy while bolstering the Jewish state’s long-term security, with or without Israel’s direct participation in the initiative.

Though Israel has yet to sign onto the project, the Azerbaijan-led Southern Gas Corridor (SGC) should be squarely on the nation’s radar as it looks to expand its influence economically. SGC’s scope is staggering. Spanning 2,200 miles (3,540 km.) across seven countries and connecting three linked pipelines, the $41.5b. project will reshape the geopolitical landscape of European energy consumption.

Announcement by the Presidency of the Republic of Cyprus on the illegal activities of Turkey within Cyprus’ Exclusive Economic Zone - REPUBLIC OF CYPRUS

04-10-2019 08:45

The Government of the Republic of Cyprus strongly condemns Turkey’s new attempt to illegally conduct drilling operations in the south-west of the island, within Cyprus’ Exclusive Economic Zone (EEZ) and continental shelf. The new planned drilling, this time round in a duly licensed block, constitutes a further severe escalation of Turkey’s continued violations of the sovereign rights of the Republic of Cyprus under the UN Convention on the Law of the Sea as well as customary International Law.

In flagrant violation of international law, Turkey has chosen to conduct a drilling operation within offshore exploration Block 7, which was licensed by the Government of Cyprus to European companies, and lies within the EEZ/continental shelf of Cyprus, already delimited, in accordance with international law, between the relevant opposite coastal states, namely the Republic of Cyprus and the Arab Republic of Egypt, by means of the 2003 EEZ Delimitation Agreement. The hydrocarbons exploration and/or exploitation of the exploration Block 7 is an exclusive sovereign right of Cyprus and does not affect the rights of any third state, including Turkey.

Israel to boost gas supply to Egypt by 34% after changes to landmark agreement - ENTERPRISE

Thursday, 3 October 2019

Israel to boost gas supply to Egypt: Dolphinus Holdings and the operators of Israel’s offshore natural gas fields Delek Drilling and Noble Energy have agreed to increase the supply of natural gas to Egypt by 34% to 85.3 bn cubic meters (bcm) under amendments to the landmark 2018 agreement, both Bloomberg and Reuters reported, citing an Israeli bourse statement.

What’s new? The value of the agreement is now USD 19.5 bn, up from USD 15 bn when the parties signed the original pact in February 2018. Exports from the Leviathan field will double to 60 bcm over 15 years and shipments from the Tamar field will fall to 25.3 bcm from 32 bcm. Gas shipments will begin flowing on 1 January 2020, through to 2034. The first three years will see a total of 2.1 bcm sold annually, before growing to 6.7 bcm a year after that. Oil Minister Tarek El Molla previously said the first shipment is on track to arrive by the end of the year.

Israel to increase natural gas exports to Egypt, companies say - REUTERS

OCTOBER 2, 2019 / 9:47 AM

Reporting by Tova Cohen and Ari Rabinovitch

(Reuters) - Israel will significantly increase the amount of natural gas it plans to export to Egypt under a landmark deal, energy companies in Israel said on Wednesday.

Partners in Israel’s Leviathan and Tamar offshore gas fields signed a deal last year to sell $15 billion worth of gas to a customer in Egypt in what Israeli officials called it the most significant deal to emerge since the neighbors made peace in 1979.

Under the amended agreement, the companies said the amount to be sold from the Leviathan field will nearly double to 60 billion cubic meters (bcm) of gas over 15 years. Exports from the nearby Tamar field will be reduced to 25.3 bcm from 32 bcm over the same period.

One source in the Israeli energy industry estimated the value of gas to be exported was now $19.5 billion — $14 billion coming from Leviathan and $5.5 billion from Tamar.

Texas-based Noble Energy, Israel’s Delek Drilling and Ratio Oil own Leviathan. Noble, Delek Drilling, Isramco and Tamar Petroleum are leading partners in the Tamar field.

Israel Electric set to sign new Tamar gas deal - GLOBES

23 Sep, 2019 18:26
Amiram Barkat

The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months.

Israel Electric Corporation (IEC) is close to signing a new agreement with the owners of rights in the Tamar natural gas reservoir. The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months, after which the agreement with IEC will be renegotiated. In effect, the agreement renews the competition between the Tamar and Leviathan reservoirs, because it enables IEC to buy gas from Tamar at a lower price than it obtained from Leviathan. The agreement is also an achievement for the Public Utilities Authority (Electricity), because it improves the terms in comparison with the previous agreement between IEC and Tamar, which the Public Utilities Authority refused to approve.

Leviathan won out over Tamar in a tender published by IEC for the purchase of variable quantities of gas beyond the minimum that it is obligated to buy from Tamar. The holders of rights in the two reservoirs offer the same price - $4.79 per BTU, but IEC management preferred Leviathan to Tamar.

EGAS cancels third consecutive LNG tender - ENTERPRISE

Sunday, 29 September 2019

EGAS has canceled an LNG tender for six cargoes from the Idku gas liquefaction plant for loading between 5 October and 1 November, three market sources told Reuters without providing a reason. 

This is the third consecutive tender cancelled by the company. 

The tender canceled last month was due to low bids, sources told the newswire.

TANAP delivers 2.39 billion cubic meters of gas to Turkey as of August - DAILY SABAH

27.09.2019 
BARIŞ ERGIN

The amount of gas the Trans-Anatolian Natural Gas Pipeline (TANAP) has carried to Turkey has reached 2.39 billion cubic meters as of August, TANAP General Manager Saltuk Düzyol said.

"A total of 30%, corresponding to $450 million, of the revenue of $1.45 billion that will be generated when the total transmission capacity is reached, will belong to BOTAŞ [Turkish Petroleum Pipeline Corporation] every year. We predict that TANAP will reach a full transmission capacity of 16 billion cubic meters in two to three years," Düzyol told a group of journalists in Ankara yesterday.

The 1,850-kilometer TANAP forms the backbone of the Southern Gas Corridor, a project to increase and diversify European energy supply by bringing gas resources from the Caspian Sea: Shah Deniz 2 gas from Azerbaijan to Turkey and through Turkey to Europe markets.

Tamar partners in talks to amend Israel Electric gas deal - REUTERS

SEPTEMBER 24, 2019 / 3:05 PM

JERUSALEM (Reuters) - A number of partners in the Tamar natural gas field off Israel’s coast have offered utility Israel Electric (IEC) [ISECO.UL] a discount on a new gas supply deal.

The offer came from three of the six members of the group — Tamar Petroleum (TMRP.TA), Isramco Negev (ISRAp.TA) and Dor Gas Exploration, which own some 49% of the project, Tamar said in a regulatory statement in Tel Aviv.

Earlier this year, state-run IEC signed a gas supply deal with the Leviathan field, which is also off Israel’s Mediterranean coast and set to begin production later this year.

Tamar said it would give a total discount of $70 million.

Any changes to the deal would require approval by all the Tamar partners, including Noble Energy (NBL.N), Delek Drilling (DEDRp.TA) and Everest Infrastructure. Noble and Delek are also partners in Leviathan.

IEC declined to comment.

Numbers about natural gas activities in Egypt - EGYPT TODAY

Tue, Sep. 24, 2019

CAIRO – 24 September 2019: Egypt has put a number of gas fields on the map of production during the last period, which was reflected on the rates of gas production in September to hit 7.2 billion cubic feet per day.

The following are the most important figures that drew the map of natural gas activity in the last period:

1. Launching an international tender for oil and gas exploration in 10 sectors in the Red sea.
2. Signing Noor Marine Agreement, with investments of research and exploration amounting to about $85 million.
3. The value of investments in the field of research, development and operation of natural gas activity reached about $3.7 billion during 2018/2019.
4. Egypt's natural gas production has risen to unprecedented rates.

EGAS Offers Six LNG Cargoes from Idku Plant - ENTERPRISE

Sunday, 22nd September 2019

Egyptian Natural Gas Holding Company (EGAS) has offered six Liquefied Natural Gas (LNG) loading cargoes from the Idku plant during the period between October to November 2019, Reuters quoted two industry sources saying.

The cargoes are offered on the basis of a Free-On-Board (FOB) for loading between October 5th, 2019 and November 1st, 2019.

EGAS was founded in Egypt in 2001, as an entity mandated to focus on the natural gas activities to organize and handle the activities of the natural gas resources of Egypt to add value to the Egyptian economy.

EGAS to sign 7 new gas exploration agreements with int’l companies in 4Q2019 - ENTERPRISE

Sunday, 22 September 2019

State-owned EGAS expects to sign seven new gas exploration agreements with international companies worth at least USD 712 mn during 4Q2019, Chairman Osama El Bakly said, according to a ministry statement. 

Companies will drill 23 exploratory wells under the terms of the agreement, he said, without naming the concessions or companies involved. 

El Bakly also said that Egypt’s natural gas production hit a record 7.2 bcf/d in September, up from 7 bcf/d at the end of June.

"Energean Power" FPSO hull construction, a 10-month journey in 90 seconds! - ENERGEAN OIL & GAS

Sep 20, 2019

The "Energean Power" FPSO floated out from the COSCO's shipyards, in Zhoushan, China in mid - September. An important milestone for the development of gas discoveries in the East Mediterranean, achieved also with a great HSE record: under TechnipFMC project management, more than 3 million man hours  with no Lost Time Injuries have been completed! See you soon at the Sembcorp Marine Admiralty Yard in Singapore!

Egyptian LNG to return to full operation - PETROLEUM ECONOMIST

Houston, 20 September 2019

Peter Ramsay

The 7.2mn t/yr Egyptian LNG (ELNG) facility will return to 100pc of nameplate capacity next month, the firm’s senior optimisation manager Tamer Abdelsalam told the Gastech conference in Houston. It is currently operating at 90pc capacity.

Full output is a far cry from the dark days of mid-2013 to mid-2019, when the volume of feed gas reaching the plant hovered at 13-15pc of design capacity. During that period, ELNG produced just 31mn m³ of LNG and exported 21 cargoes, bring in only $354mn in revenues, says Abdelsalam.

The return of ELNG, located at Idku, to full capacity may not, though, be followed swiftly by a full restart of Egypt’s other export terminal at Damietta. “That is for the government,” says Adelsalam. “They are taking the lead in negotiations around Damietta.”

If Egypt Won’t Buy Israel’s Gas, Maybe Israeli Consumers Will - HAARETZ

Sep 19, 2019 5:03 AM
Ora Coren

If Israel is having trouble selling its natural gas overseas, maybe it will have better luck selling it to Israeli consumers.

That’s the reasoning behind a pilot project to hook up 15 new residential neighborhoods to the national gas pipeline network. Instead of having gas cylinders delivered by truck, homes would be connected by pipeline and gas could then be used for more things than cooking and heating.

The Energy Ministry, which is behind the project, faces a lot of skepticism from the local industry about the economic viability to households using more gas. The pilot, which will include subsidiaries to the tune of 80 million shekels ($22.7 million), aims to prove them wrong.

“There’s a lot of uncertainty about it, so the government is acting wisely and before it jumps into the deep waters of regulations it is examining for itself and for the gas distribution companies whether they can provide the service,” said one source involved in the project.

Ganope Discovers Three Oil Wells in FY 2019/20 - EGYPT OIL & GAS

Thursday, 19th September 2019

Ganoub El Wadi Petroleum Holding Company (Ganope) achieved three new oil discoveries at its oil fields, two of which were brought online at the oil fields of Eish AL Mallaha and Petro Mallaha during Fiscal Year (FY) 2019/20, a press release by the Ministry of Petroleum and Mineral Resources pointed out.

The three wells are being evaluated with investments reaching $20 million. The PGC had completed drilling the first well at the end of August. Still under evaluation, the third one, located at the Suez Gulf area and operated by Petrogulf Corporation (PGC) is the biggest of all.

Such statements came during a meeting between the Ganope Head Mohamed Abdel Azzim and Minister of Petroleum and Mineral Resources, Tarek El Molla, in the attendance of Aswan governor, Ahmad Ibrahim.

El Molla confirmed during the meeting that the coming period will witness an intensive activity in the research, Exploration and Production (E&P) in the Red Sea after International Oil Companies (IOCs) offers had been submitted and evaluated. This will be the first global bid for research and exploration for oil and gas in this region, which opens new horizons to attract more investments and achieve new discoveries.

Eni, Total join for another gas search license off Cyprus - THE WASHINGTON POST / ASSOCIATED PRESS

September 18 at 8:53 AM

NICOSIA, Cyprus — Energy companies Total of France and Italy’s Eni have teamed up to expand their search for natural gas off southern coast, signing a licensing agreement Wednesday.

Cypriot Energy Minister Georgios Lakkotrypis said the companies will have an equal share in a new block into which a gas deposit that Eni discovered in an adjacent block last year is believed to extend.

Lakkotrypis said Total also gains a 20-40% share in four of Eni’s concessions inside Cyprus’ exclusive economic zone. Korea’s Kogas is also a partner with a 20% share in three of the four concessions.

With Wednesday’s signing, Eni and Total now hold exploration licenses for seven of Cyprus’ 13 blocks. ExxonMobil and a partnership between Texas-based Noble Energy, Dutch Shell and Israeli Delek hold licenses for one block each.

The two companies are expected to drill six wells in their blocks over the next two years.

NEPCO signs gas supply agreements - THE JORDAN TIMES

Sep 17,2019

AMMAN — The National Electric Power Company (NEPCO) and the Jordanian-Egyptian FAJR for Natural Gas Transmission and Supply Company on Tuesday signed two agreements with two companies to provide them with natural gas.

The first agreement stipulates providing the Jordan Phosphate Mines Company (JPMC) with a daily supply of four million cubic feet of natural gas, while the other deal is an amendment to a gas provision agreement with the Nuqul Group, according to a statement by the Ministry of Energy.

Energy Minister Hala Zawati said that the ministry effortlessly work to reduce the costs of energy bills through encouraging local industries to shift to natural gas, as part of the government’s endeavours to help these industries reduce operational costs and increase their competitiveness in the local and international markets.

Zawati said that using natural gas will contribute to lowering the energy costs in factories by 25 to 55 per cent, depending on the type of the fuel replaced with the natural gas.

Ambassador Pyatt’s Remarks at ELIAMEP - U.S. EMBASSY IN ATHENS

September 16, 2019

Ambassador Pyatt: I will try to mirror my Cyprus counterpart and be brief so we have time for discussion.

Let me start by commending Thanos, ELIAMEP and Claudia and DEREE for putting this event together. This is a really important set of issues and I’m delighted to be able to have this prestigious audience, to have Ambassador Theodorou here, and also to have my new Israeli counterpart whom I look forward very much to working with in the months and years ahead.

I would also note, we’re meeting at a particularly busy time for the American Embassy in Greece. We had Secretary of Commerce Wilbur Ross here two weeks ago for a visit that highlighted the United States’ enthusiasm for the changes that are happening under the new Greek government and the investment and economic opportunities, the green light which we see in the decisions that are coming from Prime Minister Mitsotakis and his team.

Sinai Security Fears Snare Israel's Gas Exports to Egypt - HAARETZ

Tamar Petroleum's IPO back in July 2017 

Sep 16, 2019 3:13 AM

Eran Azran

• Egypt says Israeli gas exports on track but cites low figures
• Israel to begin gas exports to Egypt within months, energy minister says
• Egypt praised for economic reforms, but millions of Egyptians barely survive

Investor anxieties over the Tamar natural gas field have deepened in recent days amid security concerns about the pipeline designated to deliver Israeli gas to Egypt.

The Wall Street Journal reported Thursday that delays in completing a key agreement to facilitate the exports were due to the tense security situation in Egypt’s Sinai Peninsula.

“There’s some infrastructure that needs to be repaired in that area. That’s part of the holdup for shipping the gas,” the paper quoted U.S. Deputy Energy Secretary Dan Brouillette as saying. “No one wants to send individuals into harm’s way.”

Challenges to Israel’s gas exports - CYPRUS MAIL

September 15, 2019
Charles Ellinas

Since discovery of natural gas in its exclusive economic zone Israel has been dreaming of exports, riches and political influence. Massive political capital has been expended in this direction, but so far without results, apart from small exports to Jordan, and possibly Egypt, but not to global markets.

The giant gas-field Leviathan is expected to come on-stream by end-2019, with as much as 9-10 billion cubic metres/yr (bcm/yr) surplus gas available for export. Noble Energy and its partners have been considering all options to secure international buyers for this, but unsuccessfully.

The main challenge is commercial. Gas prices are low globally and even though they may rise after 2025, they are still expected to be at levels that challenge exports of gas from the East Med. For example, gas prices in Europe are currently just over $3/mmbtu (per about 1000 cubic feet) and are forecast to average $6-$6.50/mmbtu between 2020-2030. Political will is not sufficient to overcome price limitations, despite all the hype, either in Israel or in Cyprus.

East Med gas is mostly in deep water and deep reservoirs. This makes it expensive to develop. The lack of regional infrastructure also impacts the cost of exporting such gas.