Is Turkey the market for East Med gas? - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 02/07/2016

Last December, soon after the downing of the Russian jet, a flurry of diplomatic activity started that has now produced a positive result enabling Israel and Turkey to resume diplomatic relations. A key factor in this is the potential for Israel to supply Turkey with gas.

In a parallel, but related, development Turkey’s President Recep Tayyip Erdogan sent a letter of apology to Russia’s President Vladimir Putin for the shooting-down of the Russian jet, opening the way for rapprochement between the two countries. This too has energy implications.

Only a pipe dream - IN CYPRUS / CYPRUS WEEKLY

Annie Charalambous — 02/07/2016

Nicosia is not worried over speculation that a possible future pipeline transferring gas from Israel to Turkey could pass through Cyprus waters even without its consent.

“No, we are not concerned, this is not going to happen, we have the assurance of Israel and we also have legislation protecting Cyprus from such a possibility,” an insider told the Cyprus Weekly Thursday.

“UN provisions also give protection to Cyprus and let’s not forget that no serious energy company will go ahead with such an ambitious, incredibly costly project with legal inevitabilities pending.”

Nonetheless, analysts said this week that even though Israel has given assurances to Cyprus that rapprochement with Turkey will not affect Nicosia adversely; the pipeline project may be unstoppable.

Israeli gas may reach Turkey in three years, Israeli energy minister says - HURRIYET DAILY NEWS

July/01/2016
Merve Erdil - ISTANBUL

As Turkey and Israel move to restore their relationship after six years of strained ties, both sides are looking forward to the opportunity to transfer Israel’s natural gas to Turkey, a move which could happen as early as 2019, according to Israeli Energy and Natural Resources Minister Yuval Steinitz.

“I think that it is quite likely that Israel will export natural gas to Turkey. And maybe also in the future we will export natural gas to Europe through the Turkish gas transmission system that is now under construction. I think it is good for Turkey. It is good for Israel,” Steinitz told daily Hürriyet over the phone on June 29.

Turkey and Israel reached an agreement earlier this week that will allow the two countries to restore full diplomatic relations, which broke off in 2010 after Israeli forces raided a convoy of aid ships attempting to break the blockade of Gaza, killing nine Turkish activists.

Egypt may return to gas exports after super-giant Zohr discovery - WORLD OIL

Credit: McKinsey Energy Insights

By ANNA SHIRYAEVSKAYA on 6/30/2016

LONDON (Bloomberg) -- Egypt may resume natural gas exports thanks to major discoveries off its shores, according to Snam SpA, Europe’s biggest gas infrastructure company.

The findings are “very significant for North Africa” and especially Egypt, the most populous Arab nation, where demand for gas is rising for electricity generation, said Marco Alvera, the CEO of Milan-based Snam. Italian oil company Eni SpA called the super-giant Zohr field it discovered last year the largest in the Mediterranean. Eni and BP also made a “significant” find this year in the Nile Delta.

“Certainly Zohr is a game changer,” Alvera said in an interview at Bloomberg’s offices in London. “It allows Egypt to fulfill all its needs, which are great and significant,” as well as resume exports, he said.

Turkey starts repairing relations with Moscow - NATURAL GAS EUROPE

June 29th, 2016

A letter from Turkey's president, Recep Tayyip Erdogan, to his Russian counterpart Vladimir Putin, may help to restore relations between the two countries. They have been frosty since last November, after the Turkish air force shot down a Russian jet over Turkey's borders, killing the pilot.

The contents of the letter have not been made clear but the Turkish presidency stopped short of apologising – a key condition for ending hostilities – according to Erdogan's spokesman, Ibrahim Kalin. However, he said there was a sentence expressing sympathy for the relatives of Russian pilot.

From the other side, Putin's spokesman Dmitri Peskov reportedly said June 28 that Erdogan spoke of his deep regret for what happened and said he wanted to restore relations.

Egypt seeks third FSRU - NATURAL GAS AFRICA

June 29th, 2016

Egypt is reported to have launched a tender for a third floating LNG import terminal to meet anticipated growth in demand from power plants.

Daily News Egypt on June 26 quoted the petroleum minister, Tarek El-Molla, saying that a tender for the charter of a third floating storage and regasification unit (FSRU) would be issued this week; he told the news service that the vessel would have a regasification capacity of 750mn ft³/d.

Reuters on June 29 reported that the tender was launched June 28, with offers from companies due within two weeks, citing an official from state-run gas company Egas. NGA was unable to get confirmation direct from Egas or shipowners.

Gas execs see Israel-Turkey gas deal by 2017 - GLOBES

28/06/2016, 06:54
Hedy Cohen

Experts believe Jerusalem will export 8-10 BCM to Turkey annually by 2020; official negotiations will begin soon.

The rapprochement agreement between Israel and Turkey presented Monday – and expected to be signed Tuesday – will also likely lead to the signing of a gas export deal by the end of next year, according to executives in the Leviathan partnership. The partners revealed they have opened talks with a consortium of 15 Turkish energy companies which expressed interest in half of the available reservoir.

The gas could also flow on from Turkey to Europe – which no longer wishes to rely on Russian gas. Both Israeli and Turkish sources believe Europe will import 8-10 BCM annually starting in 2020.

Concerns over impact of Turkish-Israeli deal on Cyprus - CYPRUS MAIL

Israeli Prime Minister Benjamin Netanyahu and President Nicos
Anastasiades during the Israeli leader's visit in July 2015

JUNE 28TH, 2016 
ELIAS HAZOU

The normalisation of Turkish-Israeli political and diplomatic ties, possibly paving the way for lucrative Mediterranean gas deals, could impact Cyprus, although in what way is not yet clear, an energy analyst has told the Cyprus Mail.

In one way it could prompt Turkey to aid a settlement to the Cyprus issue. On the other hand, both countries could sideline Cyprus altogether.

Egypt to develop 5 new Oil and Gas fields from Q3 of 2017 to 2019 - ECOFIN AGENCY

Monday, 27 June 2016 - 07:32

(Ecofin Agency) - The Government of Egypt has put measures in place to commence the development of five new oil and gas fields from Q3 of 2017 till 2019.

The five fields are Taurus, Libra, Giza, Fayoum, and Raven, an official source revealed.

According to this source, the Q3 of 2017 will also see BP restarting all the production and developmental activities in the North Alexandria oil field, which has been stagnant since 2011 as a result of Egypt’s political and economic situations.

Zorlu Enerji, Turcas Petrol shares jump following Turkey, Israel signing deal - DAILY SABAH

Zorlu Group’s third energy facility in Israel is the 120-megawatt
Ramat Negev natural gas power plant (start.ops on Dec 31, 2015)

June 27, 2016

Following an agreement signed over the weekend between Turkey and Israel regarding the normalization of bilateral relations, the shares of Zorlu Enerji, carrying out business operations in Israel, and Turcas Petrol, interested in purchasing natural gas from Israel, saw considerable rises on Borsa Istanbul, increasing by 11.9 percent to TL 1.91 ($0.65) per share and by 2.11 percent to TL 1.45 per share, respectively.

Turkish and Israeli delegations met in Rome over the weekend to finalize the reconciliation deal between the two countries, and after six years of diplomatic struggle, Ankara succeeded in receiving an apology from Israeli Prime Minister Benjamin Netanyahu, compensation for the Mavi Marmara raid victims and the lifting of the Gaza blockade. As Turkey-Israel relations were officially normalized with this agreement, investors set their eyes on Zorlu Enerji and Turcas Petrol, both of which have business ties in Israel.

Ministry of Petroleum negotiates supply of 12 LNG shipments with foreign companies - DAILY NEWS EGYPT

Two additional shipments will be imported monthly during H2 of 2016, says El Molla.

Mohamed Adel, 27-6-2016

The Ministry of Petroleum and Mineral Resources is negotiating with foreign companies to cover the domestic market’s fuel needs. The ministry previously signed contracts with these companies to import 12 additional shipments of liquefied natural gas (LNG) in July by the end of 2016.

Minister of Petroleum and Mineral Resources Tarek El Molla told Daily News Egypt that they are negotiating with the companies to supply two additional shipments of LNG monthly during the second half of 2016.

Gazprom open for dialogue with Turkey on Turkish Stream gas pipeline project - TASS

Headquarters of Gazprom© AP Photo/Alexander Zemlianichenko

June 27, 18:56 UTC+3

Turkish President Recep Tayyip Erdogan has offered his apologies to Russian President Vladimir Putin for the death of the pilot of the downed Russian plane

MOSCOW, June 27. /TASS/. Russia’s top gas producer Gazprom is ready for a dialogue on a potential resumption of the Turkish Stream gas pipeline project, the company’s official representative Sergey Kupriyanov told TASS Monday.

"Gazprom is and has always been open for a dialogue on the Turkish Stream," he said when commenting reports on potential rebuilding of relations with Turkey.

Shell plans drilling of 33 wells in BAPETCO concessions in 2016/2017 - 4-TRADERS / ENERGY EGYPT

June 26, 2016

Dutch company Shell targets drilling 33 wells in its concession areas that are operated by Badr El Din Petroleum Company (BAPETCO) during the next fiscal year (FY).

The plan includes 19 wells to develop gas production, 10 wells to inject water into, and 4 wells to explore for gas.

A senior source in the petroleum sector told Daily News Egypt that Shell has reduced the number of wells to explore for gas in its concession areas to four wells in its plan for FY 2016/2017, compared to seven wells during the current FY 2015/2016.

Shell drilled 25 developmental wells, 7 exploratory wells in its concession areas through BAPETCO during the current FY, and tied the production upon completing the drilling process according to the approved plan, he explained.

Israel's Harel in talks with Noble to buy stake in Tamar gas field - REUTERS

Sun Jun 26, 2016 2:58am EDT

Israel's Harel Insurance Investments and Financial Services (HARL.TA) said on Sunday it is in talks to buy up to 4 percent in the Tamar natural gas field from Texas-based Noble Energy (NBL.N).

Tamar was discovered in the eastern Mediterranean in 2009 with reserves of 10 trillion cubic feet. It began production in 2013 and is now Israel's primary gas supply.

A final agreement has yet to be reached, Harel said in a statement to the Tel Aviv Stock Exchange, and any deal would require regulatory approval.

Noble was not commenting, said a spokeswoman in Israel.

Can natural gas pay for a solution? - IN CYPRUS / CYPRUS WEEKLY

25/06/2016

Cyprus gas funding a peace deal was a hot topic with statements and counter-statements by the President, the Foreign Minister and many others, such as:

Studies in progress to fund settlement from proceeds from natural gas Natural gas to contribute to the funding of the cost of settlement;

Cyprus FM says gas could partly fund reunification;

Government denies Foreign Minister statements on gas;

President: We will not use natural gas to pay others’ obligations;

President: A minor part from the natural gas proceeds could be used to fund the solution, The President confirms in all respects that the Foreign Minister statements are in-line with government thinking;

Israeli Natural Gas Industry – Where do we go now? - OILFIELD TECHNOLOGY

Partners Shiri Shaham and Simon Weintraub at Israeli law firm Yigal Arnon & Co. explore the natural gas industry in Israel.

After years of deliberations, negotiations and amendments, the Israeli government recently adopted its final framework for the regulation of the burgeoning natural gas sector. This exciting development is a reflection of the country’s vibrant democracy, strong rule of law, and climate of regulatory certainty; it will hopefully foster geopolitical stability in the eastern Mediterranean basin, and will potentially promote economic co-development projects and unprecedented investment opportunities in the region.

Lebanon Gets Seismic As Israel Prepares To Develop Massive Gas Field - OILPRICE.com

By Charles Kennedy - Jun 24, 2016, 12:41 PM CDT

Seismic surveys now show that Lebanon’s portion of the prolific Levant Basin is showing promising oil and gas reserves, as the country lags far behind Israel in tapping into this Mediterranean hydrocarbon wealth.

After years of delay, Lebanon’s petroleum authority has finally obtained seismic surveys—tasked as far back as 2002—showing that oil reservoirs in the southern region, particularly in Blocks 8 and 9, could have significant potential.

East Med project feasible, IGI Poseidon chief tells conference - ENERGY PRESS

23/06/2016

Elio Ruggeri, CEO of IGI Poseidon, has stressed the importance for southeast Europe of the East Med pipeline, a project to link Greece with major natural gas deposits in Cypriot and Israeli territorial waters, in a speech delivered at an Economist conference in Athens.

Ruggeri noted that the IGI Poseidon consortium is contributing to the effort to develop a natural gas corridor of multiple uses in the wider region, which will include Russian gas, the most important aspect.

“We are making an effort with Gazprom and, by the end of the year, will know whether the idea will lead to some sort of initiative,” Ruggeri remarked.

Leviathan partnership authorises $120mn FEED - NATURAL GAS EUROPE

June 23rd, 2016

Leviathan partners have approved a $120mn front-end engineering and design contract for the development of the giant gas field offshore Israel. The three partners – Delek Group (45.3%), Noble Energy (39.7%) and Ratio (15%) – authorised Noble Energy, the operator, to start the Feed phase.

In a filing to the Tel Aviv Stock Exchange (TASE) the Israeli partners said that Noble Energy could sign contracts for "a detailed engineering plan" for the project. The engineering work will include the design of the gas treatment and production rig and other activities. The fixed rig will be 10 km off shore and will be connected to a second entry point to Israel in the north of the country.

Update with Regards to the Dolphin Natural Gas Field in the License 351/Hanna Area - DELEK GROUP

Tel Aviv, June 22, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY). Further to the filing of an application by the partners in License 351 / Hanna to the Petroleum Commissioner at the Ministry for National Infrastructures, Energy and Water to recognize the Dolphin natural gas reservoir in the area of the Hanna License as a discovery in the meaning of the Petroleum Law, 1952, and receipt of the lease in accordance with the provisions of the Petroleum Law, Delek Group’s gas subsidiaries announce that on June 20, 2016 the Commissioner informed that if the license partners provide by August 1, 2016 an irrevocable commitment to develop the Hanna license together with Phase 1 of the Leviathan field as well as a plan of the requested area to be declared as a discovery, the Hanna license partners will then be granted a lease during the four months following (namely by December 1, 2016), and this is in order for the development of this lease to be completed by the end of 2019.

Leviathan Field - Agreement to Receive Front End Engineering Design (FEED) for the Production Platform - DELEK GROUP

Tel Aviv, June 22, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) ("the Company") announces that attached is an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership ("the Partnerships") concerning an agreement to receive Front End Engineering Design (FEED) services for the Leviathan project production platform.

Pursuant to what was stated in the Partnerships' Annual Reports to December 31, 2015 ("the Annual Reports") concerning the updated development plan for the Leviathan field ("the Development Plan") in the Partnerships' Immediate Report dated May 22, 2016 concerning ratification of the Gas Outline Plan, as defined in the said report ('the Gas Outline Plan"), and to the Partnership's Immediate Report dated June 2, 2016 concerning the Commissioner's approval of the Development Plan, the Company announces that the Partnerships have authorized Noble Energy Mediterranean Ltd., the operator of the Leviathan project ("the Operator"), to enter into an agreement for a cumulative value of USD 120 million (for all the partners) to receive Front End Engineering Design (FEED) for the production platform ("the Platform"), as approved in the Development Plan. It should be noted that the Leviathan Partners are working to close other agreements for the purchase of equipment and/or services related to the Development Plan, as approved, and they expect to sign off on them in the near future.

Young ADIPEC announces partnership with Abu Dhabi Education Council - ENERGY EGYPT

June 22, 2016

• Community Outreach Programme Supports Government Efforts to Prepare Today’s Youth for New Energy Landscape.
• 450 Students from 18 Schools Across Abu Dhabi City, Al Ain, and the Western Region to Participate.

Young ADIPEC, the annual youth outreach initiative by the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), has announced it is partnering with the Abu Dhabi Education Council (ADEC) as part of government efforts to cultivate the next generation of home-grown energy professionals.

The first-time cooperation between the two entities will enable Young ADIPEC to relay a strong and powerful message to the wider school community: The future of the UAE’s energy sector depends on today’s educated and informed youth.

Baku eyes $30-50bn profit from Southern Corridor - NATURAL GAS EUROPE

June 21st, 2016 11:10am

Azerbaijan is hoping in the best case for profits in excess of $50bn from the Southern Gas Corridor (SGC). State oil company Socar told NGE June 20 that even the gloomiest outlook showed that Azerbaijan’s share in the profit of SGC would be at least $30bn over the 25 years' duration of the sales and purchase agreements.

SGC is a project consisting of the development of Shah Deniz gas field stage 2 (SD2), including the South Caucasus Pipeline Expansion (SCPX), as well as the Trans-Anatolian Natural Gas Pipeline (Tanap) and Trans Adriatic Pipeline (TAP).

Azerbaijan has 16.7% share in Shah Deniz project, 58% in Tanap and 20% in TAP. The total costs of the implementation of SGC is expected to reach $39.1bn, of which about $9bn would be invested by Azerbaijan. “In return, the country is expected to earn $30bn-$50bn from SGC, depending on oil prices and additional incomes from transiting the other suppliers’ gas through SGC,” Socar said.

Delek, Supergas win hospitals natural gas tender - GLOBES

21/06/2016, 19:07
Hedy Cohen

Conversion to natural gas will save Israel's 13 government hospitals NIS 60 million a year.
Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, and Supergas, controlled by Azrieli Group Ltd. (TASE: AZRG), have won a tender for converting government hospitals to natural gas, sources inform "Globes." The tender is for 11 general hospitals and two psychiatric hospitals. Together with Baran Group (TASE: BRAN; Nasdaq: BRANF), Delek will convert six hospitals, and together with Ludan Engineering Co. Ltd. (TASE: LUDN), Supergas will convert seven others. The companies will also be responsible for supplying natural gas to the hospitals for five years. The companies' bids were far lower than expected by the Ministry of Health.

Nostra Terra makes headway in Egypt - ENERGY VOICE

21/06/2016 5:42 am
Rita Brown

Nostra Terra today confirmed its subsidiary, Independent Resources Egypt (IRE), had been given the initial green light from Egyptian authorities.

IRE received security clearance and is now is formally registered with the Egyptian General Petroleum Corporation (EGPC).

Nostra Terra chief executive Matt Lofgran said: “We are very pleased that our 50 per cent. owned subsidiary IRE has taken the next step forward in establishing its operations in Egypt. As a company we remain excited by the potential for oil & gas in Egypt and look forward to updating the market on further developments.”

OneSubsea wins contract for Zohr development, offshore Egypt - WORLD OIL

6/20/2016

HOUSTON -- OneSubsea, a Schlumberger company, has been awarded an engineering, procurement and construction contract totaling more than $170 million from Belayim Petroleum Company (Petrobel). OneSubsea will supply the subsea production systems for the first stage of Zohr field, located in the Shorouk Concession, offshore Egypt.

“Zohr is one of the largest gas fields discovered in the Mediterranean Sea to date, and is also the world’s second longest step-out, a distance greater than 150 km. This step-out will be enabled by OneSubsea controls systems with fiber-optic communications technology,” said Mike Garding, president, OneSubsea. “Our supplier-led approach to the field development, coupled with our FasTrac program capability, and our integrated offering that includes flow assurance, subsea production system and landing string capabilities, will help Petrobel meet their first gas commitment.”

BP approves investment in Egypt gas field 15 months after discovery - REUTERS

A BP logo is reflected in a car window at a petrol station in
LondonJanuary 15, 2015 - REUTERS/LUKE MACGREGOR

British oil major BP has approved investment in the first phase of developing the large Atoll gas field offshore Egypt, only 15 months after it first announced its discovery.

BP, which declined to give an investment figure for the project, said the field was on track to deliver its first gas in the first half of 2018, set to pump 300 million cubic feet a day of gas to the Egyptian market.

BP decided in November to fast-track the development of Atoll, estimated to contain 1.5 trillion cubic feet of gas and 31 million barrels of condensates.

The company is in a tight race with other oil and gas explorers in the region to develop the Mediterranean's huge untapped fossil fuel reserves.

How gas could warm relations between Israel and Turkey - REUTERS

Mon Jun 20, 2016 6:03am EDT
JERUSALEM | BY LUKE BAKER

On the sidelines of a nuclear security summit in Washington in March, Turkish President Recep Tayyip Erdogan held a private meeting with Israel's energy minister, Yuval Steinitz. It was the highest level contact between Israel and Turkey since diplomatic relations broke down six years ago after Israeli forces raided a Turkish ship bound for Gaza, killing 10 Turkish activists.

The meeting, which lasted 20 to 30 minutes and whose details have not been previously disclosed, discussed the war in Syria, Iran's presence there, terrorism – and natural gas. That last item is a key driver of efforts to forge a rapprochement between Israel and Turkey: At stake are reserves of natural gas worth hundreds of billions of dollars under the waters of Israel and Cyprus. To exploit them Israel will likely require the cooperation of Turkey.

Kuwait holds talks with Petroleum Ministry to refine oil in Egypt - ENERGY EGYPT / MUBASHER

June 19, 2016

KPCA delegation from Kuwait Petroleum Corporation (KPC) had talks with the Egyptian petroleum minister over the possibility of refining the Kuwaiti oil in Egyptian refineries, according to a statement issued on Friday.

The studies included the increase of shipping and storage facilities in SUMED’s location in Ain Sukhna and Sidi Kerir, as well as raising storage capacity.

This steps comes in line with Kuwait’s strategy for increasing oil production to 4 million barrels a day by 2020, and exploiting Egypt’s strategic platform to expand in Europe, said KPC’s director general Nabil Bouresli.

He clarified that Kuwait intends to expand in the African market, by entering the Egyptian market.

Global gas demand growth down - IN CYPRUS / CYPRUS WEEKLY

18/06/2016
By Charles Ellinas

The International Energy Agency (IEA) released last week its annual Medium-Term Gas Market Report 2016 and it makes grim reading for gas exporters.

This was followed-up by BP’s 2016 Statistical Review of World Energy. When presenting it, BP’s Chief Economist said, “This is truly an age of plenty.” He went on further to say, “On the energy demand side what we are seeing is a gradual deceleration in the growth of global energy consumption”, contributing to an age of plenty.

These developments of course have a global impact on markets and prices, but also seriously affect East Med gas developments. This is the subject of this article.

Investor's Guide to Greece & Eastern Mediterranean 2Q-2016 - ITE OIL & GAS

Greece is primed for a powerhouse position in the European energy trade. Exploration licenses have been issued to Greek companies, including Hellenic Petroleum, which is teaming up with international partners to explore onshore and offshore blocks in Western Greece.

More offshore licenses are up for grabs, with the Greek government and the private sector inspired by major finds elsewhere in the Eastern Mediterranean. The upstream push has already yielded results for Energean Oil & Gas, which has doubled domestic oil production at the Prinos field in the Aegean Sea. The Greek operator is targeting 10,000 barrels per day in crude production within the next two years. Greece remains an aggregate hydrocarbons importer and is a prominent player in European refining. Exports of petroleum products are set to rise in 2016 as domestic demand weakens in light of power sector reforms and a struggling Greek economy. Bailouts and conditional loans are prompting privatisation of state entities and the energy sector is not immune.

International oil and gas companies are seeking out opportunities, stimulated by upside potential in terms of economic growth and Greece’s rise to prominence in the European natural gas trade. Greece is set to become the nexus of trans-regional gas pipelines, with multiple projects on the table. Ground breaking of the Trans Adriatic Pipeline (TAP) was scheduled to commence in May with deliveries as soon as 2020. There is also significant interest in Liquefied Natural Gas (LNG), and international firms are fronting the capex to get infrastructure expansion underway. The future of Greek Energy is bright to say the least.

Egypt Sends Rare LNG Cargo in Midst of Newfound Buying Binge - BLOOMBERG

Anna Shiryaevskaya, Tsuyoshi Inajima, Dan Murtaugh
June 17, 2016

One of the world’s newest liquefied natural gas importers is again shipping out the fuel.
Egypt, which last year began importing LNG to meet domestic demand while halting shipments from two multibillion-dollar facilities that produce the fuel, this month sent out its second shipment this year. The Provalys loaded at the Ikdu terminal on June 3-4 and is headed to Japan, according to shipping data compiled by Bloomberg.

Steinitz says Israel will soon find ‘as much as four Leviathans’ worth of gas in new fields - THE JERUSALEM POST

Yuval Steinitz at the Jerusalem Post's Diplomatic Conference.
(photo credit:Courtesy)

By MICHELLE MALKA GROSSMAN \ 06.17.2016 | 11 Sivan, 5776

The next step, Steinitz said during a panel discussion, is to develop the natural gas market and integrate it into the larger geopolitical picture.
Although the past year has been challenging with setbacks in developing the Leviathan offshore gas reservoir, National Infrastructure, Energy and Water Minister Yuval Steinitz said Thursday that Israel was planning to develop new gas fields in the coming months.

The next step, he said during a panel discussion, is to develop the natural gas market and integrate it into the larger geopolitical picture.

Israeli partners line up Tamar, Leviathan rig - NATURAL GAS EUROPE

June 17th, 2016

The controlling stakeholders offshore Israel – Noble Energy and Delek Group – are moving forward in their expansion and development plans for Tamar and Leviathan gas fields by trying to coordinate and schedule a sequence of drilling operations between the two projects.

A source told NGE that a tender was issued for a drilling rig, which is supposed to arrive at Israel later this year. The rig will drill a new well at Tamar field, Tamar 5, the source said. The new well is part of the expansion plan for the already producing field.

Speaking at the Herzeliya Conference June 16, Delek Group CEO Yossi Abu said that by the end of the year a drilling rig would arrive in Israeli waters. However he did not refer to the Tamar field. Drilling production wells in Leviathan will follow final investment decision at the end of this year, so not before the second half of next year, at the earliest.

Egypt LNG arbitration 'not over', says Spain's UFG - NATURAL GAS EUROPE

The Damietta liquefaction plant in Egypt (Image credit: Union Fenosa Gas)

June 16th, 2016

Union Fenosa Gas (UFG), owned 50-50 by Spain’s Gas Natural Fenosa and Italy’s Eni, has challenged reports that Egypt’s state gas company EGAS has “won” a case at the International Court of Arbitration in Paris.

Egypt’s petroleum ministry was quoted by Reuters on June 14 as saying that EGAS will not have to pay $270mn plus interest to owners of the Damietta liquefaction plant in relation to a complaint that they lodged in 2013 with the International Chamber of Commerce (ICC), which runs the Paris-based arbitration court. The $270mn plus interest covered contracted capacity at the plant. Egyptian state newspaper Al Ahram also carried the report.

"Israel has undiscovered gas worth 4 Leviathans" - GLOBES

16/06/2016, 13:06
Hedy Cohen

Energy Minister Yuval Steinitz says Israel will offer new offshore gas exploration licenses in the fall.

Israel has undiscovered offshore natural gas worth four more Leviathan fields, Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz has told the 16th Herzliya Conference of the Institute for Policy and Strategy (IPS) at the Interdisciplinary Center.

Steinitz said, "It's no secret that Israel has had a major downturn in growth, in investments and in exports and that's very worrying. Developing the gas fields, bringing natural gas to factories and transport and developing export pipelines all these things are a huge engine of growth. What might save us from recession and bring us back to a reasonable level of growth is natural gas."

Cyprus' Top Diplomat: Gas Finds Could Partly Fund Peace Deal - ABC NEWS / AP

By THE ASSOCIATED PRESS
NICOSIA, Cyprus — Jun 15, 2016, 6:26 AM ET

Cyprus' foreign minister says potential offshore gas discoveries could partly fund the cost of reunifying the ethnically divided island as a federation.

Ioannis Kasoulides said Wednesday future gas finds could possibly underwrite funding that would be needed to compensate individuals who — under specific criteria — wouldn't get back properties lost during the 1974 conflict that cleaved the island.

Breakaway Turkish Cypriot leader Mustafa Akinci made a similar remark in an interview with the AP in April.

Italy overtakes Turkey to become Russia's second biggest gas buyer - PLATTS

London (Platts)--15 Jun 2016 907 am EDT/1307 GMT

Italy is now the second biggest buyer of Russian gas in Europe -- overtaking Turkey -- the head of Gazprom said Wednesday.

CEO Alexei Miller said Italian demand for Russian gas continued to rise and was up 5.3% so far in 2016 compared with the same period of last year.

But although volumes to Italy so far this year are up on 2015, the growth has slowed in the second quarter compared with the first.

In addition, Turkish purchases are considerably down this year compared with 2015.

"In 2016, Italian consumers have increased their demand for gas from Russia," Miller said in a short statement.

Egypt dreams of new pipelines crossing the Red Sea - ABO (About Oil)

Alessandro Scipione (Agenzia Nova) - June 15, 2016

The latest agreement between the government of Cairo and Aramco is just one of the pieces that make up Egyptian strategy, created to transform the country into a regional energy hub. The aim is ambitious but feasible with the financial help of the Gulf countries

Egypt could become a world class energy hub, not only due to recent gas discoveries in the Eastern Mediterranean, but also due to the black gold arriving from Saudi Arabia. This is the aim of the lucrative agreement signed during Saudi King Salman’s first visit to the Land of the Pyramids. The agreement will ensure large supplies of oil at discounted prices: approximately 700,000 tons of oil products per month - respectively, 400,000 tons of diesel, 200,000 tons of gasoline and 100,000 tons of mazut - amounting to a total of €23 billion, to be paid within 15 years at an interest rate of 2%. The Saudi Fund for Development will directly pay the energy giant Aramco the cost of supplies, enabling the Egyptian General Petroleum Corporation (EGPC) to pay calmly.

Egypt's EGAS wins case over gas cuts at LNG plant - REUTERS

LNG plant Damietta

Tue Jun 14, 2016 10:45am GMT

CAIRO, June 14 (Reuters) - The Paris-based International Court of Arbitration has ruled that Egypt's state gas board EGAS will not have to pay a $270 fine related to gas cuts at its foreign-owned liquefied natural gas (LNG) plant, the petroleum ministry said on Tuesday.

The Damietta LNG plant filed a complaint with the International Chamber of Commerce in 2013 alleging that its state partner had failed to comply with contracts by halting gas supplies in 2012 and not making payments.

The plant was demanding EGAS pay $270 million plus interest for contracted LNG capacity.

Noble Energy to Present at Upcoming Energy Conferences - NOBLE ENERGY

Credit: Noble Energy website

Houston, June 13, 2016 (GLOBE NEWSWIRE) -- Noble Energy, Inc. (NYSE: NBL) announces its participation in two upcoming energy conferences. David L. Stover, the Company's Chairman, President and CEO, will present at the Wells Fargo West Coast Energy Conference on Wednesday, June 22, 2016 at 8:15 a.m. Pacific Time. Kenneth M. Fisher, the Company's Executive Vice President and CFO, will present at the J.P. Morgan Inaugural Energy Equity Conference on Monday, June 27, 2016 at 11:20 a.m. Eastern Time.


Both presentations will be webcast live on the ‘Investors' page of the Company's website with a replay accessible for 90 days. Presentation materials for each will also be posted on the website.

Cabinet approves gas fund - INCYPRUS / CYPRUS WEEKLY

incyprus — 13/06/2016

The cabinet has agreed on a National Investment Fund to be established to handle future revenue from the management of natural gas resources, said Finance Minister Harris Georgiades on Monday.

Speaking to journalists at the Presidential Palace after the end of the cabinet meeting, Georgiades said that the legal proposal they agreed upon is the result of systematic work and advice from experts.

The legal plan, said Georgiades, stipulates procedures of transparency, multiple checks and balances, but also specific rule in how the revenue will be managed. He also said that the revenue will be used to benefit future generations, either by reducing the public debt, or by going into an investment fund which will make safe investments outside of Cyprus.

Oil and gas assets on Fosun’s takeover radar - THE AUSTRALIAN

JUNE 13, 2016

Bridget Carter, Mergers & Acquisitions Editor, Sydney
Gretchen Friemann, Mergers & Acquisitions Editor, Sydney

China’s Fosun Group will continue to seek out investment opportunities in the oil and gas sector after keeping a low profile following its $474 million acquisition of Australia’s Roc Oil nearly two years ago.

Roc Oil is the first acquisition Fosun has made in the sector so far, bringing the Chinese conglomerate into the upstream oil and gas industry with its established petroleum and natural gas businesses in China, Southeast Asia and Australia.

Saudi Arabia and Turkey’s pipeline wars in Yemen and Syria - ASIA TIMES

CHRISTINA LIN, JUNE 12, 2016

Saudi Arabia’s pursuit of the war in Yemen, at considerable cost in blood and treasure, is a literal affirmation of the term “backdoor strategy.” However, both the “door” and the actual contours of that strategy remain submerged beneath the murky waters of Mideast politics.

In June 2015, a senior advisor on Yemen in the Netherlands Ministry of Foreign Affairs, Joke Buringa, wrote an article regarding Saudi Arabia’s interest in building an oil pipeline through Yemen. Her piece underscored the energy geopolitics behind Riyadh’s bombing campaign over the past year.

Which companies are likely to win in Cyprus’ third licensing round? - CYPRUS MAIL

JUNE 12TH, 2016Abboud Zahr

In May 2016 Cyprus launched its third offshore licensing round, which will close on July 22. In this round, three blocks (6, 8 and 10) are expected to be awarded by early 2017. Block 10 has been relinquished by Total after the oil major did not find potential prospects in the said block.

Energy Minister Giorgos Lakkotrypis said recently at an energy conference in Brussels, that he is seeing strong interest from international oil companies (IOCs) in the country’s present licensing round.

BP, Eni confirm new 'significant' gas discovery in Egypt's Mediterranean - ALBAWABA / AHRAM ONLINE

Published June 12th, 2016 - 05:26 GMT

British oil company BP and Italy's Eni announced a "significant" gas discovery off the coast of Egypt on Thursday.

The new discovery in Baltim South West area is jointly owned by both companies, Eni said in a press release on Thursday.

The Baltim South West well is located 12 kilometres from the coast, 25 metres deep, and 10 kilometres north of the Nooros field.

"Baltim South West discovery further confirms the significant potential of the so called “Great Nooros Area”, which is now estimated to hold 70-80 billion cubic metres of gas in place," read Eni's statement.

Shell, Apache to complete gas production tests of Apollonia field in June - DAILY NEWS EGYPT

30 wells will be drilled to extract gas from limestone layers in Western Desert
Mohamed Adel, June 12, 2016

Dutch company Shell and American corporation Apache will complete the initial tests for producing gas from limestone layers in the Apollonia field in the Western Desert by the end of June.

A prominent source at the Ministry of Petroleum told Daily News Egypt that the two companies have a plan to drill 30 wells in the Western Desert after the initial production tests are completed.

He added that the limestone layers in the Western Desert contain natural gas and if the results of the tests are positive, new investment opportunities for producing natural gas in unconventional ways would be available.

Total to start drilling in early 2017 - CYPRUS MAIL

Tourism and Energy Minister Giorgos Lakkotrypis

JUNE 10TH, 2016 ELIAS HAZOU
FRENCH oil major Total will likely commence exploring for gas in their offshore Block 11 concession in early 2017, energy minister Giorgos Lakkotrypis said on Thursday.

Speaking to the Sigma television channel, Lakkotrypis was also asked to comment on reports that Russian companies are exhibiting a keen interest in the third licensing round launched by Cyprus.

The companies are said to be most interested in blocks 6, 8 and 10.

Lakkotrypis neither denied nor confirmed the Russian interest. But he did say he was pleased by the overall interest in the new licensing round.

July 22 is the deadline for the submission of bids.

IGI Poseidon and Noble sign a Cooperation Agreement in relation to the finalization of PRE-FEED activities of EastMed Pipeline - DEPA / EDISON / IGI Poseidon

Source: DEPA website

09.06.2016, IGI Poseidon Press Release 

IGI Poseidon S.A. and Noble Energy International Ltd have signed today a Cooperation Agreement to support the finalization of the Pre-FEED activities of the EastMed pipeline and to jointly assess its viability as one of the export options for the Eastern Mediterranean gas discoveries. The EastMed Pipeline Project is a European Project of Common Interest and the ongoing development activities are supported by European Union through the Connecting Europe Facility (CEF) co-financing program.

Background Note: IGI Poseidon S.A. is a company incorporated in Athens and equally owned by DEPA S.A. and Edison, involved in the development of 3 major gas pipeline projects: the Poseidon Pipeline, the IGB Pipeline and the EastMed Pipeline, all qualified as Projects of Common Interest (Commission Delegated Regulation 2016/89) thanks to their contribution to the European energy security, via diversification of routes and sources of natural gas supply.

BP, Eni Announce New Gas Discovery Off Egyptian Coast - HAARETZ / THE MARKER / REUTERS

Eni's Bouri Offshore oil terminal is seen off the Libyan coast, AAP

Newest find confirms potential of area estimated to hold 70-80 billion cubic meters of gas, says Italian energy firm Eni.

TheMarker and Reuters Jun 09, 2016 6:28 PM

The European energy companies BP and Eni on Thursday announced a significant natural gas discovery off the Egyptian coast.

The discovery in the Baltim southwest exploration prospect in the East Nile Delta is 10 kilometers north of the Nooros gas field which was discovered in July last year and has a production rate of 65,000 barrels of oil equivalent per day, the companies said.