Turkey-Israel pipeline: no approval from Cyprus - ENERGY GLOBAL

In order for the Turkish-Israel natural gas pipeline to cross through Cypriot territory, Turkey must mend its relationship with Cyrpus.

Recently, Turkey and Israel reached a rapprochement, which saw the end of a six year soured relationship. It is now hoped that Israel can agree to export natural gas from its offshore Mediterranean fields to Turkey.
Cyprus

It is believed that Cyprus, which has been split* into two parts (the Turkish-Cypriot enclave and the Greek-Cypriot internationally recognized, EU-member side), must first unite in order for the pipeline to be approved.

Petrobel lets Zohr pipeline, well contract - OIL & GAS JOURNAL

HOUSTON, July 7 2016
ByOGJ editors

Belayim Petroleum Corp. (Petrobel) has let an engineering, procurement, construction, and installation (EPCI) contract to Saipem for work in the accelerated development of Zohr natural gas field offshore Egypt (OGJ Online, June 20, 2016).

The contract covers installation of a 26-in. gas export trunkline and 14-in. and 8-in. service trunklines as well as EPCI work on six wells in water as deep as 1,700 m.

The work is to be completed in time for the start of production in 2017.

Petrobel, a joint venture of Eni SPA and Egyptian General Petroleum Corp., is developing Zohr on behalf of PetroShorouk, a joint venture of Egyptian Natural Gas Holding Co. and Eni.

Cyprus to look at importing LNG - CYPRUS MAIL

JULY 7TH, 2016 ELIAS HAZOU

The government has ordered a study to be carried out to look into ways of importing Liquefied Natural Gas (LNG) for power generation but also broadly for industrial purposes.

A source in DEFA confirmed to the Cyprus Mail a report appearing in Politis on Thursday.

“DEFA has received a mandate from our shareholder [the Energy Ministry] to carry out a study concerning the options for supply of natural gas in the form of LNG for the market,” the source said.

Libya to resume oil exports from biggest ports within a week - WORLD OIL

By HATEM MOHAREB on 7/7/2016

TRIPOLI (Bloomberg) -- Libya will resume crude exports from two of its biggest oil ports within one week after clashes that forced Islamic State militants to pull out of the area, according to the commander of the petroleum guards in the region.

Crude exports will resume from Es Sider, the country’s biggest oil port, and Ras Lanuf, the third-largest, and which have been closed since 2014, Ibrahim al-Jedran, a regional commander of Libya’s Petroleum Facilities Guard, said in a phone interview. The exports will be under the authority of the Tripoli-based Government of National Accord, which is seeking to reunify the divided country, he said.

Some “minor technical problems” related to the transportation network between the oil storage tanks and the Es Sider and Ras Lanuf oil ports due to damage, inflicted during clashes since last year, will be fixed within a few days, al-Jedran said.

Cyprus moves to block Israel-Turkey gas pipeline - INTERFAX

By Verity Ratcliffe, 7 July 2016 12:37 GMT

Israel and Turkey signed an agreement to normalise relations last week after a six-year diplomatic spat, raising hopes that Israeli gas could be exported to Turkey by pipeline. However, Cyprus has indicated it will block the construction of a Turkish pipeline that passes through its territory.

When asked about the project, Cypriot government spokesperson Nicos Christodoulides told reporters on Tuesday that Cyprus would oppose it because the country is under occupation by Turkish forces and the pipeline would serve Turkey.

The two parts of Cyprus would need to be unified for a pipeline to be approved, he added.

The island of Cyprus has been split into two parts – one consisting of Greek Cypriots and the [ethnically cleansed, formerly 90% majority Christian, 90% of properties owned by them] controlled by Turkish-Cypriots – since 1974, with the latter not recognised by the international community. The result is that the Republic of Cyprus does not have diplomatic relations with Turkey.

Saipem tapped for work in giant gas field offshore Egypt | UPI

Italian company lands more than a billion dollars in contracts, with the bulk going to Mediterranean work.

By Daniel J. Graeber, July 7, 2016 at 8:41 AM

MILAN, Italy, July 7 (UPI) -- One of the most significant parts of a package of deals worth more than $1.5 billion is for a contract tied to a gas field offshore Egypt, Italy's Saipem said.

Italian company Saipem secured a package of deals valued at $1.6 billion for engineering and construction at offshore projects, the most significant of which is for work associated with the Zohr natural gas field in the Mediterranean Sea.

"We are very pleased to have been selected for the important objective of delivering first gas from Zohr before the end of 2017," Saipem CEO Stefano Cao said in a statement.

Israeli energy company to accelerate development of Cypriot natural gas field - FAMAGUSTA GAZETTE / XINHUA

"We would like to accelerate this and move this project forward as soon as possible," said Friedman.

FAMAGUSTA GAZETTE•
Wednesday, 06 July, 2016

Israel's Delek energy group which owns one third of a Cypriot offshore natural gas field is working on plans to accelerate its development, a group official said on Tuesday.

Delek CEO Yaniv Friedman said after meeting Cypriot President Nicos Anastasiades that his company is committed to the cooperation between Cyprus and Israel and in developing a natural gas reserve known as Aphrodite.

"We would like to accelerate this and move this project forward as soon as possible," said Friedman.

Energy giants give assurances of commitment to Cyprus operations (Updated) - CYPRUS MAIL

Anastasiades, Cyprus with Descalzi, ENI

JULY 5TH, 2016 ELIAS HAZOU

Senior executives of two energy companies with hydrocarbons concessions in the island’s Exclusive Economic Zone (EEZ) gave assurances on Tuesday of their commitment to their Cypriot operations.

President Nicos Anastasiades held successive meetings in Nicosia with delegations of Israeli energy conglomerate Delek and then Italian giants ENI. Also present at the talks was Energy Minister Giorgos Lakkotrypis.

Delek are partners in the consortium which holds the concession on the Aphrodite prospect in offshore Block 12. The Israeli company have a 15 per cent working interest in the project, and are also partners – with Noble Energy – in Israel’s Leviathan gas field.

Noble Energy sells three percent interest in Tamar field, offshore Israel, for $369 million - NOBLE ENERGY

July 5, 2016

Houston, July 05, 2016 (GLOBE NEWSWIRE) -- Noble Energy, Inc. (NYSE: NBL) ("Noble Energy" or "the Company") today announced that it signed a definitive agreement to divest a 3 percent working interest in the Tamar field, offshore Israel, to the Harel Group ("Harel"), a leading insurance provider and pension manager in Israel, in partnership with Israel Infrastructure Fund ("IIF"), Israel's largest infrastructure private equity fund. The transaction value of $369 million is based upon a gross pre-tax Tamar valuation of approximately $12 billion and is subject to purchase price adjustments between January 1, 2016 and the closing date. Closing for the transaction is anticipated in the third quarter of 2016, subject to customary terms and conditions, with after-tax proceeds received expected to be approximately $275 million. Under terms of the agreement, Harel and IIF have the option to elect, before closing, to purchase an additional 1 percent working interest from Noble Energy at the same valuation.

Delek Group to drill Tamar-8 well offshore Israel - OIL & GAS JOURNAL

HOUSTON, July 5
07/05/2016
ByTayvis Dunnahoe
OGJ Exploration Editor


Delek Drilling LP and operator Noble Energy Mediterranean Ltd. have announced that the Tamar-8 development well will spud in this year’s fourth quarter with 4 months planned for drilling, completion, and tie back. The well is 100 km west of Haifa offshore Israel in 1,670 m of water. Tamar-8 will target Miocene Tamar sands and is planned for a total depth of 5,050 m.

The partnership looks to increase redundancy in the existing Tamar productions system, and Tamar-8 will serve as part of its Tamar expansion project. The partnership also is planning on development of Tamar SW field.

Israel’s Petroleum Commissioner of the Ministry of National Infrastructures, Energy and Water Resources (Ministry of Energy) approved the current development plan (OGJ Online, June 2, 2016).

Cyprus Blocks Israel-Turkey Gas Pipeline Untill Ankara Mends Ties - HAARETZ

Jul 05, 2016 6:40 PM
Michele Kambas

After a rapprochement is reached with Ankara, Israel hopes to export gas to Turkey across Cypriot waters. But Cyprus, that doesn't have diplomatic ties with Turkey, gives a red light.

REUTERS - Turkey needs to mend relations with Cyprus before the Cypriot government will allow a Turkish-Israel gas pipeline to cross its territory, a government spokesman said on Tuesday.

The remarks came a week after Israel and Turkey reached a rapprochement, ending a six-year diplomatic rupture and raising hopes that Israel can reach an agreement to export natural gas from its offshore Mediterranean fields to Turkey. But to reach Turkey a pipeline would have to traverse the territorial waters of Cyprus, which was split into [the internationally recognized Republic of Cyprus] and a Turkish enclave by a Turkish invasion in 1974.

New rival seen in Mediterranean gas race ‘before it’s too late’ - WORLD OIL / BLOOMBERG

7/5/2016
DONNA ABU-NASR

BEIRUT (Bloomberg) -- Lebanon may soon approve measures to push ahead with a stalled first auction of offshore oil and natural gas rights, ending years of political wrangling as it tries to catch up in a regional race to tap energy wealth in the eastern Mediterranean.

The auction first scheduled for November 2013 was frozen by the government’s failure to pass decrees to demarcate energy blocks, establish production-sharing contracts and specify tender protocols. Mohammad Kabbani, head of the parliamentary energy committee, said Monday that he expected the decrees to be approved “a short period” after the Muslim holidays of Eid al-Fitr this week.

Harel to pay up for Tamar stake | NATURAL GAS EUROPE

July 05th, 2016

A limited partnership, led by Harel Insurance Investments and Financial Services, said in a filing to the Tel Aviv Stock Exchange that it has concluded a deal to purchase 3% shareholding in Tamar Partnership from Noble Energy. Harel holds a 62% stake in the limited partnership directly and the rest, 38%, is held by Israel Infrastructure Fund of which Harel is a 30% shareholder.

Harel said it will pay $369mn for the 3%; and another $123mn if it exercises an option to purchase another 1%. Those numbers value Tamar at $12.3bn, more than 10% above previous evaluations.

Decision Regarding the Drilling of the "Tamar-8" Development and Production Well and the Construction of Related Infrastructures in the Tamar Field - DELEK GROUP

Tel Aviv, July 5, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) ("the Company") hereby announces that further to the provisions of Section 1.7.4(d) of the Company's Periodic Report dated December 31, 2015, as published on March 31, 2016 (Reference no.: 2016-01-020628) ("the Periodic Report") about the planned work plan for the Tamar Project located in the area of the Tamar I/12 lease ("Tamar Project" and "Tamar Lease," respectively), the Tamar Project development plan ("the Development Plan") and development of the Tamar South-West reservoir ("Tamar SW"), the Company respectfully announces that Delek Drilling LP and Avner Oil and Gas Exploration LP (hereinafter jointly, "the Partnerships") reported that on June 30, 2016, the Tamar Partners, including the Partnerships, made a decision regarding the drilling of the "Tamar-8" development and production well and the construction of related infrastructures in the Tamar field ("Tamar-8 Well" or "the Well").

Below are additional details of the Well:

Private sector key to Israeli exports to Turkey: Damnus - NATURAL GAS EUROPE

July 04th, 2016

After the "win-win" agreement between Turkey and Israel, energy relations may take time to bear fruit, Nusret Comert, the chairman of Damnus Energy, told NGE. Comert, who has over 30 years of experience in the global gas industry, is an expert on relations in the eastern Mediterranean. He talked about the recent rapprochement between Israel and Turkey, as well as between Russia and Turkey.

“Israel gas may ship to Turkey in three years time, but steps need to be taken by private sector companies in both Israel and Turkey,” Comert said, who headed Shell Turkey over ten years. “The agreement between two countries will form the basis for expanding energy relations between the two countries. However, politicians will not waste more time with talking, which may postpone investment decisions as well as blurring the political environment,” Comert said.

EGAS drills fourth well in Egypt's giant Zohr gas field - ZAWYA

by Mahmoud Shaaban
03 July 2016

Egyptian Natural Gas Holding Company- EGAS finished drilling fourth well in Zohr gas field in Mediterranean Sea, Chairman Mohamed El Masry said Saturday.

EGAS is committed to the determined drilling schedule of the Italian oil company Eni, the head stated.

He added that finishing drilling works at the fourth well is set to accelerate Zohr gas field to start output in 2017 with capacity of around one billion cubic feet daily.

Chairman El Masry noted that drilling works at the fifth well will start immediately to finish drilling the sixth well of Zohr field whose potential capacity is estimated at 30 trillion cubic feet of gas.

INTO THE FRAY: Utterly Unconscionable - THE JEWISH PRESS

By: Dr. Martin Sherman
Published: July 3rd, 2016

The real reason for the rupture of relations with Turkey is not because of anything Israel has (or has not) done. It is a result of what Turkey has become.

Israelis have no conscience, no honor, no pride. Those who condemn Hitler day and night have surpassed Hitler in barbarism. – Turkish President Recep Tayyip Erdogan, (7/19/2014)

National honor is not just something people talk of on the street…It has strategic significance – Moshe (Bogey) Yaalon, Israel’s Deputy Prime Minister, (8/17/2011).

The recently announced reconciliation accord—or rather “deal” between Israel and Turkey—is utterly unconscionable—and incomprehensible. From an Israeli point of view, it is devoid of any logic on every imaginable level—national, ethical, security and even commercial—except perhaps in the immediate short-term.

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.