SOCAR: Azerbaijan has large gas reserves to supply pipelines - APA

23.12.2017

The Southern Gas Corridor (SGC) project requires $44-45 billion. $25 billion has been spent so far, Khoshbakht Yusifzade, first vice-president of Azerbaijan’s state oil company SOCAR, said Dec. 23.

He made the remarks at a conference titled “At the intersection of East and West: New energy and communication opportunities", organized by the ruling New Azerbaijan Party (YAP) in Baku, APA-Economics reported.

According to Yusifzade, most of these works have already been carried out.

“The TANAP project will be ready in 2018, the TAP project in 2019. Azerbaijan will supply gas to Europe through these pipelines. Azerbaijani President confirms that Azerbaijan has gas large reserves. The country's proven gas reserves are equal to 2.6 trillion cubic meters. Together with unconfirmed volumes, it is 6 trillion cubic meters. Russia and Iran can also join these pipelines in future,” he noted.

Touching upon the Shahdeniz field, Yusifzade said that there are 200 billion cubic meters of gas and 240 million tons of condensate in the Shahdeniz reserves which are sufficient to fill the pipelines.

TransGlobe increases production from Egypt to 12.8k bpd - ENTERPRISE / TRANSGLOBE

Thursday, 21 December 2017

Canadian oil and gas producer TransGlobe said it produced 12.8 Mbopd from Egypt in 4Q2017. It is currently finalizing its 2018 work plan and budget that will be announced in January, according to its 4Q2017 operational update. TransGlobe announced it lifted and sold 510k bbl of crude in Egypt in late November for estimated net proceeds of approximately USD 24.5 mn (inclusive of realized hedging loss and marketing costs).

Corporate production is expected to average ~15.4 MBoepd for 2017 (12.8 Mbopd from Egypt and 2.6 MBoepd from Canada) representing an increase of ~3.3 MBoepd or 27% over 2016 production of 12.1 MBoepd. Corporate production in 2017 was 93% weighted to oil and liquids (7% weighted to natural gas in Canada) providing excellent torque to strengthening oil prices.

20/DEC/2017 08:30

The field, with potential resources in excess of 30 Tcf of gas in place, started-up in less than two and a half years from the discovery: a record time for a field of this size in deep waters

Enhancing Leadership Potential - MINISTRY OF PETROLEUM EGYPT

TGS and Schlumberger Announce New 2D Multi-client Project in Egyptian Red Sea - TGS

20 December 2017

ASKER, NORWAY (20 December 2017) - TGS-NOPEC Geophysical Company (TGS) and Schlumberger today announced a new 2D seismic project offshore Egypt.

The project will comprise acquisition of a 10,000 km 2D long-offset broadband multi-client seismic survey. Advanced new acquisition and imaging techniques will provide better illumination of complex subsalt structures. The project will integrate all legacy seismic and non-seismic data. Acquisition will commence mid-December and is expected to complete in late Q1 2018.

This project is part of an agreement entered with South Valley Egyptian Petroleum Holding Company (GANOPE) in which Schlumberger and TGS have a minimum 15-year period of exclusive multi-client rights in a ~70,000 km2 open area offshore the Egyptian Red Sea.

Egypt’s super-giant Zohr gas field begins production, completing BP’s major project start-ups for 2017 - BP

20 December 2017

BP today confirmed that production has started from the super-giant Zohr gas field, offshore Egypt. The field is operated by Eni, through its joint venture with The Egyptian General Petroleum Corporation (EGPC), and is the largest natural gas discovery yet to be made in the Mediterranean Sea.

Delivery of first gas from Zohr completes BP’s programme of seven Upstream major project start-ups in 2017. Zohr follows the earlier start-ups of the Khazzan project in Oman, Persephone in Australia, Juniper and the Onshore Compression project in Trinidad, Quad 204 in the UK, and the first phase of the West Nile Delta project, also in Egypt.

Bob Dudley, BP group chief executive, said: “We are proud to have worked with Eni, Rosneft and the Egyptian government to deliver a project that is strategically important for Egypt and will help meet the country’s growing energy demand.

Lebanon approves offshore awards for two blocks - OIL & GAS JOURNAL

HOUSTON, DEC/19/2017
Tayvis Dunnahoe

Lebanon’s Cabinet has approved the recently awarded licenses for Blocks 4 and 9 that lie in northern and southern areas offshore (OGJ Online, Oct. 23, 2017). Energy Minister Cesar Abi Khalil was quoted in The Daily Star saying drilling could begin as early as 2019.

Three companies are included in the consortium exploring both blocks: Total SA, Eni SPA, and OAO Novatek. Lebanon’s offshore is prospective for oil and gas, but the future of its development remains unknown (OGJ Online, July 7, 2017). Despite the announcement, the energy ministry has not released technical details of contracts nor has it disclosed the amount of the bids.

Why One Giant Gas Field Is a Big Deal for Egypt - BLOOMBERG

December 19, 2017, 11:00 PM
Salma El Wardany

The gas imports which once helped Egypt avert power blackouts may soon be a thing of the past. Eni SpA’s massive "Zohr" natural gas field, the Mediterranean Sea’s largest offshore field, started production earlier this month. Its huge reserves could prove a permanent remedy to the most populous Arab nation’s power needs and bring Egypt closer to its goal of energy self-sufficiency.

1. How giant is ‘Supergiant Zohr?’

Discovered in August 2015, Zohr is often described as a "supergiant" field because it has estimated reserves of about 30 trillion cubic feet, equal to the reserves of Israel and Oman combined, making it the largest gas discovery in the Mediterranean Sea. The field covers an area of about 100 square kilometers. On Dec. 16, gas from Zohr began to flow to a facility in Port Said city, with initial production of 350 million cubic feet per day. Daily output is expected to rise to about 1 billion cubic feet in June, and then to 2.7 billion by the end of 2019. President Abdel-Fattah El-Sisi has vowed to tackle the energy shortage as a priority. The project could also eventually enable Egypt to return to exporting gas.

Egypt to allow foreign companies to export gas in five years - ENTERPRISE

Tuesday, 19 December 2017

Egypt will allow foreign companies to “freely” export natural gas not needed for domestic use in five years, Oil Minister Tarek El Molla announced on Monday during Al Ahram’s energy conference, according to Reuters. New exploration contracts contains a clause that allows companies to export a part of their share of extracted gas abroad in the event it is not needed by Egypt, El Molla told a news conference. The move, which comes as part of Egypt’s strategy to become a regional hub for exporting gas next year, comes after the Zohr gas field began production on Saturday, raising Egypt’s production to 5.5 bcf/d by next year.

Shell in talks with Oil Ministry to increase its share of gas produced at Phase 9B - ENTERPRISE

Tuesday, 19 December 2017

Shell has apparently entered talks with the Oil Ministry to increase its share of gas produced to offset their investment costs from Phase 9B of the West Delta Deep Marine Concession, government sources tell Al Borsa. 

The company is looking to recoup the investment costs of developing the concession sooner, they added. 

The company plans to complete developing two test wells in Phase 9B in 1Q2018. BG Egypt, before being acquired by Shell, had suspended work on Phase 9A+ and 9B in March 2016 after the government rejected paying USD 7.00 per mmBtu for Phase 9B.

Egypt to stop importing gas by end-2018: EGAS - DAILY NEWS EGYPT

Tuesday December 19, 2017

Ahmed Ismail

According to Vice President of the Egyptian Natural Gas Holding Company (EGAS) Magdy Galal, the company aims to stop importing liquefied natural gas from abroad by the end of next year.

According to Galal, the Ministry of Petroleum owns the bulk structure that qualifies Egypt to become a regional energy hub. It owns the Sumed pipeline which carries most of the Gulf’s oil to Europe, 9,500 km of crude oil and petroleum products transportation lines, eight refineries with a production capacity of 38m tonnes annually, and 15m tonnes of storage capacity for crude oil and products, in addition to 19 oil ports overlooking the Mediterranean Sea and the Gulf of Suez.

The infrastructure of natural gas transportation includes a main network with a total of 7,000 km, a distribution network with a total of 31,000 km, as well as 29 gas processing plants, two natural gas liquefaction plants in Damietta and Idku, and two floating units to receive liquefied gas with a capacity of about 1,300m cubic feet per day, in addition to the huge natural gas plants that were discovered in the Mediterranean Sea.

Maersk sells its 50% stake in Egyptian Drilling Company to EGPC - ENTERPRISE

Tuesday, 19 December 2017

Maersk Drilling agreed to sell its 50% stake in Egyptian Drilling Company to the EGPC for USD 100 mn, Reuters reports. The cash transaction leaves the EGPC as the sole shareholder of Egyptian Drilling Company.

Dec 18 (Reuters) - MAERSK DRILLING, UNIT OF A. P. MOLLER-MAERSK, SAYS

* IT AND AND EGYPTIAN GENERAL PETROLEUM CORPORATION HAS SIGNED AN AGREEMENT WHEREBY EGPC WILL ACQUIRE A.P. MOLLER - MAERSK‘S 50 PERCENT SHAREHOLDING IN EGYPTIAN DRILLING COMPANY FOR 100 MILLION DOLLARS IN AN ALL-CASH TRANSACTION

* FOLLOWING THE TRANSACTION EGPC WILL BECOME SOLE OWNER OF EDC AND WILL AS PART OF THE AGREEMENT TAKE OVER THE ENTIRE PORTFOLIO, OBLIGATIONS AND RIGHTS Further company coverage: (Copenhagen newsroom)

Egypt Begins Production on Largest Undersea Gas Field in Mediterranean - VOA

December 18, 2017 3:00 PM
Edward Yeranian

CAIRO —

Egypt's economic prospects are looking brighter after the long-anticipated production of undersea gas from the al Zohr gas field began coming online in recent days.

Petroleum Minister Tareq al Molla tells Arab media the al Zohr field will be a major boon for the economy, saving $750 million to possibly several billion dollars a year in energy costs.

He says that the giant al Zohr gas field has a reserve of 30 trillion cubic feet and the first phase of production of 1.2 billion cubic feet per day is expected to be reached around mid 2018, with production being ramped up to 2.7 billion cubic feet per day by mid- to late 2019.

Italy's ENI petroleum company is heading production of the al Zohr field, while the BP company is overseeing production of another large undersea gas field off Egypt's Nile Delta region, known as al Nooros.

Turkey’s first drillship to arrive by end of December - HURRIYET DAILY NEWS

December 18 2017 12:39:00
ANKARA - Anadolu Agency

Turkey’s first drillship, the Deepsea Metro 2, is expected to arrive in Turkey by the end of December in preparation for exploratory offshore drilling in the Mediterranean Sea at the beginning of next year, shipping data showed on Dec. 18.

The data showed that the ship, which will be used by the Turkish Petroleum Corporation (TPAO), left Norway’s Hoylandsbygda port and is expected to arrive in Turkey on Dec. 31.

Turkey has already undertaken oil and gas exploration using two seismic ships, but the Deepsea Metro 2 will be the country’s first active drillship.

The South Korean merchant vessel was produced in 2011, has a length of 229 meters (751 feet), and is capable of drilling into a maximum depth of 40,000 feet.

Government to honor historical gas export contracts - ENTERPRISE

Monday, 18 December 2017

The Sisi administration plans to honor all export contracts Egypt signed before the nation became a net importer of gas back in 2012, said Oil Minister Tarek El Molla, Al Shorouk reports. The statement appears to signal that the government plans to use influx of gas from Zohr, which it hopes will help Egypt become a net gas exporter in 2018, to resolve outstanding contracts which has caused legal headaches for the government. Most significant of these is a ruling by a Swiss court which fined Egypt USD 2 bn in compensation to Israel Electric Corporation (IEC) for halting gas supplies to our eastern neighbor in 2012. The case had led to the government suspending any plans to importing gas from Israel as part of a region-wide collaboration to export gas from the East Mediterranean to Europe. Egypt and Israel have reportedly been holding talks behind closed doors to revive cooperation efforts.

Gazprom’s exports to Turkey up by 18.8% in 2017 - TASS

December 17, 23:49 UTC+3

MOSCOW, December 17. /TASS/. Russia’s gas giant Gazprom said on Sunday is had exported a record-breaking volume of gas to Turkey in a period from January 1 to December 15, 2017, having increased supplies by 18.8% on the same period last year, to 27.6 billion cubic meters.

"In the eleven and a half months of 2017, Gazprom exported 27.6 billion cubic meters of gas to Turkey, its second largest foreign market. The 2014 gas exports record of 27.3 billion cubic meter has been broken," the company said in a press release.

Apart from that, gas exports to other countries that are to be covered by the Turkish Stream gas pipeline, which is now under construction, also increased, including by 10.1% to Greece, by 5.7% - to Bulgaria, by 22% - to Hungary, and by 23.5% - to Serbia.

Exclusive: Saudi Aramco has supplied 1 million barrels of crude to Egyptian refineries in November, December - minister - REUTERS

DECEMBER 17, 2017 / 8:39 AM

Reporting by Abdelrahman Adel; Writing by Nadine Awadalla; Editing by Stephen Coates

CAIRO (Reuters) - Saudi Aramco, the world’s largest oil producer, has supplied 1 million barrels of crude oil to Egyptian refineries, Egypt’s Petroleum Minister Tarek El Molla told Reuters on Sunday.

Egypt and Saudi Arabia will be studying the economic feasibility of continuing to refine Saudi crude in Egyptian refineries by the start of 2018, El Molla said.

Saudi Arabia agreed in April last year to provide Egypt with 700,000 tonnes of refined oil products a month for five years.

Egypt's Giant Zohr Gas Field Starts Production - BLOOMBERG

Tarek El-Molla(Photographer: Yasser Al-Zayet/AFP via Getty Images

December 16, 2017, 3:34 PM GMT+2

Salma El Wardany

• Field starts pumping gas to Egypt national network: El-Molla
• Zohr field may turn Egypt from LNG importer to gas exporter

Egypt’s Eni SpA-operated Zohr natural gas field has started production, bringing the country closer to its goal of energy self-sufficiency.

Gas from the Mediterranean’s largest offshore field is pumped to a facility in Port Said city, to be prepared for delivery to the national distribution network, with initial production of 350 million cubic feet per day, oil minister Tarek El-Molla said in a statement Saturday. Daily output is set to rise to about 1 billion cubic feet in June and 2.7 billion by the end of 2019, he said.

Production from Zohr will help the most populous Arab nation achieve “self-sufficiency of natural gas, ease the burden on the state budget and cut the imports bill," El-Molla said.

Cyprus, Egypt, Greece agree to bolster maritime security - ABC NEWS

Cyprus' Defense Minister Christoforos Fokaides (center), Greek counterpart Panos Kammenos (right), and Egyptian Defense Minister Sedki Sobhi (left) in Cyprus on Thursday, Dec. 14, 2017. 

Dec 14, 2017, 9:54 AM ET

By MENELAOS HADJICOSTIS, ASSOCIATED PRESS LARNACA, Cyprus

The defense ministers of Cyprus, Egypt and Greece agreed Thursday to step up cooperation in combating drug, weapons and people trafficking in the east Mediterranean and to share information on countering the threat of terrorism.

Cypriot Defense Minister Christoforos Fokaides and his Egyptian and Greek counterparts Sedki Sobhi and Panos Kammenos said that they're also setting up a coordinating body to oversee joint special forces drills geared toward protecting vital sea lanes in the eastern Mediterranean.

East Med Pipeline To Boost Europe's Energy Security - PIPELINE TECHNOLOGY JOURNAL

Thu, 2017-DEC-14 12:49
Admir Celovic - Mark Iden

In yet another effort to enhance European energy security by diversifying sources away from Russia, a consortium of countries including Cyprus, Italy, Greece and Israel will build an 1900 km gas pipeline from the Levantine Basin in the eastern Mediterranean to Greece and Italy in 2025.

The East Med Pipeline, as it is being called, would ship up to 16 billion cubic meters (bcm) of gas a year, roughly 5 percent of the EU annual consumption.

IGI Poseidon, a joint venture by Italian firm Edison and Greek company Depa, will build the pipeline - the longest underwater one in the world - at a cost of over €4 billion.

The EU has indicated that it will defray $2 billion, of half the cost, of the construction.

Cyprus, Israel, Italy and Greece intend to sign a binding intergovernmental agreement in 2018.

Total, Eni, Novatek win first Lebanon offshore licenses - WORLD OIL / BLOOMBERG

DEC/14/2017DANA KHRAICHE

BEIRUT (Bloomberg) -- Lebanon granted its first offshore energy rights to a group comprising Total SA, Eni SpA and Novatek PJSC, joining a regional race to find and develop oil and natural gas wealth in the eastern Mediterranean after years of delay.

The cabinet awarded two licenses in its first offshore bidding round, allowing the companies to jointly explore Blocks 4 and 9, Wissam Chbat, a member of the Lebanese Petroleum Administration, said Thursday by phone. The group has one month to prepare legal, administrative and technical paperwork before signing production-sharing contracts with the government in January, Chbat said. Drilling is expected to begin in 2019, he said.

France’s Total, Italy’s Eni and Russia’s Novatek filed their bids to explore the two blocks in October -- the only proposals the government received. The licensing round has encountered setbacks since 2013 amid political disputes over block delineation and government paralysis, leaving Lebanon trailing Cyprus, Egypt and Israel in exploring the eastern Mediterranean. This year bidding was pushed back to give companies more time to understand a new tax law.

Energean awarded five exploration licences, offshore Israel - ENERGEAN OIL & GAS

13 December 2017

Energean Oil & Gas (“Energean” or “the Company”) is pleased to announce that Energean Israel has been awarded five offshore exploration licences (“Licences”) within the Israeli Exclusive Economic Zone (EEZ) by the Israeli Petroleum Commissioner following a recommendation by the Petroleum Council. The initial exploration period under each Licence is three years. 

Oil Ministry expecting Egypt’s natgas output to reach 6.4 bcf/d by mid-2018 - ENTERPRISE

Mid Case Supply / Demand forecast for Egypt (Bcfd)

Wednesday, 13 December 2017

Egypt’s natural gas output is expected to reach 6.4 bcf/d by mid-2018, by which time Zohr will be producing 750 mcf/d and the Nooros gas field will be producing 100 mcf/d, Oil Ministry sources tell Al Borsa. 

Oil Minister Tarek El Molla had previously said natural gas output will reach 6.2 bcf/d by the end of FY2017-18, and that Egypt will reach self-sufficiency by the end of 2018. 

Egypt currently produces 5.2 bcf/d of natural gas.

Energy market in transition - CYPRUS MAIL

DEC 10, 2017

Charles Ellinas

The Energy market in transition was the title of the 22nd national energy conference held in Athens last month and attended by more than 300 delegates – heads of all energy institutions in the country, universities and CEOs of the leading energy companies and leading international participants.

The transformation of the Greek energy market emerged as the dominant topic of the conference. In his keynote speech Minister of Environment and Energy, Giorgos Stathakis confirmed that the ministry is preparing a long-term energy plan to 2030, which will present the policy and basic strategic directions of national energy planning.

Noble Enegry discussing pipeline from Aphrodite to Egyptian LNG plants / AL MASRY AL YOUM

Sunday, 10 December 2017

It looks like Noble Energy is trying to make a play for the potential gas pipeline linking Cyprus’ offshore gas fields to Egypt’s processing facilities, Al Masry Al Youm reports. The group’s senior Vice President of the Eastern Mediterranean area Keith Elliott met with Oil Minister Tarek El Molla to discuss this and other potential energy projects on Saturday.

EGPC signs 3 oil and gas exploration agreements worth USD 50 mn - ENTERPRISE / AL BORSA

Sunday, 10 December 2017

The EGPC has signed oil and gas exploration agreements with three international companies worth a combined USD 50 mn, an Oil Ministry official tells Al Borsa. These include a USD 20 mn oil and gas exploration agreement with our friends at Apex International in the West Badr El Din concession in the Western Desert, a USD 10 mn gas exploration agreement with Trident Petroleum for exploration in the Magawish block of the East Esh El Mallaha concession, and a USD 20 mn oil and gas exploration agreement with Apache-Khalda in the Alam El Shawish concession in the Western Desert.

Pilot production from Zohr field started Saturday: Source - EGYPT TODAY

Sat, Dec. 9, 2017

CAIRO – 9 December 2017: Pilot production from Zohr gas field has kicked off Saturday, with a production capacity of 300-500 million cubic feet a day, an informed source at the Egyptian Natural Gas Holding Company (EGAS) told Egypt Today.

Gazprom's natural gas exports to Europe, Turkey move past 2016 levels to fresh record - PLATTS

London (Platts)--8 Dec 2017 801 am EST/1301 GMTStuart Elliott, Edited by Alisdair Bowles

Russia's Gazprom is set to exceed on Friday the level of exports to Europe and Turkey that was recorded in 2016 as demand for Russian natural ss and cold weather across the continent

• Sales to Europe, Turkey to reach 179.8 Bcm Friday
• CEO points to 'unconditional reliability' of supplies
• Nord Stream set for 87% utilization rate in 2017

Taking into account the nominated volume for Friday, Gazprom will have exported 179.8 Bcm to what it calls the Far Abroad -- Europe and Turkey, but not the countries of the former Soviet Union -- higher than last year's then record high of 179.3 Bcm.

3 Israeli cos buying gas from Karish, Tanin reservoirs - GLOBES

7 Dec, 2017 12:13

Sonia Gorodeisky

Israel Chemicals, Oil Refineries, and OPC will buy 39 BCM over 15 years.

Israel Chemicals (TASE: ICL: NYSE: ICL), Oil Refineries Ltd. (TASE:ORL), and OPC Energy Ltd. (TASE:OPCE), all Idan Ofer-controlled companies, have signed an agreement with Greek company Energean to buy natural gas from the Karish and Tanin reservoirs. The deal includes the supply of 39 BCM of gas over 15 years to the companies: 17 BCM to Oil Refineries, 13 BCM to Israel Chemicals, and 9 BCM to OPC Mishor Rotem. The deal also includes an 18-year extension option.

The price for the deal is believed to total $5.7 billion. Energean estimates that gas will begin flowing from its two reservoirs in 2020. The average price for the deal is about $4.10 per million Btu, 20% lower than the price in the agreements signed for gas from the Leviathan reservoir and 30% lower than the price that Israel Electric Corporation (IEC) (TASE: ELEC.B22) is paying from gas from the Tamar reservoir.

The three companies negotiated jointly with Energean in order to leverage their purchasing power to obtain better terms. At the same time, now that the negotiations have been concluded, each of the companies in the group has a separate agreement that is independent of the agreements with the others.

BASF agrees oil unit merger with Fridman's DEA to spur expansion - REUTERS

DECEMBER 7, 2017 / 9:13 PM

Dmitry Zhdannikov, Ron Bousso, Ludwig Burger

FRANKFURT/LONDON (Reuters) - Chemical giant BASF agreed to merge its oil and gas unit Wintershall with DEA, a vehicle of Russian billionaire Mikhail Fridman, to create one of the largest independent oil and gas firms in Europe, the companies said.

Fridman and his partners in the LetterOne investment vehicle made billions by selling their Russian oil empire in 2013 but have since struggled to expand in the United States and Britain due to sanctions imposed on Moscow despite not being under sanctions themselves.

By folding DEA into Wintershall and creating Germany’s first oil champion, cash-rich Fridman could create new opportunities for growth in large Western markets.

Siemens signs deal to build two gas-fired power plants in Libya - REUTERS

DECEMBER 7, 2017 / 11:40 PM

Reporting by Georgina Prodhan; writing by Douglas Busvine; editing by Andrew Roche

FRANKFURT (Reuters) - Siemens, the German industrial group, plans to build two gas-fired power stations in Libya, in a fillip for its struggling power division which is shedding staff as developed economies shift to renewable sources of energy.

Siemens Power and Gas signed the agreements on Thursday with Libyan state utility GECOL on the plants, a company spokesman said without elaborating.

The deal follows an announcement by Siemens last month that it would cut 6,900 jobs, or around 2 percent of its global workforce. Most of the jobs would be shed by 2020 at its energy unit as demand for gas turbines fades.

Edison takes on Shah Deniz gas supply contract - OFFSHORE MAGAZINE

DEC/06/2017

MILAN, Italy – Edison has agreed to acquire Gas Natural Vendita Italia (GNVI) from Gas Natural Fenosa for Eu192.8 million ($228 million).

GNVI supplied gas and electricity last year to 420,000 residential and 14,000 SME users in Italy.

Under the agreement, Edison will also assume an 11-TWh long-term gas supply contract from the Shah Deniz II development project in the Azeri sector of the Caspian Sea.

Gas imports from the project are set to begin at the end of 2020 following the completion of the Trans Adriatic Pipeline (TAP).

Total consideration payable for the gas supply contract is Eu30 million ($35.5 million), starting from 2021 subject to the first delivery of gas to Italy through the TAP pipeline.

Noble Energy VP: We'll meet our timeline of delivering gas - JERUSALEM POST

December 6, 2017 16:57 
MAAYAN HOFFMAN

The Leviathan offshore natural gas field has brought Israel into a new era, according to Binyamin A. Zomer, vice president for regional affairs for Noble Energy, which operates Leviathan.

Speaking at Wednesday’s Jerusalem Post Diplomatic Conference, Zomer said that since February, when Noble Energy announced a “final investment decision” – a commitment to fully invest in the development of the Leviathan natural gas field off the Haifa coast, Israel’s biggest-ever infrastructure project – the company has completed almost 30% of the project.

“We will meet our timeline of delivering gas to Israel and neighboring countries before the end of 2019,” said Zomer.

Israel expects gas to flow from east Mediterranean to Europe - THE WASHINGTON POST

From left, Cyprus’ energy minister Yiorgos Lakkotrypis, Greece’s Energy minister Giorgos Stathakis, Israel’s Energy minister Yuval Steinitz and Italian ambassador in Cyprus Andrea Cvallari  after the East Med Pipeline agreement signing at “Filoxenia” conference center in capital Nicosia, Cyprus, on Tuesday, Dec. 5, 2017. 

By Menelaos Hadjicostis | AP December 5 at 9:24 AM

NICOSIA, Cyprus — A potential undersea pipeline carrying natural gas from deposits in the eastern Mediterranean to Europe is “very realistic” and could help secure the continent’s energy future, Israel’s energy minister said Tuesday.

Yuval Steinitz said that a study on the “strategic” EastMed Pipeline Project shows that the pipeline is feasible, even though it presents technical challenges due to the depths involved.

Egypt's Atoll gas field begins test production - minister - REUTERS

DECEMBER 5, 2017 / 2:15 PM

Reporting by Abdel Rahman Adel; Writing by John Davison; Editing by Greg Mahlich

CAIRO (Reuters) - Test production at Egypt’s Atoll offshore gas field began on Tuesday with a production capacity of 300 million cubic feet per day, Petroleum Minister Tarek El Molla said.

Actual production would begin in the third week of December, El Molla told Reuters.

BP decided in November 2015 to fast-track the development of Atoll, estimated to contain 1.5 trillion cubic feet of gas and 31 million barrels of condensates.

Lebanon sets 80% local worker requirement - OIL & GAS JOURNAL

DEC/05/2017HOUSTON

Lebanon will require that the workforce of its prospective oil and gas industry be 80% Lebanese.

Energy Minister Cesar Abi Khalil said in a news conference in Beirut that the requirement is part of legislation to be submitted soon to the Cabinet, according to Lebanese press reports.

The country in October concluded its first offshore licensing round after nearly 4 years of delay caused by political conflicts and a vacancy in the presidency.

The round drew bids from two of five blocks on offer from a consortium of Total SA, Eni SPA, and Novatek (OGJ Online, Oct. 13, 2017).

Exclusive: Exxon eyes Egypt's offshore oil and gas - sources - REUTERS

A view of the Exxon Mobil refinery in Baytown, Texas Sept 15, 2008
REUTERS/Jessica Rinaldi

DECEMBER 4, 2017 / 2:10 AM
Ron Bousso, Ernest Scheyder

LONDON/VIENNA (Reuters) - Exxon Mobil (XOM.N) is considering a foray into Egypt offshore oil and gas, seeking to replicate rivals’ success in the country and boost its reserves, officials and industry sources said.

Officials from the world’s largest listed oil producer recently held talks with Egypt’s petroleum ministry to discuss investments in oil and gas production, known as upstream operations, Petroleum Minister Tarek El Molla told Reuters.

“We have been discussing with them, visiting them. They’ve visited us... We are exploring all opportunities for having more and further upstreamers in Egypt,” Molla said on the sidelines of an OPEC meeting in Vienna.

“I would be happy to have them with us,” he said, adding that no decision has been made yet.

MOU for Israel-Europe gas pipeline to be signed Tue - GLOBES

3 Dec, 2017 12:48
Sonia Gorodeisky

The world's longest underwater pipeline from Leviathan to Italy will allow Israel to export gas to Europe.

A memorandum of understanding for the laying of an underwater gas pipeline from Israel to Europe will be signed on Tuesday in the Cypriot capital Nicosia, sources inform "Globes." The world's longest underwater pipeline will allow Israel to export gas to Europe.

The energy summit in Cyprus on Tuesday will be attended by Israel's Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz and his counterparts from Cyprus, Greece, Italy and the EU. The last such energy summit was held in Israel in April when the sides signed a declaration to move forward with the project.

Israel's Ministry of National Infrastructures, Energy and Water Resources says that the pipeline will be 2,000 kilometers long and will be completed by 2025.

Egypt, Cyprus reach preliminary agreement to implement gas import pipelines - AMWAL AL GHAD / DAILY NEWS EGYPT

Sunday, 03 December 2017 10:27

Egypt has reached a preliminary agreement to extend natural gas transmission pipelines from Cypriot fields to Egyptian liquefaction plants, according to an official source at the Ministry of Petroleum and Mineral Resources.

According to the source, the two sides agreed on some details related to the import of Cypriot gas, most notably, the extension of natural gas pipelines from Cypriot fields to the natural gas liquefaction plant in the area of Idku, although distribution of the pipeline construction cost has not yet been agreed.

Egypt's Zohr gas field to yield 350 mln cubic feet daily by end-2017 -ministry - REUTERS

DECEMBER 1, 2017 / 2:39 PM

Reporting by Ehab Farouk, writing by John Davison; editing by Susan Fenton

CAIRO, Dec 1 (Reuters) - Egypt’s giant new offshore Zohr gas field in the Mediterranean is set to begin production by year-end and would initially yield 350 million cubic feet per day, the petroleum ministry said on Friday.

Production would increase to around 1 billion cubic feet per day by mid-2018, it said.

Prime Minister Sherif Ismail said in September Zohr was set to produce 500 million cubic feet per day by the end of 2017.

The Zohr field was discovered in 2015 by Italy’s Eni with an estimated 30 trillion cubic feet of gas.

Egypt’s own natural gas output rose to about 5.1 billion cubic feet per day in 2017 from 4.4 billion cubic feet in 2016 with the start of production from the first phase of BP’s North Alexandria project.

The country has been seeking to speed up production from recently discovered fields, with an eye to halting imports by 2019 and achieving self-sufficiency.

Thyssenkrupp to build two major polymer plants in Turkey - HYDROCARBON PROCESSING

NOV/30/2017

Thyssenkrupp Industrial Solutions’ subsidiary Uhde Inventa-Fischer has signed a contract to build two new world-scale polymer plants for SASA Polyester Sanayi A.Ş in Adana, Turkey. One plant is planned to produce 380,000 tpy of polyethylene terephthalate (PET) for low-viscosity applications.

The second plant will use Uhde Inventa-Fischer’s proprietary patented MTR technology to produce 216,000 tpy of resin for the production of PET bottles. Both new plants are among the largest single-line production plants for their respective products.

The scope of delivery for both projects will include basic and detail engineering, the delivery of all necessary components, and technical services for erection, pre-commissioning and commissioning supervision.

Delek's Q3 profit soars above NIS 1b after Tamar sale - GLOBES

Asi Bartfeld, CEO, Delek Group

29 Nov, 2017 14:16
Globes correspondent

Delek Group also announced that it intended to cash in its super royalties from the Tamar and Dalit reservoirs in the near future.

Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG), whose share price has fallen 30% this year, today reported that its net profit had risen steeply to NIS 1.024 billion in the third quarter. NIS 873 million of this came from the sale of 9.25% of Delek Drilling Limited Partnership's (TASE: DEDR.L) holding in the Tamar natural gas reservoir to the Tamar Petroleum partnership. Delek Group's net profit in the third quarter of 2016 was NIS 85 million.

Indian, Greek E&P groups bid for licenses offshore Israel -OFFSHORE MAGAZINE

11/29/2017

HAIFA, Israel – Israel’s government has closed the country’s 1st offshore licensing round.

The Ministry of Energy received bids from Athens-based Energean, which is currently developing the offshore Karish and Tanin gas fields; and from a consortium of Indian companies comprising ONGC Videsh, Bharat PetroResources, Indian Oil Corp., and Oil India.

Dr. Yuval Steinitz, Minister of Energy, said: “This bid round is the first step in a long-term process that would lead to full exploitation of gas and oil resources in the Israeli EEZ for the benefit of the Israeli citizens.

“We are planning to launch a 2nd licensing round in 2018, where lessons learned from the 1st bid round will be incorporated, and thus continue the effort to develop these strategic assets in the Israel’s exclusive economic zone.”

NOC’s Sanalla in Cairo seeking Egyptian help - LIBYA HERALD

Sanalla with Egyptian oil minister Tarek El Mollah (Photo: NOC)

Tunis, 28 November 2017

National Oil Corporation (NOC) chief Mustafa Sanalla has been in Cairo seeking to ginger up cooperation with Egypt to help repair and expand Libya’s creaking oil and gas infrastructure.

The meeting with Egyptian oil minister Tarek El Mollah looked at ways that Egyptian oil services companies might become involved in rehabilitating oil and gas infrastructure as well as building new tanks, plus a host of other services such as training and organising conferences and exhibitions.

Sanalla’s talks with El Mollah came seven months after he and Presidency Council (PC) deputy head Ahmed Maetig separately hosted Egyptian oil chiefs in Tripoli.

It was agreed then that Egyptian companies that had withdrawn after 2014 should return. A joint working group was created to see how this could best be managed.

Israel and Cyprus: Untying the Gordian Knot on East Mediterranean Gas - MODERN DIPLOMACY

NOV 27, 2017

Antonia Dimou

Gas exploration and drilling activities in Israeli and Cypriot waters along with licensing rounds for blocks near the super-giant Zohr gas field raise the likelihood for large gas discoveries in the East Mediterranean. Israel and Cyprus speed up efforts for the development of energy resources to be primarily channeled to Europe.

Europe is considered as prime export destination for regional supplies of liquefied natural gas given that the continent is seeking to enhance energy supply and transit security.

Israel seems to be taking two steps forward and one step back on natural gas. A renewed Israeli gas regulation framework has portended a competitive market as new companies acquire offshore drilling rights. It is in this context that a Greek company, Energean Oil and Gas has secured full ownership of Israeli Karish and Tanin gas fields at the price of 148 million dollars aiming to deliver 88 billion cubic meters (bcm) of natural gas to the Israeli market in the next forty years. The Greek company has submitted a field development plan to the Israeli government and secured sales agreements for more than 3 bcm annually at a 20 percent price discount compared to Leviathan partners’ pricing to Israeli power provider Dalia Power Energies and its sister company Or Power Energies. This arrangement has set the stage for competition that will benefit consumers and the Israeli economy.

Aramco likely to begin refining fuel in Egypt in 1Q2018 – officials - ENTERPRISE

Monday, 27 November 2017

Aramco likely to begin refining fuel in Egypt in 1Q2018 -officials: Saudi Aramco is likely to begin refining crude oil in Egyptian refineries in 1Q2018, an official from the Oil Ministry tells Al Shorouk, initially at the Middle East Oil Refinery (MIDOR). Egypt will receive the 700k tons of fuel per month from Aramco — under the existing five-year fuel supply agreement — for MIDOR’s refineries, with excess output being exported, the official stated. He noted that talks are still ongoing with the Saudi’s largest oil producer. Oil Minister Tarek El Molla had confirmed earlier this month that talks had been taking place with Aramco to refine fuel here and that refining would begin at some point in early 2018. This follows other reports that Aramco had agreed to a plan last month to ship crude through the SUMED pipeline and use Sidi Kerir as a center for exporting refined output to Europe.

Israel, Egypt government ministers said to discuss gas exports - WORLD OIL / BLOOMBERG

NOVEMBER/26/2017
DAVID WAINER

TEL AVIV (Bloomberg) -- Government ministers from Egypt and Israel held a call last week to discuss the potential sale of Israeli gas to Egypt, according to a person with direct knowledge of the matter.

Egyptian Oil Minister Tarek El-Molla and Israel’s energy minister, Yuval Steinitz, spoke after an interview El-Molla gave to Bloomberg earlier this month sent shares of Israeli gas companies tumbling on speculation Egypt would halt talks on buying gas from Israel, the person said. El-Molla told Steinitz that Israeli gas exports to Egypt, which would be carried via pipeline, are still on the table, the person said.

Shares of Israeli gas producers extended their gains, with Delek Group Ltd. up 7.8% to 550 shekels at 3:26 p.m. in Tel Aviv.

Door still open for East Med-Egypt gas - PETROLEUM ECONOMIST

24 November 2017

Gina Cohen

Despite the country's natural gas sector booming, it could eventually need to import the fuel again

On 14 November, Egypt's oil minister Tarek El-Molla, told Bloomberg that "Egypt will stop importing liquefied natural gas in 2018 and may eventually export gas". This statement appeared to signal an end to the prospect of Eastern Mediterranean gas exports—from Israel and Cyprus—finding a market in Egypt. In Israel, much of the media interpreted his remarks as a sign that the country's hopes of exporting gas from the offshore Leviathan and Tamar gas fields to Egypt were dead.

At present, it's hard to imagine a day when Egypt would again be looking abroad for supplies. The second half of 2018 will be a golden moment, with its legacy gasfields still producing strongly, and the first phase of the mega-giant offshore Zohr field ramping up towards full production of around 76m cubic metres a day.

On the export front, even today, despite the shortage of gas supply for the local market, Egypt has allowed small volumes of liquefied natural gas sales, via Shell's Idku facility (0.8bn cm/d in 2016 and an expected 1.2bn cm/d in 2017).

Italian firm to drill 2 wells off Cyprus in next 2 months - ASSOCIATED PRESS / YAHOO FINANCE

November 24, 2017Menelaos Hadjicostis

NICOSIA, Cyprus (AP) -- The top executive of ENI said Friday that the Italian oil and gas company will drill two exploratory wells off Cyprus over the next two months, expressing confidence that significant reserves can be found for possible export to Europe.

ENI CEO Claudio Descalzi described Cyprus as a "natural bridge" linking existing and potential gas deposits in the eastern Mediterranean with Europe, which is looking to diversify its energy sources amid increasing gas consumption.

"We believe in Cyprus," Descalzi said after talks with Cypriot President Nicos Anastasiades. "Cyprus is a natural bridge to Europe and Europe is importing more than 70 percent of its gas and gas consumption is growing."

Gas consumption rose 5 percent in Europe last year and it will increase annually by 100 million cubic meters (3.5 billion cubic feet) each of the next two years, said Descalzi.

The first exploratory well will be drilled in partnership with France's Total next month in an area off the island's southwest. ENI and South Korea's Kogas will start drilling for the second well in January in the island's southeast.

Descalzi said ENI has a "strategic" interest in the region as waters around Cyprus remain largely unexplored. ENI has invested 450 million euros ($533 million) in exploratory drilling, seismic and geological surveys.

He said Italy is in talks with Cyprus, Egypt and Greece to possibly create a new energy corridor to Europe, with options including processing newly found gas at Egypt-based plants for export to the continent. Another option is to supply Cyprus' domestic needs.

Previous drilling had failed to locate sizeable gas deposits off Cyprus, but that hasn't disheartened companies licensed to drill in Cypriot waters. Descalzi said companies drilled 11 times in nearby Egyptian waters and found nothing before ENI discovered Zohr, the largest gas deposit ever found in the Mediterranean.

"You have to continue, and Cyprus is still a virgin area because we didn't drill a lot of wells, just 2-3 wells, so we're optimistic," said Descalzi.

Earlier, Texas-based Noble Energy discovered a field off Cyprus estimated to contain over 4 trillion cubic feet in reserves.

ExxonMobil said it will go ahead with drilling two wells in the second half of next year.

SOURCE

Medserv’s interim statement highlights delays in Q4, strong 2018 - TIMES OF MALTA

Friday, November 24, 2017, 07:49

Medserv’s update issued to the market highlights that the group’s business pipeline remains robust with a strong outlook for 2018, while earnings for the second half of the reporting year are lower than forecast due to delays in projects both in integrated logistics support services (ILSS) and oil country tubular goods (OCTG).

Further to the company announcement, Edison Investment Research also issued an update where they state that although the project delays will see H217 miss expectations, contracted projects underpin their FY18 estimates and for this reason this remains unchanged. The DCF-based fair value provided by Edison currently stands at €1.64 per share. The full Edison report may be viewed on the company’s website.

The group reported that the second ILSS base recently opened in Cyprus will become fully active in the coming month. Four to five wells are expected to be drilled in the waters offshore Cyprus in the next 12 months. Medserv Cyprus will support the upcoming exploratory drilling campaign planned by ENI Cyprus from both its shore bases in Limassol and Larnaca.

The group’s Cypriot subsidiary has also recently participated in a tender for the provision of ILSS to a second International Oil Company (IOC) which is planning to drill next year.