Energizing diplomacy with our neighbors - THE JERUSALEM POST

THE LEVIATHAN jacket.. (photo credit: ALBATROSS)

MARCH 22, 2019 16:20
MAAYAN JAFFE-HOFFMAN

Forty years on, Israel-Egypt energy cooperation opens the door to warmer relations

Is natural gas propelling us toward the future frontier of stronger Jerusalem-Cairo ties?

The energy cooperation deal signed between Israel and Egypt is the Jewish state’s first significant economic agreement with Egypt since the 1979 peace accord – and a dramatic step up in political and economic relations.

So said Amir Foster, head of strategy and research at the Association of Oil & Gas Exploration Industries, explaining that joint energy cooperation has already led to results in the field. 

In September 2018, Noble Energy and Delek Drilling signed agreements to purchase a stake in the Eastern Mediterranean Gas Company pipeline to advance the export of gas to Egypt.

“This was not just ‘another deal,’ but a dramatic development that changes the existing situation, providing the physical infrastructure for realizing the gas export deal with Egypt signed in February 2018,” Foster said.

Ahead of London IPO, Delek Drilling buys 3 Israeli licenses - GLOBES

Yitzhak Tshuva

20 Mar, 2019 16:39
Amiram Barkat

Two of the licenses are land oil exploration licenses and the third is the Roei offshore gas exploration license.

Delek Drilling LP (TASE: DEDR.L) is acquiring additional oil and gas exploration licenses in preparation for implementation of its plan for splitting off its subsidiary, which will hold the Leviathan and Aphrodite natural gas reservoirs, and which will hold an offering on the London Stock Exchange.

The partnership, controlled by Delek Group Ltd. (TASE: DLEKG), whose controlling shareholder is Yitzhak Tshuva, today announced its entry into three new Israeli licenses: the Roei marine gas exploration license and the Yahel Hadash and Ofek Hadash land exploration licenses.

The Roei deal is based on exercising an option for 20% of the rights that Delek Drilling received in 2012 in lieu of its fee for its mediation role in the deal between the Ratio Oil Exploration (1992) LP (TASE:RATI.L) license holder (it was the Gal exploration permit at the time) and Italian company Edison, the operator for the license. Delek Drilling is now exercising its option to buy 5% more of the rights from Ratio in order to reach a 24.99% share of the rights in the license. Delek Drilling will not pay a substantial amount for the deal, beyond reimbursement for its proportional share of the partners' past expenses.

Proudly presenting the Karish Development Project - ENERGEAN OIL & GAS

Energean Oil & Gas proudly presenting the Karish Development Project (First Steel Cut version) in a 4:09 minute video.

Natural gas pipeline to Jerusalem completed - GLOBES

21 Mar, 2019 10:36
Daniel Schmil

The 18-inch-diameter, 34-kilometer-long pipeline cost NIS 290 million to build.

Israel Natural Gas Lines Company inaugurated the natural gas pipeline to Jerusalem in a ceremony attended by Minister of National Infrastructures, Energy, and Water Resources Yuval Steinitz and Jerusalem Mayor Moshe Lion. The 18-inch-diameter, 34-kilometer-long pipeline cost NIS 290 million to build.

The pipeline was built in two parts. The western part starts at the Yesodot block valve station near the Soreq Interchange on the Cross Israel Highway. The other part begins at the Mesilot Zion station next to Sha'ar Hagai and ends at the pressure-reducing station at Beit Zayit. The pressure reducing facility itself has not yet been completed, and gas can flow only to enterprises and consumers in the Jerusalem area after it is completed, through the Rotem distribution company. Connection of the first consumers to gas is scheduled for 2020.

Pompeo welcomes trilateral cooperation (Update 2) - CYPRUS MAIL

US Secretary of State Mike Pompeo, President Anastasiades,
Israeli Prime Minister Benjamin Netanyahu and Greek
Prime Minister Alexis Tsipras in Jerusalem

MARCH 20, 2019

Jean Christou

The governments of Cyprus, the US, Israel and Greece on Wednesday agreed to increase regional cooperation, support energy independence and security, and to “defend against external malign influences” in the Eastern Mediterranean and the broader Middle East.

The US Secretary of State Mike Pompeo, who attended the Jerusalem summit, expressed US support for the trilateral mechanism established by the three countries when, according to a brief official declaration following the summit, they met “to affirm their shared commitment to promoting peace, stability, security and prosperity in the Eastern Mediterranean region”.

According to the statement, Pompeo noted the importance of increased cooperation with the three countries.

Joint Statement USA Greece Israel Cyprus - TWITTER CYPRUS FM

Ithaca to operate Alon D license off Israel - OIL & GAS JOURNAL

HOUSTON, Mar. 19
MARCH/19/2019

Ithaca Energy Inc., a wholly owned Canadian subsidiary of Delek Group Ltd., will become operator of the Alon D exploration license offshore Israel under an agreement with Noble Energy Mediterranean Ltd.

Noble, the current operator with a 47.059% interest, is withdrawing from the license.

The Alon D block is immediately east of Noble’s Karish natural gas discovery on a block now operated by a subsidiary of Energean Oil & Gas PLC, London (OGJ Online, May 23, 2013).

Delek Drilling LP holds a 52.941% interest in the Alon D license.

Under the new agreement, interests will be Delek Drilling, 75%, and Ithaca Energy, 25%.

Delek Group said it approached “several potential operators” that showed no interest in the role.

Cyprus seeks EUR 150 mln EIB financing for Nat gas infrastructure - FINANCIAL MIRROR

19 March, 2019

Cyprus is in talks with the European Investment Bank (EIB) for over a €150 mln in financing for the construction of infrastructure to transport natural gas to the island, said Finance Minister Harris Georgiades.

EIB President Werner Hoyer appeared optimistic that the credit institution will be able to take part in the project.

“From 2013 until today we have signed financing agreements of a value of €1.5 billion,” the Finance Minister said at a Nicosia press conference Monday.

“Half of that amount is aimed at small and medium size enterprises through Cypriot banks, this has contributed in a decisive way to the Cypriot economy’s recovery,” he added.

The government aims to maintain and expand on financing programmes for small and medium size enterprises.

Eni to complete Zohr gas processing station in April - ENTERPRISE

Monday, 18 March 2019

Italy’s Eni will by April have completed the construction of a gas treatment station for Zohr-produced gas in Port Said’s El Gameel region, which will connect to the Damietta liquefaction plant, an industry source told the domestic press. 

The Damietta liquefaction plant, of which Eni owns 26%, will be able to export 750 mn cf/d after the completion of the plant.

Natural gas should be shared equitably in context of solution- U.S. ambassador - IN-CYPRUS

March 18, 2019 at 1:19pm
Edited by Stelios Marathovouniotis

Cyprus’ natural gas resources should be shared equitably between Turkish and Greek Cypriots in the context of an overall settlement, U.S. ambassador to Cyprus, Judith Garber said on Monday.

Garber made these statements after presenting her credentials to President Anastasiades after assuming her duties.

“The new energy discoveries come with great promise and equally great responsibility. The United States has consistently recognized the right of the Republic of Cyprus to develop the resources in its Exclusive Economic Zone. We continue to believe these resources should be equitably shared between both communities in the context of an overall settlement,” Garber said.

These finds should lead to the greater prosperity and stability of the entire region and help diversify Europe’s energy supply, she added.

She described Cyprus as a valued friend and an important partner in a critical region.

Egypt’s imports of Israeli gas delayed to mid-2019 due to pipeline doubts - ENTERPRISE

Monday, 18 March 2019

Egypt’s imports of Israeli gas delayed to mid-2019 due to pipeline doubts: Egypt will begin receiving its first shipments of Israeli gas in the middle of this year, two sources familiar with the matter told Bloomberg. Egypt’s East Gas originally expected trial shipments from Israel’s Tamar and Leviathan gas fields to begin this month, but the sources said that the pipeline still requires further maintenance. Petroleum Minister Tarek El Molla also told the CERAWeek energy conference in Houston last week that Egypt will start importing Israeli gas by mid-2019.

Background: East Gas, Noble Energy and Delek Drilling last year signed a USD 518 mn deal for a 39% stake in Ashkelon-Arish pipeline operator Eastern Mediterranean Gas (EMG), which was supposed to have paved the way for Egypt to begin importing an initial 100 mn scf/d in 1Q2019. In the time since, doubt has been raised over the capability of Israel’s domestic pipeline infrastructure to handle the quantity of gas agreed in last year’s USD 15 bn gas deal. The two countries began talks in January over the construction of a new subsea pipeline that would enable Israeli gas to flow directly to Egypt’s Idku facility, eliminating the need to expand Israel’s onshore infrastructure.

Egypt- Idku liquefaction plant to work at full export capacity by June: El-Molla - MENAFN / DAILY NEWS EGYPT

March/17/2019 3:20:51 AM 

(MENAFN - Daily News Egypt) Egypt's Ministry of Petroleum aims to increase the amount of gas exported of Idku gas liquefaction plant to 1.13bn cubic feet of gas per day (scf/day) by June, up from the current 800m scf/day, the Minister of Petroleum, Tarek El-Molla, told Daily News Egypt on Saturday.

The plant, operated by Royal Dutch Shell, is to operate at full capacity, following the linkage of gas production from Eastern Mediterranean fields, and achieve self-sufficiency, according to El-Molla. Ownership of the Idku plant is divided among Egyptian General Petroleum Corporation (EGPC) with 12%, Egyptian Natural Gas Holding Company (EGAS) with 12%, Shell with 35.5%, Petronas with 35.5%, and Gaz de France with 5% stake.

El-Molla explained that Egypt is on the right track toward becoming a regional gas hub, exporting the surplus of natural gas production, giving a priority to electricity consumption, followed by factories, houses, and cars, respectively. In case of a surplus, the amount will be exported to international markets through the Idku plant and the Jordan gas pipeline.The contractual rate of Idku plant is 1.13bn scf/day. These rates have decreased since 2011 until it was finally stopped at the beginning of 2015.

Pipeline Snag to Delay Israel Gas to Egypt for 3 Months - BLOOMBERG

March 17, 2019, 2:47 PM GMT+2

Yaacov Benmeleh

• Egypt expects to get first test flows mid-year, not March
• Israel will pipe gas to Egypt under a $15 billion deal

Egypt will begin receiving gas from Israel under a $15 billion deal around the middle of the year, after unexpected issues with the pipeline connecting the two countries delayed the start-up by several months, people familiar with the situation said.

Egyptian Oil Minister Tarek El-Molla told the CERAWeek conference in Houston last week that the government expects the first flows of Israeli gas to arrive around mid-year.

He didn’t give details, but two people familiar with the situation said due diligence by the companies involved had discovered that the pipeline would require more work than expected to bring it online. The Egyptian partner in the project had said he expected trial quantities to begin flowing in March if the pipeline was found to be in good condition.

The companies developing Israel’s largest natural gas fields and their Egyptian partner agreed last year to buy a 39 percent of the East Mediterranean Gas Co., which owns the sub-sea pipeline connecting southern Israel to Egypt’s Sinai Peninsula, clearing the main legal obstacle to the 10-year export contract.

Egypt to tender four LNG cargoes in April as it aims to become regional gas hub - THE NATIONAL / FORBES

March 15, 2019 04:33 PMSagging domestic production had forced the North African state to halt most exports of LNG in 2014

Egypt indicated it’s ready to rejoin the club of major exporters of liquefied natural gas, making the biggest offer to supply the market in at least five years.

The state gas company EGAS is tendered to sell four cargoes of LNG for loading in April, three people with direct knowledge of the matter said. The bids are due March 18 and valid until March 25, according to the people, who asked not to be named because details of the tendering process is confidential.

Extra supplies from Egypt would hit a market already battling with spot prices for the super-chilled fuel trading at the lowest level since July 2017 following a mild winter that curbed demand across Europe and Asia. The US, Russia and Australia all are contributing to a glut, starting new plants to export the fuel and build market share.

Eni announces a new gas discovery in the Nour prospect, Offshore Egypt - ENI

14/03/2019 11:15

Eni announces a new gas discovery under evaluation in the Nour exploration prospect located in Eastern Egyptian Mediterranean. Feasibility studies in order to accelerate the exploitation of these new resources leveraging the synergies with existing facilities will start after finalizing the discovery evaluation

San Donato Milanese (Milan), 14 March 2019 – Eni announces a new gas discovery under evaluation in the Nour exploration prospect located in the Nour North Sinai Concession, in the Eastern Egyptian Mediterranean, about 50 km North of the Sinai peninsula.

The Nour-1 New Field Wildcat (NFW), which has led to the discovery, was drilled by the Scarabeo-9 semi-sub in a water depth of 295 meters and reached a total depth of 5,914 meters.

Nour-1 well found 33 meters of gross sandstone pay with good petrophysical properties and an estimated gas column of 90 meters in the Tineh formation of Oligocene age. The well has not been tested, however an intense and accurate data acquisition has been carried out.

Exclusive: Exxon eyes Israel gas bid in major Middle East shift - REUTERS

MARCH 13, 2019 / 10:28 PM

Ron Bousso

HOUSTON (Reuters) - Exxon Mobil Corp is considering exploring for oil and gas in Israel, said a person with direct knowledge of the matter, in what would make Exxon the first oil major to operate in the country still technically at war with Gulf Arab states.

A number of large gas discoveries offshore Israel and in nearby eastern Mediterranean waters in the last decade have made Israel a potentially lucrative prospect for big energy firms. The region is emerging as a new hot spot for gas exploration and production.

Until those discoveries, Israel was believed to be sitting on scant oil and gas reserves. There was little reason for energy firms to explore for energy in Israel and risk complicating operations and future investments in nearby Arab countries that hold some of the world’s largest energy reserves.

Cyprus, Noble Energy conclude deal on exploiting natural gas field - XINHUA

2019-03-13 04:20:47|Editor: yan

NICOSIA, March 12 (Xinhua) -- Cyprus and a consortium led by U.S.-based Noble Energy company have concluded an agreement on the terms of exploiting a natural gas field from which gas will be exported to Egypt, Cypriot state television reported on Tuesday.

Citing a competent government source, it said the two sides have ironed out pending issues relating to the ratio of participation of the sides involved in the revenue from the selling of natural gas, adding that what is left is to couch the deal in legal jargon.

Noble Energy leads the operation for sending gas to Egypt after building an undersea pipe, in association with British Gas and Israeli Delek Drilling, each of the three companies holding about one third of the share.

Noble Energy asked the Cypriot government last year to renegotiate the revenue sharing agreement for the 4.5 trillion cubic feet Aphrodite gas finding.

Aphrodite lies in block 12 of Cyprus's exclusive economic zone (EEZ) and it is Cyprus's first gas finding, discovered in 2011.

Egypt Looks to Offshore Gas Field for Growth and Influence - THE NEW YORK TIMES

March 11, 2019

Clifford Krauss and Declan Walsh

CAIRO — President Abdel Fattah el-Sisi likes to flaunt his plans for modernizing Egypt, like the flashy new administrative capital rising from the desert outside Cairo. But most Egyptians view his rule as a time of painful belt-tightening, with soaring inflation, a currency crash and cuts to subsidies that have made fuel, electricity and water more expensive.

Now there is a ray of hope emerging a hundred miles offshore.

It comes in the form of a windfall natural gas discovery with the potential to lift Egypt’s limping economy, build a new commercial alliance with Israel and maybe, even, revive the country’s diminished regional clout.

Egypt’s gas push is part of a tectonic shift in energy and geopolitics. Natural gas, long a poor cousin to oil, is gaining importance and becoming a tool for countries to leverage power and prestige. Advances in the shipping of liquefied gas have made it a global fuel and strengthened the hand of countries that until recently were not major energy exporters, including the United States and now Egypt.

Tough choices: how to monetise Cyprus’ gas - CYPRUS MAIL

ENI's Carlo Vito Russo and Alessandro Barberis with Energy Minister
Giorgos Lakkotrypis at the seminar

MARCH 10, 2019

Charles Ellinas

Should Cyprus pipe gas to Egypt or build a LNG plant at Vasiliko?

The future of Cyprus’ and the East Med’s gas discoveries was one of the key aims of the annual East Med Gas Conference (EMGC) held in Nicosia this week.

Organised by the US Gulf Energy Information, the conference was well attended, with a rich programme covering the state of the East Med, challenges in exploration and production of the region’s resources, energy security and Cyprus as an oil and gas service centre.

The conference was opened by Energy Minister Giorgos Lakkotrypis, who gave an overview of the results from block 10 and future plans. He said that Glafcos, the results of which were announced last week, is a high quality reservoir, with in-place gas estimated to be 5-8 trillion cubic feet (tcf), with recoverability expected to be high.

Things Are About to Change: Oil and Gas Have Been Found in the Eastern Mediterranean - THE NATIONAL INTEREST

March 10, 2019

Tony Chavez

Large quantities of oil and natural gas have been discovered in the East Med and the race to extract them has begun. These hydrocarbon finds hold the potential to build regional stability and to bolster the economies of important US allies and partners, all of which is in the interest of the United States. But these discoveries could just as easily stoke further instability and conflict if nations default to historic resentments and if regional powers jockey to monopolize on or block access to this strategic treasure.

Extending from Israel and Egypt in the East and South to Turkey, Greece and Italy in the North and West, the Eastern Mediterranean has long been an economically dynamic and politically important region for the United States and its NATO allies. It is about to become even more important.

Large quantities of oil and natural gas have been discovered in the East Med and the race to extract them has begun. These hydrocarbon finds hold the potential to build regional stability and to bolster the economies of important U.S. allies and partners, all of which is in the interest of the United States. But these discoveries could just as easily stoke further instability and conflict if nations default to historic resentments and if regional powers jockey to monopolize on or block access to this strategic treasure.

Egypt launches licensing round for Red Sea oil and gas exploration - THE NATIONAL

March 10, 2019

Jennifer Gnana

Saudi Arabia said last week that it had found "large volumes" of gas offshore
Egypt will look to incentivise exploration in the Red Sea area, which is expected to include unconventional resources.

Egypt has tendered 10 blocks offshore the Red Sea as it looks to duplicate its successes in the Eastern Mediterranean, which led to a gas bonanza ending the country’s imports for the fuel.

The South Valley Egyptian Petroleum Holding Company (Ganope) invited companies on Sunday to review and purchase technical data, with August 1 set as the closing date for bids.

The announcement follows Egypt’s successful closing of one it largest ever bid rounds, which saw the award of 12 licences and marked the entry of US major Exxon in the search for the country’s hydrocarbons. Egypt, the Arab world’s most populous state struck gold in recent years thanks to the discovery of the massive Zohr field by Italian energy major Eni in 2016 in the Eastern Mediterranean. The find sparked search for more hydrocarbon resources along the Nile Delta and western desert as the North African state looked to leverage these discoveries to become a net exporter of gas, particularly to markets in Europe.

Cracks appear in EastMed pipeline - CYPRUS MAIL

MARCH 8, 2019

CRACKS seem to be forming among the countries participating in the EastMed gas pipeline, raising questions over the project’s feasibility, if media reports are to be believed.

Earlier this week Italy’s La Stampa newspaper suggested Rome is having second thoughts over the proposed subsea pipeline, which has already received funding from the EU as a ‘Project of Common Interest’.

In December 2018, the four countries involved – Israel, Cyprus, Greece and Italy – signed a framework agreement to provide Europe with natural gas via the EastMed.

According to La Stampa, the definitive agreement was expected to be concluded by the end of March – but Italy now says it wants to put the brakes on the project.

Apparently under pressure from environmental activists, the Italian government has decided to order a new environmental impact assessment.

ENERGY: Cyprus gas fields are turning into export grade - FINANCIAL MIRROR

07 March, 2019

Cypriot Energy Minister George Lakkotrypis said the quality of the reservoir found in Block 10 of Cyprus’ Exclusive Economic Zone (EEZ) allows for optimism that the recoverability will be very high.

The Minister, speaking at the 6th Eastern Mediterranean Gas Conference in Nicosia, also noted that more appraisal work is needed by ExxonMobil within the coming weeks.

ExxonMobil discovered huge quantities of natural gas ranging from 5 to 8 trillion square feet, the largest find offshore Cyprus.

Lakkotrypis said the discovery in the “Glafcos 1” well creates prospects to relook at Block 10 targets, adding that “Calypso” and “Aphrodite” fields, indicate the potential of the EEZ. The Minister said that Nicosia was looking forward to the upcoming drilling programme of Eni and Total, waiting at the same time the appraisal well for “Calypso” in Block 6.

Referring to monetization of the discoveries, he said that the Cyprus government has been maturing all of its options simultaneously, with the exception of “Aphrodite” field for which announcements were hopefully expected in the next few weeks.

Egypt to offer three oil & gas exploration bid rounds this year / Inaugural meeting of the East Med seven took place yesterday - ENTERPRISE

Thursday, 7 March 2019

Egypt is planning to offer three oil & gas exploration bid rounds this year, Energy Minister Tarek El Molla told local press. 

EGAS will offer a bid round in the Mediterranean and EGPC will offer two bid rounds in the Western Desert, the Red Sea, and the Eastern Desert.

Inaugural meeting of the East Med seven took place yesterday: Representatives from the seven East Mediterranean countries held the inaugural meeting to form a regional gas market in Cairo on Wednesday, according to an Oil Ministry statement. 

The meeting, which included representatives from Egypt, Israel, Cyprus, Greece, Italy, Jordan, and Palestine, looked at the initial steps needed to bring about the market. 

Upbeat vision of gas future in wake of block 10 find - CYPRUS MAIL

Energy minister Giorgos Lakkotrypis addressing the seminar

March 6, 2019

The gas find in Glafcos (Glaucus) 1 well in Block 10 of the island’s exclusive economic zone (EEZ) is expected to yield large revenues, the energy minister Giorgos Lakkotrypis said on Wednesday.

Speaking at the Sixth Eastern Mediterranean Gas Conference in Nicosia, Lakkotrypis said in the coming weeks further work to confirm the ExxonMobil discovery, which was announced on 28 February to be between 5-8 trillion cubic feet (tcf), will be necessary.

Further discoveries in the Calypso well in Block 6 and in the Aphrodite well in Block 12 serve to paint an overall picture of the potential within the Cyprus EEZ, Lakkotrypis added.

Around five more drillings are expected to take place in the coming period with energy companies ENI and Total, he said, to confirm the natural gas stocks of the Calypso well and reassessing the capacity of Block 10.

Regarding the utilisation of the gas finds, he said that an announcement for Aphrodite is expected within weeks concerning the use of Egyptian terminals.

Netanyahu says Pompeo will participate in Israel-Greece-Cyprus summit - KATHIMERINI

THURSDAY MARCH 6, 2019 : 20:24

US Secretary of State Mike Pompeo will visit Israel imminently to help with its plan for exporting natural gas to Europe with Cypriot and Greek partners, Israeli Prime Minister Benjamin Netanyahu said on Wednesday.

Israel is hoping to enlist several European countries in the construction of a 2,000 kilometre (1,243 mile) pipeline linking vast eastern Mediterranean gas resources to Europe at a cost of $7 billion.

"In a few days, the leaders of Cyprus and Greece will come here, together with ... Pompeo, to advance a gas pipeline from Israel to Europe via these countries," Netanyahu told naval cadets in the port city of Haifa.

The US Embassy in Israel declined comment.

Energean Oil and Gas reveals start of well drilling campaign offshore Israel - PROACTIVE INVESTORS

04 Mar 2019 : 09:04 

Energean Oil and Gas PLC (LSE:ENOG) has started development drilling operations in its 2019 Israel well campaign, which will comprise at least four wells, but, could increase to as many as ten.

It initially has a programme of four wells at the Karish North project, which will see the ‘batch drilling’ of their top-sections, enabling significant operational efficiencies and cost savings.

The wells will be drilled by the contracted Stena DrillMAX drillship, which can operate in deep waters (up to 10,000 feet deep).

Energean last month told investors that it planned to target some 2.3 trillion cubic feet of potential gas resources through the 2019 drill programmes.

First gas is targeted in the first quarter of 2021.

Gas exports to Jordan reach 350 mcf/day - ENTERPRISE

Sunday, 3 March 2019

Egypt’s natural gas exports to Jordan have reached approximately 350 mcf/d, up from 100 mcf/d in January, Oil Minister Tarek El Molla told Daily News Egypt. 

The news means that Egypt has beaten its export targets, which would have seen gas shipments rise to 250 mcf/d by the summer. 

Egypt and Jordan signed a gas export agreement back in September that will see Egypt provide as much as 10% of the kingdom’s gas needs.

Shell sees 150 mcf/d output drop in Burullus and Rashid natural gas fields - ENTERPRISE

Sunday, 3 March 2019

Royal Dutch Shell’s natural gas output from the West Nile Delta Burullus and Rashid fields has declined to 250 mcf/d from 400 mcf/d the previous year due to decreasing well productivity, an Oil Ministry source told the domestic press. 

The company is aiming to link 100 mcf/d from Phase 9B of the Burullus gas field in 1H2019 to make up for part of the drop, the source said. 

The company had previously hoped to increase output to 450 mcf/d by the end of FY2018-2019, an EGAS source said.

Pyatt: Greece key to Europe’s energy diversification - KATHIMERINI

2 March 2019 : 15:51

“Greece has clearly emerged as a key European hub for energy diversification,” US Ambassador to Athens Geoffrey Pyatt said in an interview with the Athens-Macedonian News Agency on the sidelines of the Delphi Economic Forum on Saturday.

Pyatt said that the US will continue to work on all its energy partnerships in the country, including the LNG terminal on Revithoussa island, the Interconnector Greece-Bulgaria (IGB) and ExxonMobil’s exploration with Hellenic Petroleum (ELPE) off southern Crete. He also welcomed ExxonMobil’s discovery of what is seen as the biggest natural gas find off the coast of Cyprus.

Asked about the US-Greece Strategic Dialogue launched in Washington in December, Pyatt said it was “deepening and institutionalizing our alliance with Greece.” He said that the two sides have established working groups dealing with investments, homeland security and defense issues.

“All of this intends to keep the progress moving forward,” he said, adding he expects another round of meetings by the end of 2019.

The American ambassador was upbeat about the economic benefits of the name deal signed between Athens and Skopje, saying that the “Prespes agreement is going to unlock all of the opportunities for Greece to deepen trade, investment and economic relations with all of its northern neighbors.”

“We are really seeing Thessaloniki recapturing its role as the capital of the Balkans, Greek companies are already some of the largest investors in Skopje... and new projects are happening on energy, electricity,” Pyatt said.

US secretary of state to attend Cyprus trilateral meeting - CYPRUS MAIL

MARCH 2, 2019

GEORGE PSYLLIDES

US Secretary of State Mike Pompeo will be taking part in the next trilateral meeting between Cyprus, Greece, and Israel, Foreign Minister Nikos Christodoulides said on Saturday.

“US interest in taking part in the trilateral summit between Cyprus, Greece and Israel was conveyed to us some time ago and we were in constant contact to set a specific date,” Christodoulides told the Cyprus News Agency.

“It so happens that the meeting in question with the USA represented at foreign minister level can take place on March 20 in Israel.”

One of the main issues to be discussed is energy security, the minister added.

The meeting comes in the wake of ExxonMobil’s discovery of between 5-8 trillion cubic feet in an offshore field inside the island’s exclusive economic zone.

Investors frustrated by license delays for Crete exploration - ENERGY PRESS

01/March/2019

Contrary to Cyprus, providing oil majors investor-friendly conditions for their hydrocarbon exploration activities, ExxonMobil’s recent Glaucus-1 gas discovery emerging as a shining example, conditions in Greece are undermining the efforts of investors.

A consortium comprising Total, Exxon Mobil and ELPE (Hellenic Petroleum), established for hydrocarbon exploration work off Crete, has been held back by Greek government delays over the past few months.

Though most of the preliminary work has been completed, the trio of investors is still waiting for the Greek government to issue an exploration license, which would enable it to commence work at blocks off Crete.

An environmental impact study provided by the consortium for blocks west and southwest of Crete is said to have inexplicably fallen into stagnancy at one of the offices of the energy ministry’s environmental division over the past couple of months. It needs to be approved as part of the license issuing procedure.

New Cyprus gas find seen as game changer - KATHIMERINI

01.MARCH.2019 : 20:53
VASSILIS NEDOS

The announcement on Thursday that US energy giant ExxonMobil has made a “world-class” discovery in Block 10 of Cyprus’s exclusive economic zone (EEZ), containing 5-8 trillion cubic feet of gas, was widely seen as signifying that the energy game in the Eastern Mediterranean has only just begun and the main players’ next moves will determine their future geopolitical position in the wider region.

According to Cyprus Energy Minister Yiorgos Lakkotrypis, the discovery is the biggest find so far in Cyprus and based on some official data it is one of the biggest finds worldwide in the past two years.”

He added that the find offers confirmation that there is the potential for further hydrocarbon discoveries off the island’s coast. The announcement was made two months after ExxonMobil began operations with its partner Qatar Petroleum in the Glaucos-1 and Delphyne-1 wells in Block 10.

The latest announcement has sparked speculation in Greece and Cyprus over the stance of Turkey, which has raised objections to Nicosia’s search for gas in the island’s EEZ.

Cyprus: Another Offshore Discovery Will Intensify a Regional Struggle Over Energy - STRATFOR

Feb 28, 2019 | 23:13 GMT

The Big Picture

Geopolitics and natural gas go hand in hand in the eastern Mediterranean, a region that entered the great game of natural gas competition 10 years ago with the discovery of the Tamar natural gas field off the coast of Israel. While Israel has since become a producer, Cyprus has struggled to follow suit despite striking gas just two years later. In the past year, however, new discoveries of natural gas reserves have reinvigorated the Cypriot natural gas sector, culminating in what may be the island country's largest discovery to date.

What Happened

ExxonMobil ended weeks of speculation with its announcement on Feb. 28 that it had struck a significant gas deposit at its Glaucus prospect, southwest of Cyprus in the eastern Mediterranean Sea. Initial assessments suggest the reservoir could have between 142 billion and 227 billion cubic meters (5 trillion and 8 trillion cubic feet) of gas in place. Though just how much of this gas is recoverable remains unclear, the discovery adds to the growing amount of natural gas found in Cypriot waters.

When coupled with Noble Energy's Aphrodite gas field, discovered in 2011, and Eni's Calypso, discovered in 2018, Cyprus could well possess 500 billion cubic meters of gas without taking future potential discoveries into account. Though this quantity of natural gas would justify the construction of an undersea pipeline or a gas liquefaction plant for shipping via tanker, the geopolitical complications of the eastern Mediterranean must be taken into account.

ExxonMobil Makes Natural Gas Discovery Offshore Cyprus - EXXONMOBIL

Feb 28, 2019 - 07:15 a.m. EST

Irving Texas

• Glaucus-1 well encounters a gas-bearing reservoir of approximately 436 feet (133 meters)
• Well is located in offshore Block 10 southwest of Cyprus in the Eastern Mediterranean
• Further evaluation of Block 10 potential continues

IRVING, Texas--(BUSINESS WIRE)--ExxonMobil today said it has made a natural gas discovery offshore Cyprus in the Eastern Mediterranean at the Glaucus-1 well.

The well, located in Block 10, encountered a gas-bearing reservoir of approximately 436 feet (133 meters). The well was safely drilled to 13,780 feet (4,200 meters) depth in 6,769 feet (2,063 meters) of water.

Based on preliminary interpretation of the well data, the discovery could represent an in-place natural gas resource of approximately 5 trillion to 8 trillion cubic feet (142 billion to 227 billion cubic meters). Further analysis in the coming months will be required to better determine the resource potential.

“These are encouraging results in a frontier exploration area,” said Steve Greenlee, president of ExxonMobil Exploration Company. “The potential for this newly discovered resource to serve as an energy source for regional and global markets will be evaluated further.”

Glaucus-1 was the second of a two-well drilling program in Block 10. The first well, Delphyne-1, did not encounter commercial quantities of hydrocarbons.

Block 10 is 635,554 acres (2,572 square kilometers). ExxonMobil Exploration and Production Cyprus (Offshore) Limited is operator and holds 60 percent interest in the block. Qatar Petroleum International Upstream O.P.C. holds 40 percent interest.

ExxonMobil finds Cyprus’ largest gas discovery to date - IN CYPRUS

February 28, 2019 at 4:15pm

ExxonMobil has discovered natural gas at the Glaucus 1-well in plot 10 of Cyprus’ EEZ  — a find authorities said was the biggest off Cyprus since it started drilling for gas in 2011 and one of the biggest finds worldwide in the past two years.

A gas bearing reservoir discovered during exploratory drilling could potentially represent between 5 and 8 trillion cubic feet of gas, the company and the Cyprus government said.

The announcement was made by Energy Minister Yiorgos Lakkotrypis and ExxonMobil’s Vice President Europe Russia Caspian and Asia Pacific / Middle East, Tristan Aspray.

“This is the biggest find so far in Cyprus, and based on some official data it is one of the biggest finds worldwide in the past two years,” Yiorgos Lakkotrypis said.  “The results demonstrate the potential of our EEZ because it is a high-quality  reservoir,” he added.

ExxonMobil declares large Cyprus gas find - GLOBES

28 Feb, 2019 17:46

Guy Ben Simon

The company believes Block 10 contains 5-8 TCF of gas. Leumi Capital Markets analyst Ella Fried: A regional hub no longer appears unrealistic.

Oil and gas exploration giant ExxonMobil today reported that it had found gas in Block 10 off the shores of Cyprus. The company put the find in the 5-8 TCF range, equivalent to 140-230 BCM of gas. For the sake of comparison, the Tamar gas reservoir contains 280 BCM. ExxonMobil's report is based on previous analysis of its exploratory drilling.

Senior Leumi Capital Markets analyst Ella Fried told "Globes," "This is a dramatic discovery, because the idea of a regional hub no longer appears unrealistic. Combined with the Aphrodite reservoir, the quantity of gas is close to that in Tamar. Furthermore, the US company's presence will probably be less sensitive to regional politics. Where the regional hub aspirations of Egypt and Israel are concerned, the addition of another US concern can only contribute to Israeli gas in the long term. It is very important for Israel to have other concerns here besides European ones like Eni and BP, because the Europeans are more sensitive to a connection with the Persian Gulf states. Other than Noble Energy, not a single US company operates in the Mediterranean Sea."

State veto rights for DEPA Trade despite minority stake - ENERGY PRESS

28/FEB/2019

Investors preparing for gas utility DEPA’s upcoming privatization will face ambiguous operating conditions as the Greek State, to begin by offering a majority 50.1 percent stake in DEPA Trade following an imminent company split ahead of the sale, is expected to maintain veto rights on a number of strategic matters despite its minority status in this trade venture.

Key issues to concern DEPA Trade will include the gas utility’s long-term agreements with major suppliers such as Russia’s Gazprom, Algeria’s Sonatrach and Turkey’s Botas.

DEPA’s contract with Gazprom, which runs until 2026 and is the biggest of all three, features a take-or-pay clause requiring the Greek gas utility to order no less than 1.5 billion cubic meters of natural gas per year or face fines.

DEPA’s supply agreements with Sonatrach and Botas both expire in 2021. The Botas agreement will not be extended as the soon-to-be-launched TAP project will provide direct supply to Greece from Azerbaijan. DEPA has already signed an agreement for one billion cubic meters of TAP-related natural gas per year.

Subsequently, the Greek State will maintain its influence over DEPA’s supply contracts with Sonatrach and Gazprom.

Cypriot Energy Minister Announcing the Glaucus 5-8 tcf discovery - LINKED-IN

28 February 2019 

Georgios Lakkotrypis, Minister of Energy, Commerce, Industry & Tourism at Government of Cyprus:

"@ExxonMobil & @QatarPetroleum make a world-class discovery offshore #Cyprus at #Glaucus. A high-quality reservoir 5-8 TCF of #NatGas is added to the country’s reserves. It demonstrates the emergence of the Republic‘s #EEZ as an alternative indigenous source of supply to the #EU."

Egypt’s gas exports from Idku jumps to 800MCF/day - EGYPT TODAY

Wed, Feb. 27, 2019

CAIRO – 27 February 2019: Egypt’s natural gas exports from Idku plant rose to currently 800 million cubic feet of liquefied natural gas (LNG) per day up from about 250 million cubic feet per day in early January and 300 million cubic feet per day in 2018.

Egypt’s Minister of Petroleum Tarek el-Molla clarified to a local newspaper that LNG exports from Idku rose, so Egypt strongly returned to international markets after achieving self-sufficiency.

Molla added that Egypt has taken steps to become a regional hub for energy trading, including exporting liquefied gas from Idku export plant or supplying quantities of gas to Jordan to meet part of its needs.

He elaborated that the amount of gas directed to exports gradually increased because the local consumption lessened during the winter session and the production rate increased, meeting the needs of the industrial sector, power plants, cars and houses.

Petroleum Minister Molla referred to his ministry’s plan to link wells of Zohr, North Alexandria and Burullus to contribute in increasing the local production and covering the consumption rates, and to operating liquefaction plants, besides the gas coming from Cyprus and Israel.

Cyprus: likely gas field find raises prospect of tension with Turkey - THE GUARDIAN

A drillship off the coast of Limassol, Cyprus

Helena Smith

Nicosia, Mon 25 Feb 2019 12.07 GMT

Expected announcement by ExxonMobil of discovery off island’s south coast seen as potential game changer

Tensions between Cyprus and Turkey over energy could soon come to a head, with ExxonMobil apparently poised to announce a significant natural gas find off the divided island’s southern coast.

After more than three months of deep-water exploration in the eastern Mediterranean, the US firm is expected to unveil findings this week in what is being described as a seminal moment in the race to tap potentially profitable underwater resources.

TEKMOR VIEW: A modern David - Goliath story is unfolding. 

International hydrocarbons interest in Cyprus confirmed - CYPRUS MAIL

FEBRUARY 24, 2019

The biggest and most important hydrocarbons conference and exhibition in Egypt and the East Med region, EGYPS 2019, took place in Cairo earlier this month, and Cyprus took part with a country pavilion showing the Cyprus Hydrocarbons Company (CHC) and natural gas public company (DEFA) among others.

In a wide-ranging interview about the conference, Egypt’s Petroleum Minister Tarek El Molla spoke about the country’s oil and gas achievements in 2018 and plans for 2019. The great success of 2018 was accelerating natural gas production, with Zohr at the forefront, as a result of which, by the end of the year, domestic gas consumption was exceeded for the first time since 2014. This helped Egypt become self-sufficient, stop LNG imports in October and re-start exports. By January Shell’s Idku LNG plant was exporting 0.52 billion cubic feet per day (bcf/d).

The development of Zohr is reaching its final stage, and is expected to achieve 3.2 bcf/d plateau production by the end of 2019. This will allow the Damietta LNG plant to restart exports later in the year, once outstanding arbitration issues are resolved.

Cyprus could create a leaky hydrocarbons wealth fund - FINANCIAL MIRROR

As of 30 June 2018

24 February, 2019

A long-delayed bill creating a Cyprus hydrocarbons fund will be put to parliament for a vote, with the aim of utilising profits from natural gas for future generations to enjoy but there are fears the cash cow will be abused.

The government submitted the bill in 2015 but it got shelved as it fell victim to politics and confrontation between the parties.

While a general consensus was built amongst political parties that natural gas revenues should be set aside for future generations through the creation of the Hydrocarbons Fund, economists and some MPs have expressed fears that it will become a “fiscal hole filler”.

A University of Cyprus professor and energy policy expert said that while MPs are ready to vote in the bill, extra powers will be given to the Finance Minister and loopholes introduced.

“My fear is that we may see the Hydrocarbons Fund having the same fate as the Social Insurance Fund reserves which have been spent through the state budget,” said UCY professor Constantinos Papaloucas.

President Sisi thanks Cyprus for its contribution in the establishment of EU-Egypt relations - CYPRUS NEWS AGENCY

CYPRUS/Nicosia 24/02/2019 13:43 

President of Egypt Abdel Fattah al-Sisi has expressed his gratitude to President Nicos Anastasiades for his contribution in establishing relations between his country and the EU.

Anastasiades who arrived Sunday at the Egyptian resort of Sharm el Sheikh for the first EU-Arab league Summit, was received by President Sisi in the morning. 

President Anastasiades told the press that the Egyptian President expressed absolute support to his initiative on climate change.

Egyptian petroleum minister fleshes out country’s progress as regional hub - THE ARAB WEEKLY

Sunday 24/02/2019

Mohamed Hammad

Egyptian Minister of Petroleum Tarek el-Molla said Cairo would soon announce its first international bid for oil and gas exploration in the country’s Red Sea territory, as a step towards Egypt increasing its position among natural gas suppliers in the region.

Molla said the ministry carried out two seismic surveys in the Red Sea and southern Egypt that indicated “positive signs that encouraged us to submit tenders to international companies for the extraction of oil and gas in that virgin region.”

“This procedure would not have been possible without the delimitation of the maritime border with Saudi Arabia in April 2016. [The agreement] enabled Egypt to search and explore in this region for the first time,” Molla said.

The surveys were carried out by US companies TGS and Schlumberger at a cost of about $750 million.

Tenders for oil and gas exploration in the Red Sea were to have been announced last December but Molla said Egyptian officials decided to wait to better market the promising potential in the region.

Energy Minister: We want Bulgaria to Maintain its Strategic Position on Europe's Gas Map - NOVINITE

February 23, 2019, Saturday // 12:20

The southern gas corridor is at the heart of diversification not only for Bulgaria but also for the whole of Europe, Energy Minister Temenujka Petkova told Darik. The role of Bulgaria is key via the connector with Greece, because new gas supplies will be provided from the Caspian region, she explained.

This will give a new look and will diversify the sources of natural gas for our country, Minister Petkova said.

The connector with Greece must be ready in 2020 and put into operation, the energy minister announced.

The Greece - Bulgaria Interconnector is important for both our country and Europe, and we have negotiated 1 billion cubic meters of gas from the Caspian region, Temenujka Petkova said.

17 billion gas passes through our country from Russia to different countries, of which 14 billion are for Turkey. Following the construction of the direct link between Russia and Turkey, Ankara will receive gas directly from Russia, she described the situation at the moment.

Anastasiades off to Egypt for first-ever EU-Arab League Summit - CYPRUS MAIL

February 23, 2019

President Nicos Anastasiades leaves for Sharm el-Sheikh in Egypt on Sunday, to attend the 1st EU-Arab League Summit, in the framework of which he is set to have bilateral meetings with heads of states in the region and to promote Cyprus’ initiative to play a coordinating role in introducing policies and strategies by neighbouring countries to tackle climate change.

The EU-League of Arab States (LAS) summit will bring together for the first time, heads of state or government with EU leaders.

European Council President Donald Tusk will co-chair the meeting with Egyptian President Abdel Fattah al-Sisi. He will represent the EU along with Commission President Jean-Claude Juncker.

Anastasiades will meet with Egypt’s President Abdel Fattah al-Sisi on Sunday, and Lebanese Premier Saad Hariri and Kind Abdullah of Jordan on Monday.

The meetings will offer the opportunity to further promote and enhance bilateral cooperation as well as the trilateral cooperation and to point out Cyprus’ role as a European pillar of stability and as a state that can boost security in the region by playing its role in the area, a statement said.

ENERGY: ExxonMobil could announce Cyprus exploration results next week - FINANCIAL MIRROR

21 February, 2019

Eagerly awaited results from two test drills offshore Cyprus for hydrocarbons by US energy giant ExxonMobil and Qatar Petroleum are expected to be announced next week, according to reports.

It is believed that Energy Minister George Lakkotrypis could announce the end of the exploration drills next Monday with both the government and ExxonMobil declaring the results soon after, although President Nicos Anastasiades will be consulted first.

Earlier this month, local media speculated that ExxonMobil could announce a “sizeable find” in block 10 following exploration drills at wells Delphine-1 and Glafcos-1 in Cyprus’ Exclusive Economic Zone.

A high-level Cypriot source, who reportedly spoke on the condition of anonymity, said the reserve isn't as large as the Zohr gas field in the Egyptian sector of the Mediterranean but “has a similar reserve.”

The reserve – found at Glafcos-1 - was said to hold at least 2.5 trillion cubic feet of natural gas – the minimum amount required to make it commercially viable.

Egypt signs 7 agreements to explore petrol, gas with investments of $162M - EGYPT TODAY

Wed, Feb. 20, 2019

CAIRO – 20 February 2019: Seven Agreements were signed to explore petrol and gas with minimum investments of $162 million during 2017/2018, an official source at the Petroleum Authority said.

The source elaborated that procedures of 10 new agreements were completed during July and August 2018, noting that 19 contracts were signed to develop the discovered fields until August 2018 in order to support the targeted plans to increase the production of petrol and gas.

He added that 98 exploratory wells were drilled to support and increase the reserves of the petroleum wealth, of which 58 wells were put on production.

According to the source, the petroleum sector succeeded in securing the market needs of petroleum products, as the average production of crude oil hit 626,000 barrels of crude oil and condensates during a year.