Egypt’s gas exports can give it a foreign policy edge, petroleum minister says - CNBC

SAT, APR 6 2019 • 10:33 AM EDT

• Cairo is expected to become a net gas exporter by the end of 2019.
• Energy consultancy Wood Mackenzie estimates that Egypt’s existing fields have gas reserves of 61 trillion cubic feet, with a further 45 trillion cubic feet yet to be discovered.

Egypt’s goal to be a net gas exporter by the end of this year will strengthen it politically, Egypt’s petroleum minister said Saturday, stressing the opportunities for growth that would come from the recently-launched Eastern Mediterranean Gas Forum.

“We cannot deny that if we are able to have our own energy this will give us some — not independence but let us say some strength, edge,” Tarek el Molla told CNBC’s Hadley Gamble at the World Economic Forum on the Middle East and North Africa in Amman, Jordan.

The minister was speaking in response to a question about many Middle Eastern countries’ reliance on their wealthier Gulf patrons like Saudi Arabia — and the fact that economic support from the Gulf also often means forfeiting independence in the foreign policy arena.

Lebanon launches its second offshore oil & gas licensing round - MIDDLE EAST STRATEGIC PERSPECTIVES

April 5, 2019

The cabinet approved the launching of Lebanon’s second offshore oil & gas licensing round in its latest session on April 4, 2019. Energy Minister Nada Boustani officially announced the launching of the tender in a press conference on April 5.

Five blocks are on offer: Blocks 1 and 2 in the northern part of Lebanon’s Exclusive Economic Zone, Blocks 8 and 10 in the south, and Block 5 in the middle of the EEZ.

As in the first licensing round, interested companies must form a consortium of at least three companies, one of which an operator, to place bids. The deadline to place bids is on January 31, 2020.

The Lebanese Petroleum Administration has recently announced some changes to the process. The tender won’t be preceded by a separate pre-qualification round, as in the first licensing round. The pre-qualification round will be mainstreamed in the process, giving companies more time to consider participating. The evaluation of pre-qualification applications will take place in the first weeks of February 2020, with pre-qualification results expected to be announced on the third week of February. It will be followed with the evaluation of submitted bids, a step that should be completed by mid-March 2020. Negotiations with the provisional winners will then take place, and if results are satisfactory, the Council of Ministers would be expected to approve the licensing by mid-April 2020.

Greece's Hellenic Petroleum sell-off stalls as no bids made - REUTERS

APRIL 3, 2019 / 7:03 PM
Angeliki Koutantou

• Glencore/CIEP and Vitol/Sonatrach were shortlisted
• 50.1 pct stake in Hellenic worth about $1.5 bln
• Privatisation agency’s board to discuss next steps 

ATHENS, April 3 (Reuters) - No binding bids have been submitted for a majority stake in Greece’s biggest oil refiner Hellenic Petroleum, dealing a blow to a key part of a planned sell-off of state assets mandated by international bailouts.

Switzerland-based commodities trader and miner Glencore had teamed up with CIEP Participations, and Vitol, the world’s largest oil trader, with Algeria’s Sonatrach after they were shortlisted to bid for a 50.1 percent stake in Hellenic.

Greece’s privatisation agency said the lack of bids was “due to reasons related to the short-listed parties and recent developments in the international environment that affect the consortia.” It did not elaborate.

Israel Electric Corp. Passed Up $1.3b to Let Delek, Noble Export Gas to Egypt - HAARETZ

Apr 03, 2019 5:21 AM

Ora Coren

The utility took an 85% haircut on Egyptian gas companies’ debt, saying this was 'important from a diplomatic standpoint'

The Israel Electric Corporation voluntarily gave up $1.3 billion in compensation after Egypt reneged on a gas-sale contract in order to let private-sector companies – led by Israel’s Delek and Houston-based Noble Energy – export Israeli gas to Egypt.

The electricity utility took an 85% haircut on the Egyptian gas companies’ debt, and intentionally did not inform the public, it emerged on Tuesday.

The IEC argued that its approach was “important from a diplomatic standpoint,” the Government Companies Authority said.

The agreement with the Egyptian gas companies came after two years of secret negotiations, after they reneged following the unrest in the country in 2011.

The companies had been ordered to pay the IEC $1.76 billion, not including interest and linkages due to inflation, under an international arbitration agreement.

Greece’s DEPA to Begin Selling Natural Gas to Bulgaria - GREEK REPORTER

Apr 3, 2019Tasos Kokkinidis

Greek energy provider DEPA on Tuesday became the first Western company to strike a deal with Bulgaria’s state-owned Bulgargaz to provide natural gas to the country.

This is the first time Bulgaria has ever bought gas from another provider outside its long-term contract with Russia’s Gazprom. Currently, more than 95 percent of the Balkan country’s gas needs are met by supplies from Gazprom, and the product is delivered through a pipeline which crosses Ukraine, Moldova and Romania.

Bulgargaz will complete the purchase of 1.5 million megawatt hours of fuel from DEPA in the second quarter, pumping the gas into its Chiren underground storage facility, the company said on Tuesday.

Bulgargaz said DEPA had offered the lowest price in a tender in which the state provider also received offers from Bulgaria’s Dexia Company and the Dutch-registered Kolmar NL.

The deal was hailed by the United States Ambassador to Athens Geoffrey Pyatt, who tweeted that the development was “another welcome example of Greece’s growing role as a facilitator of European energy diversification.”

ELPE, seeing growth, to reopen northern pipeline late this year - ENERGY PRESS

02/APRIL/2019

An oil pipeline stretching 213 kilometers from an ELPE (Hellenic Petroleum) facility in Thessaloniki to its Okta company refinery and storage facility in the Republic of North Macedonia is expected to be reopened towards the end of this year, roughly six years after the Greek petroleum group shut it down.

The matter has been included on the agenda for a meeting in Skopje today between officials from both sides of the border, led by their respective heads of state, Greek Prime Minister Alexis Tsipras and his North Macedonian peer Zoran Zaev. The two leaders have agreed to sign a series of bilateral agreements and memorandums of cooperation.

Swift progress is being sought in efforts to finalize a customs agreement, align the oil pipeline plan with EU standards and facilitate its licensing.

ELPE intends to utilize the relaunched oil pipeline to transport fuel, especially diesel, in annual quantities of around one million metric tons, far greater than the total consumption in North Macedonia for exports to Bulgaria, Serbia and Kosovo, besides local sales.

Petrobras to Bid in Israeli Gas Tender - OFFSHORE ENGINEER

April 1, 2019

Israel's energy minister said on Sunday that Brazilian state-run oil firm Petrobras will take part in a tender to explore for oil and gas off Israel's shore, Reuters reports.

"It was agreed that Petrobras ... will take part in a process of oil and gas exploration in Israel," Energy Minister Yuval Steinitz told Army Radio as Brazilian President Jair Bolsonaro began a visit to Israel.

A previous auction elicited bids from only two groups of companies, but prospects in the waters offshore Israel have become potentially more lucrative following a number of large gas discoveries offshore Israel and in nearby eastern Mediterranean in the last decade.

Israel will tender 19 new offshore blocks, and the energy ministry said it expects more oil and gas companies to compete this time as conditions have improved.

ExxonMobil is reportedly considering bidding in the auction.

Dana Gas receives a further $19m from Egypt - ARABIAN BUSINESS

Sun 31 Mar 2019 12:58 PM

The payment is part of the government's ongoing efforts to reduce their receivables position to zero in 2019

In 2018, Dana made good progress in reducing its outstanding balance of overdue receivables.

UAE-based natural gas company Dana Gas has received a payment of $19 million (AED 70 million) from its operations in Egypt.

The payment was made up of a $10 million payment from the government in Egyptian pounds and $9 million from the sale of a shipment of El Wastani condensate.

The payment is part of the government’s ongoing efforts to reduce their receivables position to zero in 2019.

In 2018, Dana made good progress in reducing its outstanding balance of overdue receivables. As at 31 December 2018, the net receivables position reduced by 39% to $140 million, the lowest level since 2011.

NOC, Eni sign agreement to boost gas production - THE LIBYA OBSERVER

March 29, 2019 - 14:20

Libya’s National Oil Corporation (NOC) and Italian oil major Eni signed on March 25 two memoranda of understanding (MoU), at NOC’s Tripoli headquarters. The first concerned the establishment of a steering committee to expedite gas production at structures ‘A’ and ‘E’ within maritime concession MN 41 in the Sabratha marine basin.

The steering committee will oversee the timely and transparent implementation of this project, in line with best-practice good governance, and will work to alleviate difficulties facing project implementation. This important strategic project will provide gas to meet both local consumption and export requirements. Once complete, project capacity from both structures will total 760 million cubic feet of natural gas per day.

The second MoU agrees to jointly fund capacity building programmes for industrial security staff at NOC and Mellitah Oil and Gas Company (MOGCO), with workshops focusing on risk assessment and mitigation, crisis management, and comprehensive field inspection procedures.

During the signing ceremony, Eng. Sanalla commented: “Eni is one of NOC’s strategic partners and one of the world's largest oil and gas companies, renowned for its expertise and technological capabilities that we seek to bring to Libya. Our sector is the backbone of the national economy - we should preserve it for future generations. We have to work on developing the sector in order to increase production and fuel development.”

Cyprus, Greece, Israel alliance serves US interests - KATHIMERINI

28.03.2019 : 08:20

ENDY ZEMENIDES, DAVID HARRIS

Long ago, the Mediterranean was known as the Middle Sea, because for centuries it provided the principal means of communication between empires and civilizations. Today’s Mediterranean is reclaiming much of that historic legacy.

The limitless potential of the region was on full display during the sixth trilateral summit between Cyprus, Greece and Israel that took place in Jerusalem last week. The gathering was especially noteworthy because the United States, represented by Secretary of State Mike Pompeo, also participated for the first time.

American strategic interests face challenges around the Eastern Mediterranean basin. The Shia-Sunni divide that has helped put the Middle East in even deeper turmoil is playing out on its shores, with the involvement of both state and non-state actors.

Turkey – once a paragon of stability and a source of great optimism for many in the West – has become increasingly authoritarian and unreliable. President Recep Tayyip Erdogan’s strong-arm leadership has turned a “zero problems with neighbors” foreign policy into one where Ankara has zero neighbors with which it doesn’t have problems.

Egypt puts eased rules for energy companies to use their production share from new Red Sea concessions - ENTERPRISE

Wednesday, 27 March 2019

Companies awarded concessions in Red Sea bid round can sell at home or abroad: The South Valley Egyptian Petroleum Holding Company (Ganope) will allow companies awarded concessions in the ongoing Red Sea bid round to decide what to do with their share of output, Al Shorouk reports. Companies looking to sell natural gas to third parties inside Egypt will be required to get approvals from Ganope, EGAS, and EGPC, as well as further approvals from the oil minister on the quantities, price, and sales contract. Any exports of natural gas or liquefied petroleum gas (LPG) from these concessions will also require ministerial sign-off on the quantities and price.

Background: Egypt launched a tender earlier this month for 10 oil and gas exploration blocks off the Red Sea coast under a new production sharing contract, according to a Ganope statement (pdf). The Oil Ministry has been reportedly planning to roll out new production sharing contracts with friendlier terms for international oil companies this quarter.

Israeli Gas Partners in Talks to Boost Supply to Egypt - BLOOMBERG

March 26, 2019, 3:51 PM GMT+2
Yaacov Benmeleh

• Delek CEO was recently in Cairo to discuss new gas quantities
• Shares of Delek climb the most in nearly 3 months on the news

The companies developing Israel’s largest natural gas field are in discussions to increase the amount of supply to Egypt beyond the $15 billion deal inked last year. Shares of Israeli gas stocks rose.

Executives at Delek Drilling LP, the majority shareholder in the Leviathan reservoir, have been in Cairo in recent weeks to discuss how to boost quantities for Egypt’s domestic consumption, Chief Executive Officer Yossi Abu said Tuesday at an investor conference in Tel Aviv. Delek and its partners Noble Energy Inc. and Ratio Oil Exploration 1992 LP are examining ways to increase the field’s capacity to meet an expected increase in Egyptian demand, he said.

FM outlines Cyprus’ vision to establish a regional security and cooperation organisation - IN-CYPRUS PHILELEFTHEROS

March 25, 2019 at 8:45am
Edited by Andreas Nicolaides

Foreign Minister, Nikos Christodoulides, outlined Cyprus’ vision to establish an organization of security and cooperation in the region, speaking on Sunday in Washington, during a discussion held in the framework of the American Israel Public Affairs Committee (AIPAC) Policy Conference.

He said that Cyprus’ vision is to create a regional security and cooperation organisation, with the participation of all like-minded countries, in the framework of which all regional matters of cooperation will be discussed.

Secretary General of the Organization of American States Luis Almagro and AIPAC’s International Affairs Director Stephen Schneider coordinated the discussion.

Replying to a question the Cypriot Foreign Minister set out the framework of relations between Cyprus and Israel, as a threefold one.

On the bilateral level, he noted the close cooperation between the two countries, which extends beyond the energy sector to matters of security, technology and health. He added that contact between their peoples is also enhanced.

Pompeo and circumstance won't make EastMed pipeline a reality - THE JERUSALEM POST

MARCH 25, 2019 00:04 
GABRIEL MITCHELL 

The reduced presence of the US Sixth Fleet in the Mediterranean coincided with increased maritime tensions across the region.

With the Purim holiday last week, many took a break from the country’s exhausting election cycle. But for Prime Minister Benjamin Netanyahu, Wednesday evening was an opportunity to reinforce his position as Israel’s leading statesman. 

Hosting the sixth trilateral summit between Israel, Greece, and Cyprus, Netanyahu hoped special guest US Secretary of State Mike Pompeo would deliver a strong showing of support for the embattled premier and his regional energy aspirations.
Significant regional developments have transpired since the last summit. In January 2019, Cypriot, Egyptian, Greek, Israeli, Italian, Jordanian and Palestinian energy ministers met in Cairo with the intention of establishing the Eastern Mediterranean Gas Forum, an institution for regional energy cooperation. Coincidentally, the forum’s optimism was rewarded in recent weeks as major discoveries were made off the coasts of Cyprus and Egypt.

Exxon Mobil is reportedly considering future exploration in Israel’s waters.

Billionaire Tshuva May Herald Next Step in Israel-Egypt Ties - BLOOMBERG

March 24, 2019, 7:47 PM GMT+2

Yaacov Benmeleh

• Tshuva’s Delek eyes stakes in Egypt’s gas-liquefaction plants
• Deal may help both nations explore ties beyond security

Delek Drilling LP, the Israeli energy explorer controlled by billionaire Yitzhak Tshuva, is considering buying a stake in an Egyptian liquefied natural gas plant to broaden its export footprint.

Acquiring a piece of either the Idku or Damietta facilities, operated by Royal Dutch Shell Plc and Spain’s Union Fenosa SA, respectively, is among the various routes possible for the Egyptian deal, the company said in its annual report on Sunday. Other options are buying capacity at the plants rather than equity stakes, or enrolling their gas liquefaction services.

Should Delek pull off the purchase, it would be the strongest signal yet that Israel and Egypt are moving beyond security cooperation and toward deeper economic ties. Though the neighbors signed a peace treaty 40 years ago, Israel remains unpopular to many Egyptians. President Abdel Fattah El-Sisi didn’t even mention Israel when he celebrated a $15 billion deal in 2018 between the nations.

Israel's Delek exploring partnership with Egypt LNG plants - REUTERS

MARCH 24, 2019 / 1:47 PM

JERUSALEM, March 24 (Reuters) - Israel’s Delek Drilling said on Sunday it was exploring options to boost natural gas exports to Egypt, including the possibility of buying into a liquefied natural gas (LNG) terminal on the northern Egyptian coast.

Delek is a partner in offshore gas fields in Israel and Cyprus and has already signed export deals to Egypt.

The company said in its 2018 annual report that one channel to increase sales could be through LNG plants near Idku and Damietta along the Mediterranean coast, and that it was “examining various arrangements with the owners of the liquefaction facilities”.

This could include purchasing liquefaction capacity or even buying into the plants themselves, Delek said. (Reporting by Ari Rabinovitch; Editing by Tova Cohen)

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.