Arbitration court rules against Nostra Terra in Egypt oil payments dispute - ENTERPRISE

Wednesday, 14 August 2019

Arbitration court rules against Nostra Terra in Egypt oil payments dispute: Nostra Terra Oil & Gas has been found in default of the joint operating agreement (JOA) governing its East Ghazalat joint venture in Egypt with North Petroleum International, the company said on Monday. The London Court of International Arbitration ruled against the UK-based oil and gas company, finding subsidiary Nostra Terra Inc. in default for the non-payment of November and December 2015 cash calls to North Petroleum of around USD 1.06 mn, along with an estimated USD 125k in interest. The company’s failure to make the payments could result in the transfer of Nostra Terra’s 50% stake in the East Ghazalat concession to North Petroleum. Nostra Terra has described the concession as “non-core” to its operations. The company is considering seeking damages from North Petroleum for allegedly breaching the JOA.

Rosneft says gas output at Zohr in Egypt surges to 11.3 bcm in H1 - REUTERS

AUGUST 14, 2019 / 2:00 PM

MOSCOW, Aug 14 (Reuters) - Natural gas production at Zohr, the largest gas field in the Mediterranean Sea, more than tripled in the first half this year to reach 11.3 billion cubic metres (bcm), Russian energy giant Rosneft said on Wednesday.

The field is an important asset for Kremlin-controlled Rosneft in its global expansion strategy and natural gas production programme. Rosneft bought a 30% stake in the project from Italy’s Eni in 2017.

The company said daily gas output at the offshore project would reach 76 million cubic metres (2.7 billion cubic feet) by the end of the year from 68 million cubic metres currently.

“After the field’s start-up in December 2017, its development is going ahead of schedule,” Rosneft said in a statement.

Eni controls 50% of the project, while BP and Mubadala Petroleum each have a 10% stake in Zohr. 

Reporting by Maria Kiselyova and Vladimir Soldatkin, editing by Deepa Babington and David Evans

US-Greece-Cyprus-Israel want oil, gas as much East Med peace - NEW EUROPE

AUGUST 13, 2019 - 16:32

ATHENS – Meeting in Athens, the energy ministers of Greece, Cyprus, and Israel – Kostas Hatzidakis, Georgios Lakkotrypis, and Yuval Steinitz, as well as US Assistant Secretary of State for Energy Resources Frank Fannon – have discussed their cooperation in the field of energy, while affirming their shared commitment to promoting peace, security, and prosperity in the Eastern Mediterranean region.

The four met in Athens on 7 August and agreed to establish a High-Level Working Group (HLWG) that will highlight specific energy projects and propose ways of promoting their implementation.

“The ministers and the United States agreed to support their countries’ energy independence and the establishment of an Energy Corridor of the Eastern Mediterranean, contributing thus to the energy security of the European Union by actively promoting the diversification of import sources and routes,” the US Department of State said in a statement.

Energy cooperation boosts growing trilateral alliance between Egypt, Greece and Cyprus - AHRAM ONLINE

Saturday 10 Aug 2019

The first tripartite gathering between Egypt, Greece and Cyprus was held in 2014 and quickly turned into a broad alliance fostering cooperation across a range of economic, political and strategic interests.

Last week’s visit by Foreign Minister Sameh Shoukri to Greece and Cyprus lent impetus to the process, boosting relations and enhancing cooperation between the three states, especially in the energy field.

Professor of political science Tarek Fahmi says the tripartite gathering is already working for the benefit of the three countries, and for the region in general, especially after the East Mediterranean Gas Forum (EMGF) was established.

Egypt is seeking to become a major regional hub for the production, processing and trading of natural gas.

Mytilineos Group overtakes DEPA as major LNG importer in 2019 - KATHIMERINI

WEDNESDAY AUGUST 9, 2019

Private Greek industrial group Mytilineos has overtaken incumbent DEPA to become the country’s biggest LNG importer this year, the first time in history that an independent company has knocked the state-owned company from the top spot, ICIS an information platform on petrochemicals and specifically on energy issues, fertilisers and other commodities said in a report.

Mytilineos imported over 370,000 tonnes of LNG from January to July, or 39 percent of the national total supplies, according to LNG Edge. DEPA took 273,000 tonnes, or 29 percent.

DEPA’s market share was 92 percent last year, and has never previously fallen below 50 pct. The shift indicates the progress made in one of the last countries in the European Union to liberalize its gas market.

The market began opening back in 2005, but momentum picked up from 2018 when the retail market was fully liberalized, leaving consumers free to choose their supplier. DEPA has been losing customers ever since.

With demand from the electricity power sector as well as industrial needs in aluminium manufacturing, Mytilineos is at the forefront of the market.

ExxonMobil considers logistics support center in Damietta Port - ENERGY EGYPT / DAMIETTA PORT AUTHORITY

AUGUST 7, 2019 AT 3:18 PM

Damietta Port Authority (DPA) Chairman, Cpt. Tarek Shahin met with ExxonMobil delegation to discuss their interest in exploring the possibility to establish a logistic support center in Damietta Port for servicing oil and gas fields.

Both sides looked over port capabilities particularly its unique location near recent oil discoveries and gas fields in the Mediterranean, the available multimodal transport facilities which translate into a competitive edge setting Damietta in front of other national ports.

Shahin welcomed the delegation and confirmed readiness to offer all possible facilities to support the new project stressing the fact that Damietta Port does entertain a wonderful package of strong infrastructure tied with wide expertise in such projects. He also pointed out that global enterprises are currently working in Damietta Port in projects serving recently discovered oil fields in the Mediterranean.

JOINT STATEMENT following the Ministerial meeting between Greece-Cyprus-Israel and the United States Regarding cooperation in the field of Energy - MINISTRY OF ENVIRONMENT & ENERGY, GREECE

Athens, August 7th, 2019

The Energy Ministers of the Hellenic Republic, Mr. Kostas Hatzidakis, the Republic of Cyprus, Mr. Georgios Lakkotrypis, the State of Israel, Mr. Yuval Steinitz, and the Assistant Secretary of State for Energy Resources of the United States of America, Mr. Francis Fannon, met today in Athens regarding cooperation in the field of energy, while affirming their shared commitment to promote peace, stability, security and prosperity in the Eastern Mediterranean region.

Mr. Fannon underlined the increasing and tangible support of the US government for the establishment of a structured quadrilateral mechanism for cooperation that focuses on energy matters.

The Ministers and the United States identified several significant areas of common interest, including, inter alia, infrastructure projects, renewable energy and energy storage, emergency preparedness, environmental protection and cyber security, while agreeing to establish a High Level Working Group (HLWG) that will highlight specific energy projects and propose ways of promoting their implementation. The Ministers have agreed to work towards signing an agreement for a joint emergency preparedness and response mechanism for offshore oil and gas operations. The HLWG will report its progress to the Ministers of Energy on a regular basis.

Egypt update - ROCKHOPPER EXPLORATION

07 August 2019 07:00

Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key interests in the North Falkland Basin and the Greater Mediterranean region, provides the following operational update in relation to the Abu Sennan concession, Egypt ("Abu Sennan"). Through Rockhopper Egypt Pty Limited, Rockhopper holds a 22% working interest in Abu Sennan.

Al Jahraa-7

The development well, Al Jahraa-7, was spudded on 25 May 2019, and reached total depth of 3,970m MD in the Kharita formation on 23 June 2019. Initial petrophysics indicated pay in the following intervals:

• Abu Roash-C / Net Pay: 7m
• Abu Roash-E / Net Pay: 4m
• Upper Bahariya / Net Pay: 9m
• Lower Bahariya_1 / Net Pay: 6m
• Lower Bahariya_2 / Net Pay: 5m

A series of well tests of the Abu Roash-E and Bahariya reservoirs has commenced, initially with the rig on location and subsequently following release of the rig. These operations remain ongoing.

Energy ministers to meet in Athens - KATHIMERINI

MONDAY AUGUST 5, 2019 : 21:02

Greece is hosting officials from Cyprus, Israel and the United States at a ministerial meeting on energy issues on Wednesday.

Environment and Energy Minister Kostis Hatzidakis, Cyprus’ Minister of Energy, Commerce and Industry Georgios Lakkotrypis, Israeli Energy Minister Yuval Steinitz and US Assistant Secretary at the State Department’s Bureau of Energy Resources Francis R. Fannon will meet at the Hilton Athens to discuss areas of potential cooperation and to advance construction of the EastMed natural gas pipeline.

The officials plan to set up a working committee of high-level officials to identify specific cooperation projects and ways to implement them.

Eni continues oil and gas initiative in Libya - OIL REVIEW MIDDLE EAST

Sunday, 04 August 2019 04:30

Fayez al-Sarraj, head of the presidential council of the Libyan Government of National Accord, met in Tripoli with Eni’s CEO Claudio Descalzi to discuss the general situation of Libya, with a particular focus on the introduction of renewable energy in Libya and Eni's activities in the country

The meeting was also attended by the chairman of the National Oil Corporation (NOC) Mustafa Sanalla.

Claudio Descalzi assured Sarraj the full commitment of the company to its operational activities and projects in the country and reiterated Eni’s commitment in the social area, particularly in reference to the initiatives undertaken in the power generation sector.

Following the Memorandum of Understanding (MoU) signed last year with GECOL and NOC, Eni has contributed greatly for the improvement of the power sector, supplying much needed spare parts and technical assistance that allowed the recovery of 425MW of power output in the Tripoli area.

Understanding the Israel-Lebanon Maritime Border Dispute - HONEST REPORTING

August 4, 2019

Griffin Judd

International border disputes are very common, and in the normal course of events rarely draw any attention. But what happens when one of the countries in the dispute refuses to acknowledge the other’s existence? This complicates things, because the two countries then cannot negotiate directly. After all, negotiation implies recognition.

That is the dilemma currently facing Israel and Lebanon, who, since 2011, have been arguing over an 856 sq km piece of ocean.

But why is this area of the sea worth fighting about? What are the problems? And more importantly, what are the possible solutions?

History of the Israel-Lebanon Maritime Dispute

To understand this dispute, one must understand the international laws behinds it. At the root of the problem lies is the jurisdiction of the United Nations Convention on the Law of the Sea (UNCLOS). Under this treaty, states are entitled to a 200-nautical mile Economic Exclusion Zone (EEZ) off their coast. Within this zone, states have exclusive rights to exploit natural resources, such as fish and oil.

Lebanon ratified UNCLOS and submitted its proposed border to the UN in 2011; Israel never ratified the treaty, but generally adheres to it, and submitted its proposed border to the UN at the same time.

And here the dispute arose.

BP eyes natgas output of 500 mcf/d from Baltim South West by mid-2020 - ENTERPRISE

Sunday, 4 August 2019

BP aims to increase natural gas production to 500 mcf/d by the middle of 2020 when it completes the development of its Baltim South West field, a source from EGAS told the press. 

Work is still ongoing to develop the field and link it to the national gas grid. Eni estimated the field to hold 1 tcf of natural gas after it was discovered in 2016. 

Six wells in the development lease were originally slated to be linked to production in 2H2017. Little has been heard of the field since then. 

Eni (through its Italian Egyptian Oil Company subsidiary) and BP both hold 50% stakes in the field.

Leviathan Partners Considering FLNG for Israel’s Offshore Field - NATURAL GAS INTEL

August 2, 2019
Tim Daiss

Partners in the Noble Energy Inc.-operated Leviathan project offshore Israel are considering a floating liquified natural gas (FLNG) vessel to enable exports from the massive natural gas field.

Delek Group and Houston-based Noble are negotiating with Golar LNG Ltd. and Exmar NV for a binding long-term charter agreement to finance, build, operate and maintain the facility in Israel’s exclusive economic zone.

Noble two weeks ago said it was only months away from delivering commercial gas from the field, with sales scheduled to start by the end of the year. The company expects to sell an average of 800 MMcf/d from Leviathan in 2020.

An FLNG facility would allow liquefaction capacity of 2.4-5 million metric tons/year. Processed gas could be piped from the Leviathan production platform to the FLNG facility offshore Israel, where it would be liquefied and transferred to LNG vessels.

Egypt Says Offshore Gas Discoveries Bolster Ties with Cyprus - THE NATIONAL HERALD / ASSOCIATED PRESS

Sameh Shoukry (L) and Nikos Christodoulides meet in Nicosia on July 31

August 1, 2019

NICOSIA (AP) — Egypt’s foreign minister says hydrocarbon finds in the eastern Mediterranean have bolstered an already “strong partnership” with neighboring Cyprus.

Minister Sameh Shoukry said after talks Wednesday with Cypriot counterpart Nikos Christodoulides that Egypt looks forward to working with Cyprus in fully utilizing energy reserves.

Egypt’s top diplomat said he’s hopeful the establishment of the Eastern Mediterranean Gas Forum will help open new avenues of cooperation and policy coordination between the two countries.

Shoukry said a trilateral partnership between Egypt, Cyprus and Greece serves as an “important catalyst” for regional prosperity and stability. He said Egypt will host the seventh summit of the three nations’ leaders later this year.

Christodoulides said European Union member Cyprus would continue to advocate for stronger EU-Egypt ties in order to more effectively address regional challenges.

Four Further Licences Awarded to Energean for Oil and Gas Exploration in Israel’s Exclusive Economic Zone (“EEZ”) - ENERGEAN OIL & GAS

Wednesday, July 31 2019

Energean Oil and Gas plc (LSE: ENOG, TASE: אנאג ( is pleased to announce that Israel’s Petroleum Council has awarded the Company four new licences for oil and gas exploration in the Israeli EEZ. Energean submitted its proposal in partnership with Israeli Opportunity (20%). The awarded Licences were granted for Block D, located 45 km off the Israeli coast – and include Licences 55,56,61,62 (“Zone D”), offered in the recent Bid Round published by the Israeli Ministry of Energy. Energean has identified a prospect within Zone D analogous to the prolific Tamar Sand fields (Karish, Tamar, Leviathan etc) offshore Israel. The prospect is believed to extend towards the SW of the license contingent to further seismic processing. A relatively shallow Mesozoic prospect was also identified (four way closure).

Mathios Rigas, CEO of Energean, stated: “Energean has proven its ability and commitment to explore and develop resources in a timely and cost efficient manner in the East Med. The addition of the 4 new licenses contained in Zone D adds further upside potential to our portfolio”.

Cyprus backs Total-Eni partnership in offshore gas drilling - KATHIMERINI

TUESDAY JULY 30, 2019 : 19:07

Cyprus has licensed a consortium made up of France’s Total and Italy’s Eni to search for hydrocarbons in another area that the east Mediterranean island nation has exclusive economic rights, the country’s energy minister said Tuesday.

Energy Minister Georgios Lakkotrypis said the two oil companies will each have 50 percent rights to Block 7, one of 13 areas composing the country’s exclusive economic zone off its south coast.

Total will be the designated operator in the block which borders three others where deposits of natural gas have been discovered. It’s believed a gas field found in the adjacent Block 6 that also belongs jointly to Total and Eni may extend in to Block 7.

Lakkotrypis says the government has also approved Total’s participation in four other blocks where Eni had a license. Total’s rights to the four blocks range from 20 percent to 40 percent.

Israel, Egypt mull Sinai LNG plant for Asian exports - GLOBES

28 Jul, 2019 18:40
Amiram Barkat

Building such a facility on the Red Sea shore for liquid natural gas exports would cost $10-15 billion.

Egypt and Israel are considering construction of a liquefaction facility on the shores of the Red Sea in Sinai through which natural gas can be exported to markets in Asia, sources inform "Globes." The initiative is similar to the one previously promoted by Eilat-Ashkelon Pipeline Co. (EAPC), which wanted the facility to be in Israeli territory near Eilat. The idea was shelved due to strong opposition, among other things by the Ministry of Environmental Protection.

This time, the idea is to construct the facility on the Egyptian side of the border, which will make it possible to overcome the opposition to the huge project. In Egypt, the ability to delay such projects for environmental reasons is much more limited. Furthermore, a liquefaction project on Egyptian territory can provide jobs for thousands of Egyptians during the construction stage and hundreds more during the operational stage.

Building the facility on the Red Sea is designed to open the option of exporting Israeli and Egyptian liquefied natural gas (LNG) to the East Asian market: India, China, Japan, South Korea, and other countries, which constitute 70% of the global liquefied gas market. The cost of building a medium-sized land-based liquefaction facility is projected in the $10-15 billion range.

UAE’s Dana Gas hires adviser to sell Egypt assets - MIDDLE EAST MONITOR

July 28, 2019 at 11:24 am

United Arab Emirates’ Dana Gas has hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale of its Egyptian assets, worth over $500 million, two sources familiar with the matter said, as the company shifts its focus to its Kurdistan operation, Reuters reported in an exclusive on Sunday.

The Abu Dhabi-listed energy producer – whose main assets are in Egypt and in the Kurdistan Region of Iraq (KRI) – has been considering an alternative listing in London, and focusing on a single geographical area could be appealing to future investors in the company, said one of the sources. The sources did not wish to be identified because the information has not been made public.

A spokesman for Dana Gas declined to comment while TPH did not immediately respond to a request for comment, sent outside working hours.

Dana’s exploration and production assets in Egypt are onshore the Nile Delta except for Block 6 in the Eastern Mediterranean Sea.

In May Dana began drilling at the offshore Merak well in Block 6, saying it could hold up to 4 trillion cubic feet of gas.

On Sunday Dana said in a bourse filing that the drilling has not found commercial hydrocarbons and that the well is being abandoned. It added its operations in Egypt continue production normally.

Eastern Med countries agree to move ahead with gas forum - THE ARAB WEEKLY

Saturday 27/JULY/2019

CAIRO - Energy ministers from the founding countries of the Eastern Mediterranean Gas Forum agreed to complete the basic structure of the group and enhance cooperation to promote the exploitation of natural gas reserves in the region.

During a meeting July 25 in Cairo, energy ministers of Egypt, Cyprus, Greece, Israel, Italy, the Palestinian territories and a representative of the energy minister of Jordan said they would form a committee to elevate the forum to the level of an international organisation that respects the rights of its members to their natural resources.

The meeting of the Eastern Mediterranean Gas Forum (EMGF) founders was almost six months after the forum was declared. EMGF is a new player on the international natural gas scene, deriving its force from numerous gas finds in the region in recent years.

The forum is an expression of the changing face of the region, in which political and military rivalries and animosities are overshadowed by economic interests, even as some regional countries, including Turkey, Lebanon and Syria, are yet to join.

Egypt, U.S. sign deal to boost oil, gas cooperation - XINHUA

2019-07-27 01:56:41|Editor: Mu Xuequan

CAIRO, July 26 (Xinhua) -- Egypt and the United States signed on Friday a memorandum of understanding (MoU) to boost bilateral cooperation in the oil and gas industry.

The MoU was signed in Cairo by Egyptian Minister of Petroleum and Mineral Resources Tareq al-Molla and U.S. Secretary of Energy Rick Perry, according to a statement released by the Egyptian Petroleum Ministry.

The agreement is meant to facilitate the exchange of technical information, consultancy services and the transfer of technology in the fields of oil and gas exploration, production and refining, as well as petrochemicals, the statement said.

U.S. says Turkey's exploration attempt in Cypriot waters discussed at Egypt gas forum - NASDAQ / REUTERS

Rick Perry meeting his Egyptian counterpart Tarek El-Molla 

July 25, 2019, 12:34:00 PM EDT

Cairo, July 25 (Reuters) - U.S. Energy Secretary Rick Perry told reporters on Thursday that countries participating in a gas forum in Egypt have discussed Turkey's exploration attempt in Cypriot territorial waters.

Perry, who was speaking on the sidelines of The Eastern Mediterranean Gas Forum in Cairo, did not elaborate. The United Sates participates in the forum as an observer.

EU member Cyprus has discovered natural gas in areas off the south of the island, though nothing has been extracted. Turkey disputes the rights of Cyprus to explore for gas, sending drill ships of its own to stake a claim around the island.

Nicosia rejects the claim, saying that the assertion is not only inconsistent with international law, but that Turkey would not accept any international dispute settlement mechanism where its claims could be put to the test.

Cyprus was divided in 1974 after a Turkish invasion triggered by a brief Greek-inspired coup. Several peacemaking efforts have failed and the discovery of offshore resources has complicated the negotiations.

Israel to begin gas exports to Egypt within four months: Minister - AL ARABIYA / REUTERS

Wednesday, 24 July 2019, KSA 14:11 - GMT 11:11

Israel will begin natural gas exports to Egypt within four months, Energy Minister Yuval Steinitz told Reuters on Wednesday.

He also said that a deal to buy stakes in the East Mediterranean Gas Company’s pipeline between the two countries will be completed “within weeks” and that more connections could be built between them.

Steinitz also said that more economic pressure should be applied on Iran, and that it “must be stopped.”

Qatargas Ships 1st Q-Flex LNG Cargo to Greek Revithoussa Terminal - WORLD MARITIME NEWS

Qatargas Ships 1st Q-Flex LNG Cargo to Greek Revithoussa

July 23, 2019

Doha-based liquefied natural gas company Qatargas has delivered the first LNG cargo on a Q-Flex vessel to Greece’s Revithoussa LNG Terminal.

This is the first time that a Q-Flex LNG vessel has called at the terminal ever since it underwent an expansion drive late last year, Qatargas said.

The cargo, which was loaded at the Ras Laffan Terminal in Qatar on July 3, 2019, arrived at the Revithoussa Terminal on board the 216,224 cbm Al Gharrafa on July 20, 2019.

The Q-Flex cargo is part of a multi-port delivery executed by Qatargas. It is being undertaken in cooperation with the European utility Engie, which will see the second cargo being delivered at the Cartagena LNG terminal in Spain later this month.

“This significant delivery is aligned with Qatargas’ strategy to continue growing the ever increasing number of terminals that our Q-Flex and Q-Max vessels can deliver into,” Khalid bin Khalifa Al Thani, Chief Executive Officer of Qatargas, commented.

Turkey’s “Fatih” drillship left without support after international companies withdraw - IN CYPRUS

July 23, 2019 at 11:34am
JONATHAN SHKURKO

Turkey’s drillship “Fatih”, currently located west of Paphos, was left without the specialised technical support necessary to conduct its operations, following the complete withdrawal of the last two international companies that had remained partly in support of its illegal activities.

According to Philelefteros sources, the last two specialized companies left on Friday, whereas other international companies decided to withdraw their support as soon as “Faith” started its illegal drilling operations.

The two companies had already recalled the majority of their staff from the operation, especially those who held European citizenship.

First exploitation licences set to be issued for Cyprus EEZ - CYPRUS MAIL

July 21, 2019

Katy Turner

The Council of Ministers is expected issue exploitation licences for the Aphrodite field, Energy Minister Giorgos Lakkotrypis said on Sunday.

“Regarding the agreements with Total and Eni, we are currently working on the legal details and they are expected to be brought before the Council of Ministers in the coming days for the relevant decisions,” he said.

As far as the Aphrodite field is concerned he said, “we are in negotiations with the consortium to come up with a jointly acceptable plan for development and production, which must be submitted to the Council of Ministers to issue exploitation licences for the Aphrodite field, marking the first time that such licences will be issued for the Cyprus EEZ (Excusive Economic Zone)”.

This is the third type of licence that is issued to interested companies. The first, a prospecting licence allows the geological evaluation of an area, while the second, an exploration licence allows for exploratory drilling to take place. If a discovery is made, the licensee then has the right be granted an exploitation licence.

Red Sea gas scramblers have until mid-September to submit bids to Egypt’s GANOPE - ENTERPRISE

Monday, 22 July 2019

Scramblers have until mid-September to submit bids for Red Sea exploration: The South Valley Egyptian Petroleum Holding Company (Ganope) has extended to mid-September the deadline for submitting bids in its tender for 10 oil and gas exploration blocks off the Red Sea, an unnamed Oil Ministry official said. The deadline, which was previously set for early August, was extended to give more companies a chance to join in.

Background: Ganope launched the tender last March for 10 oil and gas exploration blocks under new production sharing contracts. The new terms give producers a larger share of the output and allow them to sell their share to non-government entities of their choosing, provided they obtain approvals from each of Ganope, EGAS, and the EGPC.

Egypt Invests EGP 43 B in Assiut Oil Projects - EGYPT TODAY

Sunday, 21st July 2019

Investments in oil production and refining projects in Assiut total EGP 43 billion, sources in the Ministry of Petroleum told Egypt Today.

Projects include establishing a refining unit for producing high-octane gasoline, as well as a complex for the production of gasoline and diesel.

The ministry is building a number of new refining projects in Upper Egypt to meet the demand for petroleum products.

Egypt is carrying out six refining megaprojects with around $9 billion investments, as a part of the oil and gas sector’s Modernization Project, Minister of Petroleum Tarek El Molla previously stated.

In May, El Molla reviewed the situation of the mazut hydro-cracking complex at the Assiut National Oil Processing Company (ANOPC). The $1.9-billion project will use 2.5 million tons of mazut to produce higher-value products like diesel, naphtha, and butane.

Libya’s El-Sharara oilfield shut down: NOC - MIDDLE EAST MONITOR

July 20, 2019 at 8:19 pm

Libya’s El-Sharara oilfield has been shut down, the country’s state oil firm confirmed on Saturday, Anadolu reports.

In a statement, the National Oil Corporation (NOC) said it has launched an investigation into suspected valve closure in the Hamada area in western Libya.

It, however, said production from the nearby El Feel oilfield had not been affected by the incident.

El-Sharara oilfield produces more than 300,000 barrels of crude oil per day, forming roughly one-third of the oil-rich country’s production.

Libya holds Africa’s largest crude reserves, but eight years of conflict and violence in the country since the 2011 ouster of ruler Muammar Gaddafi have hobbled production and exports.

Lukewarm interest to Israel's offshore tender highlights East Med uncertainty - PLATTS

18 Jul 2019 | 15:47 UTC
Miriam Malek, Editor: Debiprasad Nayak

London — Lower-than-expected interest for Israel's second offshore licensing round has highlighted some uncertainty in monetizing gas resources from this hotspot region.

Israel's ministry of energy announced Tuesday that it had received just two bids from international consortia, despite reports that majors including the US's ExxonMobil had bought tender documents.

The eastern Mediterranean has become renowned as a gas hotspot, particularly in recent years, with several high-profile finds, including the Leviathan and Tamar fields in Israel, which have contingent reserves of 605 billion cubic meters and 318 billion cubic meters respectively.

"It is telling that no majors threw their hats into this bid round given the plethora of interest in Egyptian and Cypriot acreage," Samer Mosis, Platts Analytics said. "It underlines the uncertainty that Israeli domestic gas regulation and infrastructure inject into monetizing gas offshore Israel." First gas from Leviathan is expected in the first quarter of 2020. Development partners Noble and Delek have been working to monetize the reserves for over 10 years, but there remain serious questions about how to get the gas to the market.

Firms including MOL, Osaka, Gaslog, chosen in Cyprus FSRU LNG tender - REUTERS

LONDON, July 17 (Reuters) 12:44 PM

Three joint ventures have been selected by Cyprus in the first stage of a tender to provide a floating storage and regasification unit (FSRU) to import liquefied natural gas (LNG)
The first joint venture is led by China Petroleum Pipeline Engineering, Natural Gas Public Company of Cyprus (DEFA) said on its website.
The second comprises Samsung C&T, Posco E&C, LNG ship-builder Mitsui O.S.K. Lines and Japanese utility Osaka Gas
The third consortium includes LNG shipping company Gaslog , a unit of Spanish utility Enagas and Italian gas infrastructure company SNAM .

Cyprus aims to have the FSRU vessel in place and importing by 2021 and has a 101 million euro ($113 million) grant from the European Union.

It requested expressions of interest last month to supply the LNG, with a deadline of Sept. 6. ($1 = 0.8919 euros) 

Egypt achieves 1.56 bcf/d natural gas surplus - ENTERPRISE

Wednesday, 17 July 2019

Egypt has achieved an average natural gas surplus of 1.56 bn cf/d, an Oil Ministry source told the local press. 

Production at the Zohr natural gas field is expected to rise to 2.95 bcf/d by next July, up from 2.3 bcf/d currently. 

The country’s average gas consumption is expected to reach 6.39 bcf/d through FY2019-2020 out of a total production capacity of 7.95 bcf/d. 

Surplus gas is being exported through liquefaction plants in Idku and Damietta.

US to participate in East Med energy summit - KATHIMERINI

WEDNESDAY JULY 17, 2019 - 14:56

ANDREAS PARASCHOS

The United States will join Cyprus, Greece, Israel and Egypt at a summit on July 29 to discuss East Med energy cooperation.

At an Economist conference in Greece it was announced that United States Assistant Secretary of State for Energy Resources Francis Fannon will participate in the East Med energy summit in Athens, if diplomatic schedule allows, along with the energy ministers from Cyprus Yiorgos Lakkotrypis, Greece's Costis Hatzidakis and Israel's Yuval Steinitz.

The Greek energy minister underlined the importance placed by the new government on the Eastern Mediterranean energy issues. The first step of discussions will take place on the weekend of July 24-25 at the East Med Gas Forum to be held in Cairo. This forum will include delegates from Egypt, Greece, Cyprus, Italy and the Palestinian authority.

Lakkotrypis said that it is important that “Ankara accepts to start the discussions on demarcation of maritime zones parallel to the process of resolving the Cyprus problem.”

White & Case acts as legal counsel for Energean in its acquisition of Edison’s Egypt assets - ENTERPRISE

Monday, 15 July 2019

US-based law firm White & Case has acted as buy-side legal counsel for Energean in its acquisition of Edison’s Egypt oil and gas assets, partner and co-head of the EMEA corporate practice Allan Taylor said. 

The USD 750 mn transaction, which saw the Greek energy company acquire the target’s entire oil and gas portfolio in countries other than Egypt, will set up one of the largest independent exploration & production (E&P) companies listed on the exchanges of both London and Tel Aviv, Taylor added.

Two bid in Israel's offshore energy licenses tender - GLOBES

15 Jul, 2019 15:50
Amiram Barkat

The Ministry of Energy received only two bids from consortia including from UK companies Cairn and Soco, even though energy majors like ExxonMobil purchased tender documents.

As part of the second round of competitive bids for Israel's offshore natural gas and oil licenses tenders, only two offers have been received from consortia comprising Israeli and international companies.

The two bids were from: a consortium of Israeli company Ratio Oil Exploration (1992) LP (TASE:RATI.L) and two British companies Cairn Energy plc (LSE: CNE) and Soco International plc . (LSE: SIA): and a consortium of Energean Oil & Gas plc (LSE: ENOG; TASE: ENOG) and Israel opportunity.

Minister of National Infrastructure, Energy and Water Resources Yuval Steinitz said, "The arrival of additional European companies to Israel as well as the soon to be connected up Leviathan rig and continued development of the Karish-Tanin fields will lead to the dismantling of the monopoly and strengthening competition in this sector. We are continuing to work to make Israel into a regional energy power."

Leviathan natural gas platform starts voyage to Israel - REUTERS

JULY 14, 2019 / 10:48 AM

JERUSALEM, July 14 (Reuters) - The gas platform for the Leviathan natural gas field is on its way to Israel from the Gulf of Mexico, the partners in the project said on Sunday.

The first of four barges transporting the production structure units has left Texas and the other three will set sail in the coming weeks. In September, all the units will be installed on the jacket of the platform already in place 10 kilometres from Israel’s shore.

After connecting the units to the platform, Noble Energy , one of Leviathan’s partners, will start a series of commissioning tests before initiating commercial gas flow to the domestic market before the end of 2019.

Earlier this month, testing of a subsea natural gas pipeline to Egypt was completed, in the wake of a deal to export $15 billion in gas to a customer in Egypt.

Leviathan, with 22 trillion cubic feet of reserves, was discovered in 2010 and is one of the world’s largest gas discoveries of the past decade. 

Cyprus nearing transition to a new LNG era - FINANCIAL MIRROR

GasLog's LNG carrier Methane Julia Louise loading
LNG from Shell’s mighty floating LNG Prelude

12 July, 2019

Cyprus Natural Gas Public Company (DEFA), announced Friday it has successfully completed the first step of its troubled tender procedure for the installation of a €250 mln LNG Import Terminal plus infrastructure.

Three international consortia comprising of industry leaders are bidding for the multi-million contract. The bidders are;

1. Joint Venture China Petroleum Pipeline Engineering CO, Ltd – CPP, AKTOR S.A., METRON S.A.
2. Consortium Samsung C&T, Posco E&C, Mitsui O.S.K. Lines, Osaka Gas
3. European Consortium (DAMCO Energy S.A., ENAGAS Services Solution S.L.U., GasLog LNG Services Ltd., SNAM Spa, TERNA S.A.)

DEFA said the wider range of companies expressing an interest highlighted the “importance of the tender at an international level as well as its viability”.

Chairman of DEFA Symeon Kassianides said: "The great interest shown for this important Cyprus energy project by European and international players of the gas market, is just the first milestone for the realization of a long-term project that is directly linked to the country's energy upgrade and energy pluralism.”

Egypt’s arrears to foreign oil firms fall $900m - MIDDLE EAST MONITOR

July 12, 2019 at 4:04 pm

The total arrears that Egypt owed to foreign oil companies dropped to $900 million at the end of June, down from $1.2 billion a year earlier, the country’s Minister of Petroleum and Mineral Resources Tarek El-Molla told Reuters yesterday.

The minister added that Egypt would pay the remaining dues “soon, God willing”, but did not set a specific date for payment.

The monthly bill of arrears paid to foreign companies amounts to $700 million,” he said.

Arrears have fallen by 25 per cent from their level at the end of the 2017/2018 fiscal year when they stood at $1.2 billion. In June 2017, Egypt owed $2.4 billion to foreign companies, a sum which has now fallen by 62.5 per cent.

Eni, BP, Shell and Edison have dominated Egypt’s oil and gas exploration and production activities in recent years.

Foreign oil companies’ arrears had accumulated after the January 2011 uprising that ousted President Hosni Mubarak to reach $6.3 billion in the 2011/2012 fiscal year.

Cypriot energy player looks to draw Gulf capital into the East Med - THE NATIONAL

July 11, 2019 06:47 PM

Jennifer Gnana

Exclusive: Cynergy is looking to raise up to $500 million from the region to consolidate stranded gas assets and stunted infrastructure in the basin

Cyprus-based Cynergy Group, an investment firm focused on the energy sector, is lobbying investors in the Arabian Gulf including sovereign wealth funds to raise as much as $500 million (Dh1.83 billion) that will be part of $10bn raised from a pool of investors used to consolidate Eastern Mediterranean gas assets.

“[The] Gulf can play an important collaborative role in bringing East Med [and] Middle Eastern assets together through Cyprus, so I’m looking at the potential of Abu Dhabi and other Gulf interests looking at employing $500m plus,” Cynergy co-founder and group chief executive Mike Germanos told The National in Abu Dhabi.

Delek in talks to sell Tamar rights to advanced training funds - GLOBES

10 Jul, 2019 19:04
Kobi Yeshayahou

The study funds will pay $53 million for the rights to super royalties from the Tamar natural gas field.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, is taking another step towards divestment from the Tamar natural gas field. The group notified the Tel Aviv Stock Exchange (TASE) today that it is negotiating with the advanced training fund of the schoolteachers and kindergarten teachers for the sale of its rights to super royalties from the reservoir. These rights stem from Delek Group's holding in the Delek Drilling partnership, through which Delek Group holds 22% of the reservoir and 9% of Tamar Petroleum.

If the deal, which is subject to various contingencies, is completed, the advanced training funds, headed by chairman Eyal Gabay, will pay Delek Group $53 million, and the rights to super royalties from the reservoir will be transferred to the funds starting on April 1. The parties agreed that a final examination and accounting would take place at the beginning of 2023, which could either add $2 million to or subtract $2 million from the price.

Delek Group's super royalties from Tamar stood at 1.5% of the revenue from the reservoir as of the end of 2017, and jumped to 6.5% at the beginning of 2018, after Delek Group made back its investment in the reservoir.

Italy’s Eni to drill nine new wells in Egypt’s Zohr until 2020 - ENTERPRISE

Wednesday, 10 July 2019

Italy’s Eni is planning to drill nine new development wells in the Zohr gas field until 2020 to achieve production targets agreed upon with the Oil Ministry, an industry source told the press. 

Zohr’s development plan involves drilling 20 wells, 11 of which have already been drilled. The company is planning to link the 11th well soon, bringing the supergiant field’s production level to 2.5 bcf/d by the end of the month, up from a current 2.3 bcf, the source added.

Egypt-Saudi Arabia maritime demarcation agreement makes headlines again - AL MONITOR

Tiran (foreground) and Sanafir (background) islands between
Egypt's Sinai Peninsula and Saudi Arabia

July 9, 2019

Rami Galal 

CAIRO — The issue of sovereignty over the two islands of Tiran and Sanafir in the Red Sea at the Strait of Tiran leading to the Gulf of Aqaba is once again making headlines in Egypt. The country had witnessed a wave of anger three years ago against the backdrop of the signing on April 8, 2016, by Egypt and Saudi Arabia of a maritime border demarcation agreement, under which Saudi Arabia gained sovereignty over the islands.

During a meeting with an Egyptian parliamentary delegation June 26, Red Sea Gov. Gen. Ahmed Abdullah revealed great gains for the Egyptian economy that are about to materialize as a result of the 2016 agreement. “A large number of people focused on the islands of Tiran and Sanafir and completely ignored the economic gains that the Egyptian citizen will gain,” he said.

According to Abdullah, Egypt has been able, after the agreement, to exploit the wealth in the Red Sea. He explained that the border demarcation agreement allows Egypt to drill in deep territorial waters because the International Law of the Sea defines territorial waters and economic waters as well as the equidistant line between countries. The International Law of the Sea does not determine the maritime borders between countries.

Energean growing Mediterranean operations with Edison E&P acquisition - OFFSHORE MAGAZINE

Edison E&P portfolio overview

Jul 8th, 2019

LONDON – Energean has conditionally agreed to acquire Edison Exploration & Production (Edison E&P) from Italy’s Edison for $750 million.

An additional $100 million could be payable following first gas from the Cassiopea gas development offshore Sicily, which is expected to come onstream in 2022. Eni discovered the field in 2008, reportedly in a water depth of 560 m (1,837 ft) and 22 km (13.7 mi) from the coast of Agrigentos.

Edison E&P has producing assets in Egypt, Italy, Algeria, the UK North Sea and Croatia; development assets in Egypt, Italy and Norway; and exploration opportunities across the portfolio.

The company has 2P reserves of 292 MMboe and 2018 net production of 69,000 boe/d.

Energean’s goal is to become the leading independent, gas-focused E&P company in the Mediterranean region, and the Edison portfolio should complement its own interests, the company said.

The enlarged group will have total 2P reserves of 639 MMboe and will be one of the largest independent E&P companies listed on the London and the Tel Aviv Stock Exchanges.

Economic interests supersede identity politics in Israel-Lebanon maritime border negotiations - JEWISH NEWS SYNDICATE (JNS)

July 8, 2019

ELIANA RUDEE

Despite reports of difficulty bringing Israel and Lebanon together for maritime negotiations, Eastern Mediterranean policy experts and fellows at the Mitvim Institute for Regional Foreign Policies, Gabriel Mitchell and Ambassador (ret.) Michael Harari, believe that negotiations would be significantly beneficial for both parties.

It was reported last week that Israel and Lebanon were on the verge of launching direct talks, with U.S. mediation attempting to settle their maritime border disputes. Recently nominated U.S. envoy David Satterfield has been conducting shuttle diplomacy between the sides, picking up on efforts that were previously led by the Obama administration.

Disputing an area of 300 square miles of water—an extension of territorial disputes that have existed since 1948, and further became exacerbated in the 1970s and 1980s—the two countries have not engaged in negotiations for more than a decade, as they are still officially at a state of war.

Under the Obama administration, a 55-45 split for Lebanon and Israel of the disputed territory was rejected by Lebanon, and according to Mitchell’s estimate, Israel “will not offer anything better than that in subsequent negotiations.”

El Sisi Approves Egypt-Cyprus Gas Pipeline - EGYPT OIL & GAS

Sunday, 7th July 2019

Presidential decree number 537 for the year 2019 was issued on July 4, approving the governmental agreement between Egypt and Cyprus to establish a direct natural gas subsea pipeline, according to State Information Service.

The pipeline willl transport natural gas from the Aphrodite gas field to Egypt’s liquefaction facilities at Idku and Damietta, and re-export it as liquefied natural gas (LNG).

The agreement between the two countries was signed on September 19, 2018 in Nicosia and the Parliament approved it on March 11, 2019.

Under the agreement, the two parties do not have the right to impose in the conditions related to natural gas obtaining, usage, destination, transport, or supply.

The agreement states that the health, safety and environment (HSE) standards applied in the project should not be less than the European Union (EU)’s HSE standards.

Israel has a surplus of oil but with the political stakes high, leaders grapple with how to play it - INDEPENDENT / THE NEW YORK TIMES

7/7/2019
Clifford Krauss

Low prices, environmental and political considerations taken into account as country decides whether to exploit natural resource 

For decades, Israel was an energy-starved country surrounded by hostile, oil-rich neighbours.

Now it has a different problem. Thanks to major offshore discoveries over the past decade, it has more natural gas than it can use or readily export.

Having plenty of gas is hardly a burden, and it offers a cleaner-burning alternative to Israel’s longtime power sources. But it presents challenges for a country that wants to extract geopolitical and economic benefits from a rare energy windfall, including building better relations with its neighbours and Europe.

Part of the problem is timing. Just as Israel prepares to produce and export large amounts of gas, the United States, Australia, Qatar and Russia are flooding the market with cheap gas. The other is maths: Israel’s 8.5 million people use in a year less than 1 per cent of the gas that has been found in the country’s waters.

Eastern Libya, U.S. firm close to signing Libya port deal - REUTERS

JULY 6, 2019 / 12:53 AM
Ulf Laessing, Ayman al-Warfalli

TUNIS/BENGHAZI, Libya (Reuters) - Eastern Libyan authorities and U.S. security firm Guidry Group plan to finalize an agreement to develop a major port in the east of the troubled oil producer, both sides said.

Talks have been going on for about a year to build a port in Susah, which would mark a rare sign of investment in Libya. Most of the country has been in chaos since the toppling of Muammar Gaddafi in 2011.

“The Guidry Group and the State of Libya through the Sea Port Authority officially signed the concession agreement on May 13 for the development of a multi-purpose, deep sea port in Susah, Libya,” the Guidry Group said in a statement to Reuters.

“Next steps for the project will involve establishing all the technical, financial, operational and commercial requirements,” the firm said.

Salah Elhasi, head of the eastern port authority, said no final deal had been signed yet but 90 percent of work was done.

“We are in the final stage of the agreement. ...and are reviewing the agreement’s details,” he said.

Energean to Buy EDF Oil & Gas Assets for Up to $850 Million - BLOOMBERG

July 4, 2019, 2:55 PM GMT+3

Yaacov Benmeleh and Francois De Beaupuy

• Deal opens up access to areas in North Africa, Italy, Croatia
• Transaction is company’s first major acquisition since listing

Energean Oil & Gas Plc agreed to buy the oil and gas business of Electricite de France SA’s Italian unit for as much as $850 million, a deal that will substantially broaden the Greek company’s geographic footprint.

Energean will pay $750 million upfront for operational assets in Egypt, Italy, Algeria, the North Sea and Croatia, according to a statement on the Tel Aviv Stock Exchange, one of two bourses where its stock trades. It’s Energean’s first major acquisition since listing in London last year, and will significantly expand its production and revenue streams.

The Greek company is also acquiring assets under development in Egypt, Italy and Norway. It may pay an additional $100 million following first gas from the Cassiopea development off Italy.

Egypt Announces New Oil Discovery in Sinai - EGYPT OIL & GAS

Thursday, 4th July 2019

Belayim Petroleum Company (Petrobel) has achieved a new oil discovery in the Abu Rudeis concession area in Sinai, Egypt Oil & Gas reports.

Petrobel drilled an exploration well through which it was able to reach a 35-meter layer of sedimentary rocks and a 65-meter layer of limestone rocks, where production began using current facilities at the concession area, the Ministry of Petroleum and Mineral Resources announced.

The company has laid out a plan to drill 10 developmental wells with a crude oil production rate of around 3,000 barrels per day (b/d) and plans to enhance production using hydraulic fracturing, according to the report presented to the Minister of Petroleum, Tarek El Molla, by Petrobel Chairman Atef Hassan.

The new discovery represents a milestone for Petrobel since the Abu Rudeis field is one of the oldest in Egypt, dating back to 1957.

According to the ministry, these positive results have encouraged the foreign partner to pump more investments into various concession areas.

US efforts to start Israel-Lebanon maritime border talks ‘failed’ - Report - THE JERUSALEM POST

July 3, 2019 23:50 

Herb Keinon

Acting Secretary of State David Satterfield’s efforts to get Israel and Lebanon around a negotiating table to discuss marking their maritime border has failed, according to Lebanese reports on Wednesday.

Satterfield, who was confirmed last Friday as Washington’s ambassador to Turkey and could be making his last visit to the region trying to deal with the maritime border issue, met in Beirut on Tuesday with Lebanese Foreign Minister Gebran Bassil and House Speaker Nabih Berri.

According to these reports, Satterfield told his Lebanese interlocutors that Israel has refused their request for UN sponsorship of the talks, and their demands that the discussions should deal not only with the maritime border but also the land border as well.

Israel and Lebanon have a dispute over an 860 sq. km. area that includes several blocs rich in natural gas.

One of the key sticking points holding up the launch of the negotiations has been whether they will be open ended – Lebanon’s demand – or whether there will be a six-month deadline, Israel’s position.