Saturday, December 31, 2016

Egypt's Zohr Gas Discovery: Opportunities and Challenges - CHAPTER 7: GLOBAL ENERGY DEBATES AND THE EASTERN MEDITERRANEAN

Joint Publication by: PRIO Cyprus Centre, Friedrich Ebert Stiftung, Atlantic Council
Adel Abdel Ghafar

In August 2015, the Egyptian government received some good news. Italy’s Eni announced that it has discovered the largest ever offshore natural gas field in the Mediterranean off the Egyptian coast.2 Dubbed a ‘supergiant’ field, Eni suggested that the Zohr project would be able to meet Egypt’s own natural gas demands for decades to come. This was welcome news for the government of Abdel-Fattah el-Sisi as it was entering its third year and has resonated locally and regionally. Once the field comes online it will go a long way toward satisfying local demand, thus allowing Egypt to spend significantly less on importing energy. The continued turbulent transition in Egypt should encourage the government to be prudent and use the proceeds from the field to improve people’s livelihoods and invest in infrastructure, health and education.

Friday, December 30, 2016

Construction continues in the Southern Gas Corridor - WORLD PIPELINES

Friday, 30 December 2016 13:00
Anna Nicklin

The European Commission’s Southern Gas Corridor initiative consists of three key pipelines to supply gas from Caspian regions to Europe, with an overarching aim of securing Europe’s gas supply.

This programme has seen the construction of the Trans Anatolian natural gas pipeline (TANAP) and Trans Adriatic pipeline (TAP) pipelines, the expansion of the South Caucasus pipeline, and the development of the Shah Deniz 2 gas field.

This article provides a brief overview of recent events relating to the TANAP and Trans Adriatic pipeline TAP projects.

Gazprom's Alexey Miller on Nord Strean and Turkish Stream - GAZPROM

December 30, 2016

TEKMOR Note
The full Speech by Alexey Miller at conference call on occasion of New Year’s Eve can be found at the link below.

We intend to proceed with this work in 2017, which means that a new powerful gas transmission corridor will emerge on Russia's gas map. It will largely reshape gas flows as regards Russian consumers and international markets. Among other things, by expanding the northern corridor and gradually constructing new facilities in the northwestern part of the Unified Gas Supply System, we are building up capacities for gas deliveries via the offshore Nord Stream 2 gas pipeline.

The Nord Stream 2 project is running strictly on schedule. The gas pipeline will be brought online in late 2019. I am absolutely convinced that we will put onstream new gas export capacities in a timely manner and in full. The amount of gas to be supplied across the Baltic Sea via Nord Stream and Nord Stream 2 will total 110 billion cubic meters per year.

TransAtlantic Petroleum Announces Receipt of Key Governmental Approval for the Sale of its Subsidiary, Thrace Basin Natural Gas (Turkiye) Corporation - GLOBE NEWSWIRE

December 30, 2016 12:02 ET

HAMILTON, Bermuda, Dec. 30, 2016 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the “Company” or “TransAtlantic”) today announced that it has received key governmental approval for the sale of its wholly-owned subsidiary, Thrace Basin Natural Gas (Turkiye) Corporation (“TBNG”), and provided an operations update.

Update on TBNG Sale
On December 30, 2016, the Company received the required approval from the Ministry of Energy and Natural Resources of the Republic of Turkey (the “Ministry”) for the sale of TBNG to Valeura Energy Netherlands B.V. (“Valeura”). This approval is a key closing condition for the Company’s sale of TBNG. Concurrent with its acquisition of TBNG, and as a further closing condition, Valeura will sell its current 40% participating interest in the deep rights on certain of its Turkish joint venture lands to Statoil Banarli Turkey B.V. (“Statoil”). Valeura has also received approval from the Ministry for this sale to Statoil.

Lack of legal expertise could impede energy projects - CYPRUS MAIL

December 30, 2016
Jean Christou

The Cyprus Hydrocarbons Company (CHC) risks remaining without expert legal advice for the foreseeable future, impeding its ability to negotiate major energy-related projects that are on the horizon.

The complication arose after a challenge mounted to the CHC’s decision to award a contract for procuring legal services.

The tender was awarded to Cameron McKenna LLP, for a three-year contract worth some €9.5 million.

But DLA Piper UK LLP, the bidder ranked second in the competition, has appealed the decision with the Tenders Review Authority (TRA).

DLA Piper is arguing that the successful bidder had a conflict of interest.

MIGA guarantee for TANAP to help draw in commercial banks - TREND NEWS AGENCY

30 December 2016 10:45 (UTC+04:00)
Baku, Leman Zeynalova

The board of the Multilateral Investment Guarantee Agency (MIGA) (World Bank Group) has approved a guarantee for up to $1.2 billion for the Trans-Anatolian Natural Gas Pipeline (TANAP) project, a source in MIGA told Trend Dec.30.

“The guarantee is expected to help draw in commercial banks that will contribute to long-term financing needs of the project,” said the source. “Reinsurance capacity is also expected to be mobilized.”

TANAP project envisages transportation of gas from Azerbaijan’s Shah Deniz field to the western borders of Turkey. The length of TANAP is 1,800 kilometers with the initial capacity of 16 billion cubic meters.

Israeli gasoil imports set to rise to boost strategic reserve: sources - BUNKERWORLD

30.12.2016
Bunkerworld / S&P Global Platts

Earlier this week, the energy and water resources ministry told state-owned Israel Electric Corp. to purchase large quantities of gasoil for storage in the event of an emergency, the sources said.

Thursday, December 29, 2016

Italy's Eni Expands Footprint in Cyprus with New Blocks - FORBES

DEC 29, 2016 @ 07:50 PM Christopher Coats
Continuing to expand its footprint in the Eastern Mediterranean, Italy's Eni has won two exploration blocks in waters near Cyprus this week as a part of a "competitive international bid round", according to media reports.

The announcement relates to the company's acquisition of Block 8 and a 50% stake in Block 6, with the remainder going to project partner, Total SA TOT.

The announcement signals an expanded presence in the region, building on existing stakes in Cyprus and a significant stake in a "super giant" gas discovery in nearby Egypt. According to the report, Eni has already been awarded blocks 2,3 and 9 in a 2012 bid round.

Naftogaz ready to sell its assets in Egypt - KYIV POST

Ukraine's oil and gas company Naftogaz Chief Executive Officer
Andriy Kobolyev, Paris, on October 28, 2016. Photo by AFP
Published Dec. 29 at 5:24 pmBy Interfax-Ukraine

Naftogaz Ukrainy is ready to sell its assets in Egypt, chairman of the state holding Andriy Kobolev said.

According to him, the feasibility of such a step is due to the fact that this business does not bring much profit to the company.

As reported, Naftogaz through its subsidiary Zakordonnaftogaz explores and operates two oil and gas blocks in the Eastern Desert of Egypt – South Wadi El Mahareeth and Wadi El Mahareeth. The work on these deposits, the projected resources of which exceed 360 million tonnes of oil, is carried out on the basis of concession agreements signed on Feb. 7, 2012 between Zakordonnaftogaz on behalf of Naftogaz and the government of the Arab Republic of Egypt and GANOPE state oil company (Ganoub El -Wadi Holding Petroleum Company).

EBRD ready to consider investing in TAP - TREND NEWS AGENCY


29 December 2016 17:52 (UTC+04:00)Baku, Leman Zeynalova

The European Bank for Reconstruction and Development is ready to consider an investment in the implementation of the Trans-Adriatic Pipeline (TAP) project together with other partners, a source in EBRD told Trend Dec.29.

“It is premature to go into any further details at this stage,” said the source.

Earlier, EBRD President Suma Chakrabarti said that TAP pipeline project is of great interest as it will help the region’s energy security and is deemed environmentally sustainable.

Turkish Stream crosses choppy waters - NATURAL GAS WORLD

December 29th, 2016, 8:30am
John Roberts


In the second half of 2017, the world’s most modern pipe-laying barge will lay the first string of the Turkish Stream pipeline across the Black Sea from Russia to Turkey.

Despite all the vicissitudes of recent Russian-Turkish relations, including the assassination of the Russian ambassador to Turkey Andrei Karlov December 19, the two nations remain committed to laying at least one 15.75bn m³/yr pipe between Russia’s offloading terminal near Anapa and a landing site at Kiyikoy, on the Black Sea coast of Turkish Thrace.

But there is still a lot that remains uncertain. These mainly concern the question of a second string – in effect another 15.75bn m³/yr pipeline running roughly parallel to the first; the question of a connection to the Turkish-Greek border; the issue of who would be served by a second string; and the possibility of foreign partnership in the offshore component of the new system.

Is energy the cause of asymmetric attacks on Turkey? - YENI ŞAFAK

29 December 2016
Erdal Tanas Karagöl

The 21st century is the century of natural gas. Many countries with natural gas resources are located in the north, east and south of Turkey. Therefore, Turkey is a country that has strategic significance in energy.

Turkey stands out in the energy field in its region, as it is a bridge between hydrocarbon reserves in the Middle East, the Caspian region and the Mediterranean, and European countries, the largest consuming countries, and as it ensures its own energy supply security.

Turkey's strategic position among countries that have natural gas resources and that consume natural gas offers significant advantages in terms of being both a corridor and a trade center in energy. For the first time, Turkey is at the point of turning the cost it has shouldered in this region for years into an advantage.

Wednesday, December 28, 2016

Recapping Turkey’s 2016 pipeline projects - WORLD PIPELINES

Wednesday, 28 December 2016 12:00
Stephanie Roker

A number of Turkish oil and gas pipeline projects have been the topic of conversation this year. Read on to see a recap of the Iraq-Turkey pipeline, Turkey-Israel pipeline, TANAP and TurkStream projects.



Iraq-Turkey pipeline


Back in mid 2015, the Iraq-Turkey (Kirkuk-Ceyhan) pipeline was shut down after attempts of theft and sabotage on the line. Following on from the shutdown, on 6 January 2016, it was confirmed that payment had been received from the Kurdistan Regional Government (KRG) for the crude oil exported through Kurdish region of the line.

SDX Energy buys oil assets in Egypt and Morocco for $30 million - AMWAL AL GHAD

Saturday, 28 January 2017 11:02

London-based Oil and gas explorer SDX Energy has bought Circle Oil's subsidiaries in Egypt and Morocco for about $30 million.

The acquisitions are expected to increase working production by 247% to about 4,705 barrel of oil equivalent per day and its net working interest 2P reserves will grow by 64% to 12.03m barrels of oil equivalent.

The company funded the acquisitions by raising about $40m (32.1 million) from a placing of 107.05 million shares at 30p each, which were admitted to trade on AIM on Friday. An application has also been made for the shares to trade on the TSX Venture Exchange in Canada. The shares represent 57.28% of the company's total issued share capital.

Egypt signs $220 mln of oil and gas deals - REUTERS

Wed Dec 28, 2016 | 11:00am GMT

Reporting by Ahmed Aboulenein; Editing by Giles Elgood and Mark Potter

Egyptian Oil Minister Tarek El Molla has signed three offshore oil and gas exploration and production deals worth a total of at least $220 million with France's Total, Britain's BP, and Italian oil major ENI's Egyptian subsidiary IEOC, the ministry said on Wednesday.

The deals include drilling for six wells and a signing bonus of $9 million, the ministry said in a statement, and are the result of a tender called by Egyptian state gas board EGAS. They are all in exploration blocks in the Egyptian Mediterranean Sea.

The first deal, with a consortium of BP and IEOC, is worth $75 million for an exploration block in the North Ras El Esh block; the second, with a consortium of all three companies, is in the North El Hammad block and is worth $80 million, and the third, with BP alone, is in the [North El Tabya] block and worth $65 million.

The Two Nations Racing To Host The Next Oil And Gas Rush - OIL PRICE

Dec 28, 2016, 9:36 AM CSTDave Forest

Bit of a quiet week for major resource news. But several small items are suggesting some potentially explosive developments coming over the next several months.

One of those comes in a place I’ve been watching closely the past year: the tiny Mediterranean island of Cyprus. Which this past week announced the winning bidders for an offshore licensing round — handing out acreage that could be prospective for some of the world’s largest natural gas targets.

Cyprus’s Ministry of Energy, Commerce, Industry, and Tourism said it has awarded three offshore blocks — one to Italy’s Eni (Block 8), one to an Eni/Total partnership (Block 6), and the other to ExxonMobil and Qatar Petroleum (Block 10).

That’s big news because these licenses (Block 10) lie just kilometers away from Egyptian waters where Eni discovered the 30 trillion-cubic feet Zohr natural gas field — one of the biggest petro-finds in recent history.

France to support Egypt’s Energy sector with EUR 175 mn - ENTERPRISE

French President Francois Hollande (R) and his Egyptian counterpart
Abdel Fattah al-Sisi in Paris on 26 November, 2014 (AA)
Wednesday, 28 December 2016

France will support Egypt’s energy sector to the tune of EUR 175 mn, including EUR 150 mn for electricity and EUR 25 mn for the oil and gas sector, the International Cooperation Ministry announced. Minister Sahar Nasr reached the agreement with French Minister of State for Development and Francophonie, Jean-Marie Le Guen, during his visit to Cairo this week.

Tuesday, December 27, 2016

Egyptian General Petroleum Corp seeks up to 178,000 tonnes gasoil - AME INFO

December 27, 2016 12:04 pm

Egyptian General Petroleum Corp (EGPC) is seeking up to 178,000 tonnes of gasoil for delivery in January, a tender document showed on Tuesday.

The state-owned company is seeking two cargoes of 30,000 to 33,000 tonnes each of 0.1 percent sulphur gasoil for delivery into Alexandria or El Dekheila ports over Jan. 11 to 13 and Jan. 22 to 24.

It is also seeking via a separate tender two cargoes of 34,000 to 36,000 tonnes each of 0.1 percent sulphur gasoil for delivery into Suez port over Jan. 11 to 13 and Jan. 24 to 26 and 35,000 to 40,000 tonnes of 0.5 percent sulphur gasoil for delivery into Ain Sukhna over Jan. 23 to 25.

Natural gas key to Cyprus talks, says Anastasiades - KATHIMERINI

Tuesday, December 27, 2016, 17:52
Tom Ellis

TEKMOR note: For those interested on the thinking of the Cypriot president and leader of the majority Christian communities (Armenians, Greeks, Latins, Maronites) of Cyprus ahead of the talks for ending the illegal Turkish occupation/colonisation of northern Cyprus.


The discovery of natural gas is a significant incentive to get Ankara’s backing for a resolution to the Cyprus issue, says the country’s President Nicos Anastasiades, who believes that the prospect of using some of the fuel lying beneath the seabed off the island’s shores to cover a large part of Turkey’s energy needs and transform the country into a regional energy hub could convince Turkish President Recep Tayyip Erdogan to make the concessions needed for a reunification deal to be achieved.

In this context, the recent success of ExxonMobil, Total and ENI in securing licenses for gas exploration in the Exclusive Economic Zone (EEZ) of Cyprus is a powerful message that could strengthen Nicosia’s bargaining power.

In an extensive interview with Kathimerini from the Presidential Palace in Nicosia ahead of a multilateral summit on Cyprus in Geneva on January 12, Anastasiades talks about the need for Turkey to withdraw its troops from the island’s occupied north and says that he is willing to agree to a transitional period while this is achieved. He also stresses that Athens and Nicosia are on the same page as regards the issue of guarantees.

The Cyprus president appears determined to achieve a resolution despite warnings that certain facets of such a deal that he is willing to negotiate could be rejected by Greek Cypriots in the ensuing referendum, potentially jeopardizing a deal and his own political future.

Italy's Eni signs 2 new gas exploration deals with Egypt - AHRAM ONLINE

Tuesday 27 Dec 2016

Italy’s Eni, one of the leading global oil and gas companies, signed on Tuesday two new concession agreements with the Egyptian government for gas exploration in two fields of “North El-Hammad and North Ras El-Esh, located in the shallow waters of the Egyptian Mediterranean Sea,” according to the group’s website.

For the North El-Hammad block, Eni has a stake of 37.5 percent, while the remaining equities are owned by BP and Total, the Italian company said.

However, Eni has a 50 percent participation stake in the North Ras El-Esh block, which is operated by BP with an equity of 50 percent.

Turkey's New FSRU LNG Terminal Complements Existing Land-Based Terminals - NATURAL GAS INTEL

December 27, 2016Joe Fisher

Turkey saw the inauguration of its first floating storage regasification unit (FSRU) liquefied natural gas (LNG) terminal last Friday.

The facility includes a jetty and onshore natural gas pipeline connecting regasified LNG from the unit to the neighboring pipeline grid. According to developer ENGIE and its Turkish construction partners, project development took 6.5 months from final investment decision to completion.

The ETKI LNG terminal was built by construction companies Kolin and Kalyon of Turkey. The facility is at Aliaga on the Aegean coast.

Eni Wins Twin Exploration Block License in Offshore Cyprus - ZACKS EQUITY RESEARCH / NASDAQ

December 27, 2016, 09:16:00 AM EDT
By Zacks Equity Research, Zacks.com

Eni SpA E recently gained two exploration blocks offshore Cyprus, in the competitive international bid round "3rd Licensing Round." We expect these developments to result in stock price appreciation. Year to date, the stock has gained 6.9%, while the Zacks categorized sub industry Oil & Gas- International Integrated Market has increased by 19%.

Eni will be the operator of Block 6 with 50% interest, while the balance will be held by partner, Total SA TOT . Eni will acquire a 100% stake in Block 8.

Eni's successfully explored areas in the neighboring Egyptian offshore, including the Zohr massive gas field, which have geological similarities with these newly awarded areas.

EPDK floats gas distribution tenders in Turkish lira - DAILY SABAH

27.12.2016

The Energy Market Regulatory Authority (EPDK) is set to hold its first ever tender in Turkish lira, which will see five companies bid against each other to land natural gas distribution projects in Turkey's Ağrı and Tunceli. According to the EPDK authorities, two more tenders will soon be finalized to expand natural gas distribution coverage in Turkey.

Aksa Natural Gas Distribution Company, Fernas Construction Company, Akmercan Tourism Company, Siirt-Batman Natural Gas Distribution Company and the Alöz Engineering Company will vie today for the two natural gas distribution projects, which will cover Ağrı's city center and the province of Doğubayazıt, as well as two other similar projects in Tunceli on Dec. 28.

Israeli study points to Turkey as cheapest way to carry natural gas - DAILY SABAH

Source: ABO
27.12.2016

TEKMOR note: Turkey (Republic of) is the sole country that does not recognize EU-member Cyprus (Republic of), since it invaded 
the northern two fifths of the island in 1974, cleansed it of its majority Christian population and colonises it with populations from mainland Turkey. A pipeline from Israel to Turkey is difficult to say the least without Cyprus' consent.   
--

A study titled, "Commercial Opportunities for Turkish Companies," which was prepared by Israel, has revealed that the cost of building a pipeline between Turkey and Israel would vary between $2.6 billion and $3.9 billion and, that if Greece is chosen as a route for the pipeline, the average cost of the pipeline would amount to $7.15 billion to carry the gas to Europe.

According to the study presented by the Israeli Embassy in a meeting attended by officials from energy companies, a possible pipeline between Turkey and Israel might reach 600 kilometers in length.

Monday, December 26, 2016

Entry of major energy players not a game changer, expert says - CYPRUS MAIL

Rex Tillerson
December 26, 2016
Elias Hazou



WHEREAS there is no doubt the third hydrocarbons licensing round was a successful one – with the entry of US energy giant ExxonMobil – Cypriots would be well advised to manage any expectations of a financial bonanza, an energy analyst tells the Cyprus Mail.

“The economics of the eastern Mediterranean remain the same, regardless of the players,” said Charles Ellinas.

Profitability being the bottom line, and with gas prices still suppressed, discouraging development of natural gas fields at the moment, the entry of ExxonMobil is welcome, but not a game changer.

The same problems will persist unless there is a dramatic increase in gas prices, Ellinas said.

During 2016, the price of natural gas in European markets averaged at a low $4.5 per BTU.

Deregulation - ENTERPRISE

Monday, 26 December 2016

The Electricity Act and the Natural Gas Act, which would deregulate their respective sectors were two of laws that excited us the most when they were announced. With so many sectors of the economy still under government control, it would almost seem inconceivable that such strategically vital sectors would be slated for privatization for Egyptians and foreigners. At the time they were proposed, Egypt had become a net importer of natural gas and suffering through critical power shortages. It was hoped by allowing the private sector in supply and distribution would be made more efficient by introducing competition, spur domestic and foreign investment in the sector, and reduce the immense expenses incurred by the government as a result of being the sole operator. More crucially, it would help ease the government’s transition away from subsidizing electricity and gas to the Kramers. Neither law has been implemented as of the end of 2016, but slow progress is still progress.

Sunday, December 25, 2016

Israel's Delek Drilling, Avner Oil approve merger - REUTERS

Yossi Abu, chief executive of Delek's subsidiaries Delek Drilling and
Avner Oil, Tel Aviv, March 28, 2016. REUTERS/Baz Ratner
Sun Dec 25, 2016 | 4:54am ESTReporting by Steven Scheer

Israeli conglomerate Delek Group's gas and oil exploration units, Delek Drilling and Avner Oil Exploration, approved a merger aimed at reducing costs and attracting new investors.

Delek Drilling said on Sunday that shareholders of both companies approved the merger, which will see all assets and liabilities of Avner transferred to Delek Drilling and Avner will be dissolved.

The companies in April began the merger process.

Delek Group directly holds 6.6 percent of Delek Drilling and 8.9 percent of Avner, while its Delek Energy unit owns 63 percent of Delek Drilling and 47 percent of Avner.

Anastasiades: Natural gas supply an incentive for Turkey - KATHIMERINI

25.12.2016 : 13:40

Cyprus’s newly-discovered wealth of offshore natural gas could boost the prospects for a peace settlement on the divided island, President Nicos Anastasiades has said a few days after Nicosia said it had picked Eni, Total and ExxonMobil for three exploration licenses.

In an interview with Kathimerini newspaper ahead of next month’s crucial talks in Geneva, the Greek Cypriot leader said that the prospect of covering a significant part of Turkey’s energy needs and of transforming his country into a regional energy hub could prompt Turkish President Recep Tayyip Erdogan into making the much-needed concessions that would pave the way for a deal.

“The most important thing is for [Turkey] to become an energy hub. The normalization of ties with Israel and the need to get natural gas supplies from there, presupposes that that pipelines will run through Cyprus’s Exclusive Economic Zone (EEZ). The Cyprus Republic may not have veto rights, but it can raise objections over the pipeline route,” said Anastasiades, adding that Ankara could also be interested in the discovery of natural gas deposits.

Egypt oil ministry signed 8 deals worth $709 mln to find energy reserves in 2015/16 - AHRAM ONLINE

Sunday 25 Dec 2016

Egypt's petroleum ministry said it signed in 2015/16 eight agreements with six international and local companies to search for oil and gas reserves in the Mediterranean, the Western Desert, the Gulf of Suez and Upper Egypt, with total investments worth $709 million.

The ministry said in a Sunday statement that the agreements also include drilling 33 new energy wells.

The ministry also highlighted that it has succeeded in increasing the natural gas production per day to around 4.45 billion cubic feet of gas by accelerating the search for natural gas reserves in the Mediterranean.