Egypt welcomes natural gas from all countries: PM - EGYPT INDEPENDENT

February 24, 2018, 12:50 pm

Edited translation from Al-Masry Al-Youm

Prime Minister Sherif Ismail said on Friday that Egypt welcomes any quantities of natural gas from any country for processing in the country’s liquefaction plants.

During a press conference, Ismail said that the natural gas agreement involving Israeli and Egyptian companies is a deal between private sector companies, not governments, but it nevertheless highlights Egypt’s pivotal role in the energy sector and its new role in the region.

He pointed out that the Turkish “harassment” of gas explorers in the Mediterranean Sea has been going on for a long period, saying that, with new gas discoveries, he expects conflicts to impose additional strain in relations between various regional countries.

He added that Egypt is currently working to receive natural gas from Cyprus.

Cyprus to Egypt gas pipeline deal to be signed: Petroleum Minister - EGYPT INDEPENDENT

President N. Anastasiades, President A.F. el-Sisi, PM A. Tsipras 

February 23, 2018 3:09 pm
Farah Tawfeek

Minister of Petroleum Tarek al-Mulla declared that before mid-2018, there will be a signing of an agreement with the European Union (EU) to build a Cyprus-to-Egypt gas pipeline, saying that the EU will be the main beneficiary of the energy produced.

During his participation in the ‘Petroleum Week’ conference in London, the minister announced that a preliminary agreement with Cyprus’s government has been signed to have a pipeline running from Cyprus to Egypt, and that further negotiations are underway between governments. Moreover, Egypt and Greece will be working closely in the fields of petroleum and gas through several agreements.

He also emphasized the close cooperation with Egypt, Jordan, and Iraq in the same field, announcing that Egypt has entered an agreement with Jordan and Iraq to transport crude oil and gas from Iraq, through Jordan, to Egypt.

Five Turkish warships halt SAIPEM 12000 anew from reaching target in Cyprus' EEZ - CNA

23/02/2018 13:51 
Nicosia, Maria Koniotou

SAIPEM 12000 drillship, commissioned by Italian energy company ENI, to start drilling operations in block 3 of Cyprus’ Exclusive Economic Zone (EEZ) was halted by five Turkish warships Friday morning while making a new effort to reach Soupia target, which it was unable to fulfill due to Turkish threats.

Deputy Government Spokesman Victoras Papadopoulos told the Cyprus News Agency, that after consultations between Italian company ENI and SAIPEM 12000, the captain of the drillship tried once again to drive the ship towards the Soupia (Cuttlefish) target to conduct its drilling operations.

“During its course towards block 3 and the Soupia target the drillship was halted by five Turkish warships and after threats of violence launched (by the Turks) and the threat of a collision with the drillship, despite the courageous and commendable efforts made by the captain.

Snam plans to ‘establish Athens as base for southeast Mediterranean’ - ENERGY PRESS

23/FEB/2018

Snam will aim to contribute to Greece becoming a regional energy hub in the southeast Mediterranean, Federico Ermoli, chief international assets officer at Italy’s Snam, heading one of two bidding teams vying for a 66 percent stake in DESFA, the natural gas grid operator, has stressed in an interview with Greek daily Kathimerini.

Snam and its bidding partners, Spain’s Enagás Internacional and Belgium’s Fluxys, submitted a binding offer to the DEFSA tender last Friday. Staged by TAIPED, the state privatization fund, its content is still being processed before offers are opened, probably late next week.

Another Spanish entry, Regasificadora del Noroeste (Reganosa Asset Investments) joined forces with Romania’s Transgaz and the EBRD, the European Bank for Reconstruction and Development, for the other offer.

“We aspire to further develop the company and contribute to making Greece an energy hub in the Mediterranean for natural gas stemming from various regions,” Ermoli remarked, while adding that DESFA requires strong partners capable of making investments for the future of the firm, country and its geopolitical role.

Commenting on Greece’s strategic importance for Snam, Ermoli said the firm intends to establish an office base in Athens to manage its activities concerning interests in the southeast Meditteranean region.

DEBATE: What Is the Best Way to Transport Levantine Gas to Europe? - BESA CENTER

February 22, 2018Dr. George N. Tzogopoulos

BESA Center Online Debate No. 7, February 22, 2018

Q: Energy discoveries in the Eastern Mediterranean are changing regional dynamics in the Basin. Key players – principally Cyprus, Egypt, and Israel – are taking steps to achieve energy independence and are exploring opportunities for exports. The EU, which is interested in reducing its energy dependency on Russia, could be a client in the future. BESA joins the debate by asking: How can natural gas from the Eastern Mediterranean be better transported to Europe?

Respondents: Michael Ratner, Gallia Lindenstrauss, Tim Boersma, Defne Sadıklar-Arslan, Marc-Antoine Eyl-Mazzega, Theodore Tsakiris, Sohbet Karbuz

Egypt resolving dispute, holding up $15-billion Israel gas deal - WORLD OIL

FEB/22/2018

ABDEL LATIF WAHBA

CAIRO (Bloomberg) -- Egypt said it was settling financial disputes with an Israeli electricity company and a key pipeline operator to turn a $15-billion deal to import gas from the Jewish state into reality.

The gas deal announced this week had been held up by arbitration rulings ordering Egypt to pay Israel Electric Corp. and East Mediterranean Gas Co. (EMG), which operates a section of pipeline, compensation for canceling an earlier contract.

“We reached an agreement to receive part of the gas in Egypt via its pipelines and this is part of the resolution to the arbitration,” Prime Minister Sherif Ismail told reporters in Cairo when asked about the EMG case. He said an understanding had also been reached with the power company but declined to give more details.

Noble Energy and Delek Drilling-LP announced on Monday they had agreed to export 64 Bcm of natural gas over 10 years to Egyptian company Dolphinus Holdings Ltd. from Israel’s Tamar and Leviathan reservoirs.

The deal adds an economic dimension to a relationship dominated by security and clouded by mutual suspicion since the two countries signed a peace deal four decades ago. It also takes Egypt a step closer to its goal of becoming an energy hub for the East Mediterranean.

Tamar Petroleum raising NIS 2.2b more on TASE - GLOBES

22 Feb, 2018 6:29

Omri Cohen

Yesterday's announcement of the agreement for exporting natural gas from Israel to Egypt is putting wind into the sails of the second bond issue by Tamar Petroleum, which own the Tamar natural gas reservoir. The Midroog rating company today announced that it had issued an A1 rating for up to NIS 2.178 billion in the Series B bonds to be issued by Tamar Petroleum. The rating is the same as for Tamar Petroleum's NIS 2.3 billion issue of Series A bonds last year.

Tamar Petroleum intends to use the amount to be raised to buy 7.5% of the rights in the Tamar reservoir from US company Noble Energy. The $800 million deal includes a $560 million cash payment, with the rest consisting of an allocation of shares, which will amount to 43.5% of Tamar Petroleum's share capital.

Midroog said that the bond issue would reach up to $605 million, but that any amount raised in excess of $560 million would be deposited in a special fund for early repayment of or buying back bonds.

Cyprus sees gas deal with Egypt as Cairo weighs Israeli supply - WORLD OIL / BLOOMBERG

FEB/21/2018
GEORGIOS GEORGIOU, PAUL TUGWELL, SALMA EL WARDANY AND TAREK EL-TABLAWY

NICOSIA, ATHENS and CAIRO (Bloomberg) -- Cyprus is nearing an agreement to sell natural gas to Egypt, marking the second potential supply deal in as many days with the North African country vying to position itself as a regional energy hub after the startup of the giant offshore Zohr field.

Cyprus would supply Egypt from Aphrodite field, which was discovered by Noble Energy Inc. and contains an estimated 4.5 Tcf of gas. Noble Energy, with Delek Drilling-LP, said Monday it plans to sell gas to Egypt’s Dolphinus Holdings Ltd. from Israel’s Tamar and Leviathan deposits. Egypt’s government still must approve the proposed 10-year deal for shipments from Israel, the Egyptian oil ministry said Tuesday in an emailed statement.

“Cyprus is close to selling natural gas to Egypt’s liquefied natural gas plants, and we could reach an agreement in the coming weeks,” Energy Minister Georgios Lakkotrypis said in a telephone interview from Nicosia. The Egyptian LNG plants of Idku and Damietta lie some 400 mi (645 km) south of Cyprus.

Schlumberger wins engineering, supply contract for Noble Energy's Leviathan platform - WORLD OIL

FEB/21/2018

HOUSTON -- Schlumberger today announced the award by Noble Energy of an engineering and supply contract for a 2,000-ton single-lift process module to be installed on the Leviathan platform in the Eastern Mediterranean.

The scope of the contract includes pre-treatment, salt removal and regeneration of monoethylene glycol (MEG) for re-injection in the subsea flowlines for hydrate inhibition. The Schlumberger PUREMEG reclamation and regeneration system is a proprietary technology that will be supplied as a single-lift module for installation on the production platform.

SDX Energy pursues Egypt, Morocco development in 2018 - OIL & GAS JOURNAL

HOUSTON, FEB/21/2018
Tayvis Dunnahoe

SDX Energy Inc. anticipates spudding the Ibn Yunus-1X exploration well at South Disouq, Egypt, in mid-March. The operator signed a contract with Sino-Tharwa Drilling Co. for the ST-6 rig, which includes agreement for four additional firm wells. The rig is on location in Egypt’s Western Desert completing drilling for a separate operator and is expected to be released this month.

SDX expects a 30-40 day drilling window targeting the Abu Madi conventional gas interval discovered in April 2017 in the SD-1X well, which tested 25.8 MMcfd and 43 b/d of condensate on a 48/64-in. choke (OGJ Online, Sept. 21, 2017). The Abu Maadi formation is at 7,100 ft. Once drilling is completed at Ibn Yunus-1X, the rig will move to the SD-1X discovery to drill two appraisal wells and then on to drill SDX’s Kelvin-1X exploration prospect.

The Ibn Yunus-1X and Kelvin-1X wells are targeting up to 150 bcf of gas and, if successful, SDX plans to tie back to the SD-1X processing facility.

Cyprus Says To Pursue Gas Exploration Amid Standoff With Turkey - RIGZONE /REUTERS

Wednesday, February 21, 2018

Reporting by Renee Maltezou and Michele Kambas; Additional reporting by Ezgi Erkoyun, Editing by William Maclean

ATHENS, Feb 21 (Reuters) - Cyprus said on Wednesday it would press ahead with oil and gas exploration, signalling resolve in a standoff with Turkey over access to potential energy riches after Ankara extended military exercises in the eastern Mediterranean to early March.

Cyprus has accused Turkey of obstructing a drill ship exploring for natural gas off the ethnically-split island on Feb. 9, highlighting tensions in the region over competing claims for offshore resources.

The Saipem 12000 vessel is contracted by Italy's state-controlled Eni which along with France's Total operates the Block 3 of Cyprus's economic zone.

The ship was headed to that area when it was blocked by Turkish warships. Turkey issued a new navigational advisory this week extending military training to March 10.

US: Cyprus ‘has every right’ to develop hydrocarbon reserves in its EEZ - KATHIMERINI

21.02.2018 15:26

The US Ambassador to Nicosia Kathleen Doherty has affirmed Washington’s position that Cyprus has every right to develop hydrocarbon reserves in its exclusive economic zone (EEZ).

After meeting with Cyprus President Nicos Anastasiades on Wednesday, Doherty said: “I relayed to the President that the United States feels very strongly that the Republic of Cyprus has the right to explore and exploit its resources in the exclusive economic zone.”

Washington is following events in the Eastern Mediterranean and is also engaging in these events, Doherty said, while expressing the hope that the ongoing problems will be resolved so that talks for the islands reunification can resume.

Turkish warships have blocked a rig from reaching a target inside Cyprus's EEZ where Italian company Eni is scheduled to conduct exploratory drilling.

Egyptian minister sets conditions for approval of Israeli gas import deal - THE TIMES OF ISRAEL

21.2.2018

Egypt’s oil minister said Tuesday Cairo would set some conditions before approving the import of Israeli natural gas to the country, as agreed between US Noble Energy, Israel’s Delek and Egypt’s Dolphinus Holdings.

Tariq al-Mulla, quoted by Turkey’s Anadolu news agency, said the gas imports must “add value to the Egyptian economy” — a likely reference to pricing — and that “arbitration between the two countries” must be settled.

He was apparently alluding to a debt of $1.76 billion Egypt owes Israel for a 2015 court judgment that found Cairo violated an agreement to supply natural gas.

The ruling, made by three arbitrators at the International Chamber of Commerce, came after the Israeli Electric Corporation claimed over $4 billion in damages stemming from Egypt canceling their bilateral gas deal in 2012.

Egypt's potential gas surplus could feed global LNG glut - WORLD OIL

FEB/20/2018
SALMA EL WARDANY

CAIRO (Bloomberg) -- Egypt faces a possible over-abundance of natural gas after two Israeli companies proposed a $15 billion supply deal, raising the prospect that the Arab nation may turn its surplus into liquefied natural gas and export it to a market currently glutted with LNG.

Egypt was already expecting to become self-sufficient in natural gas by the end of this year with the start of Eni SpA’s giant Zohr field, Oil Minister Tarek El-Molla said last month. Noble Energy and Delek Drilling-LP said Monday they plan to supply around 64 Bcmg over 10 years to Egypt’s Dolphinus Holdings from Israel’s Tamar and Leviathan reservoirs, in a $15 billion export arrangement.

The most populous Arab country has facilities to turn gas into super-chilled LNG, which can be exported by ship. The global LNG oversupply is unlikely to end before the mid-2020s, the IEA forecast in October.

Noble Energy announces execution of gas sales agreements for export of gas to Egypt - WORLD OIL

FEB/19/2018

HOUSTON -- Noble Energy, Inc., has announced that it has signed agreements to sell significant quantities of natural gas from Leviathan and Tamar fields to Dolphinus Holdings Limited to supply gas in Egypt. These agreements, one for natural gas from Leviathan and one for Tamar, each provide for total contract quantities of 1.15 Tcf of natural gas. The natural gas is anticipated to supply industrial and petrochemical customers, as well as future power generation in Egypt.

Sales volumes under the agreement associated with Leviathan field are anticipated to begin at a firm rate of approximately 350 MMcfd at the startup of the Leviathan project at the end of 2019. For the Tamar agreement, sales volumes are anticipated to begin at an interruptible rate of up to 350 MMcfd, dependent upon gas availability beyond existing customer obligations in Israel and Jordan. Noble Energy will have an option to convert the Tamar interruptible quantity to a firm-basis with a significant take or pay commitment. Both contracts are for a 10-year term.

Partners sign deal to export $15 billion in Israeli natgas to Egypt - REUTERS

FEBRUARY 19, 2018 / 2:42 PMReporting by Tova Cohen and Ari Rabinovitch

TEL AVIV (Reuters) - The partners in Israel’s Tamar and Leviathan natural gas fields have signed 10-year agreements to sell $15 billion worth of natural gas to Egyptian company Dolphinus, Delek Drilling said on Monday.

Various possibilities for transmission of the gas to Egypt are being examined, including use of the East Mediterranean Gas pipeline. Delek Drilling and its partner, Texas-based Noble Energy, intend to begin negotiations with EMG for the use of the pipeline to Egypt, Delek said in a statement.

Arbitrator: EMG Due $1.03b From Egypt Over Canceled Gas Contract- HAARETZ

Feb 19, 2018 12:43 AM
Eran Azran 

A lengthy dispute over compensation after Egyptian gas companies cut off the supply of natural gas to Israel six years ago is moving forward in Israel’s favor, thanks to a ruling that the Egyptians had violated their country’s trade treaty with Poland.

The Cairo Regional Centre for International Commercial Arbitration ruled that East Mediterranean Gas, the company that operated the pipeline that had been delivering the gas to Israel, should be awarded $1.033 billion plus interest.

If the award is paid out, that could enable the bondholders of Ampal-American – an Israeli holding company controlled by Yossi Maiman that owned 12.5% of EMG – to collect on the 800 million shekels ($225.8 million at current exchange rates) still owned them after Ampal went bankrupt after EMG’s supply of gas was ended.

The decision by the Cairo-based arbitrator came after the United Nations Commission on International Trade Law, or UNCITRAL, ruled that the Egyptian Natural Gas and Egyptian General Petroleum Corporation had violated the terms of the Egyptian-Polish trade treaty’s clauses protecting investors.

Despite Turkish reservations, Qatar, ExxonMobil plan oil drilling off Cyprus - AL ARABIYA

Sunday, 18 February 2018 KSA 13:26 - GMT 10:26

Following Qatar’s signing of a deal with US petroleum company ExxonMobil in 2017 to explore oil and gas off the coast of Cyprus, a Turkish energy expert said that Turkish President Erdogan should warn Qatar of going ahead with the deal as Turkey is known for blocking oil exploration on their territory, according to Ahval News newspaper.

Turkish Coast Guard vessels had prevented the Italian energy company, Eni, from drilling near Cyprus, which caused tensions to rise between both countries.

The Turkish president had also issued a warning to energy companies, Greece and Cyprus from drilling on Turkish territory, the newspaper reported.

However, the Qatari company, Qatar Petroleum, will now go ahead with their plans of drilling operations along with ExxonMobil according to their deal which they announced in 2017.

Turkey had protested for sovereignty over the 10th parcel as an exclusive economic region, Pamir, who is a world energy politics professor at Bilkent University in Turkey, told the newspaper. Turkish vessels had collided with Greek vessels in that area.

“A potential conflict over the 10th block will further escalate the already shaky international relations between Turkey, and the US,” the newspaper reported Pamir as saying.

EGAS to hold exploration tender for nine blocks by June - ENTERPRISE

Sunday, 18 February 2018

EGAS to hold exploration tender for nine blocks by June: EGAS plans to hold an international exploration tender for nine blocks “before the end of 1H2018,” EGAS Vice Chairman for Agreements and Exploration Ahmed Salah Abdel Wahed said on Thursday, Youm7 reports. The tender includes six offshore and three onshore blocks. Though he did not specify where these blocks will be, the offshore ones are expected to include areas in the Mediterranean as EGAS has put a plan to issue tenders for natural gas exploration annually, with a focus on the Mediterranean. Last week, Oil Minister Tarek El Molla said that the ministry plans to float tenders in the West Mediterranean once seismic mapping of the area is complete and a marketing strategy for the field has been developed. He added that the Red Sea and South Egypt areas will also see tenders — for the first time — once geological data has been collected.

Will the impact of the early launch of the Atoll gas field be minimal? Analysts speaking to chemical industry news firm ICIS appear to think so, adding that LNG imports are likely to continue to the end of the year. “The Atoll field is a reasonably significant addition to the trend of growing domestic gas production in Egypt, but on its own it would only have a limited impact,” said Andy Flower, an independent LNG consultant. BP had announced the launch of the Atoll gas field seven months early last week.

Egypt to import 3 LNG cargoes from France's Engie for Q2 2018 -sources - REUTERS

FEBRUARY 18, 2018 / 9:03 AM

Reporting by Ehab Farouk; Writing by Nadine Awadalla; Editing by Susan Fenton

CAIRO, Feb 18 (Reuters) - Egyptian Natural Gas Holding Company (EGAS) has arranged for the delivery of three liquefied natural gas (LNG) cargoes from France’s Engie in the second quarter of 2018, EGAS sources said on Sunday.

Trade sources told Reuters last month that Egypt was looking to import five cargoes of LNG at competitive pricing.

Two trade sources said the purchases were arranged through bilateral deals and not via a standard tender process.

Egypt plans to stop importing LNG by the end of the 2017/18 fiscal year ending in June as it speeds up production at recently discovered gas fields, the petroleum minister said in January.