Shell relinquishes Gaza gas field rights - GLOBES

8 Mar, 2018 13:50
Sonia Gorodeisky

The Palestinian Authority is seeking a new partner to help it develop the Marine gas field.

Energy giant Royal Dutch Shell is relinquishing its rights to the Marine gas field off the coast of Gaza, "Reuters" reports. The undeveloped gas field contains an estimated 32 billion cubic meters of natural gas.

The Palestinian Authority now needs to find a new international group to develop and operate the field. Palestinian ministers say they are in the process of locating an alternative operator to Shell.

Shell owns 60% of the rights to the gas field with the Palestinian Authority owning the remaining 40%. British Gas (since acquired by Shell) discovered the field, 35 kilometers off the coast of Gaza, in 2000 but although it could have provided energy security for the Gaza Strip, the field has never been developed. The main reason for the failure to develop the field was the geopolitical problems in the region, which made it impossible for Shell to sign any export deals.

A Shell spokesman said: "We confirm we have been in discussions with various parties about the future of the Gaza Marine project. As of now, Shell continues to hold its equity in the Gaza Marine asset."

Agreement to link Cyprus, Egypt, Greece via undersea cable signed - CYPRUS BUSINESS MAIL

MARCH 8, 2018
Stelios Orphanides

Cyprus and Egypt have agreed on the route of a 1,707-kilometre sub-sea power cable that will link the grids of the two countries to that of Greece, EuroAfrica Interconnector, the company behind the project said.

The cable, named after the company, “will connect the electricity grids of Egypt, Cyprus, and Greece with Europe has entered the pre-works phase,” the firm said in an emailed statement on Wednesday. “The Egyptian government (is) giving its full support to EuroAfrica Interconnector, transforming Egypt as an electricity hub for Africa and agreed the electricity cable route, the landing point and the site of the HVDC (high-voltage, direct current) converter station”.

Israel expects decision on East Med gas pipeline to Europe in 2019 - REUTERS

THU MAR 8, 2018 / 1:43 PM EST
Ron Bousso

(Reuters) - Israel expects a decision to go ahead with the construction of a 2,000 kilometer (1,243 mile) pipeline linking vast eastern Mediterranean gas resources to Europe to be made by early 2019, Israeli Energy Minister Yuval Steinitz told Reuters.

The pipeline, which will cross from Israel and Cyprus into Greece and Italy in deep waters, would mark a major milestone for the rapidly developing gas industry in the Levantine Basin in the east corner of the Mediterranean, offering access to a large market.

The European Union considers the pipeline, estimated to cost $7 billion, as "extremely competitive" as the four partner countries continue construction plans for the technically complex line, Steinitz told Reuters late on Wednesday on the sidelines of the CERAWeek conference in Houston.

"This summer we will reach a detailed agreement between the four founding states of the East Med pipeline and at the beginning of 2019 we hope to see a final investment decision," he said.

Troubled waters ahead in Israel-Lebanon border dispute - PETROLEUM ECONOMIST

8 March 2018Gerald Butt

A maritime border dispute between Israel and Lebanon, and a plan by IOCs to start drilling close to the contested area, are contributing to regional tensions

When a Total-led consortium signed two exploration and production agreements in Beirut in February, the Lebanese government made no attempt to hide its delight.

"Today, we announce that we have started our petroleum path," energy minister Cesar Abi Khalil said. After years of delay caused by internal political crises and sectarian squabbling, Lebanon had finally nailed down contracts that would lead to the start of drilling for oil and gas.

The winning consortium consists of Total (with a 40% stake), Eni (40%) and Novatek (20%). The awarded blocks are 4 and 9. The group has committed itself to drill at least one well in each block in the first three years, starting probably in 2019.

US State Department stresses Cyprus's right to develop resources in EEZ - KATHIMERINI

08.03.2018 : 09:27

The United States recognizes the right of Cyprus to develop the resources in its Exclusive Economic Zone, and discourages any actions or statements that provoke a rise in tensions in the region, a State Department official has said.

In a statement late on Wednesday, the official said that Washington's policy on Cyprus’ EEZ was longstanding and has not changed, noting that the US "recognizes the right of the Republic of Cyprus to develop its resources in its Exclusive Economic Zone."

“We continue to believe the island’s oil and gas resources, like all of its resources, should be equitably shared between both communities in the context of an overall settlement," the official said.

"We discourage any actions or rhetoric that increase tensions in the region."

The official did not comment directly on threats from Ankara regarding the arrival in the region of a research vessel belonging to US company ExxonMobil.

In recent weeks Turkish warships have twice blocked a vessel bound for drilling in Cyprus’ EEZ block 3 on behalf of Italian company ENI.

Noble, Delek seek rights to EMG pipeline for Egypt natgas supply - REUTERS

MARCH 7, 2018 / 3:32 PM

Reporting by Steven Scheer, Editing by Tova Cohen

JERUSALEM, March 7 (Reuters) - The partners in the Tamar and Leviathan natural gas site off Israel’s coast are in talks to buy the rights to use the East Mediterranean Gas (EMG) pipeline to supply gas to customers in Egypt.

The partners, Texas-based Noble Energy and Israel’s Delek Drilling, did not provide details. Delek said there was no certainty a binding agreement would be signed.

Last month, Egyptian company Dolphinus Holdings said it would buy $15 billion of Israeli natural gas in two 10-year agreements from Leviathan and Tamar. 

Leviathan partners say all conditions met to supply natgas to Jordan - REUTERS

MARCH 7, 2018 / 10:34 AMReporting by Steven Scheer, Editing by Tova Cohen

TEL AVIV, March 7 (Reuters) - The partners in Israel’s offshore natural gas field Leviathan said on Wednesday that all conditions have been met to allow the supply of gas to Jordan’s electric company.

They said the capacity of the pipeline that will connect to Jordan via a direct pipeline and one that runs via Egypt would allow the flow of up to 10 billion cubic meters of gas a year.

US increases its Mediterranean naval presence as ExxonMobil begins Cyprus gas exploration - ENTERPRISE

Wednesday, 7 March 2018

Meanwhile, the East Mediterranean looks to be heating up, as the world reacts to Turkey’s bullying. The US has upped its naval presence in the Mediterranean as ExxonMobil dispatched drilling ships to Cyprus’ Exclusive Economic Zone (EEZ), Sputnik reports.

ExxonMobil is operating on a contract with Cyprus and Qatar Petroleum to explore for energy reserves off the Cypriot coast. 

The US “bolstering its presence in the region” comes after the Turkish military blocked drilling efforts in Cyprus’ portion of the EEZ twice last month. Cyprus lodged a formal protest with the UN against Turkey for its “repeated violations” and attempts at “undermining [Cypriot] sovereignty.” 

Turkey’s aggression came just as reports emerged that Egypt and Cyprus are nearing an agreement on establishing a natural gas pipeline, which could well turn Egypt into the export hub for East Mediterranean gas.

Amid Cypriot Tensions, US Navy, ExxonMobil Arrive in Mediterranean - SPUTNIK

06.MARCH.2018 01:39

On the same day, ships from both the US Navy and Marine Corps, as well as oil surveyors from ExxonMobil, arrived in the Mediterranean Sea. The ships’ arrival comes just days after a standoff between Turkish naval vessels and Italian drillers over a disputed economic zone.

The US is bolstering its presence in the region as Turkey appears to be increasingly willing to use or at least threaten force to uphold its interests in the illegally occupied northern third of Cyprus. The latest tensions center on an underwater oil discovery.

Last December, an oil find at a location between Egypt and Cyprus called the Zohr Site was discovered. Believed to be host to trillions of barrels of untapped oil, Zohr's discovery has led to a black gold rush in the surrounding area for similar sites.

Sure enough, in February, ENI announced the discovery of the Zohr-esque Calypso field. On February 9, the Turkish navy shadowed a drilling ship owned by Italian multinational ENI as it undertook an exploratory mission at the Soupia Site.

Exxon, Total, Repsol among bidders for oil exploration off Greece - REUTERS

MARCH 5, 2018 / 7:20 PM

Reporting by Karolina Tagaris; Editing by Susan Fenton

ATHENS (Reuters) - Oil majors Exxon Mobil (XOM.N), Total (TOTF.PA) and Repsol (REP.MC) are among members of two consortia that have submitted bids to explore for oil and gas off Greece.

Greece’s oil and gas resources management company (HHRM) said on Monday that Exxon and Total, each with 40 percent stakes, and Hellenic Petroleum had jointly bid to explore off Crete, while Spain’s Repsol and Hellenic Petroleum had submitted a joint bid for a block in the Ionian Sea.

Greece launched the tenders last year after expressions of interest by the Exxon-led consortium for the two sites off Crete and by Greece’s Energean for the Ionian block, although Energean has since withdrawn.

HHRM said it would quickly evaluate the offers, while the final approval lies with the Energy Ministry.

Encouraged by large gas finds in the eastern Mediterranean, Greece is eager to attract investment in its energy sector as it tries to emerge from years of economic crisis.

Egypt's new oil refinery to begin test run in third quarter - REUTERS

MARCH 5, 2018 / 8:16 PM

Reporting by Ehab Farouk; Writing by Arwa Gaballa; Editing by Susan Fenton

CAIRO, March 5 (Reuters) - A new oil refinery near Cairo which has been delayed by financing problems will begin a test run in the third quarter of 2018, its managing director said on Monday.

The refinery, called Egyptian Refining Co (ERC), is a joint venture between state-controlled Egyptian General Petroleum Corporation (EGPC) and Arab Refining Company and will have the capacity to produce 4.7 million tonnes of refined products per year when fully operational.

It is expected to start actual operations by the end of 2018 or early 2019, Managing Director Mohamed Saad said at a news conference.

Dana Gas receives USD 10.4 mn from gas sales to Egypt - ENTERPRISE

Monday, 5 March 2018

Dana Gas received USD 10.4 mn last month from the sale of Egyptian natural gas condensate as part of a plan to recover outstanding receivables, the company disclosed to the ADX. 

Dana Gas sold 157,200 bbl of El Wastani condensate at an average price of USD 66.5 per bbl. “The sale marks the fourth cargo of Egyptian condensate since the start of 2017. Last year, the Company sold three shipments for a total receipt of approximately USD 21 mn. The shipments are part of the Gas Production Enhancement Agreement signed with the Egyptian government as a mechanism to help pay down the overdue receivables.”

Greece's Energean raises $1.27 billion for Israeli gas fields - WORLD OIL / BLOOMBERG

MAR/5/2018

By PAUL TUGWELL

ATHENS (Bloomberg) -- Energean Oil & Gas, Greece’s only energy explorer and producer, said it signed a financing agreement with Morgan Stanley and other banks for $1.27 billion to finance development of two natural gas fields off the coast of Israel.

Natixis SA, Bank Hapoalim and Societe Generale are also part of the deal, with first gas from Israel’s Karish field expected in early 2021, Energean said Monday in an emailed statement. The Athens-based producer may export surplus gas from Karish and a second deposit, Tanin, that it can’t sell in Israel, using planned or existing pipelines in the eastern Mediterranean region, Chief Executive Officer Mathios Rigas said by phone from London.

“The agreement is a big milestone,” Rigas said. “We are rapidly advancing the Karish and Tanin development.”

The race to develop offshore energy resources in the eastern Mediterranean has accelerated since Israel discovered the Leviathan and Tamar gas fields. Egypt is developing the giant Zohr field, with help from Italy’s Eni SpA, while Cyprus plans to produce from at least two gas deposits and Lebanon is seeking undersea reservoirs of its own. Together, the finds position the region as a potential gas-producing hub on Europe’s doorstep.

Egypt to increase gas production at Zohr to 700 mcf per day in May: minister - REUTERS

MARCH 4, 2018 / 9:00 AMReporting by Ahmed Ismail; Writing by Eric Knecht; Editing by Muralikumar Anantharaman

CAIRO (Reuters) - Egypt aims to increase production at its huge Zohr offshore gas field in the Mediterranean to 700 million cubic feet per day in May from about 350 million cubic feet per day currently, Petroleum Minister Tarek El Molla told Reuters on Sunday.

Discovered in 2015 by Italy’s Eni, the field contains an estimated 30 trillion cubic feet of gas.

Eni CEO Claudio Descalzi said last month that the goal was to reach 2.9 billion cubic feet per day by mid-2019.