Delek and Noble seeking to acquire gas pipeline to Egypt

Following Noble and Delek’s agreement to sell 64bcm of gas into Egypt via Egyptian intermediary Dolphinus Holdings, the two upstream companies have commenced discussions to acquire EMG, the business which owns the Arish-Ashkelon pipeline (otherwise known as the EMG pipeline). This is one of the routes contemplated by Noble and Delek as part of plans to export gas into the wider East Med and Europe. The 64bcm of gas will be sourced from Tamar...

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Petsec increases interest in Block 7 offshore Yemen to 100%

Petsec has acquired Oil Search's 40% interest in Block 7. Full announcement below. Petsec Energy has completed the transaction with Oil Search to acquire all of the shares of its subsidiary Oil Search (ROY) Limited which holds a 40% working interest (34% participating interest) in the Al Barqa (Block 7) licence and operatorship, in the Republic of Yemen. Completion of the Oil Search agreement follows the 2016 transaction with KUFPEC (25% working...

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Total enters into two new 40 year concessions with ADNOC

Total has extended its commitment to the Abu Dhabi by entering into two new 40 year concessions with ADNOC for USD1.45 billion. This follows the deal last week between Eni and ADNOC. Total has been granted a 5% interest in Lower Zakum and 20% interest in the new Umm, Shaif & Nasr concession. Total notes that the access cost equates to USD1/boe of reserves. Comparison of transactions Total Eni Lower Zakum 5% 5% Uum, Shaif & Nasr 20% 10% Price Paid USD1.45 billion USD875 million ...

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Leviathan and Aphrodite gas to fuel ELNG at Idku

As widely reported, Shell has been in talks to buy gas from Israel’s Leviathan field and Cyrpus’ Aphrodite field. It is understood that Shell are looking to contract up to 10bcm p.a. for 10 years in a deal worth up to USD25 billion. Shell would use the gas to properly restart LNG exports from Egyptian LNG at the Idku liquefaction plant. BG Group was the operator of the plant prior to its acquisition by Shell and previously had a non-binding 15...

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Dolphinus and the wider Egyptian gas hub story

Dolphinus was established with the main aim of becoming a “reliable and stable supplier of gas to major industrial gas distributors and consumers in Egypt”. It was co-founded by prominent Egyptian entrepreneurs Dr. Alaa Arafa, Eng. Khaled Abu Bakr and Mohamed Khalifa. As a first step in its strategy, Dolphinus entered into a 64bcm, 10 year gas supply contract with Noble Energy and Delek Drilling for their gas in Israel (see Israel's Leviathan...

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Israel's Leviathan and Tamar gas to be sold into Egypt

Noble Energy and Delek Drilling announced plans in February to export gas to Egypt. The plan is to supply 64bcm over a 10 year period to Egypt’s Dolphinus Holdings – 32bcm from Leviathan and 32bcm from Tamar. Each field is contracted up to 3.5bcm p.a. or c.350mmcfpd and will bring the partners USD15 billion over the life of the supply contract. The contracted price and terms are in line with other supply contracts from these fields which is based...

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BP looks to sell out of Gulf of Suez

BP is running a process to sell its more mature fields in the Gulf of Suez, Egypt. The sale is hoped to raise between USD500 - 1,000 million. The exit of the Gulf of Suez will allow BP to focus more on its deepwater gas portfolio in the country's offshore in the West Nile Delta and Eastern Mediterranean including the Zohr field which it entered at the end of 2016. BP has 100% of the fields in the Gulf of Suez area and operates them in a JV with...

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