Local sales are “negative for Kurdistan, in that there is no new investment in these circumstances. I don’t expect anyone to drill, to increase production beyond March 2023 rates [prior to the pipeline closure]."
Israel’s natural gas flows to Egypt are expected to almost double and reach pre-war levels early next week, according to a person familiar with Egyptian imports, after a major offshore field resumed output on easing safety concerns.
Dana has said its gas fields in Kurdistan “could be the biggest gas fields in the whole of Iraq”.
Aberdeenshire oil field equipment supplier Coretrax has secured a multi-year contract with a Middle East operator to deliver production enhancement across a multi-well campaign.
Ajayi noted Egypt relied on gas imports from Israel for domestic demand. “As such the North African nation will have less gas available for LNG exports due to the shutdown of the EMG pipeline.”
The stoppage at Tamar could result in lower shipments to buyers in Europe, who are increasingly reliant on alternatives to Russian pipeline flows, especially during the winter heating season.
RAKGAS will also build a new pipeline, from the Taweelah-Fujairah Pipeline to Ras Al Khaimah (RAK), connecting to the Sajaa gas storage in Sharjah.
Members of the producer group would not be in a position to produce oil for export until it is clear how they will be paid, it said.
APIKUR reported that its members had cut spending by around $400mn in 2023, with plans for 2024 in doubt.
The company said that more than 70% of contract value would go back into the UAE, under its in-country value (ICV) programme.
It will increase the throughput of gas from 1.2 billion cubic feet per day to nearly 1.4 bcf per day, or from 12 billion cubic metres per year to 14 bcm. The new gathering pipeline should reach first gas in the second half of 2025.
Talks were reportedly under way on the Gaza Marine development plan last year. The Washington Post said development work would cost around $1.4 billion. The report said development would take just over a year from a final agreement.
Saipem’s Castorone vessel will carry out the offshore operations, starting in the summer of 2024. The company previously worked on the first phase of the Sakarya field, which began producing in April.
The region owes Gulf Keystone $102mn, for supplies from October 2022 to January 2023. Kurdistan paid $66mn for August and September 2022 sales.
Plans took a long time to progress because of a difference of opinions over terms and shareholding. Iraq had pushed for a higher stake in the project. Initially, its interest was to be held by the Iraq National Oil Co. (INOC), this was abolished in September 2022.
Iraq’s Ministry of Oil has said it would discuss how to export “Iraqi oil through the Turkish port of Ceyhan” with the authorities in Kurdistan and Turkey.
The offer runs until March 1. It covers around 4% of the shares in the company. It will raise $1.9 to 2 billion. The price values Adnoc Gas at $47 to 50.8bn.
The Israeli company has also talked about building a third gathering line at Leviathan, with a final investment decision (FID) due early this year.
Pipeline installation work at Chevron’s Tamar gas field will get under way in 2024.
“It’s a matter of cost,” DNV’s Mediterranean manager Andrea Spessa said. “This pipeline is the best solution to transport energy from one country to another in this range.”
The BTC pipeline carries about 1 million bpd, of which 400,000 bpd comes from Kurdistan.
Gas, he said, would be “a critical fuel in the energy transition and Adnoc Gas, through its world-scale operations and significant growth and expansion plans, will be well-positioned to meet both local and international gas demand”.
Chevron (NYSE:CVX) has taken a final investment decision (FID) to expand the Tamar field, offshore Israel.
Adnoc has the goal of being the world’s lowest-cost oil producer of choice. Unlike some of its IOC competitors, struggling to come to terms with the demands of meeting today’s energy needs and tomorrow’s transition, it is willing to put the money in.
Europe has a history of energy policy failures that it is showing few signs of correcting, according to Israeli energy expert Gina Cohen.