Page 5 - EurOil Week 22 2022

EurOil COMMENTARY EurOil

broader area the company calls Olympus.
Energean reported that it had discovered 8bn
cubic metres of recoverable gas – on a standalone
basis – with its Athena exploration well, which
will be tied-back to its main asset, the Karish gas
field, which is estimated to hold 267mn barrels
of oil equivalent of 2P reserves as well as another
37mn boe of 2C resources.
Previous bid rounds have had varying suc-
cess: 6 blocks were apportioned during the 2017
auction and 12 were handed out in 2019, but no
winners have yet been announced for the 2020
bid round. shifting our focus to electricity interconnectors
that can support both gas and renewable energy
Exports sources.”
Meanwhile, Elharrar was quoted by the local In EastMed’s stead, Washington has now
Globes daily as saying that a memorandum of lent its support to projects such as EuroAfrica,
understanding (MoU) would be signed within which calls for the construction of a power cable
weeks following months of talks with Egypt and linking Egypt and Greece and EuroAsia, which
European countries for the export of Israeli gas. proposes creating a link between Israel, Cyprus
She said that the tripartite deal would be sim- and mainland Europe. “Such projects would not
ilar to an existing agreement between Tel Aviv only connect vital energy markets but would also
and Cairo and will allow gas firms to sign con- help prepare the region for the clean energy tran-
tracts for the transportation of volumes of gas sition,” it said.
from Israel to Egypt, liquefaction and onward Of course, this was before the start of the
export to the EU. Russo-Ukraine conflict in late February and the
She said that existing pipeline infrastructure subsequent sea-change in global energy markets.
would be used as well as an onshore conduit that However, US Under-Secretary of State Victoria
crosses the border near the town of Nitzana, Nuland said in April that the pipeline was not an
described in available documentation as an economically viable solution to Europe’s search
“optional” line. Meanwhile, Elharrar added that for alternatives to Russian supplies.
the EastMed pipeline continues to be examined Meanwhile, Elharrar said that supplying the
“and the question is whether it would be eco- local market would “always take priority, also
nomically worthwhile to build the pipeline”. from the point of view of the required reserves
The $7bn project was announced in 2020 for years ahead”. She added: “Now, with the start
with a deal signed between Cyprus, Greece and of an additional process, the fourth, for natural
Israel to construct a 9-12bcm per year, 1,900- gas exploration, and the hope that we will suc-
km pipeline before Turkey protested about ceed, we can also increase the scale of blue and
the planned route, which it said would be laid white gas production and exports to Europe.”
through maritime territory claimed by Ankara. Since gas was discovered in the Eastern Med-
In January, the US State Department issued iterranean over a decade ago, it has been seen as
a statement stating it was withdrawing support a means of weaning Europe off Russian flows.
for EastMed in favour of projects to bring renew- Give the success of E&P efforts offshore Israel,
able energy to Europe. “We remain committed Tel Aviv is looking to leverage this position to
to physically interconnecting East Med energy potentially establish long-term sales deals with
to Europe,” the State Department said. “We are the bloc. ™

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