Israel Seeking UN Opinion on Maritime Border Dispute with Lebanon

- Israel Seeking UN Opinion on Maritime Border Dispute with Lebanon

Tuesday, July 12, 2011
OilPrice.com
by Joao Peixe

According to Israeli Foreign Minister Avigdor Lieberman, Tel Aviv will shortly seek a UN opinion on its Mediterranean maritime borders with Lebanon.

The Israeli’s governmental request would be an extraordinary move, giving its constant complaining about UN arbitrariness over the past five decades.

At issue are recently discovered offshore gas fields, the frontiers of which Lebanon heatedly disputes.

Lieberman told the Israeli media, "We will soon be presenting the United Nations headquarters in New York with our position on our maritime borders. We have already concluded an agreement on this issue with Cyprus... Lebanon, under pressure from Hezbollah, is looking for friction, but we will not give up any part of what is rightfully ours."

Lebanon argues the offshore gas fields are inside its territorial waters as delineated by the 1982 United Nations conference on the Law of the Sea (UNCLOS convention) and, as Israel does not have officially demarcated maritime borders with Lebanon, the two countries technically remain at war, NOW Lebanon news agency reported.

The two biggest known offshore natural gas fields prospected so far, Tamar and Leviathan, lie off Israel's northern city of Haifa.

The fiscal implications of the dispute are immense, as the Tamar field is believed to hold at least 238 billion cubic meters of extractable natural gas reserves, while Leviathan site is believed to have reserves of 450 billion cubic meters.

Lebanon has warned Israel against taking "unilateral steps" on its maritime borders, with Lebanese President Michel Suleiman cautioning the Israeli government against taking unilateral actions of "the kind that Israel commonly makes in violation of international law."

(Joao Peixe is Deputy Editor with OilPrice.com. The original article appears here.)

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Madagascar Oil Resolves Dispute over Tsimiroro Block; Updates Ops

- Madagascar Oil Resolves Dispute over Tsimiroro Block; Updates Ops

Friday, June 24, 2011
Madagascar Oil Ltd.

Madagascar Oil announced that the dispute with the Government of Madagascar in connection with the Tsimiroro Block has now been resolved. The Company also highlighted certain key operational highlights prior to its Full Year Results due to be announced on June 30, 2011.

Highlights

• Tsimiroro (Block 3104):
  • Uncertainty over the status of the Tsimiroro PSC has ended and validity of the PSC has been acknowledged by the Government of Madagascar
  • The 2011-2012 work program and budget have been approved
  • The right for MOIL to exercise its option for a two year extension to the PSC in August 2012 has been acknowledged, allowing certainty in extending the contract term to August 2014
  • OMNIS has acknowledged a delay due to the force majeure event that would be addressed at the end of the contract term if necessary
  • Significant operational progress was made in 2010, including 18 successful wells out of 24 new wells drilled and the completion of 430km of Electrical Resitivity Tomography
  • Activity for the installation of the Tsimiroro steam flood pilot facility will be ramped up immediately to progress to a start date expected in 3Q 2012
  • Netherland, Sewell & Associates Inc. is currently revising the 965 million barrels Contingent Original Oil-in-Place estimate to take into account the updated data acquired in 2010. The updated report is expected in July 2011
• Bemolanga (Block 3102):
  • The 2010 drilling program at Bemolanga completed 86 core wells and continued to support the estimate that the MOIL share of the gross mine resources is 470 million barrels Contingent Petroleum-initially-in-Place
  • Mining project postponed as current economics do not justify proceeding with this project at the present time.
  • Shift in work program focus to pursuit of conventional hydrocarbon potential on the Bemolanga block
  • MOIL and partner Total granted one year extension of the current PSC exploration phase, with provision for further two years
  • The amount of MOIL's carried interest reduced to $80MM from $100MM (gross) in revised JOA with $10 million remaining
• Exploration (Blocks 3105, 3106, 3107):
  • Discussions with the Government of Madagascar regarding the approval of the 2011-2012 work programs for exploration blocks and resolution of outstanding issues on these blocks are set to continue early July 2011
  • GORE micro-seepage survey collected across 880km²on the Exploration Blocks is currently under detailed analysis and will lead to further analysis of at least three drilling leads
• Corporate / Financial
  • Trading in Madagascar Oil's shares to resume 27 June 2011
  • MOIL has $59 million cash on hand to deliver the approved work plan designed to increase resources and prove commerciality of the Tsimiroro asset through a steam flood pilot, and for the additional work required to develop drillable prospects on the three Exploration Blocks

Commenting on the announcement, Laurie Hunter, Chief Executive Officer, said, "We are pleased to have resolved the issues that have led to the suspension in trading of our shares. The last six months have highlighted risks associated with operating in frontier petroleum provinces, but we believe that our recent constructive dialogue with the Government of Madagascar has served to reaffirm our historical compliance under our contracts, the amount of work that we have already completed to date, and our clear and well funded plans for future development to bring online the country's first commercial oil production."

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Noreco In Dispute with Dong over $400MM Rig Repairs

- Noreco In Dispute with Dong over $400MM Rig Repairs

Wednesday, June 15, 2011
Dow Jones Newswires
by Katarina Gustafsson

Norwegian Energy Co., known as Noreco, said Wednesday it is in dispute with Danish power firm Dong Energy over a DKK2 billion ($400 million) repair bill for a jointly owned oil rig in the Danish North Sea.

Noreco said it won't participate in, nor finance, the project proposed by Dong.

"Dong sent out (a press release) without informing us," Noreco spokesman Jan Petter Stiff said.

"We are not obliged to participate."

Noreco says their license agreement with Dong requires Noreco's consent for projects of this kind. Dong's solution to the damaged rig is "technically immature," it said.

The Norwegian firm said it has an alternative solution for the rig and will be talking to Dong about the matter.

Noreco and Dong each have a 50% ownership of the rig in the Siri license area of the North Sea, with Dong as the operator. Oil production was halted there in August 2009 after cracks were discovered in part of the sub-sea structure. Production resumed in January 2010 after temporary safety measures were put in place.

Dong said in a statement earlier Wednesday that it would make full and permanent repairs to the platform and estimated the costs at DKK2 billion. The firm said the work should be completed in 2012.

An Oslo-based analyst noted Noreco is short of cash after posting a NOK295 million ($54 million) net loss for the first quarter. As its share price plummeted, the company was forced to reassure markets last week that it has enough working cash to keep afloat.

"There is a large risk of an equity issue. They don't have a lot of money," the analyst said.

Dong Energy wasn't immediately able to comment.

Copyright (c) 2011 Dow Jones & Company, Inc.

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