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UAE: Dubai on course for another pricing record at Mohammed bin Rashid Al Maktoum Solar Park

Dubai is setting out to achieve another solar pricing record at Mohammed bin Rashid Al Solar Park. Saeed Al Tayer, the managing director and chief executive of Dubai Electricity

and Water Authconcentrated solar

The utility has released a tenfor the first 200 megawatt phase out of a total 1 gigawatt.

The solar park will have a total capacity of 5GW by 2030 and this new phase will be based on CSP tower technology, said Mr Al Tayer. “There will be a tenergy for up to 12 hours on a daily basis," he said.

The previous phases of the solar park have all used solar photovoltaic (PV) technology. Phase two set a world record for low bidding price and the 800MW third record-breaking bids submitted.

www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,

redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accura


05 June 2016

For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

Dubai on course for another pricing record at Mohammed bin Rashid Al Maktoum Solar Park

The national - LeAnne Graves

Dubai is setting out to achieve another solar pricing record at Mohammed bin Rashid Al Saeed Al Tayer, the managing director and chief executive of Dubai Electricity

and Water Authority (Dewa), said that the utility would build the largest concentrated solar power (CSP) plant in the world.

The utility has released a tender for international CSP advisory companies for the first 200 megawatt phase out of a total 1 gigawatt.

The solar park will have a total capacity of 5GW by 2030 and this new phase will be based on CSP tower technology, said Mr Al Tayer. “There will be a thermal storage capability that will store energy for up to 12 hours on a daily basis," he said.

solar park have all used solar photovoltaic (PV) technology. Phase two set a world record for low bidding price and the 800MW third phase has already had further

Switching from PV technology to CSP creates another opening for Dubai to lead the solar world and expand its local solar manufacturing sector.

While the cost of solar PV panels has dropped by 75per cent in the five years to 2014 with more reductions expected, CSP remains a more expensive choice. Unlike PV, the cheaper technology, CSP has storage capmeans energy can be used at night. Mr Al Tayer said he expects that Dubai will achieve CSP about 8 US cents per

All rights reserved. No part of this publication may be reproduced,

asonable endeavours have been used to ensure the accuracy of the information contained

Page 1

Khaled Al Awadi

contact us on +971504822502 , Dubai , UAE

Dubai on course for another pricing record at Mohammed bin Rashid Al Maktoum Solar Park

Dubai is setting out to achieve another solar pricing record at Mohammed bin Rashid Al Maktoum Saeed Al Tayer, the managing director and chief executive of Dubai Electricity

said that the utility would build the largest power (CSP) plant in the world.

der for international CSP advisory companies for the first 200 megawatt phase out of a total 1 gigawatt.

The solar park will have a total capacity of 5GW by 2030 and this new phase will be based on hermal storage capability that will store

solar park have all used solar photovoltaic (PV) technology. Phase phase has already had further

Switching from PV technology to CSP creates another opening for Dubai to lead the solar world and expand its local solar manufacturing sector.

While the cost of solar PV panels has dropped by 75 per cent in the five years to 2014 with more reductions expected, CSP remains a more expensive choice. Unlike PV, the cheaper technology, CSP has storage capabilities, which means energy can be used at night. Mr Al Tayer said he expects that Dubai will chieve CSP prices at

about 8 US cents per

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,

redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained

in this publication. However, no warranty is given to the accuracy of its content . Page 2

kilowatt hour.

The lowest bid so far submitted in the region for CSP is for Morocco’s Noor II and III projects at 15.67 cents per kWh, more than five times higher than the lowest submitted price for PV in Dubai.

The UAE already has an operating CSP project in Abu Dhabi. The 100MW solar plant, led by Masdar, Spain’s Abengoa and Total of France, has been in operation for three years.

Frank Wouters, the former director of Masdar Clean Energy and ex-chairman of Shams Power, said people have been focused on price, which leads them to choose solar PV.

“It’s a bit of a chicken and egg scenario: if you don’t do things, you can’t get the cost down," he said, adding that there are few CSP projects globally.

Dewa’s step towards CSP offers a chance to scale up local manufacturing. Mr Wouters said that 60 to 80 per cent of CSP components can be sourced locally. “It’s easier to achieve a very high share of local content. It’s difficult to make the receiving tubes and parabolic mirrors, but the central tower, that’s all flat mirrors that are being used in the automobile industry. The rest is steel and cement," he said.

The UAE has a favourable climate for solar investment including land and stellar credit ratings. As a result more industry records could soon be broken, said Mr Wouters. .

NOORo II and NOORo III Concentrated Solar Power Plants in Morocco




Opec keeps oil output policy unchanged, no ceiling after meeting in Vienna… The national- Anthony McAuley

The oil ministers from Opec meeting in Vienna for their regular bi-annual session decided to go with the status quo, a sign of their confidence that policy is working, but also of the fragility of the oil market’s recent recovery.

The lack of agreement over an overall output ceiling – with the previous one having been ignored for some time – or even nominal country quotas, is a reflection also of the wrangling between Opec’s effective leader, Saudi Arabia, and its political and oil market rival Iran.

But the overall sense from ministers at this week’s gathering in Vienna was that the relatively laissez faire policy of the last year-and-a-half was showing signs of working.

That included Saudi Arabia’s petroleum and mineral resources minister, Khalid Al Falih, who was named to the post last month to replace long-serving Ali Al Naimi, as part of the sweeping modernisation of oil (and economic) policy being pushed through by the deputy crown prince Mohammed bin Salman.

“As we have seen, demand growth was robust in 2015, and the first quarter of 2016 has also been healthy," Mr Al Falih said yesterday.

“On the supply side, we have seen the pace of growth of high-cost oil declining. In fact, in my view, as the positive effect of healthy industry investments of the past decade wanes with the passage of time, the supply of expensive oil will be impacted even more," Mr Al Falih, said in an interview with Argus, an oil market publication.

“The net result of the demand growth and the significant fall in expansion of high-cost oil is the start of rebalancing," he concluded.

The view was echoed by Suhail Al Mazrouei, the UAE’s Minister of Energy, and other close Saudi allies. The latest data show that oil production in the US is down sharply since last year, although the rate of decline has slowed. US data showed this week that domestic output was more than half a million barrels per day lower than last year, at just above 9.1 million bpd.

Some analysts see signs that the formerly booming shale oil sector in the US will undergo a further sharp contraction. More shale companies have filed for bankruptcy protection so far this year than in the whole of last year.

“Whilst filing for [bankruptcy protection] may not immediately result in declining production, it has undoubtedly shaken confidence in the system," said Amrita Sen at Energy Aspects, who adds that those financing the US shale industry have said they want higher prices for longer before they’ll reinvest there, which alleviates the worry some had that an uptick in oil prices would only be met by a renewed flood of US shale supply.




But what is more certain is that there will be more supply from Iran in the coming months. Indeed, Iran’s determination not to be part of any effort to put a ceiling or country quotas on Opec members’ production ensured there would be no deal.

Iran’s oil minister said yesterday that since the deal with western powers in January, production has risen back to near the 4 million bpd level which prevailed before nuclear-related sanctions were imposed in 2012.

The Barclays oil analyst Miswin Mahesh said the rivalry between Saudi Arabia and Iran and their battle for market share – mainly in Asia – will be a “recurring theme" this year that he forecasts will mean lower prices in the fourth quarter before broader market forces continue the recovery next year.

Barclays is expecting average prices for benchmark North Sea Brent just above US$40 in the fourth quarter, but averaging $60 per barrel next year.

Where does that leave Opec’s role?

“It’s become an existential question for the cartel," said Mr Mahesh. “But even as disorganised as this meeting has been, they are getting their market share back but at a cost in terms of lost revenues."

Saudi Falih charm offensive slowly wins back OPEC for Saudis Reuters-DMITRY ZHDANNIKOV, RANIA EL GAMAL AND REEM




Saudi Arabia's Energy Minister Khalid al-Falih (C) arrives for a meeting of OPEC oil ministers in Vienna, Austria, June 2, 2016. Russian oil billionaire Vagit Alekperov isn't easily swayed, but Saudi Arabia's new Energy Minister Khalid al-Falih achieved it this week.

Intense diplomacy by the soft-spoken Falih at his first OPEC meeting - with his speech peppered by words such as "gentle approach", "no shocks" and "consensus" - has persuaded Alekperov that OPEC is more alive than dead.

"The fact that OPEC agreed on its new management shows they want to regain their coordinating role. The cartel will perform market management again," Alekperov, chief executive of Russian energy firm Lukoil, said after meeting Falih and Iranian Oil Minister Bijan Zanganeh separately in Vienna.

On Thursday, OPEC could not agree to set a clear oil-output target as Iran refused to limit its own production. But the meeting was relatively peaceful and free of the usual clashes between political rivals Saudi Arabia and Iran, with Falih promising not to flood the market and to listen to Tehran.

In a rare compromise, OPEC also decided unanimously to appoint Nigeria's Mohammed Barkindo as its new secretary-general after years of friction over the issue. Oil prices stood flat at $50 a barrel on Friday, up 80 percent from their January lows.

Falih, who in April succeeded veteran Ali al-Naimi, was the first OPEC minister to arrive in Vienna. He met most fellow colleagues on the sidelines, spent several hours with independent OPEC analysts and held a long news conference with reporters.

"If you want to call it (OPEC) a talking shop - I have no problem with that. But I think it's going to do a lot more than talking. We are going to do coordination and cooperation ... to achieve market objectives," Falih said on Thursday.

DRIVERLESS CAR

The nature of Thursday's meeting surprised many OPEC watchers, who have grown used to acrimonious gatherings.

Falih's ultimate boss, Saudi Deputy Crown Prince Mohammad bin Salman, effectively scuppered plans to clinch a global production freeze in the Qatari capital of Doha in April.

Mohammed Barkindo, OPEC Secretary-General




Prince Mohammad said Riyadh would not agree to the deal, which would also have involved non-OPEC Russia, if Iran didn't join in despite Tehran insisting it wants to regain market share after the lifting of international sanctions earlier this year.

"After Doha, oil markets were beginning to look like a driverless car. That needed to change," said a source familiar with Saudi thinking.

A non-Gulf OPEC source said Riyadh realized it needed OPEC unity because the group's fight for market share against higher-cost producers, such as U.S. shale, was taking longer than expected when formulated in 2014.

"The Saudis trashed OPEC in Doha. But they realized they don't want to throw away decades of OPEC history and decided to be more cooperative," said Gary Ross, founder of U.S.-based Pira consultancy, who came to Vienna together with other OPEC watchers and analysts for meetings.

"The Saudis definitely decided to change tack after Doha as they were concerned that people were doubting the viability of OPEC. I think this softer approach will last," said Amrita Sen, who also came to Vienna.

Falih acknowledges that Riyadh realized it needs OPEC.

"The markets can ultimately balance themselves but as we have seen, when we rely on markets alone it is extremely painful for everybody," he said on Thursday.

"I think managing in the traditional way that we have tried in the past may never come again ... We will not go with setting a price target for OPEC ... But (we should be) coordinating strategies and trying to understand what each of us can and cannot do."




Qatar:Energy, trade on agenda as India’s Modi visits Qatar Gulf news

India will be looking to strengthen trade and energy ties with Qatar as Indian Prime Minister Narendra Modi begins two day visit to the Gulf nation starting on Saturday. This would be Modi’s fourth visit to a Gulf country in the last one year after his historic trips to the UAE, Saudi Arabia and to Iran last month.

During the visit the Indian PM will hold discussions with the top leadership of the country in order to boost trade and investment between the two countries. Modi will also interact with Indian community members and workers involved in the redevelopment of the historical downtown area in Doha.

“Qatar is important and it can be an important economic partners for us. It has a large sovereign wealth fund and a lot of Gulf countries are looking for investment opportunities in India,” said Indian Foreign Secretary S Jaishankar in a press conference in New Delhi about the visit.

The bilateral trade between the two countries stands at $10 billion and Qatar. More than 630,000 Indians live and work in Qatar which is hosting the football world cup in 2022.

“Modi has been successful in signing agreements for increased investment from Gulf States. As we saw with Saudi Arabia, expansion of trade and investment is tied to the goal of driving forward strategic engagement,” said Dr Kadira Pethiyagoda who was a Visiting Fellow in Asia-Middle East Relations at the Brookings Institution told Gulf News. is the largest supplier of LNG to India meeting 65 per cent of the country’s natural gas requirements

He said the visit will cover investment and trade, but also strategic and security issues, building on recent visits by Indian naval vessels.



“Modi seeks investment in India’s infrastructure. India is also keen to strengthen strategic ties with Gulf States and vice versa. Delhi sees the Gulf States as within its geographic sphere of strategic interest in the Western India Ocean,” he added.

sector specially in the downstream side of the energy sector in refining and distribution.




“Modi seeks investment in India’s infrastructure. India is also keen to strengthen strategic ties with vice versa. Delhi sees the Gulf States as within its geographic sphere of strategic

interest in the Western India Ocean,” he added.

During his visit to the UAE last year in August, both the countries set up a UAEInvestment Fund with a$75 billion (Dh275 billion) to expand India’s network of railways, ports, roads, airports and industrial corridors.

The two countries also planned to increase trade by 60 per cent in the next five years.

Gary Dugan, Chief Investment Officer at Ecould be looking for strategic alliances where Qatari investment could be used in infrastructure


“Qatar has got energy and India is energy short. Qatar has got energy exploitation technology which again is something Modi would want to do deal on.”

“Although Qatar is a modest country in terms of Indian products can be sold to but he would try to open as many of those avenues as possible in terms odoing trade deals.”

“I think the other thing is Qatar has got one of the richest sovereign wealth funds and we know these sovereign wealth funds continue to diversify internationally with low oil and gas prices and are looking for opportunities abroad.”

He added that India’s energy needs re growing faster than any other nation because of the economic development which has become more energy intensive and the visit to Gulf countries would bolster energy ties.



Page 8

“Modi seeks investment in India’s infrastructure. India is also keen to strengthen strategic ties with vice versa. Delhi sees the Gulf States as within its geographic sphere of strategic

During his visit to the UAE last year in August, both the countries set up a UAE-India Infrastructure Investment Fund with a target of $75 billion (Dh275 billion) to expand India’s network of railways, ports, roads, airports and industrial

The two countries also planned to increase trade by 60 per cent in the next five years.

Gary Dugan, Chief Investment Officer at Emirates NBD said Modi could be looking for strategic alliances where Qatari investment could be used in infrastructure


“Qatar has got energy and India is t. Qatar has got energy

exploitation technology which again is something Modi would want to do deal

“Although Qatar is a modest country in terms of Indian products can be sold to but he would try to open as many of those avenues as possible in terms of doing trade deals.”

“I think the other thing is Qatar has got one of the richest sovereign wealth funds and we know these sovereign wealth funds continue to diversify internationally with low oil and gas prices and are looking for opportunities abroad.”

He added that India’s energy needs re growing faster than any other nation because of the economic development which has become more energy intensive and the visit to Gulf countries would bolster energy ties.




GCC spending on gas forecast to grow 4% over the next 10 years Saudi gazette – Bjorn Ewers

Over the past two years, the slump in oil prices has caused a ripple effect along the entire oil & gas value chain. The world is now entering a period of even more volatile oil prices, and, in the midst of these unsettling times, the Oilfield Services and Equipment (OFSE) industry has taken a particularly strong hit.

This is largely due to the fact that a slew of major oil producers have planned, introduced, and set in motion cost-cutting initiatives, Bjorn Ewers, Partner & Managing Director at BCG Middle East, said recently in a recent industry commentary.

The OFSE industry is a very important part of the GCC economy – with a size of about $65 billion and almost 7 percent of the global market. Within the GCC, Saudi Arabia accounts for 40 percent of the market and is expected to grow the fastest – by about 8 percent p.a. between 2017-2020.

Globally, oil companies are making significant cuts to capex: between 10-30 percent of the capex budget has been cut by IOCs and NOCs. From their perspective, oil companies are expecting their service providers to react and are renegotiating contracts with OFSE companies in order to meet their new targets. As part of their efforts to reduce costs and elevate efficiency, IOCs have also radically shifted their strategy from volume to value and this has had a huge impact on the bottom line of OFSE players.

In response to this, OFSE players have reacted accordingly and have significantly reduced their cost base including their workforce, Ewers pointed out.

For example, Schlumberger has reduced its global workforce by 26 percent since November 2014. Moreover, in recent years, the oil & gas industry’s returns have eroded amid low and stable prices – and this in turn has made investors skeptical of the industry’s ability to create value.




Looking ahead, the offshore industry will continue to serve as a key source of production growth globally: in fact, 62 percent of new global oil production from now until 2020 will come from offshore – and this will generate an economic value of $65 billion. Given this context, OFSE companies will have to reorganize their activities and focus on serving this segment of the industry.

Interestingly, the forces currently shaping the GCC’s OFSE landscape are different from those affecting the global OFSE industry. Across the GCC, energy players are increasingly applying improved and enhanced oil recovery techniques, designed to help them extract the maximum amount of oil from mature fields. OFSE companies are already familiar with this type of activity in other parts of the world and now – more than ever – they need to bring such expertise to the GCC.

Ewers noted that naturally, today, this is the largest driver of spending for GCC NOCs looking to offset the production decline in mature fields.

It is no surprise that high decline rates are proving to be problematic for the region’s oil producers. For example, the Ghawar oil field in Saudi Arabia, the world’s largest conventional oil field, is already seeing a decline in production – the average production between 2011-2015 was 4.5 percent lower than the average production between 2006-2010 and 3.5 percent lower than the average production between 2001-2005, Ewers said.




GCC countries are determined to maintain their production capacity – so as to not lose market share. In 2015, mature fields accounted for about 36 percent of oil companies’ total external spending.

When it comes to gas production, it is now becoming as vital as crude production. The reality is, government gas price subsidies in several GCC countries have sparked a rise in demand; and so, at present, some GCC countries like Kuwait, Oman and UAE are actually importing gas.

Remarkably, an increasingly large amount of oil produced in the GCC is directly used for domestic consumptions. Overall, in the GCC, the total spend on gas is expected to grow by 4 percent over the next 10 years – led by Kuwait and Qatar with 19 percent and 7 percent, respectively.

Across the GCC, the growth of unconventional oil is also climbing to the top of governments’ agendas. This is driven by three main factors. First, unconventional oil sources can help GCC countries meet their capacity target. For example, by also producing heavy oil, Kuwait aims to increase its capacity to 4mbopd by 2020.

Secondly, unconventional oil production can help address local consumption needs. For instance, following the completion of the Khazzan Tight gas field project, Oman set out to extract around 1bcf of tight gas per day – to meet its growing demand for energy.

Lastly, developing the skill set needed for unconventional oil production can help NOCs stay on top of technological advancements in oil & gas. Based on this, GCC E&P spending on unconventional oil is set to grow about 33 percent until 2017 (led by heavy oil). On their part, OFSE companies can also play a pivotal role in helping NOCs and local governments meet their national agenda goals – by providing the local workforce with the training necessary for the proper implementation of these new technologies.

With all this in mind, it is clear that the region’s OFSE industry is undergoing a massive transformation – one that has been long in the making. To ensure success in such challenging times, OFSE players must now more than ever carefully and closely monitor regional GCC trends – and adapt their operations accordingly, Ewers added.




Nigerian militants say aim is zero oil output after three attacks Reuters

The Niger Delta Avengers militant group has claimed responsibility for three new attacks on Nigeria's oil infrastructure, promising to cut production to zero.

The attacks are the latest in a Delta region conflict that a major local youth group said is "rapidly deteriorating and getting out of control", putting intense pressure on Nigeria's stretched finances.

The Nigerian Air Force, in a statement issued late on Friday, said it had deployed additional "fighter aircraft, helicopter gunship and surveillance aircraft" in troubled oil-producing areas to conduct "offensive air operations and intelligence gathering".

The army has moved reinforcements to the swamps in the last few weeks.

Early on Friday, the Niger Delta Avengers group said via its Twitter account it had blown up a pipeline in Nigeria's Bayelsa state owned by Italy's ENI, hours after attacks on another ENI pipeline as well as one belonging to Shell Petroleum Development Company of Nigeria Ltd (SPDC).

"At about 3:30am our (@NDAvengers) strike team blew up the Brass to Tebidaba Crude oil line in Bayelsa," the group said on a Twitter feed it uses to claim attacks.

Shell confirmed its 250,000 barrels a day Forcados pipeline had been hit again and was leaking. "We have ... mobilized appropriate oil spill response measures," SPDC said in a statement.

The pipe had been shut in February after a seawater attack but a new strike might complicate three-month long repairs, for which the firm has brought in experts from abroad. Force majeur has been in place for Forcados crude since then.

The Niger Delta Avengers say oil firms are responsible for pollution and say the poor swampland region fails to reap any benefit from its reserves.



It said its attacks had brought Nigeria's oil production to just 800,000 barrels per day (bpd), from 2 million bpd, without killing anyone, though they hit infrastructure feeding crude grades already under force majeure.

The ENI pipeline is used to transport Brass River crude.Tebidaba and Clough Creek-Tebidaba pipelines in Bayelsa and warned ENI not to start repairs or "we will make you regrets it". ENI did not respond to a request for comment.

LOUD SOUND

Ayiri Appah, a resident of Ogboinbiri, where the ENI pipelines are located, said he "heard a loud sound" from the area between 2 and 4 am local time.

Three grades of Nigeria's oil - Forcados, Brass River and Bonny Light while Exxon Mobil lifted force majeure on Qua Iboe, the country's largest export stream, on Friday.

Nigeria's oil minister said on Thursday that output was 1.6 million bpd. Even if the most recent attacks, which also included facilities belonging to Chevron under itexports of the oil linked to them, June production would remain near 1.2 million bpd.

Experts said the violence showed little sign of abating, and would keep pressure on the Nigeria's oil production and finances. President Mucanceled what would have been his first visit to the Delta region since taking office.

The Avengers have accused Buhari of ignoring local problems by having never visited the Christian region in the south. The Ijaw Youth Council, which represents one of the largest ethnic groups, called on Buhari to "urgently and personally take charge ... to return peace and normalcy to the region."




It said its attacks had brought Nigeria's oil production to just 800,000 barrels per day (bpd), from 2 million bpd, without killing anyone, though they hit infrastructure feeding crude grades already

sed to transport Brass River crude. The group also hit ENI's OgboinbiriTebidaba pipelines in Bayelsa and warned ENI not to start repairs or

ENI did not respond to a request for comment.

yiri Appah, a resident of Ogboinbiri, where the ENI pipelines are located, said he "heard a loud sound" from the area between 2 and 4 am local time.

Forcados, Brass River and Bonny Light - n Mobil lifted force majeure on Qua Iboe, the country's largest export stream, on Friday.

Nigeria's oil minister said on Thursday that output was 1.6 million bpd. Even if the most recent attacks, which also included facilities belonging to Chevron under its Escravos grade, took out all exports of the oil linked to them, June production would remain near 1.2 million bpd.

Experts said the violence showed little sign of abating, and would keep pressure on the Nigeria's oil production and finances. President Muhammadu Buhari, a Muslim from the north, on Thursday canceled what would have been his first visit to the Delta region since taking office.

The Avengers have accused Buhari of ignoring local problems by having never visited the The Ijaw Youth Council, which represents one of the largest ethnic

groups, called on Buhari to "urgently and personally take charge ... to return peace and normalcy



Page 13

It said its attacks had brought Nigeria's oil production to just 800,000 barrels per day (bpd), from 2 million bpd, without killing anyone, though they hit infrastructure feeding crude grades already

The group also hit ENI's Ogboinbiri-Tebidaba pipelines in Bayelsa and warned ENI not to start repairs or

ENI did not respond to a request for comment.

yiri Appah, a resident of Ogboinbiri, where the ENI pipelines are located, said he "heard a loud

are under force majeure, n Mobil lifted force majeure on Qua Iboe, the country's largest export stream, on Friday.

Nigeria's oil minister said on Thursday that output was 1.6 million bpd. Even if the most recent s Escravos grade, took out all

exports of the oil linked to them, June production would remain near 1.2 million bpd.

Experts said the violence showed little sign of abating, and would keep pressure on the Nigeria's hammadu Buhari, a Muslim from the north, on Thursday

canceled what would have been his first visit to the Delta region since taking office.

The Avengers have accused Buhari of ignoring local problems by having never visited the The Ijaw Youth Council, which represents one of the largest ethnic

groups, called on Buhari to "urgently and personally take charge ... to return peace and normalcy




'Niger Delta Avengers': Who they are, and what they want CNBC - Tom DiChristopher | @tdichristopher

After seven years of relative peace, one of the world's most oil-rich regions is once again under siege by militants. And though Nigeria is well-acquainted with violence on its southern shores, the group behind a new wave of attacks — the Niger Delta Avengers — is shrouded in mystery and sabotaging one of the world's biggest oil producers.

The attacks present a serious challenge for President Muhammadu Buhari, who entered office last year in the midst of a global oil price downturn that has plunged Nigeria into economic crisis and stoked runaway inflation. Now, assaults by the Avengers have helped send the country's crude output to its lowest level in decades.

Nigeria is home to Africa's largest economy and one of the world's biggest populations. Before this year's supply disruptions, the OPEC member was also the continent's top crude producer. The oil industry accounts for about 70 percent of government revenue.

The Niger Delta Avengers are in the business of destroying oil infrastructure — working in teams, carrying small arms and explosives, blowing up pipelines and sabotaging facilities — taking advantage of the Delta's complex, creek-filled terrain to stay one step ahead of the Nigerian soldiers chasing them.

They're driven by economic and environmental grievances, and until those issues are addressed, the Delta will remain in a cycle of sabotage, experts told CNBC. And Nigeria's oil output will remain under pressure.

'Very effective'

The Avengers claim on their website to be young, educated and well-traveled. They say they are better armed and more civilized than past militants. One thing's for sure: They are making an impact.

Nigerian Oil Minister Emmanuel Ibe Kachikwu this week said the country's oil production has fallen by 800,000 barrels per day — to 1.4 million barrels per day — due to attacks on the nation's infrastructure, local news reported, many or perhaps most of them at the hands of the Avengers.




"We don't see this being a huge group, but at the same time, they do seem very effective," said Matthew Bey, energy and technology analyst at geopolitical research firm Stratfor.

On Wednesday, Italian energy giant Eni confirmed that one of its Nigerian pipelines was sabotaged, UPI reported. The following day,Exxon Mobil said operations at its Qua Iboe oil terminal — Nigeria's largest — had been disrupted by criminal activity. No one has claimed responsibility for those incidents, but the Avengers are high on the suspect list.

The Avengers did claim responsibility for a recent attack on Chevron's Okan offshore platform, Shell's Forcados oil pipeline and other infrastructure. In recent weeks, Shell and Chevron have reportedly evacuated staff.

Chevron declined to comment on evacuations or attacks on installations claimed by the Avengers beyond the Okan platform. Shell said it did not wish to comment on details of its response to recent attacks, adding that its operations are continuing.

The Avengers demand greater ownership of oil resources for the people who live in crude-producing areas. They want environmental repair and compensation for damages inflicted by oil producers. And they want continued government funding for an amnesty program that is largely credited with halting the last round of Delta violence, which mostly ended in 2009. Experts on the region say it's unclear if The Delta Avengers comprise militants who were active during the last period of unrest — an umbrella group

called MEND that operated from 2006 to 2009 — or if they're an entirely new organization.

The Avengers criticize the older groups of militants for kidnapping people, killing Nigerian soldiers and allegedly enriching themselves after the 2009 amnesty program. The older alliance of militants had a diverse group of leaders who contracted out attacks on oil infrastructure. There is so far scant evidence that the Avengers have that same scale, said Stratfor's Bey.

But Bey said the Avengers appear to be attempting to generate solidarity with other parts of the Niger Delta that have historical grievances with oil companies. They claim their members come from different ethnic groups and regions, and have evoked the plight of the Ogoni, whose lands have been ravaged by crude pollution.

"Going forward, Buhari's biggest challenge is making sure this doesn't spread and become a greater movement," Bey said. This week, another group calling itself the Red Egbesu Water Lions vowed to join the fight if some of the Avengers' demands were not met within a week, local news reported.

If the attacks come at the worst possible time for Nigeria, they were also to be expected. Experts say the amnesty deal was always a short-term solution.

Under the program, the government handed out multimillion-dollar contracts to the top leaders of the last round of militants, paying them to guard oil infrastructure. The rank and file were compensated with stipends and job training. "Essentially, the amnesty was a massive payoff system," said former U.S. Ambassador to Nigeria John Campbell.




"The leaders of MEND, of the insurrection, were paid off essentially with government contracts. The rank and file were supposed to be paid off with vocational training. Of course, there aren't any jobs in the area," he told CNBC.

Buhari has extended the program through 2017, but he's also reduced payouts, circumvented the former militant leaders who previously distributed them and stopped funding security contracts.Bearing in mind these changes, Ambassador Campbell said the Avengers could be acting on a "cluster of motivations" that are both selfish and selfless.

The attacks are likely born out of resentment over amnesty payments drying up and an anti-corruption campaign that has disrupted traditional patronage, as well as concern about environmental damage and the long-held belief the Delta region does not get an equitable share of oil revenues, he said.

The structure of the amnesty also offers clues about the Avengers' makeup. Midlevel commanders were left without opportunities that matched their expectations and sense of their own standing, said Akin Iwilade, a research student at Oxford University who studies why Nigerians join gangs and has interacted with former militants.

"Many of these guys, they got into the amnesty, but they didn't get half of what they expected," he said, though he cautioned there is no hard evidence to suggest the Avengers are comprised of former midlevel commanders.

While the amnesty failed to address broader concerns about development and political inclusion, Iwilade said it has improved the lives of former low-level militants by allowing fugitives to return to civilian life and reducing violence in the Delta. And while training has failed to lead to jobs in many cases, it has allowed at least some people to start businesses and families, he said.

Those benefits could limit the appeal among former militants of returning to the Delta's networks of creeks to carry out attacks. Still, the Nigerian government runs the risk of exacerbating the problem if it takes a hard line, said Olanshile Akintola, another research student at Oxford who also interacts with Nigerian youth, told CNBC in a separate interview.

"What we're really concerned about is Buhari's response to the NDA has been one of serious threats, which historically hasn't worked. It's just made things worse," he said.

'Get bought off'

Buhari has vowed to stamp out the Avengers, but the military has found it difficult in the past to hunt down militants in the Delta's maze of creeks. Nigeria's armed forces are also stretched thin as they wage a simultaneous, separate campaign against Muslim terror group Boko Haram in the north, and grapples with ethnic land conflicts in Nigeria's middle belt.

Both Iwilade and Akintola said the ultimate solution will require Buhari to start a dialogue with the Delta region and address the root causes of unrest. The key is to show a greater commitment to a more-inclusive form of government that reduces marginalization and assures Buhari's anti-corruption campaign does not solely target the opposition party, Iwilade said.

Until then, the amnesty has given young, disenfranchised men a simple model, according to Ambassador Campbell. "If you have nothing to do, go out, blow up enough and you'll get bought off," he said.




U.S. Shale Drillers Restart Oil Rigs as Market Improves Bloomberg - David Wethe @davidwethe

Oil explorers put drilling rigs back to work in U.S. fields for only the second time this year as supply and demand come closer into balance.

Rigs targeting crude in the U.S. rose by 9 to 325 this week, Baker Hughes Inc. said Friday. Explorers have idled more than 1,000 oil rigs since the start of last year. Natural gas rigs were trimmed by 5 to 82 this week, bringing the total for oil and gas up by 4 to 408.

Oil prices extended declines immediately after the release of the Baker Hughes report. Futures in New York have climbed about 85 percent from the lowest level since 2003 earlier this year on signs the global glut is easing.

"The uptick for rigs might have prompted some people to think that there’s a supply side reaction to $50 oil," said Tim Evans, an energy analyst at Citi Futures Perspective in New York. "This is just one week’s data. This doesn’t change the fact that the rig count is down a great deal or represent the beginning of a recovery."

West Texas Intermediate oil for July delivery fell 55 cents to settle at $48.62 a barrel on the New York Mercantile Exchange. Prices climbed as much as 24 cents, or 0.5 percent, earlier in the session.

The worst downturn in decades led oil producers to scrap projects and cut spending on drilling, signaling that supply and demand are getting close to being in balance. Disruptions in Canada and Nigeria took 50 million barrels out of the market last month, Geneva-based trading house Mercuria Energy Group Ltd. estimated.




Faster Rebalancing

“The rebalancing is happening a bit faster than anticipated because of the disruptions,” Mercuria Chief Executive Officer Marco Dunand said in an interview. “Demand is also stronger than expected” in countries from India to the U.S., he said.

The International Energy Agency forecasts oil demand will increase this year by 1.2 million barrels a day, while Dunand said growth is likely to top 1.5 million, perhaps rising as high as 1.8 million.

America’s oil drillers have been idling rigs since October 2014 as the world’s largest crude suppliers battle for market share. Despite the cutbacks, U.S. production has only recently begun to falter as new techniques that increase efficiency keep the oil flowing.

U.S. output declined for a 12th week and crude stockpiles dropped in the week ended May 27, according to a report from the Energy Information Administration.



NewBase

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Oil closes with Brent at economy concerns .. Reuters + NewBase

U.S. oil prices tumbled more than 1 percent on Friday, after weekly data showed U.S. drillers added rigs for only the second time this year.

Drillers added nine oil rigs in the week to June 3, Baker Hughes said. The closely followed reprekindled fears that U.S. shale drillers would turn the spigots back on as prices flirted with $50 a barrel.

Prices had already dipped in early trade on worries about the U.S. economy, but losses were limited by a weakening dollar, which makes oil lessThe Baker Hughes report sent prices sharply lower.

"The increase in the rig count as prices near the $50/bbl range is clearly indicative of the elasticity of U.S. production and speaks to the tremendous efficiency gains reaped by the U.S. producer community over recent years," said Michael Tran, director of energy strategy at RBC Capital Markets in New York.

Oil traders view falling U.S. output as key to reducing a global glut of crude that has pressured prices during a steep two-year slump.

Brent crude futures fell 30 cents to $49.74 per barrel, but were still almost double January lows and on track for an eighth weekly gain in nine weeks.

U.S. West Texas Intermediate (WTI) crude futures$48.62 a barrel.

Oil price special




05 June - 2016

For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

with Brent at 49.74 & WTI=84.62 on US rig count rise, Reuters + NewBase

U.S. oil prices tumbled more than 1 percent on Friday, after weekly data showed U.S. drillers added rigs for only the second time this year.

Drillers added nine oil rigs in the week to June 3, Baker Hughes said. The closely followed reprekindled fears that U.S. shale drillers would turn the spigots back on as prices flirted with $50 a

Prices had already dipped in early trade on worries about the U.S. economy, but losses were limited by a weakening dollar, which makes oil less expensive for buyers using other currencies. The Baker Hughes report sent prices sharply lower.

"The increase in the rig count as prices near the $50/bbl range is clearly indicative of the elasticity of U.S. production and speaks to the tremendous efficiency gains reaped by the U.S. producer

recent years," said Michael Tran, director of energy strategy at RBC Capital

Oil traders view falling U.S. output as key to reducing a global glut of crude that has pressured year slump.

fell 30 cents to $49.74 per barrel, but were still almost double January lows and on track for an eighth weekly gain in nine weeks.

U.S. West Texas Intermediate (WTI) crude futures settled 55 cents lower, or 1.1 percent, at

Oil price special

coverage



Page 19

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contact us on +971504822502 , Dubai , UAE

US rig count rise,

U.S. oil prices tumbled more than 1 percent on Friday, after weekly data showed U.S. drillers

Drillers added nine oil rigs in the week to June 3, Baker Hughes said. The closely followed report rekindled fears that U.S. shale drillers would turn the spigots back on as prices flirted with $50 a

Prices had already dipped in early trade on worries about the U.S. economy, but losses were expensive for buyers using other currencies.

"The increase in the rig count as prices near the $50/bbl range is clearly indicative of the elasticity of U.S. production and speaks to the tremendous efficiency gains reaped by the U.S. producer

recent years," said Michael Tran, director of energy strategy at RBC Capital

Oil traders view falling U.S. output as key to reducing a global glut of crude that has pressured

fell 30 cents to $49.74 per barrel, but were still almost double January lows

settled 55 cents lower, or 1.1 percent, at




Oil prices have rallied from this winter's lows due largely to supply disruptions, particularly in Nigeria, Venezuela, Libya and Canada. On Friday, militants in the restive Niger Delta region that produces more than half of Nigeria's oil claimed three new attacks on oil infrastructure, promising to bring the country's oil production to "zero."

Still, news that ExxonMobil lifted its force majeure on exports of Nigeria's Qua Iboe crude oil, looked likely to bring barrels back to the market.

"If you're starting to see some of those barrels coming back, well, that's happening ahead of schedule, in my opinion," Bob Yawger, director of the futures division at Mizuho in New York.

The tone of the Organization of the Petroleum Exporting Countries(OPEC) meeting in Vienna on Thursday supported prices "from the perspective that none of the major players (except Iran) indicated that they would be further flooding the market with oil anytime soon," said Energy Management Institute analyst Dominick Chirichella.

Weaker-than-expected U.S. non-farm payroll data supported oil by sending the dollar index to its lowest since mid-May. However, the weak data also pressured oil prices by raising concerns about U.S. gasoline demand this summer, Yawger said.



Your partner in Energy Services Khaled Malallah Al Awadi, Energy Consultant

MSc. & BSc. Mechanical Engineering (HON), USAASME member since 1995 Emarat member since 1990

Mobile : +97150-4822502 [email protected]@hotmail.com

Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years

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the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations

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routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many M

the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and

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MSc. & BSc. Mechanical Engineering (HON), USA

[email protected]

Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as

fairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for fairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for fairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for fairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for


responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed

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the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and

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Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as

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responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed

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