New base 732 special 19 november 2015

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NewBase 19 November 2015 - Issue No. 732 Edited & Produced by: Khaled Al Awadi

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GCC-Indian businessmen urged to tap investment opportunities Saudi Gazette + NewBase

Minister of Commerce and Industry Tawfiq Al-Rabiah urged Gulf and Indian business leaders and investors to seize the prevailing investment climate and enhance business ties. He made the remarks on Wednesday while inaugurating the 4th GCC-India Industrial Forum at Bay La Sun Hotel at King Abdullah Economic City (KAEC) in Rabigh.

Hundreds of business leaders and top company executives from the six Gulf states and India are taking part in the two-day event titled “Opportunities and Challenges.

Speaking on behalf of India’s Minister of Commerce and Industry Nirmala Sitharaman, Ravneet Kaur, joint secretary at India’s Ministry of Commerce and Industry, called for taking the strong GCC-India socio-cultural and economic ties to new heights.

In his speech, Al-Rabiah highlighted the geographical and cultural proximity of the Gulf Cooperation Council states and India. “Centuries ago, Arab traders were instrumental in laying strong foundations for business and economic ties with India.

This also produced big impact in establishing strong cultural contacts and exchanges between the two countries,” he said.




While noting the fast growth in the volume of trade exchange between the GCC and India, Al-Rabiah called for taking advantage of opportunities to further enhance business and economic ties in diverse fields and herald a new era of bilateral strategic partnership and cooperation.

The minister also hoped that the top executives and business leaders of both sides would come out with concrete steps to build strong partnership and joint ventures in different fields during the forum.

Addressing the forum, Kaur invited Gulf businessmen and investors to tap the huge potential of investment opportunities in India. “India needs $1 trillion worth investments within the coming five years, especially in the infrastructure sector.

The government is keen to move forward quickly with further simplifying the procedures to the maximum,” she said. The Indian official drew attention to the huge amount of changes taking place in the world’s largest democracy. “Under Prime Minister Narendra Modi, large scale and fundamental changes are going on in India.

The government has embarked on ambitious initiatives such as Make in India, Digital India etc and all these generate great investment opportunities for Gulf investors, especially in the fields oil and gas, information technology and communications, healthcare, and food security,” she said while highlighting that India has achieved an unprecedented 7.5 percent GDP growth rate this year, bypassing even China and other major economies.

The inaugural plenary session was also addressed by Abdulrahim Naqi, secretary general of Federation of Gulf Cooperation Council Chambers (FGCCC), Shobana Kamineni, vice president of the Confederation of Indian Industry (CII), Fahd Al-Rasheed, group executive officer and managing director of Emaar Economic City, Reyhan Mubarak Fayez, head of economic relations at the GCC general secretariat, and Dr. Abdullah Merie Bin Mahfouz, member of JCCI.

Speakers at the first plenary session titled “Promising investment opportunities in GCC and India” underscored the need for further enhancing bilateral business ties and pumping billions of dollars of investments in several vital and most promising sectors in between the GCC states and India.

The session highlighted that GCC, as a collective entity, holds tremendous economic as well as geo-political significance for India. The GCC countries, which are moving ahead rapidly with their economic integration efforts, has emerged as a major trading partner for India and that it has vast potential as India’s investment partner for the future.

Abdulrahim Naqi was the moderator of the session, in which the speakers were Ravneet Kaur, Adnan Mandorah, secretary general of Jeddah Chamber of Commerce & Industry (JCCI), Reyhan Mubarak Fayez, Mohammed Al-Hussaini, director of economic research department at Oman Chamber of Commerce and Industry, and Rayan Qutub, CEO of Industrial Valley at KAEC.

B.S. Mubarak, consul general of India, moderated the parallel session on “Healthcare/healthcare tourism/pharma”. There were also parallel sessions on “Cooperation between GCC and Indian businesswomen communities”, and “Finance and role of sovereign funds in financing projects/SMEs and youth projects.” There will be four parallel sessions on Thursday, the concluding day of the forum, organized by FGCCC, in cooperation with the Council of Saudi Chambers (CSC), JCCI, and the Confederation of Indian Industry (CII). More than 100 business leaders and officials from Saudi Arabia and other GCC states, and 42-member delegation from India are attending the event.




UAE Energy Minister says GCC petrochemicals producers must innovate and continue to invest in the region’s industry

(WAM) -- The world’s macro-economic realities mean that the chemical industry in the Arabian Gulf must push ahead with investments to innovate and add value to their products, according to the UAE energy minister.

In his keynote speech at the 10th Annual GPCA Forum of the Gulf Petrochemicals and Chemicals Association (GPCA) this morning, Suhail Mohammed Faraj Fares Al Mazroui urged GCC petrochemicals’ producers to continue to invest and innovate in their businesses to ensure the continued growth of the industry.

Celebrating its 10th edition this year, the Annual GPCA Forum is GPCA’s flagship event and a key feature on the global chemical industry agenda, providing a crucial knowledge sharing and networking platform for regional and global stakeholders. Over 2,000 petrochemical

and chemical industry leaders are attending this year’s edition, held under the theme ‘Building on Achievements: Enabling Continued Success in the Changing Chemical Landscape’.

"Leadership in petrochemicals is a crucial area for the GCC, serving as a catalyst for economic diversification and innovation, and making people’s lives better all over the world," Mr. Al Mazrouei said, adding, "I believe that keeping an open business mindset is fundamental to developing new ways to add value to the industry."

The energy minister told the audience of industry leaders and representatives of some of the region’s largest petrochemicals and chemicals companies that the industry must build on existing synergies within the region and strengthen their understanding of the needs of global customers to broaden their innovations beyond research and development. GCC countries must also continue enhancing their infrastructure to create a strong multiplier effect on the broader economy.

"Having successfully built up scale and share of the global market over the last 50 years, we have now reached a very interesting inflection point. Global macro-economic realities mean that the industry must push ahead with its investments to innovate and move even further up the value chain," he pointed out. "When I look across the region, I see companies and executives who fully understand the challenges, and are making all the right moves to drive the industry forward."

Al Mazrouei praised Borouge and other GCC petrochemical leaders for leading innovations that will drive their long-term sustainable growth into the future. The GCC’s petrochemicals exports account for an 8.5 per cent share of the global market, with production capacity reaching above 136 million tonnes in 2014. While Saudi Arabia continues to be the leading producer of chemicals in the region, other GCC countries, with the exception of Bahrain, are steadily expanding their production as well, with the largest growth taking place in the UAE and Oman during the past decade.




ConocoPhillips Qatar opens its regional office in The Gate Mall Gulf Times

ConocoPhillips Qatar, which will soon celebrate its 10th anniversary, yesterday opened its new sprawling office in The Gate Mall, which will serve as its regional hub.

The office was inaugurated by HE the Energy Minister, Dr Mohamed bin Saleh al-Sada, in the presence of US ambassador Dana Shell Smith, ConocoPhillips Qatar president Gary Sykes, vice-president (exploration and production) Matt Fox and other dignitaries.

The new office is yet another step towards building a legacy based on strong partnerships with Qatar Petroleum, Qatargas and several other key stakeholders representing a multitude of government, industry and community partners, a spokesman of

the global petroleum major said. “The innovative and world-class design of our offices is all part of our desire to create an environment that is very safe and conducive to productivity, and is something we at ConocoPhillips are extremely proud of,” Sykes said.

The significance of the new ConocoPhillips office in Qatar lies in the importance of the relationships the company has created in country and illustrates the company’s vision to be the exploration and production partner of choice by sharing world class technologies and expertise and pioneering a new standard of excellence to contribute towards the Qatar National Vision 2030 in relation to human, social, economic, and environmental development.

“I’m pleased to see the move to our new office in Qatar occurred safely and without incident and indeed early next year our office will celebrate 10 years of an incident- and injury-free workplace environment here in Doha,” according to Fox.

In 2003, ConocoPhillips started its collaboration with Qatar Petroleum through the development of Qatargas 3, a large-scale liquefied natural gas (LNG) project in Ras Laffan Industrial City, Qatar, with a capacity of 7.8mn tonnes per annum.

ConocoPhillips holds a 30% interest in this integrated project comprising approximately 1.4 gross BCFD (billion cubic feet per day) of natural gas production over the 25 year life span of the project, as well as an initial average volume of approximately 70 gross MBPD of liquefied petroleum gas and condensate combined from Qatar’s North field.

To capture cost savings, Qatargas 3 executed the development of the onshore and offshore assets as a single integrated project with Qatargas 4. This included the joint development of offshore facilities situated in a common offshore block in the North field.




In Qatar, ConocoPhillips operates Global Water Sustainability Center, its designated centre of excellence for all water-related research and development. The centre is located in the heart of the Qatar Science and Technology Park and performs a vital role in corporate social responsibility through its programme of school visits designed to raise water conservation awareness among students.

Following the ribbon-cutting ceremony, there was a tour of the ConocoPhillips Qatar office as well as a visit to its signature corporate social responsibility campaign Kulluna “Healthy Heart” booth, which will be at The Gate Mall until November 22, 2015.

The ‘Kulluna for a Healthy Heart’ campaign focuses on several ways in which the risk of heart disease can be prevented and highlights lifestyle behaviours such as smoking, obesity, high blood pressure and diabetes as being key risk factors.

The visitors to the booth have the opportunity to sign up for a free biometric checkup provided by HMC medical professionals that

include details such as weight, height, body mass index, heart rate, blood pressure, blood sugar and cholesterol levels.




Saudi oil stockpiles fall from record on signs of demand Gulf Times + NewBase

Saudi Arabia’s crude oil stockpiles fell from a record amid signs that overseas demand for refined products was picking up as margins improved.

Stockpiles dropped to 322.7mn barrels in September from 326.6mn in August, the highest since at least 2002, according to data published yesterday on the website of the Riyadh-based Joint Organisations Data Initiative. Gasoline exports climbed to a record and Saudi Arabia’s own refineries processed 2.5mn barrels of crude daily, an all-time high and up from 2.2mn bpd in August.

Refineries are earning so much money from the low cost of crude and higher selling prices for their products that they are cutting back on maintenance. Plants are usually taken off line for repairs in September and October. Saudi Arabia’s Yasref oil refinery is processing crude at full capacity as margins improved since August, chief executive officer Mohammad Alshammari said last month.

“Refineries at home or abroad seem to be back very fast from maintenance,” Mohamed Ramady, an independent analyst and former economics professor at King Fahad University of Petroleum and Minerals, said by phone from London. “The fastest way to deliver crude to them is from stockpiles.”

Brent crude oil prices dropped 23% this year amid a global supply glut. Brent futures for December settlement climbed 1.7% to $44.31 a barrel yesterday as US industry data was said to show a drop in the nation’s crude stockpiles for last week.

Crude inventories dropped for the first time in four months in Saudi Arabia, the biggest producer in the Organisation of Petroleum Exporting Countries. Its crude exports rose to 7.1mn bpd from 6.99mn in August, according to the JODI data.




“Crude stockpiling can’t go up indefinitely, so at some point some draws have to be made from them to give room for new crude to be stored when needed,” Ramady said.

Saudi Arabia cut oil production in September to 10.23mn bpd from 10.27mn in August, according to the JODI data. The kingdom told Opec that it produced 10.28mn barrels daily in October, which would be the first increase since the record output of 10.564mn in June. Refined products exports from Saudi Arabia fell in September, to 1.19mn bpd from 1.35mn, according to JODI. Gasoline bucked the trend, rising to a record 206,000 bpd from 200,000 barrels in August. Saudi gasoline production dropped to 529,000 bpd in September from 559,000 barrels a month earlier.

Diesel exports declined to 517,000 bpd in September from 533,000 barrels in August, as production dropped to 1.02mn bpd from 1.03mn barrels, the JODI figures showed.




NewBase 19 November - 2015 Khaled Al Awadi

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

US crude prices edge up on short covering, but oversupply still bites Reuters + NewBase

U.S. crude oil prices edged up in early trading in Asia on Thursday but are struggling to break away from the $40 per barrel mark as oversupply and high inventory levels ensure an ongoing glut.

U.S. West Texas Intermediate (WTI) crude futures were trading at $40.88 per barrel at 0031 GMT, up 13 cents from their last settlement.

The contract fell below $40 for the first time since August on Wednesday, and traders said that the slight gains were more a result of short covering than a more bullish sentiment. Overall, oil markets remain oversupplied, with rising U.S. stockpiles the most visible evidence.

"Rising U.S. crude stockpiles continue to remain a major (downward) driver of price," ANZ bank said on Thursday.

U.S. crude inventories grew by 252,000 barrels last week to 487.3 million barrels, close to record highs, according to data from the Energy Information Administration (EIA), highlighting that more crude is being produced than needed.

As a result, U.S. crude futures have been struggling to break higher this week, although ANZ said that rising crude demand from U.S. refineries was also preventing prices from falling much further.

Oil price special

coverage




NewBase Special Coverage

News Agencies News Release 19 Nov.. 2015

OPEC Targets U.S. Shale, But Hits Canada Instead Bloomberg - Rebecca Penty

OPEC took a swing at U.S. shale and knocked down Canada.

Threatened by surging production from North America, the Organization of Petroleum Exporting Countries has been pumping above its quota for 17 months as it seeks to take market share from higher-cost regions. The resulting 60 percent price crash is hitting Alberta harder than Texas.

Canadian producers are struggling to cut the cost of extracting bitumen from the oil sands, and their other wells are failing to match the efficiency gains of U.S. rivals, a Bloomberg Intelligence analysis shows. While output keeps rising in the Permian Basin, the largest U.S. shale play, companies are slowing output from wells in Alberta and have shelved 18 oil-sands projects during the downturn, according to ARC Financial Corp.

“OPEC wants to hinder shale from its strong growth trajectory but there are higher-cost producers, such as in the oil sands of Canada, that are in the line of fire,” said Peter Pulikkan, an analyst at BI in New York. “Shale will eventually be impacted but it’s not the first on the list.”

New Policy

In a policy shift a year ago, the 12-nation cartel decided against propping up oil prices, keeping its output target at 30 million barrels a day even as the supply glut worsened. It has exceeded that ceiling since June 2014 and pumped 32.2 million barrels a day in October, according to data compiled by Bloomberg.




In Alberta, high extraction costs and oil price discounts relative to global benchmarks are poised to continue crimping output, Pulikkan and BI analysts Michael Kay, Gurpal Dosanjh, Andrew Cosgrove, Rob Barnett, Cheryl Wilson and William Foiles said in research published Wednesday. Production, excluding bitumen extraction, dropped about 13 percent this year through July, That compares with a roughly 19 percent increase in output from Permian wells over the same period.

“We are one of the highest-cost basins in the world,” said Rafi Tahmazian, a Calgary-based fund manager at Canoe Financial LP. He predicted more job losses as Canadian producers try to save money and stay profitable with low prices. “We’re constantly working to bring down those costs.”

U.S. crude has plummeted from a $107.26 closing high in New York on June 20 of last year to just above $40 a barrel. The Canadian heavy-oil benchmark is trading at about $15 less than that.

Slower Rebound

Parts of Canada’s energy industry have been resilient. Existing oil-sands projects have kept production flowing and the weaker Canadian currency has helped exporters. Still, Canadian production is poised to be slower to rebound than U.S. shale in a market recovery.

New oil-sands projects require long investment lead times and the Canadian dollar will strengthen along with oil prices, eroding the currency advantage, according to Manuj Nikhanj, co-head of energy research at ITG Investment Research in Calgary. Investors are shying away from financing Alberta producers because of an increase in provincial levies, Nikhanj said in an e-mail.

There’s a risk that the U.S. eats all of Canada’s lunch, according to BI’s Pulikkan. Producers have been awaiting higher prices to turn on a backlog of U.S. shale wells that have been drilled and capped. Once they come on stream, they could push prices back down, rendering Canadian output uncompetitive yet again, he said.

“Before they even have a chance to get off the ground, shale will likely beat them to the punch,” Pulikkan said.




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Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010

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Khaled Al Awadi is a UAE National with a total of 25 years of experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great experiences in the designing & constructing of gas pipelines, gas metering &

regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation, operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.

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New base 732 special 19 november 2015