New base 14 august 2014 khaled al awadi

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NewBase 14 August 2014 Khaled Al Awadi

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Taqa comes out of the red, may sell assets to repay debts BY BLOOMBERG NEWS

Abu Dhabi National Energy Company, which took an impairment of $858 million in North America

last year, plans to sell assets to repay debt as it returned to profit in the second quarter.

The state-controlled utility,

also known as Taqa, reported

a second-quarter attributable

profit of Dh239 million ($65

million), rebounding from a

loss of Dh172 million a year

earlier, it said in a statement

to the Abu Dhabi stock

market Wednesday

The company, which

produces power, crude oil

and natural gas from Canada

to North Africa, returned to

profit in the second quarter,

buoyed by a 47 per cent

increase in oil and gas

revenue.

The shares rose 2.8 per cent

to Dh1.12. The stock has

dropped 24 per cent this

year, compared to a 17 per cent gain in the benchmark ADX General Index

"We know the company is leveraged and it went on an investment spree, acquiring assets across

geographies," Sebastien Henin, who oversees $90 million as head of asset management at the

National Investor in Abu Dhabi, said yesterday by telephone. "Investors would want to look first at

some real divestments before they take any positions in the stock.

Taqa, which suspended oil operations in Iraq this week because of escalating instability near the

country's Kurdish region, said it expects to pay 2016 debt maturities from its own cash flow and

Quarter buoyed by a 47

% rise in oil and gas

revenue

Taqa returned to profit in the second




unspecified asset sales. The company has available liquidity of $5 billion, including $1.1 billion in

cash, and doesn't intend to return to the bond market until 2017, according to yesterday's

statement.

Revenue from oil and gas jumped to Dh3.1 billion from 2.1 billion in the second quarter of 2013,

Taqa said. Sales from the power and water division dropped to Dh2.4 billion from Dh2.5 billion in

the same period a year ago.

$26.5b in loans

Taqa, which produces power, crude oil and natural gas from Canada to North Africa, has $26.5

billion of loans and bonds outstanding, according to data

The utility started commercial operations at its Bergermeer gas storage facility in the Netherlands

in April, while its UK operations produced a record average volume of 61,500 barrels of oil

equivalent in the first half, Taqa said in the statement. Last year it took over oilfield operations in

Iraq and oil and gas deposits in the UK from BP

Expansion of the Takoradi 2 power station in Ghana is more than 90 per cent complete, and the

plant will be operating in the fourth quarter, the company said. Taqa ended talks to invest in two

hydroelectric plants in India and the Sulaymaniyah power station in Iraq's Kurdish region, steps

that will improve cash flow and reduce debt leverage, it said

"Greater efficiencies and cost control, combined with a conservative view on growth projects and acquisitions, will ensure we can deliver our commitment to reduce debt and improve financial performance."




TAQA Ends Talks To Buy 50% Stake In Iraqi Kurdistan Power Plant Press Release + NewBase

The Abu Dhabi-owned oil explorer and power supplier said that the project

does not match the company's growth strategy.

Abu Dhabi National Energy Co (TAQA) said on Wednesday that it had ended talks to buy a 50 per cent stake in the Sulaymaniyah power station in Iraq’s Kurdistan region, as the project did not match the company’s growth strategy.

“We have rebalanced our growth agenda and this acquisition no longer fits our strategy,” a spokesman for the company told Reuters.

He did not mention the Islamist insurgency in Iraq. However, TAQA suspended its operations at the Atrush oil production block in Kurdistan earlier this month, citing the escalating instability in the region.

In July, TAQA pulled out of a $1.6 billion deal to buy two hydroelectric power plants from India’s Jaiprakash Power Ventures Ltd, citing changes in the Abu Dhabi company’s priorities.




First oil sails from Libya’s Ras Lanuf since end of blockade Reuters + NewBase

A view of Es Sider export terminal in Ras Lanuf. An oil tanker carrying 670,000 barrels of crude has left Libya’s Ras Lanuf oil terminal, the first shipment since the port was reopened following a year of blockades by armed protesters, a spokesman for state-run National Oil Corp said. The tanker carrying Sirtica crude left the Libyan port on Tuesday evening, the spokesman said. The shipment was a positive development for Libya’s fragile central government, which is struggling to contain fighting between rival armed factions who have clashed with rockets and artillery for a month in Tripoli. Until April, federalist rebels demanding more autonomy for their eastern region were holding four out of five eastern oil ports, cutting off over half of Libya’s export capacity of 1.25mn bpd, and hitting production in the North African Opec member. The government managed to strike a deal to free up the ports, but technical problems have delayed the full restart of shipments. The NOC says current national production is around 450,000 bpd.




Ireland: "Sanco Sword’ begins ‘Spanish Point South’ survey Press Release + NewBase

Providence Resources P.l.c., ( the Irish oil and gas exploration and appraisal

company has announced that 3D seismic surveying operations have begun on Frontier

Exploration Licence (FEL) 1/14 (‘Spanish Point South’) in the northern Porcupine

Basin, offshore west of Ireland.

The water depth across the licensed area ranges c. 300-650 metre and the licensed area is located c. 140

kilometres off the west coast of Ireland. Spanish Point South is operated by Capricorn Ireland Limited

(wholly owned subsidiary of Cairn Energy PLC, working interest 38%) on behalf of its partners Providence

Resources Plc (32%), Chrysaor E&P Ireland Limited (26%) & Sosina Exploration Limited (4%). The

partnership also holds the adjacent FEL’s 2/04 and 4/08.

The new 3D seismic survey is planned to cover a c. 750 km2 area and is being acquired using Dolphin

Geophysical’s M/V Sanco Sword. The survey has been designed to target the Upper Jurassic and Lower

Cretaceous reservoir intervals which successfully tested gas condensate and oil from the Spanish Point

(35/8-2) and Burren (35/8-1) discoveries, respectively in the adjacent acreage to the north.

There have been four previous wells drilled in the Spanish Point South area, all of which have encountered

hydrocarbon shows. The current best estimate of gross on-block unrisked prospective recoverable resources

is 350 MMBOE. This is separate from the quoted recoverable resources for the Spanish Point discovery

(located in FEL 2/04 and which is planned to be drilled in 2015) and FEL 4/08.

Speaking today, John O’Sullivan, Technical Director of Providence said: “This new 3D seismic survey

over the Spanish Point South area is our third such programme in this part of the basin since 2009. When

combined, these new data will allow for a comprehensive re-evaluation of the total hydrocarbon resource

potential of this area, where previous wells have successfully tested both oil and gas. We believe that the key

risk is reservoir quality, rather than hydrocarbon presence, and so we consider that modern high quality 3D

seismic imaging will be a significant tool in reservoir prediction.”




Roc: Drilling starts in Bohai Bay. Awe takes 40% stake Press Release

Roc Oil (Bohai) Company, a wholly owned subsidiary of Roc Oil Company Limited , as

operator of Block 09/05, Bohai Bay, Offshore China advises that drilling has started on

the first exploration well QK11-1-1.

Drilling from CPOE Rig 33 kicked off at 11:00 China Standard Time on 14 August 2014. Total

depth planned for this well is -4,000 metres TVD (-4,500 metres measured depth). The 335

square kilometres block

is located

approximately 15

kilometres north of

ROC’s existing Zhao

Dong production and

appraisal blocks in

water depths of 5-15

metres.

ROC was awarded 100% interest in the exploration block by China National Offshore Oil

Corporation (CNOOC) in May 2012 and signed a Petroleum Contract shortly thereafter. Upon a

successful discovery, CNOOC has the right to participate

in up to 51% of any development.

Also, ROC has executed a Farm-ln Agreement to farm-out a 40% interest in Block 09/05 to AWE China Re. Ltd, a wholly owned subsidiary of AWE Limited (ASX: AWE) for US$2 million cash for past costs, 60% of the first exploration well costs and 54% of the second exploration well costs.

Initial gross drilling costs per well are estimated at US$14.7 million, should drilling costs exceed the initial estimate; AWE will contribute at a 40% working interest.

CNOOC has approved the farm-out and ROC will remain the Operator, with a 60% working interest.

Alan Linn, Chief Executive Officer, said: “This is an important milestone in realising ROC’s growth strategy In one of the most prolific basins in the world. We are extremely excited about this prospect’s potential.”




EIA publishes short-term energy outlook Press Release, August 13, 2014; Image: EIA

U.S. Energy Information Administration published its short-term energy outlook for the month of August, 2014 .

EIA’s STEO shows that “natural gas spot prices fell from $4.47/million British thermal units (MMBtu) at the beginning of July to $3.78/MMBtu at the end of the month as natural gas stock builds continued to outpace historical norms.”

The consumption is expected to average 72.6 Bcf/d in 2014, which is an increase of 1.7% from 2013, led by the industrial sector. EIA expects natural gas marketed production to grow by an annual rate of 5.3% in 2014 and 2.1% in 2015.

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Liquefied natural gas (LNG) imports have fallen over the past several years because higher prices in Europe and Asia are more attractive to sellers than the relatively low prices in the United States.

Natural gas working inventories totaled 2,389 Bcf as of August 1, which was 538 Bcf lower than the same time last year and 608 Bcf lower than the previous five-year (2009-13) average.

OPEC Supply. EIA estimates that OPEC crude oil production averaged 29.9 million bbl/d in 2013, a decline of 1.0 million bbl/d from the previous year, primarily reflecting increased outages in Libya, Nigeria, and Iraq, along with strong non-OPEC supply growth. EIA expects OPEC crude oil production to fall by 0.3 million bbl/d in 2014 and by less than 0.1 million bbl/d in 2015 to accommodate growing production in non-OPEC countries.

EIA expects OPEC surplus crude oil production capacity, which is concentrated in Saudi Arabia, to average 2.1 million bbl/d in 2014 and 2.7 million bbl/d in 2015. These estimates do not include additional capacity that may be available in Iran but is offline because of the effects of U.S. and European Union sanctions on Iran's ability to sell its oil.

Crude Oil Prices. North Sea Brent crude oil spot prices averaged $107/bbl in July, a decrease of $5/bbl from June. July was the 13th consecutive month in which average Brent crude oil spot prices fell within a relatively narrow range of $107/bbl to $112/bbl. The forecast Brent crude oil price averages $108/bbl in 2014, $1/bbl lower than in last month's STEO, and $105/bbl in 2015.







Oil & gas deal market set for growth in second half Saudi gazette + NewBase

The United States and Canada remained the center of oil and gas deal activity in the first half of 2014 – accounting for 61 percent of all transactions globally. Much of the investment in the US continued to focus on unconventional shale projects, while Canada saw a move to more conventional plays and away from oil sands, the “Deloitte Oil & Gas Mergers and Acquisitions Report – Midyear 2014” said.

In 2014, deal values received a boost in the second quarter, driven by several large transactions that reversed what had been a downward trend over the first five months of the year. The second-quarter surge in deal value could be among the first signs of increased deal activity in the second half of the year. The midstream sector reported the most dramatic slowdown in merger and acquisition (M&A) activity during the first half of the year. Much of the demand for new pipelines and processing facilities needed to keep pace with the growth of unconventional plays in North America is being met by new construction which is suppressing acquisition activity in the sector, John England, Vice Chairman, US Oil & Gas Leader, Deloitte in his comment in the report.




As the refining and marketing sector showed the biggest growth in deal value on a percentage basis, rising by 170 percent. This was primarily driven by large transactions focused on the retail side of the business. Retail may continue to drive deal activity due to the strengthening economic recovery. Overall, companies continue to look to acquire resources with a focused approach, and private equity continues to search for new oil and gas investments. Companies also continue to rationalize their asset portfolios in order to contain costs and focus on organic growth from recent acquisitions. After a slow start to the year, new second quarter deal activity may be a harbinger of a revitalized deal market in the second half of the year. The uptick in deal activity in June of this year could signify a stronger deal market in the second half of the year, he said. Upward pressure on commodity prices is likely to drive more transactions, and private equity investors, in particular, are likely to continue to show interest and be a source of capital. Margin pressure on oilfield service companies, as a result of continued cost containment in the upstream sector, could drive additional consolidation, particularly among smaller, regionally focused participants. The number of exploration and production (E&P) transactions increased 13 percent, rising by 26 deals to 231 in the first half of 2014, compared with 205 for the first half of 2013. Deal values also surged by more than 90 percent during the same period, to almost $100 billion from $52 billion. After a quiet start to the year, E&P deals accelerated in the second quarter, accounting for half of the 10 largest transactions in the quarter.




Zayed Future Energy Prize attracts record entries Abu Dhabi, + NewBase

Zayed Future Energy Prize, the world’s pre-eminent award for innovation in renewable energy and sustainability, recorded 597 submissions and 514 lifetime achievement nominations from 106 countries worldwide, the highest number of global entries in the prize’s seven year history.

The award closed for submissions on July 14, a statement said.

In comparison with 2014, a preliminary analysis of the 2015 submissions indicates a 26 per cent increase globally, with over 120 submissions from Latin American nations alone, a statement said.

The Global High Schools category increased by 17 per cent worldwide, with a 75 per cent rise in entries from the Pacific Islands and Australia, the small and medium enterprise (SME) category increased by 34 per cent with 331 submissions, 35 per cent from North and Latin America. Non-governmental organisations increased by 39 per cent with 139 submissions, a notable portion from Europe and the Americas, whilst large corporations drew its highest numbers from Asia more specifically China and Japan, said a statement.

The uptake in prize entries mirrors the growing international focus on renewable energy as validated by a Bloomberg New Energy Finance (BNEF) report, which points out a 33 per cent increase in global clean energy investments in Q2 versus Q1 2014.

Winners of the Zayed Future Energy Prize 2015 will be announced at the awards ceremony scheduled for January 19, it said.

Dr Sultan Ahmed Al Jaber, director general of the Zayed Future Energy Prize, said: “With every edition, the Prize is reaching out to a broader audience driven by continuing growth in entries from emerging markets and united by a global resolve to seek sustainable solutions to the energy challenges the world currently faces. The response to the 2015 edition of the Prize is a reflection of the transformation taking place around the world in the renewable energy domain. This is a welcome endorsement of the UAE leadership’s continued commitment to empowering global communities and implementing sustainability practices both at home and abroad.”




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Khaled Malallah Al Awadi, MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990

Energy Services & Consultants Mobile : +97150-4822502

[email protected] [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

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

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Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed has developed has developed 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 Energy program broadcasted Energy program broadcasted Energy program broadcasted Energy program broadcasted

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NewBase 14 August 2014 K. Al Awadi

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New base 14 august 2014 khaled al awadi