New base special 05 march 2014

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NewBase 05 March 2014 Khaled Al Awadi

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Wealthy Omanis face losing fuel subsidy By Beatrice Thomas , www.arabianbusiness.com

Oman’s fuel subsidy could be reduced or cut altogether for high-income earners under a recommendation by a government committee set up to look at the sultanate’s costly energy subsidies, it was reported. The government has been under pressure to scrap its subsidy for petroleum products, particularly petrol and diesel, which is expected to reach OMR860m ($2.23bn) in the 2014 budget, up from OMR740m ($1.92bn).

The figure constitutes 53 percent of the government’s total subsidy and participation budget of OMR1.61bn ($4.18bn), the Times of Oman newspaper reported. “The recommendation is to reduce subsidy. The issue now is whether we implement it and when should we implement it," Oman Minister of Oil and Gas, Dr Mohammed bin Hamad Al Rumhy, told media on the sidelines of the ministry's annual media briefing on Monday.

Currently, oil sold in the domestic market fetches $35-40 per barrel, while the average international price of

Oman Crude was $105 per barrel last year. As a result, the government paid the difference. “It (subsidy) is not sustainable,” Al Rumhy said. “We can do it for may be this year or next year, but we cannot continue it indefinitely.”

He said cabinet was considering several options, including a phased removal, a gradual increase in fuel price over several years or withdrawing the subsidy from those who can afford market prices. “But it is not easy,” he noted.




Oman Oil Refineries and Petroleum Industries Company to invest $7b to build three major projects: CEO

BYA E JAMES , TIMES OF OMAN , WWW.TIMESOFOMAN.COM/NEWS/ARTICLE-30633.ASPX#

Oman Oil Refineries and Petroleum Industries Company (Orpic), the country's national oil refining and

petrochemical company, on Monday said that it is investing $7 billion for

developing three major projects, which are under various stages of

implementation.

The three projects – Sohar Refinery Improvement Project, Muscat-Sohar

Product Pipeline and Liwa Plastic Project – will transform Orpic over the

next five years as it develops from a secure refining operation to a fully-

fledged integrated refining and petrochemicals player, said Musab Al

Mahruqi, chief executive officer of Orpic, while addressing the media at the second annual briefing

organised by the Ministry of Oil and Gas .

Of the $7 billion funding, 70 per cent will be from local and international banks. "The combination of the

three projects represents a growth strategy that revolves around increased integration within the

manufacturing complex, and the production of a broader slate of petrochemical products that will enable

Orpic to extract far more value from a barrel of Omani oil than it can do at present," he added.

He said the Sohar Refinery Improvement Project (SRIP) will increase the refinery's ability to process

heavier crude, reduce environmental emissions and develop the

Sohar complex's integration. "As a result current production levels will

be raised by 70 per cent, the naphtha and propylene will be provided

to enable the aromatics and polypropylene to operate at greater

capacities, and fuels production levels will increase by 4.2 million

tonnes a year, reaching 13 million tonnes in 2016. Orpic will also be

able to produce bitumen for the first time," said Al Mahruqi, adding;

"The main EPC contract for SRIP was signed in December with Daelim

and Petrofac and the project will be completed by end 2016."

The Muscat-Sohar Product Pipeline (MSPP) adds considerable flexibility to Orpic's operations, consisting

of a 290 kilometers two-way multiproduct fuels

pipeline between the Muscat and Sohar operations.

"It will also connect to a strategic storage facility at

Jifnain, Muscat governorate, with a pipeline spur

directly to the new Muscat International Airport,

enabling jet refuelling to take place using a 'closed'

system, rather than tankers. Within Muscat itself the

pipeline will see tanker traffic reduced by 70 per

cent," noted Al Mahruqi. Muscat-Sohar pipeline

project will be completed in 2017




Also, he said that the Liwa Plastics Project (LPP) involves the construction of a steam cracker and

associated units which will enable Orpic to produce two new types of plastics, HDPE and LLDPE, along with

greater polypropylene production. LPP will also help to optimise refinery and petrochemical integration

leading to improved motor gasoline sales and an increase in benzene production. LPP is expected to be

commissioned in 2018. Al

Mahruqi said that the three

projects will enhance the

profitability of Orpic and

generate returns for its

shareholders

Talking about crude

processing, he said Orpic

processed around 56 million

barrels of Oman's export

blend during 2013 which is

equivalent to 17 per cent of

total country's production,

with the remainder

exported. Mina Al Fahal

Refinery witnessed a record

level increase in its crude

processing level at 36.4 million barrels over 2012's 30.8 million barrels, whereas Sohar Refinery levels

came down from 27.7 million barrels in 2012 to 19.4 million barrels as a result of the planned shutdown.

"Overall processing was therefore reduced from 58.5 million barrels to 56 million barrels. As a result, fuels

production figures for LPG, Gasoline M-90 and M-95, Gas Oil (diesel) and Jet-A1 were also less than 2012,

although the sales levels for these products outstripped local demand except in the cases of Diesel and

Gasoline," he added

Orpic's profitability is largely impacted by the production levels of its facilities and the relative

international market prices for various refined petroleum products and petrochemicals. In 2013, and

despite healthy oil prices above $100 per barrel, the international refining margins were lower than levels

seen in 2012 and 2011

With projects that will see its workforce of 1,600 being increased by over 1,000 skilled positions over the

next five years, Orpic's people are a priority for the company. With the Omanisation rate at over 70 per

cent, training and recruitment are areas of prime focus, and in 2013 some major undertakings began to

happen. The company's first batch of 110 graduates completed their 18-month training period in May, and

towards the end of the year the next group began their programme, added Al Mahruqi.




Oxy Oman surpasses production forecast, says Robert Swain BYELHAM POURMOHAMMADI , TIMES OF OMAN

Muscat: Occidental Petroleum Corporation (Oxy) fulfilled all its commitments relating to its projects in

Oman in 2013 and even outperformed its forecasts, an official at the company said here on Monday.

Addressing the Ministry of Oil and Gas' annual press briefing,

Robert Swain, vice-president for Mukhaizna Operation, said that

Oxy Oman had promised a production rate of 222,000 barrels of

oil equivalent per day (boep) in 2013, but its production reached

228,000 last year. The promised production volume was 81

million barrels of oil equivalent, but the company achieved the

production volume of 83 million barrels, he said. On exploration

reserves and resources, Swain said that the promised figure was

7.6 million barrels of oil equivalent and Oxy achieved between 12 to 20 million barrels. In the last three

years, Oxy has made over 20 oil and gas discoveries. Oxy's average rig count in 2013 was 14 and the

expected average rig count in 2014 is 15

Training hours

The Oxy official added that 68,000 hours of

training were supposed to be provided by the

company in 2013, but the number of training

hours reached 86,000. He also said that the

company achieved the set target of 83 per cent

Omanisation in 2013 . On Oxy's training and

development plans, Swain noted that the

company has implemented the Oman Technical

Training Programme (OTTP) and more than 400

Omanis have graduated from OTTP since

2007. Oxy Oman officially launched Haima Training Centre in April 2013 and has introduced a scholarship

scheme enabling Omani employees to continue their studies and earn Master's degrees and professional

certifications, he added .

The scholarship scheme complements the part-time education assistance scheme, which contributes to

the overall Omanisation objectives by helping to develop Omani talent and enhancing the knowledge and

skills of future national leaders

Swain also commented on Oxy's programmes for the development of SMEs and said that the company's

objective is to promote sustainable development in Oman through the support of Oman-owned SMEs.

According to him, Oxy launched its small and medium enterprises Development Programme in May 2013

and signed support agreements with three Omani-owned SMEs in December 2013. Oxy contributes

towards the success of the In-Country Value initiative by being an active member of the ICV committee

and being among the operators executing the ICV blueprint strategy of the oil and gas industry, Swain

explained.




Bio fuel refinery planned in Fujairah by Dubai-based Petrixo Oil & Gas By Wam

Petrixo Oil & Gas, based in Dubai, announced on Tuesday it has completed the preparation of

studies, engineering designs and selected the required technologies to set up a bio-fuel refinery in

Fujairah, with a design capacity of one million metric tons per year of bio fuel products, which

include bio diesel, green diesel, bio jet, bio naphtha and bio LPG, with investment of over

$800 million.

The project will be set up over about 460,000 square metres of land in proximity to Fujairah Free zone & Port of Fujairah where Petrixo has incorporated a consortium of major international companies and financial institutions to set up the project.

About Petrixo :-

A fully integrated Oil and Gas Group, accumulating a decade of operations,

investments and partnerships in the Oil and Gas sectors as well as in commodities. The

company exists under the laws of Dubai, United Arab Emirates. Headquartered in

Dubai, and operating along with an excess of 20 affiliated companies, At Petrixo,

dealing in 4 continents to establish a successful oil and gas company that can suffice

the need of our clientsA fraction of our main objective is not only centered on the

profit we will be able to gain, but more on the satisfaction we can provide to our

clients. Another valuable partner of the group is PetrixoNeftegaz, which is an affiliated

company following up the processing activities of the crude oil in Russia, Belarus,

Kazakhstan and Baltic Sea area.

Endicott Co. Biodiesel facilty –in Port Arthur, Texas ( Sample for illustration )

SAIF AHMED BELHASA

Chairman

Dr.EID AL OLAYYAN Chief Executive Officer




What is Bio Diesel :-

It is a fuel which is manufactured from vegetable oils or animal fats that can be used in diesel engines. It is

a modified oil, some people use straight vegetable oil in their vehicles and it is important to realize that this

is not biodiesel. A diesel engine by design is a multi-fuel engine. It will burn just about any oil. However, the

fuel injection system on a modern diesel engine has evolved over the years to use petroleum diesel.

This means that in order to burn a vegetable oil in a

diesel engine, we need to change the oil so that it has

similar properties to those of petroleum diesel. This is

done via the biodiesel process.

The reason vegetable oils or fats are not suitable for

burning in a diesel engine is their 'thickness' or

viscosity is too high. In effect what we are doing in the

biodiesel process is 'thinning' out the oil.

The chemicals that are used in the biodiesel process

are methanol and caustic soda. Both of these chemicals are readily available. It is a matter of combining

the oil methanol and caustic soda together in the correct proportion to produce biodiesel.

Typical sources of oil for biodiesel are soybean, canola, sunflower, Jatropha, rapeseed and used cooking

oils. Biodiesel's biggest benefit for the environment comes from recycling old cooking oil. This turns a

waste product which is polluting and harmful, to a fuel which saves the environment.

What is biodiesel used for? Biodiesel may be used as fuel for any diesel engine, usually without

modification. Although it is mostly suited for use as a fuel for diesel

engines, it has also been used in aircraft, train engines, generators

and home-heating systems. It also makes a great paint brush

cleaner, paint remover and light lubricant.

One of the biggest advantages of biodiesel is that it is renewable.

Unlike fossil fuels, which will one day run out, biodiesel can be

manufactured year after year from renewable crops. In a world in

which our lifestyle depends on cheap and plentiful energy, biofuels

will take on an increasingly important role in reducing dependence

on crude oil.




Saudi Arabia plans to build oil-to-chemicals plant By Reuters

Saudi Arabia plans to build a plant able to turn crude directly into chemicals, without first having to refine the oil, Saudi Oil Minister Ali al-Naimi said on Tuesday. Development of the Saudi petrochemical sector is part of Riyadh's strategy for diversifying the economy away from heavy dependence on crude export revenues.

Chemical companies usually process refined oil products into petrochemicals, such as ethylene and propylene, that are then used to make plastics and other products. ExxonMobil started up the world's first plant that processes crude oil into chemicals in Singapore last year. Now the world's largest crude oil exporter plans to build its own at Yanbu, in conjunction with Saudi Basic Industries Corp (SABIC), one of the world's largest chemicals companies.

"An innovative technology is being studied by the ministry, in collaboration with SABIC, to set up an

integrated industrial complex for the production of petrochemicals from crude oil without the need to build a conventional oil refinery," Naimi told a conference in the Red Sea coastal port of Yanbu. He said the chemicals project would help provide jobs for Saudi youth in the growing industrial port, home to several petrochemicals plants and oil refineries. State-run oil giant Saudi Aramco has been researching ways to make ethylene and propylene directly from crude oil for years .

(Photo for illustrative purposes only)

Exxon Plant in Singapore




Portugal's Galp ups investment plan to support output growth Source: Reuters

Portuguese oil company Galp Energia on Tuesday slightly raised its spending target for the next three to four years to support ambitious production growth plans in Brazil and Africa.

Galp put annual estimated capital expenditure until 2018 at between 1.5 billion euros ($2.1 billion) and 1.7 billion, up from 1.4-1.6 billion under its previous plan for 2013-2017. It expects to invest 1.3-1.5 billion euros this year. In a statement, the company said it expected to increase output at an average compound rate of 40 percent until 2020, when its net installed capacity should reach 350,000 barrels of oil equivalent per day. Previously, Galp had a production target of 300,000 barrels per day in 2020, but it has switched to annual growth rate estimates and an installed capacity target. It did not say whether it still expected to meet the existing output target.

Most investment will go on the upstream business, especially to develop the Lula/Iracema field in Brazil and in Mozambique. Production growth will be supported by the deployment of 14 additional floating production units in Brazil and Angola by Galp and its partners, and the start of liquefied natural gas in Mozambique. The company expected core earnings (EBITDA) compound annual growth rate until 2018 to be above 25 percent, although this year EBITDA should fall well short of that average forecast. Galp expected 2014 EBITDA in a range of 1.1-1.3 billion euros, after last year's 1.14 billion, implying a 14 percent rise if it hits the top of the range.

Output this year should also rise at a slower pace than the average annual forecast - to 28,000-30,000 boed from 2013's 25,000 boed. The company said it was committed to its exploration target of adding 100-200 million barrels in resources per year, 'although subject to free cash flow generation, which will translate into a reduction in drilling activities until cash flow turns

positive, which is expected during 2017'. Last year's 'exploration drilling campaign added around 300 million barrels of oil equivalent to contingent resources, in line with the target', Galp said.

Galp shares were 1.2 p ercent higher in early trading on Tuesday, in line with the broader market in Lisbon.




More About galp energia :-




Congo (Brazzaville): Oryx Petroleum confirms successful testing of the CNOOC-operated Elephant discovery in offshore licence Haute Mer A

Source: Oryx Petroleum

JV partner Oryx Petroleum has announced that the testing of the CNOOC-operated E-1

exploration well targeting the Elephant Prospect in the Haute Mer A

licence area in Congo (Brazzaville) confirmed the discovery of

natural gas and crude oil previously announced in September 2013.

Oryx Petroleum has a 20% participating and working interest in the Haute Mer A license

area.

Commenting today, Henry Legarre, Oryx Petroleum’s Chief Operating Officer, stated:

'We are pleased with the testing of the Elephant discovery which will serve as a building block for our operations in Congo (Brazzaville). Overall the test results confirmed the previously announced discovery. Moreover, the three DSTs conducted confirmed the excellent reservoir properties of the sand channels as well as some of the fluid characteristics. We look forward to working with our partners to appraise the Elephant discovery and adding to our resource base in the Haute Mer A license area.' Elephant testing program and results

On August 3, 2013, drilling of the E-1 well reached a total depth of 2,497 metres using the Jasper Explorer Drillship in 550 metres of water 80 kms offshore Congo (Brazzaville). The E-1 well was targeting a deeper

turbiditic Tertiary play similar to the play being exploited in fields adjacent to the Haute Mer A license area, such as the Total operated Moho Bilondo producing field and the Chevron operated Block 14 in Angola.




Primary targets for the E-1 well were the N5 and the N3 reservoir intervals in the Miocene Tertiary. The E-1 well was drilled approx. 4.5 kms south-east of the Libonolo Marine-1 (LIBM-1) well drilled in 1997 by Elf Congo. The LIBM-1 well resulted in a discovery in the N5 interval of the Tertiary Miocene. Excellent reservoir quality was encountered with heavy oil 14° API gravity present. Based on preliminary logging and other data from the E-1 well, 30 metres of gross interval (20.3 metres net) of crude oil and 102 metres of gross interval (58.8 metres net) of natural gas were encountered in the N5 interval and 16 metres of gross interval (9.2 metres net) of crude oil were encountered in the N3 interval. Water was encountered in other secondary targeted intervals.

Three cased hole drill stem tests ('DST') were conducted in the E-1 well including one in the N3 and two in the N5. The DST conducted in the oil bearing intervals of the N3 successfully flowed at sustained rates over a period of two and a half days using a series of different choke sizes The well flowed naturally at a maximum rate of 1,180 bbl/d of oil for a seven hour period on a 36/64” choke. The oil was measured on site at 24° API gravity with a Gas to Oil Ratio ('GOR') of 320 scf/stb. No water was encountered and no sand production was reported at surface. The preliminary analyses of the pressure gauges indicated a sand plugging of the temporary screens due to the unconsolidated character of the sand. Higher rates would be expected with a proper completion pack. The pressure build-up analysis also confirmed the excellent porosity and permeability of the reservoirs in the channel complex previously reported.

The DST conducted in the N5 oil leg successfully flowed at sustained rates in intervals over a period of two and a half days using a progressing cavity pump. The maximum average rate achieved was approximately 515 bbl/d of heavy and viscous oil for a four hour period using a progressing cavity pump. No pressure decline was observed during the tests. Determining the API gravity, GOR and viscosity of crude oil from the N5 will require laboratory analysis. No water was encountered and no sand production was reported at surface. Analysis of the pressure gauges revealed that there was no damage or productivity impairment during the test and confirmed the excellent porosity and permeability of the sand channel complex. The DST conducted in the gas bearing interval of the N5 successfully flowed at sustained rates over a period of 24 hours on five different choke sizes. The well flowed at a maximum rate of 21 MMscf/d on a 44/64” choke for about five hours. The natural gas that flowed was dry which confirms biodegradation. No pressure decline was observed. No sand production was reported at surface during the production but the pressure build-up analysis indicated some sand plugging that impaired productivity during the test. With a proper completion, rates would have been higher. The pressure build-up analysis also indicated excellent permeability and porosity of the sand channel complex.

The data gathered from the well and field tests should be considered preliminary until such time as a pressure transient analysis or well-test interpretation has been carried out. Test results are not necessarily

indicative of long-term performance or of ultimate recovery.

Appraisal plans for Elephant and further

exploration in Haute Mer A

Together with the Operator of the license area, Oryx Petroleum will further analyze the test results and other data accumulated during the drilling of the E-1 exploration well and determine next steps.




Ethiopia: Africa Oil announces farmouts in the Rift Basin Area Source: Africa Oil Corp

Africa Oil Corp has announced that it has received Ethiopian government approval in respect of two farmout agreements:

1. Marathon Oil Corp, through its wholly-owned subsidiary Marathon Ethiopia, will acquire a 50% interest in

the Rift Basin Area;

2. New Age Ethiopia acquire a 40% interest in the Adigala Block.

Under the terms of the Marathon Oil farmout agreement, Marathon Oil will acquire a 50% interest in the Rift Basin Area in Ethiopia. Africa Oil will maintain operatorship of the block, but Marathon Oil has the right to assume operatorship if a commercial discovery is made. In consideration for the assignment of this interest, Marathon Oil will pay Africa Oil an entry payment of $3 million in respect of past costs, and has agreed to fund $15 million of Africa Oil's working interest share of joint venture expenditures in the Rift Basin Area. Africa Oil and Marathon Oil are pleased to complete the final tranche of the farmout transaction originally announced in July 2012 (press release dated July 23, 2012). Completion of this transaction is anticipated in March 2014. Following completion, Africa Oil and Marathon Oil will each hold a 50% working interest in the Rift Basin Area.

The Rift Basin Area covers 42,519 sq kms and is on trend and extending to the northeast of the highly prospective blocks in the Tertiary rift valley including the South Omo Block, and Kenyan Blocks 10BA, 10BB, 13T, and 12A. A 1,200 kilometre 2D seismic survey is anticipated to be acquired during the second half of 2014. Under the terms of the New Age farmout agreement, New Age will acquire an additional 40%

working interest in the Adigala Block, in Ethiopia. Following completion, Africa Oil's interest will be reduced to 10%. In consideration of the assignment New Age will carry Africa Oil's working interest share of a planned 1,000 km 2D seismic work program in the Adigala Block. Completion of this transaction is anticipated in March 2014. Keith Hill, Africa Oil's President and CEO, stated, 'We are very pleased to receive government approval to complete these farmout transactions as we continue to actively manage our highly prospective East African acreage portfolio. We look forward to continuing to work with Marathon Oil as a partner given their stature and long history of success in the oil and gas business. We have a very exciting exploration and appraisal program set out for 2014 which will see us complete over 20 wells. Currently we have seven rigs running and after releasing one in mid-year will have at least six rigs running full time through the remainder of the year. Our program has three objectives, to appraise the existing key discoveries, to drill out the remaining prospects in the South Lokichar basin and to open at least one of the four new basins being tested along

trend. Additionally, we are pushing hard to move the development studies along with the aim of sanctioning a pipeline development for the South Lokichar basin by the end of 2015 or early 2016. This fully funded program should continue to deliver high potential upside value for shareholders through this year and beyond.' Marathon has farmed into Africa Oil's Rift Basin Area




Murphy Oil announces first oil at (SNP) development offshore

Malaysia

Source: Murphy Oil Corp

Murphy Oil Corp has announced that first oil production from the Siakap North-Petai (SNP) development offshore Malaysia commenced on February 27, 2014.

The SNP field, operated by Murphy with a 32 percent working interest, is located offshore Malaysia in a water depth of approx. 4,400 feet. The overall field

development plan consists of eight producing wells and five water injection wells developed as a subsea tie-back to the Kikeh Floating Production Storage and Offloading (FPSO) vessel. Initial operations commenced with production from four oil wells. Peak gross production from the field is expected to reach 35,000 barrels of oil per day in mid-2014. The unitized field combines the discoveries at Siakap North in Block K with Petai in the adjacent Block

G. Murphy's partners in the development are PETRONAS Carigali, Shell, and ConocoPhillips with the latter two partners each holding a 21 percent working interest.

In the Gulf of Mexico, progress on the Murphy operated Dalmatian subsea development is moving forward to plan with the flowline for the first completion installed along with the control umbilical for the entire field. First production is scheduled late this month from the natural gas/condensate producer with the second well to follow later in the third quarter which is consistent with the Company's production guidance stated at the last earnings call.

Roger Jenkins, President and Chief Executive Officer, commented, 'We are pleased to achieve first oil at the Siakap North-Petai development. This field, along with our other oil developments offshore Malaysia and Dalmatian in the Gulf of Mexico, are all key components of our 2014 production growth profile.'

Field: Dalmatian Block: DeSoto Canyon 4 and 48 Working Interest: 70% Status: Development on-going, first production anticipated 2014

Products: Oil/Gas/NGL Water Depth: 6,400 ft




Lundin Petroleum's Balqis exploration well offshore Indonesia disappoints Source: Lundin Petroleum

Lundin Petroleum has announced that the exploration drilling of the Balqis Prospect in the Baronang PSC, Natuna Sea, Indonesia has been completed. Preliminary analysis of wireline logs indicates that the well encountered the targeted Oligocene Upper and Lower Gabus Formation sandstone in well developed reservoirs but no hydrocarbons were encountered. The Balqis-1 well reached basement at a total depth of 2,109 metres below mean sea level (MSL). The lower section of the Balqis-1 will now be plugged and

abandoned and the drilling of the Boni-1 exploration side-track well will commence below the Balqis-1 9 5/8" casing shoe.

The Boni-1 side-track well will test the stratigraphic on-lap play of the Lower Gabus Formation sandstones against the Basement approx. 800 metres to the west of the vertical Balqis-1 well. Lundin Petroleum estimates the Boni Prospect to have the potential to contain unrisked, gross, prospective resources of 55 million barrels oil equivalent (MMboe). The planned total vertical depth is 2,300 metres below MSL and the drilling is expected to take approx. 5 days.

Nido Petroleum exercised its option in accordance with the farm-in agreement to increase its participating interest from 10 percent to 15 percent in the Baronang PSC on the 24th February 2014. The five percentage point increase remains subject to governmental approval.

Lundin Petroleum, through its wholly owned subsidiary Lundin Baronang, is the operator and has a 85 percent working interest in the Baronang PSC. Partners are Nido Petroleum with 15 percent working interest. Lundin operates five PSCs in Indonesia, namely Baronang, Cakalang, Gurita, South Sokang and Cendrawasih VII.




Petrel wins two Porcupine Basin licences (Ireland) Press Release, Petrel , March 04, 2014 .

Petrel Resources plc (Petrel) has been awarded, by the Department of Communications,

Energy and Natural Resources, Frontier Exploration Licences 3/14 and 4/14 in the Irish

Atlantic’s Porcupine Basin.

The acreage licensed collectively covers approximately 1,050km2 or 75% of the 1,400km2 previously held under Licensing Options 11/4 and 11/6. In August 2013, Petrel farmed out 85% of its interest in, and operatorship of, the Licensing Options to Woodside Energy (Ireland) Pty Ltd (Woodside).

The Frontier Exploration Licences are split into logical phases under best international practice, facilitating orderly permitting and progress. The Frontier Exploration Licences are valid for 15 years, with an initial 3 year phase, followed by

three phases of 4 years each. The main elements of the first phase are reprocessing of historic 3D seismic, environmental studies and, subject to regulatory rules and permits, may include the acquisition of new, state-of-the-art 3D seismic. Preparatory technical and environmental work is underway.

Petrel is 100% carried through phase one of the work programme, which covers the next three years. The main element of the second phase, should the parties elect to enter it, would be the drilling of a well on each Frontier Exploration Licence, for which Petrel would be substantially carried.

As set out in the Company’s technical update announcements in respect of these Licences, Petrel launched the farm-out process with the objective of finding the best partner with the vision as well as technical and financial resources and strategic intent to pioneer new hydrocarbon plays in an under-explored, deep-water frontier basin. The Woodside transaction and Licence awards represent the successful conclusion of this process.

David Horgan, Managing Director of Petrel, commented:

“Petrel is delighted to announce the award of two Frontier Exploration Licences in priority areas of the

prospective Porcupine Basin. Past explorers have generally applied ‘North Sea type’ approaches without

sufficient regard to the different geology of the Atlantic Margin.”

“Petrel had already identified a number of geological plays on this acreage, justifying additional technical

work. Our operating partners, Woodside, have brought additional ideas, based on their technical expertise

and past successes elsewhere. The next phase of the work programme is already underway.”




India’s ONGC acquires additional interest in Rovuma block (Mozambique) Press Release, March 04, 2014

ONGC Videsh Limited (OVL) has completed the acquisition of 10% participating interest (“PI”)

in the Rovuma Area 1 offshore Block from Anadarko Moçambique Area 1 Limitada.

On the 24th August 2013, OVL signed definitive agreements with Anadarko to acquire this interest.

“Acquisition of an additional 10% Interest in Area 1 follows our earlier announcement of a completion of a joint

acquisition, with Oil India Limited (“OIL”), of an indirect 10% interest in Area 1, from Videocon Mauritius Energy

Limited. BPRL Ventures Mozambique B.V. (“BPRL”), another Indian PSU already holds a 10% interest in Area 1,” said

OVL in a statement.

Related: ONGC, Oil India Complete Rovuma Area Acquisition (Mozambique)

Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin, offshore Mozambique and represents the largest natural gas discoveries in offshore East Africa with estimated recoverable resources of

45 to 70 trillion cubic feet. The partners in Area 1 include Anadarko (operator of the project), ENH (the National Oil Company of Mozambique), Mitsui, BPRL, BREML and PTTEP. The acquisition marks OVL’s entry into this emerging world-class offshore natural gas basin with significant future upside potential. Area 1 has the potential to become one of the world’s largest LNG producing hubs and is strategically located to supply LNG to the growing Indian gas market.




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

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

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

great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply

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

internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

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NewBase 05 March 2014 K. Al Awadi

Economy & Finance

New base special 05 march 2014