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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 1 NewBase 05 May 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Spain's Tecnicas wins $1.7bn Saudi power deal Arabian Business - Andy Sambidge Spanish energy contractor Tecnicas Reunidas said on Sunday it had been awarded a contract worth close to $1.7 billion to build a large power complex in Saudi Arabia's Jazan Province. In a statement, Tecnicas Reunidas said it had been hired by Saudi Aramco, the state-owned oil company, to execute the Jazan IGCC (Integrated Gasification Combined Cycle) complex in the south western region of Saudi Arabia. The Jazan IGCC complex, which is to become the largest gasifier-based power facility in the world, will convert vacuum residue to be produced in the adjacent Jazan refinery into synthesis gas. The company said the contract has a value of approximately $1.7 billion, adding that the facilities will be operational in 2017. This new contract is the second one for the power generation business of Techicas with Saudi Aramco after the successful completion of the Manifa cogeneration plant. The scope of the project awarded includes the development of the utilities and off-sites facilities for the IGCC complex under a contract covering the services for engineering, procurement, construction, precommissioning and commissioning support for the facilities.

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Page 1: New base special  05 may  2014

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 1

NewBase 05 May 2014 Khaled Al Awadi

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

Spain's Tecnicas wins $1.7bn Saudi power deal Arabian Business - Andy Sambidge

Spanish energy contractor Tecnicas Reunidas said on Sunday it had been awarded a contract worth close to $1.7 billion to build a large power complex in Saudi Arabia's Jazan Province.

In a statement, Tecnicas Reunidas said it had been hired by Saudi Aramco, the state-owned oil company, to execute the Jazan IGCC (Integrated Gasification Combined Cycle) complex in the south western region of Saudi Arabia.

The Jazan IGCC complex, which is to become the largest gasifier-based power facility in the world, will

convert vacuum residue to be produced in the adjacent Jazan refinery into synthesis gas.

The company said the contract has a value of approximately $1.7 billion, adding that the facilities will be operational in 2017. This new contract is the second one for the power generation business of Techicas with Saudi Aramco after the successful completion of the Manifa cogeneration plant.

The scope of the project awarded includes the development of the utilities and off-sites facilities for the IGCC complex under a contract covering the services for engineering, procurement, construction, precommissioning and commissioning support for the facilities.

Page 2: New base special  05 may  2014

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

Técnicas Reunidas said it has designed and constructed over 1,000 industrial plants, spanning more than 50 countries in the six continents.

TR is currently executing two large projects in the 400,000 bpd Jazan Refinery.

The gasification unit will have a capacity of 2,110,000 Nm3/h of syngas that will be evenly used to produce purified hydrogen for the refinery and to fuel a combined cycle facility producing utilities and power for the refinery and export to the national grid. Total output of the plant will be of approximately 2,400 MW.

About Tecnicas Reunidas SA ( TR ) :-

TR is an outgrowth of the former Spanish subsidiary of The Lummus Company, Lummus Española, S.A., founded in 1960. In 1972, a Spanish group of investors acquired 100 % of the shares of Lummus Española and renamed the company to Técnicas Reunidas.

Since 1960 the TR group of companies has designed and built more than 1000 industrial plants worldwide.

TR's multinational clients and licensors include the world's leading companies. The projects have been developed in over 50 countries covering the six continents.

The international projection of the TR group of companies and the keen specialization in the execution of turnkey projects, have been the bases of TR's expansion since the 80's. International projects account for 78% of the company's annual turnover.

TR has incorporated the most advanced systems and technologies based on the latest generation of data processing tools to manage and design the projects. More than 5.500 professionals have been trained and posses practical experience necessary to manage these projects.

TR develops all designs with 3D systems, and as such is able to produce "three dimensional virtual plant models" which eliminate potential problems derived from the integration of the various disciplines. This approach generates a highly accurate and quality product with a greater added value and is able to detect potential problems early in the design phase.

Page 3: New base special  05 may  2014

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 3

Omani Block 4 heavy oil play is promising: Tethys Oil (OEPPA Business Development Dept), Written by Conrad Prabhu

Swedish based international upstream energy firm Tethys Oil says a major heavy oil play discovered in its Block 4 concession onshore Oman is potentially promising, yet technically challenging. The field, located in the Saiwan East area of Block 4, is estimated to hold over 1 billion barrels of heavy oil in place, said Tethys Oil in a newly released report of its upstream investments in the Sultanate.

Following tests of the field, the company concluded that any potential production from the heavy oil in Saiwan East, while “cautiously encouraging”, would require enhanced oil recovery (EOR) techniques. “No additional tests on the heavy oil are planned for the near future, with plenty of other possibilities on the blocks that have a higher chance of resulting in an immediate cash flow.

But the heavy oil of the area is a challenge and big opportunity,” Tethys Oil stated in its report. The Saiwan East area of Block 4 has been something of a mixed bag for Tethys Oil. Near the same area that heavy oil was discovered, the company’s Saiwan East 3 well tested over 10,000 barrels of oil per day (bopd). But the natural decline of the Saiwan East oil field wells has been substantial, and the field is now producing at a modest rate, the company said.

Any move to bring the nearby heavy oil to the surface would require EOR techniques, it said. What came as a surprise for Tethys Oil was the discovery of light crude at depths far greater than those of the heavy oil formations within the Saiwan East field. “The various densities in different areas of the field seem to have a big impact on where conventional oil has been found”, the company said, noting that its SE-4 well encountered unexpectedly large quantities of oil with different gravities and viscosities than previously believed possible.

Page 4: New base special  05 may  2014

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

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“Both the light sweet crude and the heavy oil constitute large possibilities for the future. In light of the strategy, to priority drilling of wells with high chance of success that could be put on stream fast, no near time activity is planned at the Saiwan East oil field,” Tethys Oil said.

With interests in three onshore blocks, Tethys Oil is one of the largest concession holders in Oman’s upstream energy sector. Blocks 3 and 4 are located in the eastern part of Oman and covers an area of 34,610 sq km. Tethys has a 30 per cent interest in the Blocks. Partners are Mitsui (20 per cent) and the operator CC Energy Development SAL Oman branch (50 per cent).

Block 15 is situated in the north western part of central Oman and covers an area of about 1,400 square kilometres. Tethys Oil has a 40 per cent interest in the licence and Odin Energi the other 60 per cent.

Output from Blocks 3 and 4 have accounted for much of Tethys Oil revenues. Total production from these blocks increased 24 per cent to 1.7 million barrels of oil in 2013, corresponding to 4,556 barrels of oil per day (bopd). “With the discovery of the Lower Buah as reservoir in area 4, production at year-end reached new heights,” said Magnus Nordin, Managing Director. “In 2014, we have reported record production three months in a row. We are now close to bringing our average daily production above 7,000 bopd,” he stated.

In addition to boosting its exploration/appraisal programme in 2014, the company plans to drill a number of wells in many areas of the blocks, including the South Farha South area and the Lower Buah prospects, the Managing Director added.

Page 5: New base special  05 may  2014

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

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in this publication. However, no warranty is given to the accuracy of its content . Page 5

RWE Dea Egypt reaches initial production targets at natural gas project Disouq Source: RWE

RWE Dea successfully connected development well North West Khilala-1-4 (NWK-1-4) to production. With this well the company reached its initial production target for the natural gas project Disouq in the Egyptian Nile Delta. Several additional wells and the start-up of the Central Treatment Plant later this year will further boost the ouput.

RWE Dea has confirmed the recent tie-in and production start of development well NWK-1-4. In March, the well was successfully drilled to delimit the northwestern part of the North West Khilala (NWK) Field. The well was flowed at a rate of 17 million standard cubic feet gas per day during clean-up testing. It’s RWE Dea’s fourth well on stream at the natural gas project Disouq in the Egyptian Nile Delta.

'We are pleased, that the NWK Field has now reached its production target of 60 million standard cubic feet gas per day in line with our initial expectations', said Maximilian Fellner, General Manager RWE Dea Egypt. 'RWE Dea remains committed to supplying natural gas to meet the needs of Egypt's growing energy demand. The current NWK production along with planned production from the main Disouq Central Treatment Plant later this year, will form an important contribution to Egypt's domestic gas production', Fellner explained.

RWE Dea’s operated Disouq project encompasses the development of seven gas fields in the Nile Delta and NWK is the first field brought into production last September. Together with the Egyptian Natural Gas Holding Company (EGAS) and the Suez Oil Company (SUCO), RWE Dea plans to produce a total of approximately 430 billion standard cubic feet of gas from the seven gas fields in the first phase of the Disouq Development Project.

Page 6: New base special  05 may  2014

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 6

NPD to map Mørerand High and Gjallar Ridge South in the Norwegian Sea Source: NPD

This summer, the Norwegian Petroleum Directorate (NPD) will map the subsurface on the Mørerand High

and Gjallar Ridge South in the Norwegian Sea, which is in the western part of the continental shelf. The objective is to acquire knowledge about unexplored acreage.

The so-called shallow drilling will reach up to 200 metres down into the subsurface, to rocks that were formed about 55-65 million years ago in the geological Cretaceous and Paleocene periods. 'Geologically

speaking, this is a blank spot on the map,' says project manager Nils Rune Sandstå of the Norwegian Petroleum Directorate. 'The objective of the drilling is to learn what kind of rocks can be found there, and how old they are'.

'The drilling target on the Mørerand High is located near the area where the continental plates separate from the oceanic crust to the west. Material from this area is therefore scientifically interesting. It will also increase understanding of the Møre basin as exploration acreage for future petroleum activities,' says Sandstå. On the Gjallar

Ridge South, the objective is to take samples from the geological layer above those examined by the Norwegian Petroleum Directorate last summer using a remotely operated underwater vehicle (ROV). This year’s surveys will therefore provide a more complete picture of the geology in the area.

The drilling operation in the Norwegian Sea is part of the mapping of the sea area between Norway and Greenland – a project that has been ongoing for many years. This year’s fieldwork will provide the answer to questions such as whether some of the rocks are sedimentary or volcanic. The Mørerand High is located 49 miles west of Mosjøen. There is no fishing in the area, and according to the NPD’s

project manager, the drilling will not result in any discharge of chemicals harmful to the environment.

'The Directorate has carried out shallow drilling in the Barents Sea before, at water depths between 300 and 400 metres. The drilling operations in the Norwegian Sea will be technically challenging due to the vast water depths. This places extensive demands on the vessel doing the job,' says Jan Stenløkk, operative supervisor for the fieldwork.

Following several tender rounds, the contract was awarded to the British company Fugro Seacore, which will use the specially equipped supply vessel Greatship Manisha. One of the Norwegian Petroleum Directorate’s geologists will join the ship’s crew, which will set sail from Kristiansund in early May. The work is expected to last three to four weeks.

The NPD has previously acquired seismic in parts of the area, and has been granted NOK 55 million from the fiscal budget for this year’s mapping.

Page 7: New base special  05 may  2014

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 7

Russia sanctions have 'little effect' on UK oil and gas jobs The Telegraph

Increased sanctions on beleaguered Russia would have little effect on Britain’s oil and gas

consultancy industry, according to new research.

Just 4pc of all oil and gas jobs advertised to UK applicants are based in the troubled country, meaning that if the EU or US were to impose wider economic sanctions there would be a “limited impact” on the industry, consultants Procorre said.

However, high-earners would more likely be hit, as 9pc of oil and gas jobs advertised with salaries over £100,000 are based in Russia.

While asset freezes and travel bans have already been imposed on members of Russian president Vladimir Putin’s inner circle, who have been accused of supporting the country’s efforts against Ukraine, the EU and US have threatened to widen restrictions to include industries such as banking or energy.

On Friday, Barack Obama, US president, and Angela Merkel, German chancellor, warned that wide-ranging “sectoral sanctions” on parts of Russia’s economy are likely to be imposed if the country refuses to de-escalate the situation in Ukraine before elections are held later this month to choose a successor to Viktor Yanukovych, who was ousted as president in February.

Several Western oil and gas companies employ UK consultants in Russia, including Exxon, Shell and Total. Lisa Mangan, relationship manager at Procorre, said: “The situation on the ground is changing by the day and at this stage it is unclear what the outcome will be.

"However, if the situation continues, UK consultants that have developed a particular Russian focus will have plenty of scope to explore opportunities in other high demand regions.”

Page 8: New base special  05 may  2014

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 8

British Lords call for speeding fracking http://voiceofrussia.com/news

Britain’s fracking industry is being held back by environmental regulations drawn up in Brussels, a senior committee of the UK House of Lords plans to say this week, NYT reports. In a major report, the Lords are expected to call for permits to be granted more quickly to drilling companies to allow them to test the potential of newly drilled shale gas wells.

Government experts believe that Britain's shale gas and oil reserves, buried deep underground, could generate billions of pounds worth of fuel in future as well as more jobs. Hydraulic fracturing, or "fracking", involves pumping water, sand and chemicals at high pressure into shale rock deep underground, which then fractures, releasing its reserves of gas and oil. This controversial process has raised environmental concerns over the potential risks to drinking water supplies from contamination by fracking waste chemicals, and

the danger of causing earth tremors.

Ministers fear landowners and anti-fracking protesters would use existing laws to block shale gas extraction in the UK, as it suggests prior permission is needed to run pipelines thousands of feet below private land. The officials instead pledge all seismic activity will be closely monitored and any significant changes will result in the process being slowed or stopped. The companies will still need planning permission to drill for shale gas, they say.

Ministers also hope that exploiting the shale gas and oil reserves could help secure a home-grown energy supply and reduce household gas and electricity bills in future.

David Cameron also believes that fracking could help Britain and the rest of the European Union reduce its reliance on imported gas from Russia, thus, the process should be boosted. Speaking at the World Economic Forum in Davos earlier this year, Mr. Cameron warned Europe against imposing "burdensome" red tape on the fracking industry. Industry groups warned the committee that Britain's onshore oil and gas businesses were governed by 14 separate EU directives, ranging from water directives to minor waste regulations.

He said businesses wanting to relocate in Europe needed "cheap and predictable sources of energy." "If the European Union or its member states impose burdensome, unjustified or premature regulatory burdens on shale gas exploration in Europe, investors will quickly head elsewhere," he said.

George Osborne, the Chancellor, on his part, has said that shale gas could bring "thousands of jobs, billions of pounds of business investment, and lower energy bills."

But the House of Lords Economic Affairs Committee, whose members include the former Conservative chancellor, Lord Lawson of Blaby, is expected to conclude that it is impossible to know what the UK's shale reserves will be worth without more widespread fracking.

The Lords committee has been investigating the potential impact of shale gas and oil on the UK economy and energy policy since October 2013, NYT says.

Page 9: New base special  05 may  2014

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

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They are expected to conclude that the potential benefits to Britain from fracking are huge but that progress in the exploration of new wells, and testing the "flow rate" of gas and oil from these wells, should be accelerated.

However, only a relatively small proportion of Britain – about 7,300 sq miles – has so far been licensed for oil and gas drilling. Last year, ministers commissioned consultants to identify which other areas are suitable for drilling. Greenpeace, which opposes fracking, says the areas being assessed cover some 32,000 sq miles.

A government report is expected to be published soon setting out the next wave of potential fracking opportunities in southern England. The Committee, chaired by Lord MacGregor of Pulham Market, a Cabinet minister in the governments of Baroness Thatcher and Sir John Major, will publish its report on the economic impact of shale gas on Thursday.

The prime minister's official spokesman confirmed the government was looking at ways of making test drilling easier and to ensure there was not "an overburden of red tape and regulation".

He added: "Fracking is something that is very new, certainly in this country, which is why we are looking to see whether there are particular obstacles to the test drilling."

Page 10: New base special  05 may  2014

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

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in this publication. However, no warranty is given to the accuracy of its content . Page 10

Philippines: Otto Energy withdraws from Service Contract 51 due to safety issues Source: Otto Energy

Otto Energy has announced that following extensive post-well analysis of the Duhat-2 well drilled in July 2013, its wholly owned subsidiary Otto Energy Investments Limited (OEIL) has elected to withdraw from Service Contract 51 ('SC51').

Duhat-2 was drilled in July 2013. The well was drilling ahead at approx. 200 metres when the well started to flow high pressure water at high flow rates. Upon analysis, the flow was comprised of brackish water with very low trace gas readings. Standard industry safety practice was followed to shut-in the well using heavy weight mud and, subsequently, a cement plug.OEIL undertook a detailed analysis of the well results (including drill cutting analysis and seismic pressure reviews) to determine if the unexpected Duhat-2 results could be understood. Based on these reviews, OEIL has concluded a well cannot be safely drilled at the Duhat-2 well location given the shallow overpressures experienced and the indications of low rock strength above the zone of overpressure. In addition, OEIL has formed the view that a well cannot with confidence be drilled in accordance with good industry practice elsewhere on the San Isidro anticline given the results observed at the Duhat-2 location. No other drillable prospects have been identified on existing seismic data available in the northern

Service Contract area.

Otto’s Chief Executive Officer, Matthew Allen, said 'Safety and environment are Otto's top priorities and it has been concluded that it is not safe to proceed with drilling in the SC51 area. The Duhat-2 well presented a series of very unexpected and potentially dangerous challenges to our drilling team, which were successfully and safely addressed as a result of comprehensive pre-drill planning and preparation. These potentially dangerous challenges could be expected during future drilling activities in the block. In addition to safety concerns, OEIL has also further reviewed the prospectivity of the SC51 North block and elected to withdraw. OEIL sees no further defined exploration targets within this licence.

Page 11: New base special  05 may  2014

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 11

Hess and Petronas at final decision on Malaysia Bergading CPP The New York- based Hess Coporation (Hess) and the Malaysia national oil company (NOC) Petronas are reaching the final investment decision (FID) stage with the Bergading project to develop the natural gas and condensate in the North Malay Basin offshore the Malaysia Peninsula.

As part of the Block PM 325, Bergading has been ranked as the largest discovery in the North Malay Basin.

Owned through their 50/50 joint venture CH Mutiara, Hess and Petronas estimate the North Malay Basin reserves to 1.3 trillion cubic feet (tcf).

Because of its large size and the number of different fields, Hess and Petronas intend to develop the North Malay Basin in phases.

For this second phase, Hess and Petronas has decided to include the Zetung, Angerik and Kazumba (ZAK) fields together with Bergading.

The ZAK fields will be equipped with eight slot unmanned wellhead platforms, one per field.

These three wellhead platforms will then be connected to the Bergading central processing platform (CPP).

From Bergading, the condensate will be exported by a floating storage and offloading (FSO) vessel while the gas will be exported through the 230 kilometers pipeline system identified as the Thai-Malaysia

Joint Development Area Gas Balancing Evacuation (JDA-GBE) project.

This JDA-GBE pipeline system is already in construction under the operatorship of the Trans Thai-Malaysia (TTM) company.

Owned 50/50 by PTTEP from Thailand and Petronas from Malaysia, the TTM joint venture has been established by the two countries to unlock the exploration and production of the oil and gas in their disputed territorial waters called Joint Development Area (JDA).

Page 12: New base special  05 may  2014

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 12

Hess and Petronas to award Bergading EPCIC contract With the critical infrastructures taking place, Hess and Petronas are willing to proceed with the execution phase of the Bergading project in awarding its engineering, procurement, construction, installation and commissioning (EPCIC) contract.

Malaysia is racing to develop its natural gas resources to remain a net gas exporter despite the development of its own consumption for the power generation and newborn petrochemical industry.

In this context, Hess and Petronas qualified last year teams of international companies with local contractors and shipyards to perform a competitive front end engineering and design (FEED) on

Bergading.

In conclusion of this competitive FEED the qualified companies were expeted to submit their best offer to execute the Bergading EPCIC contract.

In the case of Bergading, Hess and Petronas evaluate the not only the technical and commercial offers as usual, but also the propositions to maximize the local content in Malaysia.

Based on this competitive FEED, the Bergading gas and condensate project should include:

- A wellhead platform

- A gas central processing platform (CPP)

- A bridge between the two platforms

- The connection to the JDA-GBE export pipeline system

The Bergading central processing platform is designed for a capacity of 450 million cubic feet per day (cf/d) of gas.

This CPP will be equipped with specific modules for the separation of the carbon dioxide and the mercury from the natural gas.

The topsides should weight 20,000 tonnes supported by a jacket estimated to 8,000 tonnes.

From the seven teams pre-qualified, Hess and Petronas has kept only two to reach the final stage of the competitive FEED process and submit an EPCIC offer for Bergading.

Hess and Petronas are planning to make the final investment decision in May 2014 and sanction the Bergading CPP EPCIC contract in following for a first production expected in 2017.

Page 13: New base special  05 may  2014

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

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Gabon expects output boost By News wires

Gabon's oil production is expected to rise by at least 9% 2014 from 210,000 bpd produced last year, according to reports.

"Oil production in 2014 should reach 230,000 bpd or even 250,000 bpd," Reuters quoted Oil Minister Etienne Ngoubou telling journalists at an industry event, without providing further details.

The central African oil producer was once an Opec member but production has dipped from a peak of about 370,000 bpd in 1997 due to maturing fields.

Gabon is seeking to encourage investment in the sector and has ambitions to boost production to 500,000 bpd as new offshore fields become operational.

Total and Shell are among the companies operating in the former French colony.

Gabon expects output to increase 9% in 2014

Page 14: New base special  05 may  2014

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Advancing China-Africa ties By He Wenping (China Daily)

Premier Li Keqiang is paying official visits to Ethiopia, Nigeria, Angola and Kenya from May 4 to 11, during which he will deliver a speech at the headquarters of the African Union in the Ethiopian capital Addis Ababas and attend the 2014 World Economic Forum on Africa in Abuja, the capital of Nigeria. During his visit, Li is expected to sign about 60 deals in sectors such as energy, trade, culture, health, agriculture and personnel training.

This is Li's first visit to Africa since he took office in 2013, and it comes within a year of President Xi Jinping's visit to the continent as part of his first trip abroad after taking office. In addition to the visits by Xi and Li, Foreign Minister Wang Yi visited Ethiopia, Djibouti, Ghana and Senegal in January 2014, continuing the long-held tradition that Africa is the first destination of the year for China's foreign ministers, who have made the continent their first port of call each year since 1991. This highlights that the Chinese

leadership continues to attach great importance to the development of China-Africa relations and the enhancement of South-South cooperation.

There is no doubt that frequent high-level reciprocal visits are the necessary guarantee for China and Africa to strengthen mutual political trust and establish a new type of strategic partnership, as well as an important pillar ensuring the smooth development of their traditional friendship in the future. When there is a leadership change in a country it is particularly important for exchange visits to be conducted in the shortest possible time so as to maintain communication and understanding and reassure each other of the continuity of friendly relations.

State-to-state relations thrive when there is friendship between the peoples and such friendship grows out of close interactions. In order to maintain the healthy and sustainable development of China-Africa friendly relations, there should be people-to-people exchanges as well as frequent exchange visits by high-level officials. Over the past decade, more and more Chinese have come to Africa and vice versa, and now the frequency and scale of bilateral people-to-people contacts and exchanges are unprecedented.

Page 15: New base special  05 may  2014

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Africans' favorable views of China are the result of the ordinary Chinese working in or visiting the continent with whom they come into contact and the China-made products they use, as well as the "China story" they see and hear. Therefore, if businessmen, academics, tourists, and workers in Africa can show Chinese people's genuineness, real results, affinity and sincerity, then the healthy and sustainable development of bilateral relations will gain inexhaustible momentum and there will be no market for those allegations of neocolonialism that aim to sow discord between China and African countries.

Li's visit also coincides with the 50th anniversary of former Chinese premier Zhou Enlai's first visit to Africa. Over the past half a century, China-Africa relations have continued to develop no matter how the international situation has changed. Today, China has been Africa's largest trade partner for five years in a row and Africa is China's third-largest market for overseas investment and second-largest market for overseas contract projects. China's direct investment in Africa had reached $25 billion by the end of 2013 and there are more than 2,500 Chinese companies now investing in Africa.

At the same time, people-to-people exchanges are becoming increasingly frequent. By the end of 2013, China had trained a total of 54,000 officials and technicians for African countries and sent to Africa technical personnel, young volunteers and agricultural experts more than 360,000 person-times. In all, 37 Confucius institutes and 10 Confucius classrooms have been set up in 31 African countries. At present, there are also 43 Chinese medical teams serving in 42 African countries and regions.

And according to a conservative estimate, there are now more than 1 million Chinese in Africa and the number of Africans that come to China for study, doing business and exchanges is also increasing rapidly. It is said that there are about 200,000 Africans living in Guangzhou, with an annual growth rate of 30 to 40 percent. In 2013, there are about 33,000 African students in China.

All in all, to enhance the traditional friendship between China and Africa and achieve sustainable development of relations, efforts must be made through both official and people-to-people channels to enhance communication and mutual trust between Africa and China from the higher levels to the grassroots. Only in this way can the foundation of public opinion required for the

common development of China and Africa be mutual and stable.

The author is a senior fellow with the Chahar Institute and a researcher with the Institute of West Asian and African Studies at the Chinese Academy of Social Sciences.

Page 16: New base special  05 may  2014

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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 Technical Affairs Specialist for Technical Affairs Specialist for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation 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 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 EmaManager in Emarat , responsible for EmaManager in Emarat , responsible for EmaManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed rat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed rat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed rat Gas Pipeline Network Facility & gas compressor stations . Through the years , 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 routes. Many years routes. Many years routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for 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 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

inteinteinteinternationally , via GCC leading satelliternationally , via GCC leading satelliternationally , via GCC leading satelliternationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

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NewBase 05 May 2014 K. Al Awadi