New base special 08 september 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

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NewBase 08 September 2014 Khaled Al Awadi

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

Saudi builder says to diversify into solar, nuclear energy Reuters + NewBase

Major Saudi Arabian construction firm Abdullah Abdul Mohsin AlKhodari Sons Co said on Sunday that it would diversify into solar and nuclear energy.

Khodari's new activities will include supplying and installing solar energy equipment and systems, it said in a statement to the Saudi bourse.

It would also provide contractor services, maintenance and other operations for nuclear energy, the company said without giving details of the size of expected business.

The government body responsible for planning the Saudi energy mix said in 2012 that the world's top oil exporter planned to install around 41 gigawatts of solar power over the next 20 years as well as about 17 GW of nuclear capacity. Saudi Arabia currently has no nuclear reactors.

MANY NATIONS HAVE TAKEN A STEP BACK FROM NUCLEAR PLANS FOLLOWING THE ACCIDENT AT THE FUKUSHIMA DAIICHI PLANT IN JAPAN. BUT GCC STATES ARE PURSUING THEIR PLANS WITH MAJOR INVESTMENTS IN NUCLEAR POWER.

THE UAE IN DECEMBER 2009 AWARDED A SOUTH KOREAN CONSORTIUM THE CONTRACT TO BUILD FOUR NUCLEAR POWER PLANTS WORTH $20.4 BILLION. POWER DEMAND IN SAUDI ARABIA IS ESTIMATED TO GROW SEVEN TO EIGHT PERCENT DURING THE NEXT 10 YEARS. IT IS THE LARGEST ECONOMY OF THE GCC, WITH AN

ANNUAL GDP OF $622 BILLION AND A GDP PER CAPITA OF $24,200.




Oman begins prequalification for $3.6bn Liwa Plastics Project http://main.omanobserver.om/?p=109056 + NewBase

Oman Oil Refineries and Petroleum Industries Company SAOC (Orpic), the Sultanate’s refining and petrochemicals flagship, has invited international and local contractors to prequalify for one or more contracts linked to the implementation of the multi-billion dollar Liwa Plastics Project at Sohar Port.

Up for grabs are four packages covering all of the key components that together constitute the Liwa Plastics Project (LPP) which, at an estimated cost of $3.6 billion, is set to be Oman’s largest petrochemicals scheme to date. Under an ‘Invitation for Prequalification’ floated by Orpic at the weekend, contractors can register their interest in bidding for one or more of the Engineering-Procurement-Construction (EPC) packages on offer.

The giant scheme is proposed to be established adjacent to the ongoing Sohar Refinery Improvement Project (SRIP) under way at the industrial port of Sohar. It features, among other things, a nominal 900,000 tonne per year ethylene cracking plant, HDPE plant, LLDPE plant, new polypropylene plant, MTBE plant, butene-1 plant and

associated utility and offsite facilities. Also envisioned as part of this project is a Natural Gas Liquids extraction facility, which will be set up at Fahud and linked to the Sohar plant via a roughly 300km pipeline.

Package 1 covers the construction of the centrepiece Steam Cracker plant complete with offsite works and utilities. Equally substantial is Package 2 centring on the construction of the Polyethylene and Polypropylene units. Envisaged in Package 3 is a natural gas liquids (NGL) extraction plant that will be set up at Fahud, while Package 4 covers the construction of the 300km pipeline that will link the Fahud plant with the Liwa Plastics Project in Sohar.

Significantly, the ‘Invitation for Prequalification’ represents only the first part of a two-stage prequalification (PQ) process leading to the competitive tendering phase for the ultimate prize: the EPC contracts, says Orpic.

Only single entities (not joint ventures or consortia) are eligible to seek prequalification in ‘PQ Stage 1’. However, applicants that may intend to form joint ventures or consortia when the EPC tender is eventually floated can register their interest as well. The latter are however required to specify whether to wish to be prequalified as either Single Entity/Lead Partner in a future joint venture/ consortium or a Partner in a future joint venture/consortium.

In PQ Stage 2 of the prequalification process, applicants who have been prequalified as single entity or lead partner may choose to participate as single entity, lead partner, or partner. Likewise, applicants who have been prequalified during PQ Stage 1 may elect to form joint ventures/consortia with one or two of the prequalified applicants.

Importantly, the Liwa petrochemical plant will be integrated with Orpic’s existing Sohar refinery, aromatics complex and polypropylene plant to create a massive petrochemicals complex within the industrial port.




Rail line to link GCC states needs $15.4b in investment Saudi Gazette + NewBase

The Sultanate of Oman’s Ministry of Transport & Communications, in cooperation with the Cooperation Council for the Arab States of the Gulf – Secretariat General, and member states, organizes the first and official GCC Rail and Metro Conference that will be held on Jan. 11-12, 2015 at the Al Bustan Palace Muscat.

The GCC railway project is one of the most ambitious and challenging megaprojects in the world today. The investments projected by the GCC countries are estimated at more than $200 billion over the next 10 years with more than $15.4 billion investment in the GCC rail line to link the member states with an estimated length totaling 2,200 km. The GCC Rail and Metro Conference 2015 – A Vision for Sustainable Development – will be attended by high-ranking government officials from the GCC States’ Ministries of Transport, Trade and Commerce, and Finance, alongside top executives from Etihad Rail, Saudi Railways Organization, Saudi Railway Company, Qatar Rail, and Oman Rail. They will share their progress on project’s development and localization initiatives as well as participation in dynamic panel discussions to address key issues, challenges and opportunities enabling effective private sector participation. This will further strengthen GCC economies by fostering trade and bolstering social integration amongst GCC Member States through improved understanding of localization practices for sustainable growth and development.




The panel discussions will be moderated by the multi-awarded journalist and best-selling author, Tim Sebastian, founder and chairman of The Doha Debates. He was a former presenter of BBC’s highly-acclaimed program, HARDTalk. The GCC Rail and Metro Conference 2015 is strongly endorsed by the GCC heads of the states, who are all supporting the development of significant rail and metro projects with the GCC railway as one regional, integrated and interoperable railway linking all the GCC member states and further integrating with the national GCC railways. The GCC Rail and Metro Conference 2015 is expecting around 500 participants, including Government officials from Ministries of Transport, Ministries of Finance, Ministries of Planning, Ministries of Trade and Industry, banking sector as well as from private sector representing companies and institutional investors in the GCC countries and the world’s leading companies in manufacturing and projects development. The idea of establishing a railway network to link the GCC six countries emerged in 2000. The experts believe that such a network would increase the level of trade exchange between the countries of the region, alleviate traffic congestion and reduce pollution. It is expected that this network will be the core of the network project connecting all cities of the Middle East. Countries in the region have realized the need for an initiative to cover the region as a whole, prompting them in 1999 to adopt a development plan for an integrated transport system in the Western Asian under the auspices of the United Nations - Economic and Social Commission for Western Asia (ESCWA) This initiative formed the way to study the economic feasibility for a railway line linking the member states of the Gulf Cooperation. The network will start from the Iraq-Kuwait border and up to Oman passing through Qatar, Saudi Arabia, in parallel to the coast of the Arabian Gulf. Studies indicate that there is expected growth in figures of transporting the goods by train after the implementation of the Gulf railway network, with the transfer of an estimated 31 million tons of goods by train in 2016 – 17 million tons of heavy raw materials, and 4.1 million tons of goods imported by some of the GCC countries from outside.

Upon completion, the

Etihad Rail network will

span approximately 1,200

kilometers across the

Emirates. It will connect

urban and peripheral

communities, facilitate

trade, open up

communication channels

and foster economic

development across all

Emirates in the UAE. The

network will also form a

vital part of the GCC

Railway Network, linking

the UAE to Saudi Arabia

through Ghweifat in the

west and Oman through Al

Ain in the east




GCC, led by KSA and UAE, has best business outlook in emerging markets . Saudi Gazette

Along with the US, business activity in the Gulf is expanding at the fastest pace in the world, according to the purchasing managers’ index (PMI) compiled by Markit. The index is based on monthly questionnaires regarding business conditions answered by purchasing executives in different sectors. According to the PMI survey, global business activity kept on expanding at a good pace in August – a reading above 50 indicates a higher number of respondents reporting “better conditions” than “worse conditions”, hence an expansionary business environment. In fact, the outlook for the world economy is the best it has been in more than three years.

Excluding Great Britain, the survey shows business conditions are the best in Saudi Arabia, where the non-oil producing private sector PMI reached a 37-month high of 59.4 in August. The only other Gulf Cooperation Council (GCC) country for which PMI is estimated is the United Arab Emirates (UAE), and it shows a non-oil private sector that is outperforming the world after it hit 58.4 in August, its second highest level on record. Against this backdrop, Asiya Investments, an investment firm investing in Emerging Asia, in its latest weekly analysis, said business activity has been gaining traction in Saudi Arabia in the last few months as a result of the robust growth in the consumer sector – cash withdrawals from ATMs have been at all-time highs. The increase in Saudi Arabia’s non-oil private sector PMI in August was the third consecutive sequential pick-up. According to the survey, the improvement didn’t only come from better domestic conditions. Stronger demand from abroad also led to the increase in




activity. New export sales rose by the fastest pace in six months. The gradual increase in output and new orders also boosted the labor market, as shown by the net employment PMI sub-index hitting the highest level since March 2013. In the UAE, unlike Saudi Arabia, non-oil private sector conditions have been improving since late 2011. Increasing external and domestic demand has led to the high PMI levels, with growth in new export orders hitting a record high and credit growth picking up for the first time in the last five years. Although the recent improvement in global economic conditions has reinforced the Saudi Arabian and the UAE economies, their domestic sectors are playing a major role behind the countries’ stabilities, both consumer and corporate led. No change in trend is expected in the near term as high levels of new orders and employment are expected to continue driving the expansion in business activity. Business confidence has considerably increased across the world compared to two years ago, according to the composite world PMI. The PMIs of major economies, including emerging markets, were all in expansion in August. Among the developed nations, US PMI is expanding at the fastest pace even though it slowed in the last two months leading to August. Business conditions in the euro zone have increased much more in the last twelve months, but remain much lower than in the US. The better sentiment has been led by the ECB’s loosening monetary policy despite economic performance remaining sluggish. Japan, the third largest developed economy, is still witnessing a much lower PMI than its peers but successive sequential PMI upticks since April indicate a gradually recovering economy. Emerging markets are also experiencing divergent business conditions. The worst performing economies, the non-Asian emerging markets excluding the Gulf, continue to be rather weak but slowly recovering according to their respective PMIs. They include Turkey and Brazil. Emerging Asian nations, such as China and India, are expanding at a faster pace, but still look weak compared to global standards as businesses expect more measures from their governments. The GCC, represented by Saudi Arabia and the UAE, has the best business outlook among emerging markets. Secured with large fiscal surpluses, due to stable oil receipts, and supported by a wealthy consumer base, businesses continue to be very optimistic about short-term prospects despite the increasing geopolitical turmoil in the region. Accordingly, their markets have rallied, and are expected to keep heading upwards as business sentiment remains strong.




China electric car production rises Reeeuters + NewBase

Chinese car makers produced 11 times as many new energy vehicles in August 2014 as they did in August 2013, authorities said. They made a total of 5,191 green vehicles last month after the government rolled out more support for the sector, Xinhua cited from a statement by the ministry of industry and IT. For the first eight months of the year, the total production was 31,137 units.

New energy vehicles include pure electric cars and plug-in hybrid electric vehicles. During the January-August period, the output of pure electric passenger cars soared nearly 700% from a year earlier to 16,276 units and that for the plug-in hybrid passenger cars climbed about 12 times to 6,621 units.

The output of pure electric and plug-in hybrid commercial vehicles went up by 55% and 91% respectively, the statement said. China has rolled out measures, including tax exemptions and subsidies for car purchases, to encourage the use of new energy vehicles. In July, the government announced that new energy cars will be

exempted from a 10% purchase tax from September 1, 2014 till the end of 2017. However, new energy cars still account for only a tiny proportion of China’s total auto output. In the first seven months, the country’s automotive industry produced 13.3mn vehicles, according to the China Association of Automobile Manufacturers.

The tax exemption applies to imported vehicles as well as domestically produced ones, the statement said, adding the government would compile a catalogue of eligible models. China has sought to increase ownership of electric and hybrid vehicles to ease chronic pollution and reduce reliance on oil imports, but high prices, lack of infrastructure and consumer reluctance have been obstacles.

The government has set a target of having five million new energy vehicles on the streets by 2020. The central government also offers

outright subsidies for electric passenger car buyers, which were set at $5,700 to $9,800 last year, while local incentives can bring the price down further.

Lack of charging stations and the desires of Chinese consumers – many first time owners – for big, flashy vehicles have hurt electric car sales. Policymakers are seeking to move away from state spending to domestic consumption as a key driver of the economy, which has been slowing. Several foreign auto makers have announced plans to develop environmentally-friendly vehicles in China, despite the currently small market.




BP, CNPC raise shares in Iraq's Rumaila oilfield -Iraqi official Reuters + NewBase

A revised contract signed last week by British oil major BP and China & apos;s CNPC for Iraq's Rumaila oilfield has raised both companies' stakes in a joint venture formed to develop the field, a senior Iraqi oil official said on Sunday.

Under the revised contract, BP has cut the planned output target for the supergiant field to 2.1 million barrels per day from 2.85 million bpd and extended the life of the deal, BP and Iraqi officials said on Thursday.

The original contract had BP holding a 38 percent stake in the Rumaila venture, while CNPC had a 37 percent share and Iraq's State Oil Marketing Organisation controlled the rest.

According to the revised deal signed on Thursday, BP's share rose to 47.6 percent and CNPC's to 46.4 percent, while Iraq's stake was reduced to 6 percent, Thamer Ghadhban, top energy adviser to outgoing

Prime Minister Nuri al-Maliki, told Reuters. He did not elaborate. BP and CNPC could not immediately be reached for comment.

After signing a series of service agreements with foreign companies in 2009-2010 to develop its giant southern oilfields, Iraq set an overall production capacity target of 12 million bpd by 2020, which would rival the output capacity of top oil exporter Saudi Arabia at 12.5 million bpd. Foreign oil companies working in Iraq include BP, leader at Rumaila; ExxonMobil , in charge of West Qurna 1; Royal Dutch Shell , operator of Majnoon; and Lukoil , which is leading West Qurna 2 operations.

But crumbling infrastructure, red tape and a lack of clear legislation have stunted investor interest. Baghdad has reduced its overall capacity target to 8.5-9 million bpd and returned to the negotiating table to discuss revised planned output targets, known as plateau production levels, with oil companies.

"With major contracted fields' production plateaux reduced to more feasible and sustainable targets I'm now confident we can reach 9 million bpd or so by 2020," Ghadhban tweeted on Thursday.

Rumaila has estimated reserves of 17 billion barrels. It currently produces around 1.3 million to 1.4 million bpd, almost half of Iraq's output of around 3.2 million bpd.




Searcher Seismic wraps up Pinatubo seismic survey (Philippines) Press Release,

Searcher Seismic has reported that the acquisition of the Pinatubo multi-client 2D

seismic survey is now complete.

The 3,510 km survey covering a 10 by 20 km grid in the West Luzon Basin includes coverage over the PECR5 bid round blocks 8,9,10 & 11.

The Pinatubo 2D survey offers for the first time a modern seismic 2D coverage to evaluate the West Luzon Basin. The survey covers an unexplored area and will provide data sufficient to define major structural trends and plan detailed follow up surveys.

The Pinatubo multi-client 2D survey provides 3,510 km of long offset, broadband data critical to progressing the evaluation of this area.

Acquisition is now complete with fast track data available in December this year, to ensure ample time for evaluation of the blocks in the current PECR5 bidding round.




Tullow divesting North Sea gas assets to focus on oil

Tullow Oil plc has entered into an agreement to sell its operated and non-operated L12/L15 block interests and non-operated Q4 and Q5 block interests to AU Energy B.V., a subsidiary of Mercuria Energy Group Limited for a consideration of €62.7 million (US$81.1 million).

The transaction involves the sale of a subsidiary, Tullow Netherlands B.V., which will, at the time of completion, hold all Tullow Oil L12/L15 and Q4 and Q5 interests. The transaction has an effective date of 1 January 2014 and completion, expected during early 2015, is conditional upon ministerial consent of the intra-group transfer of the L12/L15 and Q block non-operated licence interests to Tullow Netherlands B.V.

The Tullow L12/L15 and Q block portfolio comprises a suite of seven licence interests and six developed fields producing 1,500 boepd net to Tullow. Tullow’s guidance for North Sea production will be revised appropriately when this sale completes.

Aidan Heavey, Chief Executive of Tullow Oil plc, commented today, “The sale of the Tullow’s interests in Blocks L & Q is a further step towards the Group’s planned divestment of our North Sea gas assets in order to focus our business on conventional light oil. The previously announced agreement to sell part of our interests in the UK Schooner and Ketch unit to Faroe Petroleum for a total consideration of US$75.6 million is on track to complete before the end of the year, and the divestment of our remaining UK & Dutch gas assets is progressing well.”




Statoil and Lundin qualify bidders on Norway Johan Sverdrup Phase-1 Press Release

The Norwegian national oil company (NOC) Statoil and its partners, Lundin from Sweden, Maersk Oil (Maersk) from Denmark, Petoro and Det Norske Oljeselskap (DNO) from Norway, aligned on the concept to develop the first phase of the giant Johan Sverdrup oil and gas field in the Norwegian Continental Shelf (NCS) of the North Sea.

Located approximately 140 kilometers west of Stavanger on the west coast of Norway, Johan Sverdrup is lying by 120 meters of water depth and 1,900 meters total depth.

Considered as one of the largest discovery in the North Sea of the last decades, the Johan Sverdrup full field development will involve three blocks with different partners, working interests and operators:

- PL 265 where Statoil has 40%, Petoro 30%, DNO 20%, Lundin 10%

- PL 501 where Lundin has 40%, Statoil 40%, Maersk 20%

- PL 502 where Statoil has 44.44%, Petoro 33.3%, DNO 22.22%

Because of the links between the blocks, the respective operators Statoil and Lundin agreed on the unitization of these blocks where Statoil is acting as overall operator.




Due to last 50 years and represent up to 25% of the crude oil production on the NCS, Statoil and its partners are targeting to produce 550,000 to 650,000 barrels of oil equivalent per day (boe/d).

Expecting to reach 70% recovery rate, Statoil and its partners, Lundin, Maersk, DNO, and Petoro, have decided to develop Johan Sverdrup in phases.

Aker Solutions at FEED work on Johan Sverdrup

For Johan Sverdrup Phase-1, Statoil and its partners are selected a concept of a field center with a capacity of 315,000 boe/d and 80 MW electrical power supplied from shore.

With the power supply from shore, Statoil and its partners expect to save 60 to 70% of the greenhouse gas emissions.

The extra costs of this power supply from shore contributed to intense debates between the partners and between politicians at the Norwegian Parliament.

Anyway in the meantime, Statoil and its partners awarded the front end engineering and design (FEED) contract to Aker Solutions.

This FEED contract is part of a 10 years agreement during which Aker Solutions will provide Statoil with engineering services, procurement and management assistance (EPma).

Based on the concept selected by Statoil and its partner, Aker Solutions is designing the Johan Sverdrup Phase-1 project in including four bridge-linked platforms :

- Drilling platform

- Risers platform

- Process platform

- Living quarter platform

The fifth platform that has been considered one time for the power generation has been converted for now into the power from shore solution.

Statoil and its partners are currently qualifying the engineering companies to bid

on these platforms to be tendered separately.

For each platform the topsides and jackets will also be tendered separately knowing that the jackets for the drilling platform and the living quarter platform have been awarded to Kvaerner last June.

Even if the engineering companies to bid of the different packages may be different, Statoil and its partners, Maersk, Lundin, Petoro and DNO, are planning to award all contracts before second quarter 2015 for the completion of the $20 billion Johan Sverdrup Phase-1 project by 2019.




Keppel Shipyard to convert LNG vessel to FLNGV for Golar LNG Press Release,

Keppel Shipyard, a wholly-owned subsidiary of Keppel Offshore & Marine, said it is in the process of

finalising contracts with Golar Gimi, a unit of Golar LNG, to perform the conversion of a second

Moss LNG carrier, the Gimi, into a Floating Liquefaction Vessel (FLNGV).

Earlier on 3 July 2014, Keppel Shipyard was awarded a firm contract by Golar Hilli to perform the world’s first-of-its-type conversion of a Moss LNG carrier, the Hilli, into an FLNGV, and the contract included options for another two similar units. The forthcoming conversion award of the Gimi will mark the exercise of the first of these two options.

The work scope for Keppel Shipyard in converting the Gimi is expected to be similar to that for the Hilli. Keppel Shipyard will be responsible for the provision of the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services. It is also expected that Keppel Shipyard’s scope will include engaging Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process. Once again, Black & Veatch’s established PRICO® technology is expected to be selected for the liquefaction process.

Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said, “We are happy that Golar LNG is looking into their second FLNGV conversion, and is finalising discussions with Keppel Shipyard to perform this second conversion. We look forward to the opportunity to collaborate once again with Black & Veatch, our trusted partner for the first conversion, on this potential second project. We are confident that together with Black & Veatch, we will be able to perform this second conversion to the high standards expected of us.”

“This advanced discussion for the conversion of the Gimi, which follows just two months after the first firm contract with Golar Hilli, is testament to the industry’s positive reception to FLNGV conversion solutions and its potential to bring small and mid-scale Liquefied Natural Gas (LNG) to market, ahead of other competing solutions,” said Chia.

“A further announcement will be made upon the execution of a firm contract, which is expected by October 2014, for the conversion of the Gimi. Upon execution of the contract, full construction activities will only commence when Keppel Shipyard receives a notice to proceed which is expected to be given on or after 1 January 2015 but no later than November 2015,” the company said in a statement.




Indonesia's PGN Plans $500 mn Investment in Lampung FSRU for LNG Press Release

Indonesian gas distributor Perusahaan Gas Negara (PGN), plans to invest $500 million this year to finalise its floating storage receiving unit (FSRU) in Lampung and gas pipeline in Central Java, Director Wahid Sutopo said, reported Kontan Online this week.

In July, Hoegh LNG announced that the PGN FSRU Lampung project offshore Indonesia reached an important milestone when the unit, along with its associated mooring and pipeline to shore was deemed mechanically complete and commenced commercial operation for its client Perusahaan Gas Negara (PGN). The PGN FSRU Lampung further completed receiving its first cargo of LNG on 27 July, and has now entered its final commissioning phase.

The contract with PGN is for 20 years. The second and third FSRU is scheduled to commence commercial operation later this year and the fourth FSRU will likely be delivered in the first quarter next year, Hoegh said.

Last month, Perusahaan Gas Negara (PGN) said it has signed contracts to supply 1.3 million standard cubic feet per day (mmscfd) of gas from its FSRU in Lampung to 14 companies. The Lampung FSRU has a capacity to supply 240 mmscfd of natural gas.




Commercial-scale cellulosic ethanol plant opens

Source: Republished with permission from POET-DSM

On September 3, a joint venture company called POET-DSM Advanced Biofuels held the grand

opening of its Project Liberty cellulosic ethanol plant in Emmetsburg, Iowa. The plant is the first of

three commercial-scale cellulosic ethanol facilities under development in the Midwest that convert

corn stover (corn cobs, leaves, husk, and stalk) into ethanol.

The 50/50 joint venture Project Liberty is owned by POET of Sioux Falls, South Dakota, and Royal DSM, a Dutch company. At full capacity, the plant will process 770 tons/day of corn stover.

While nearly all ethanol produced in the United States comes from corn starch, ethanol can also be produced from cellulosic feedstock such as wood, grasses, straw, and agricultural waste. Despite legislated mandates as part of the federal renewable fuel standard (RFS), there has been very little production of cellulosic ethanol to date. For instance, the legislated RFS target volume for 2013 was 1 billion ethanol-equivalent gallons

of cellulosic biofuel, which the Environmental Protection Agency (EPA) reduced to 6 million gallons in August 2013, based on its assessment of supply capacity. Ultimately, EPA retroactively reduced this requirement to 0.81 million gallons in May of this year, after production shortfalls.

The three facilities now under development or beginning operations in the Midwest (including Abengoa's 25-million gallon per year facility in Hugoton, Kansas; Dupont's 30-million gallon per year facility in Nevada, Iowa; and the POET-DSM plant) offer the best near-term prospects to prove technology for producing cellulosic ethanol at a meaningful scale. These plants use a more complex process than the recently announced effort to ferment the naturally accessible sugars present in corn kernel fiber into fuel, which only recently

received EPA approval as a cellulosic biofuel meeting RFS criteria. The process used by POET-DSM, enzymatic hydrolysis, has been developed over many years and is one of the best understood ways to produce cellulosic ethanol. The first global commercial-scale application of this process occurred last fall when Beta Renewables started production at its Crescentino, Italy, facility. Beta's parent, BioChemtex, plans to start up a similarly designed plant with partner GranBio in Brazil later this year.





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Oil slips below $102, heads for weekly drop on dollar Reuters + NewBase

Brent crude oil fell further below $102 a barrel on Friday, heading for a third weekly drop in four as a strong dollar depressed demand and US employment data suggested the world’s biggest oil consumer was growing more slowly than expected.

Oil prices on both sides of the Atlantic fell nearly $1 on Thursday as a cut in interest rates by the European Central Bank led to a spike in the US dollar, making it more expensive for holders of other currencies to buy the dollar-denominated commodity.

US jobs figures on Friday showed nonfarm payrolls increased by just 142,000 last month, well below forecasts of 225,000 and the smallest rise eight months. Brent was down 15 cents at $101.68 a barrel by 1320 GMT, after closing 94 cents down on Thursday. US crude was 5 cents lower at $94.40 a barrel, having lost $1.09 the previous day.

US crude oil stocks fell by 905,000 barrels last week, while gasoline stocks dropped by 2.3 million barrels, Energy Information Administration data showed. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 385,000 barrels.

However, rising US production, a glut of crude in the Atlantic basin and Asia, together with the potential for rising exports from OPEC-members Libya and Iran, continued to add downward pressure on oil prices.

Libya’s oil production rose to 725,000 barrels per day (bpd) this week, more than six times the level two months ago, while successful talks between the West and Tehran over its nuclear programme could

bring more Iranian barrels to global markets. Morgan Stanley says Iranian exports could recover to 1.5-2 million bpd over the next 12 to 18 months if sanctions are lifted. The country has been exporting slightly more than 1 million bpd in recent months.





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Khaled Malallah Al Awadi, Energy Consultant

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

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 Technical Affairs Specialist for Emirates Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates

General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCCGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCCGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCCGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of area via Hawk Energy Service as a UAE operations base , Most of area via Hawk Energy Service as a UAE operations base , Most of 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 & the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through gas compressor stations . Through gas compressor stations . Through gas compressor stations . Through

the years , he has developethe years , he has developethe years , he has developethe years , he has developed great experiences in the designing & constructingd great experiences in the designing & constructingd great experiences in the designing & constructingd great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many

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

NewBase 08 September 2014 K. Al Awadi

Economy & Finance

New base special 08 september 2014