New base special 14 july 2014

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NewBase 14 July 2014 Khaled Al Awadi

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

Shell signs pacts with Environment Society of Oman BY TIMES OF OMAN

Shell Development Oman (SDO) recently signed two sponsorship agreements with the

Environment Society of Oman (ESO). The agreements will enable ESO to hold a regional

environment competition for Omani students and to conduct a research study about the Egyptian

vulture in Oman.

The agreements were signed at Shell's office in

Mina al Fahal by Chris Breeze, Shell's Country

Chairman Oman, and Amor Nasser Al Matani, ESO

Vice President. As part of the first agreement, Shell

will sponsor an environment focused competition

for Oman's youth. The regional event will target

students across a range of colleges and will

encourage participants to openly discuss environmental issues. This event will not only develop

the public speaking skills and confidence of its participants, but will serve as a platform for Oman's

next generation to express their views about some of the challenges Oman's environment is

facing

As part of the second agreement, Shell will sponsor a study about the Egyptian vulture, a species

known to be located in several regions of Oman. The study will seek to identify the most

prominent territories where this species of vulture is located, determine possible threats that may

lead to its endangerment, and suggest conservation measures that can be taken to prevent

extinction

Commenting on these agreements, Chris Breeze said "We are pleased to be entering into a

partnership with ESO to support two initiatives that will contribute to the preservation of Oman's

environment. Engaging the youth and conducting research are key steps along the way towards

creating a future that addresses environmental issues. Shell is committed to contributing to

sustainable development, which requires integrating environmental considerations into business

decision-making."

Amor Nasser Al Matani said, "We are very grateful for the support of Shell. As an NGO, ESO

depends on the support of sponsors such as Shell Development Oman which then enables us to

carry out conservation efforts and promote environmental awareness. Egyptian vultures have

been studied by ESO in 2012 on Masirah Island and we look forward to surveying the Egyptian

Vulture in different regions of Oman to have a better understanding of their breeding and migration

activities."




Private sector to boost MENA power deals ��. The Peninsula

The increasing role of the private sector in both power generation and water could boost opportunities for large-scale transactions in Mena in the future. With market reform in the region gaining momentum as well as utility unbundling, renewables looks to be a fertile growth area in the region, EY’s Power Transactions and Trends report noted yesterday.

A number of Middle East funds, including Qatar’s sovereign wealth fund, are planning to diversify their investments and acquire assets across the globe. Qatar and Kuwait were eyeing the UK utility sector in 2013. Saudi Arabia’s ACWA Power has recently started to internationalise and Abu Dhabi’s quasi-sovereign Masdar Capital is already the owner of several large-scale renewable assets internationally.

Several other utilities in the Gulf, particularly in Qatar, are known to be interested in establishing independent power plant (IPP) type companies which can compete in international markets for new projects using their substantial capital base and their deep experience of the IPP model. This could have the impact of increasing competition for regulated and renewable assets in Europe, EY’s Power Transactions and Trends report noted yesterday.

“At present, utilities in the Gulf are focusing chiefly on domestic investment. There is a massive need for new power and water capacity, driven by population growth and the increased industrialisation of the region’s economies. The projections for new capacity over the next few years encompass not just generation but basic infrastructure. This demand will open up substantial opportunity for private sector involvement and transactions,” said David Lloyd, Mena Power & Utilities Transactions Leader, EY.

Transaction activity in the GCC is largely based on participation of the private sector in capital projects and commercial undertakings. As markets and competition in power generation becomes more established, growth rather than consolidation is expected to be a dominant driver of activity, and more deals to be done between state-owned businesses and the private sector.

Substantial, and largely inbound, transaction activity is expected in renewables — mainly solar and wind. Several substantial renewable energy programs are in the future pipeline, covering all of the Gulf countries. As this market takes off, extensive use of IPPs is expected, with foreign private sector capital coming in to fund, build and operate renewable energy plants.




“The hydrocarbon-rich countries of the Gulf recognise that their resources and capital may not be limitless, given the massive investment needed in generation and subsidies. There’s definite interest in switching fuel sources and raising capital from the private sector around the IPP model,” said Christian von Tschirschky, Mena Power & Utilities Leader, EY.

In particular, significant transaction activity based on joint ventures between international and domestic companies is expected, with the international companies contributing their renewables expertise and local partners drawing on their local knowledge of land, regulation, environmental issues and power off-take permitting.

The Middle East continues to be one of the world’s biggest markets for IPPs, and a number of global independent power companies are active in the region and continually looking at new projects. Institutional investors might consider ways to play in this developing renewable energy market, which will attract companies of all sizes and have significant funding requirements and long-term off-take profiles. However, given how Middle East markets are structured, this is probably more of a long-term play.

Ma’aden to acquire

50% of Jabal Sayid

copper project




Ma’aden to acquire 50% of Jabal Sayid copper project Saudi Gazette

The Saudi Arabian Mining Company (Ma’aden) has signed a partnership agreement with Barrick Gold Corporation of Canada to establish a limited liability company that will acquire, develop and operate the copper mining project in Jabal Sayid which is 120 kilometers southeast of Madinah. Having received the Ministry of Petroleum and Mineral Resources approval in principle of the transaction including the transfer of the mining and exploration licenses to the new joint venture, Ma’aden will invest around SR787.5 million ($210 million) to acquire 50 percent share of the project, including all equipment and existing infrastructure free of any

encumbrance or debt.Jabal Sayid is the most important copper mine discovered in the Kingdom. The underground mine is reported to have 650,000 tons of reported reserves. Production at Jabal Sayid is expected to start in the fourth quarter of 2015 as engineering, construction and equipment installation are substantially complete. Production capacity is expected

to reach between 45 and 60,000 tons per year. Based on the current reported reserves, the expected life of the mine is up to 15 years but may be increased by the joint venture in light of its intention to expand exploration efforts under its exploration and mining licenses. The project will provide in excess of 400 direct jobs in addition to further non-direct jobs. The agreement was signed at the head office of Ma’aden in Riyadh, attended by the chairman of Ma’aden’s Board of Directors Eng. Abdullah bin Saif Al Saif. Ma’aden was represented by its Chief Executive Officer Eng. Khaled bin Saleh Al Mudaifer and Barrick was represented by the Chairman of its board of directors John Thornton. The signing ceremony was also attended by Ma’aden’s Chief Financial Officer Khaled Al Rowais and Barrick’s Senior Executive Vice President Kelvin Dushinsky. Al Mudaifer pointed out that Ma’aden’s investment in copper activities is in line with its strategy to diversify its business portfolio, which currently consists of phosphate, aluminum, gold and industrial minerals. In addition, Ma’aden’s investment in the Kingdom’s most important copper project and its partnership with the world’s leading gold mining company will give Ma’aden an opportunity to attain added value for its investments through the transfer of specialized copper know-how and technology to the Kingdom.

Chairman of Ma’aden’s Board of Directors Eng. Abdullah bin Saif Al Saif,

Ma’aden CEO Eng. Khaled bin Saleh Al Mudaifer and Barrick Chairman of board

of directors

Jabal Sayid Mining inventory stands at 24.5 Million Ton in reserves grading 2.3% Cu, o.3g/t AU and 10g/t Ag .




Sabic’s Lexan sheet boosts aesthetics in Brazil Source Sabic .

Thousands of fans gathering at the FIFA World Cup 2014 matches are enjoying a wonderful new experience – courtesy of Sabic’s high-performance Lexan sheet and systems. These lightweight, high-impact and UV-resistant polycarbonate materials were chosen to create roofing and façades for the four Brazil stadia, which include two of the World Cup venues. These stadia are; Arena da Baixada in Curitiba, Arena Pantanal In

Cuiabá, Coritiba Football Club Stadium in Curitiba and Arena Gremio in Porto Alegre. These awe-inspiring arenas in Brazil benefit from the many features of Sabic Lexan polycarbonate sheet, which, compared to glass, is significantly lighter in weight while offering high stiffness and more than 250 times the impact resistance to reduce the risk of breakage from wind, hail, and other extreme weather. The fire-resistant material offers excellent

resistance against degradation from ultraviolet (UV) radiation. Allowing more daylight, these sheets also provide superb thermal insulation, minimize the effects of heat and reduce the need for cooling systems leading to energy savings. Sabic’s materials greatly facilitate easy installation while providing excellent aesthetics. Sabic Lexan polycarbonate sheet meets the requirements of the unique design concepts of the new sports arena and provide excellent aesthetics while meeting the strict safety codes, the changing environmental, sustainability and energy efficiency requirements and performance expectations. Thus, Sabic’s Lexan polycarbonate sheet materials has been the top choice of architects to create more than 50 stadia over the world, including the FIFA World Cup stadia in South Africa 2010, Olympic Stadium in Sydney, Australia, Barcelona, Spain and Chongqing, China, and UEFA European Football Championship Euro 2004, Euro 2008, Euro 2012 stadia in Portugal, Austria, Switzerland, and Poland and Ukraine Sabic's wide global expertise, as well as its innovative and specialized products used in creating the best stadiums the world, will help the company to continue meeting its obligations and supporting the national economy. This qualifies Sabic to be fully ready to contribute to the building and the construction of the 11 sports cities, which King Abdullah, Custodian of the Two Holy Mosques, ordered to establish in various regions of the Kingdom. This involves the steel for building infrastructure, polycarbonate for roofing, and plastic for seating




Nigeria: Oando Energy Resources completes acquisition of Medal Oil

Oando Energy Resources, a company focused on oil and gas exploration and production in Nigeria, has completed the acquisition of Medal Oil Company.

The purchase price of US$5,000,000 was satisfied by the issuance of 3,491,082 units, each unit consisting of one common share of the Company and one-half of one warrant to purchase an additional common share at a price of C$ 2.00 per common share for a period of 24 months from the date on which the Company closes the acquisition of the Nigerian upstream oil and gas business of ConocoPhillips ('CoP Aquisition'). Medal Oil holds a 5% interest in OML 131. Upon completion of the CoP Acquisition, OER will own a 100% interest in OML 131.




Cuba: Rosneft to explore for oil offshore Cuba Source: Reuters + NewBase

Russian President Vladimir Putin said on Friday he was hopeful Russian oil company Rosneft and Cuban state oil company Cupet could begin jointly exploring Cuba's potential

offshore oil reserves 'in the very near future.'

Shortly before Putin began his six-day trip to Latin America, Rosneft and fellow state oil company Zarubezhneft agreed to help Cupet explore offshore in Cuba, which has limited onshore production and depends on Venezuela for oil imports.

Putin also said a number of Russian companies were interested in doing business in Cuba's new special economic zone at the port of Mariel near

Havana. Cuba has touted the special zone as crucial for its development but so far no foreign companies have signed agreements to operate there.




Turkmenistan: Dragon Oil says on track for 2015 milestone target Source: Reuters via Yahoo! Finance + NewBase

Turkmenistan-focused oil explorer Dragon Oil said Friday it was on track to meet its 2015 production milestone of 100,000 barrels of oil per day (bopd), despite disappointing drilling results at some of its Turkmen fields. The explorer also said it would reach a 2014 output level of 87,000-90,000 bopd.

The company decided to suspend a new appraisal well at its Dzhygalybeg (Zhdanov) field in Turkmenistan after disappointing results. 'While the results of the initial flow rate from the well are below our expectations, it would be premature to draw conclusions about the potential of the Dzhygalybeg (Zhdanov) field,' said chief executive Abdul Jaleel Al Khalifa.

As at 31 December 2013 As at 31 December 2012

Proved and Probable Remaining Recoverable Reserves

Oil and Condensate million barrels

Gas TCF

Oil and Condensate million barrels

Gas TCF

Gross field reserves to 1st May 2035 675 1.4 677 1.5 2C Resources Gross oil and condensate contingent resources

69 - 59 -

Gross gas contingent resources - 1.5 - 1.4




UK North Sea Solan facilities nearing completion, Premier Oil says Press Release

Premier Oil, a UK-based independent oil and gas company, has informed that the

development of the Soland field in the UK North Sea, west of the Shetland Islands, is

progressing well.

In its recent trading update, the company said that the construction and onshore commissioning of the jacket and the topsides were nearing completion. The offshore installation and heavy lift campaign is scheduled to begin in August before hook up and final commissioning. Total project cost, including spend beyond first oil, is now estimated at $1.4 billion.

Premier will take an enhanced share of the project’s cash flow until it has received a pre-agreed return on its investment. Premier is also in negotiations with Chrysaor over the sale or refinancing of the loan to Chrysaor and the funding of Chrysaor’s share of future capex requirements for the Solan project.

The Premier Oil-operated Solan field is expected to produce approximately 40 million barrels of oil with an estimated initial production rate of 24,000 barrels of oil per day starting in the fourth quarter of 2014.

The project will entail the drilling of four subsea wells (two producers and two water injectors) tied back to a processing deck supported by a jacket. It is planned that the facilities will not be permanently manned after one year of operations. Oil will be stored in a subsea tank prior to being offloaded to shuttle tankers. The specially designed 300,000-barrel subsea storage tank sailed from Dubai in June from the Drydocks World yard.




India: Ajit Pawar lays Foundation Stone for Welspun Energy’s 50 MW Baramati Solar Project

Welspun Energy is setting up the 50 MW project on a PPP model with Maharashtra State Power Generation.

Welspun Energy Pvt. Ltd. (WEPL), one of India’s leading developer of renewable energy projects, will soon commence construction of its 50 MW solar project in Maharashtra. Ajit Pawarji, Deputy Chief Minister of Maharashtra and one of India’s statesmen, laid the foundation stone in Baramati in Pune district. The plant’s location is one of the most favorable locations in state for setting up a solar project. Esteemed Supriya Sule accompanied by other illustrious Members of Parliament were also present at the momentous occasion.

Ajit Pawar, Deputy Chief Minister Maharashtra said, “Addressing climate change while balancing development needs is a critical priority area. It is our obligation to focus on energy security as well as relook the way we have been using energy. We need to look for ways to reduce our carbon footprint and efficiently use energy sources. The government has been systematically working on its green energy agenda. Maharashtra has laid focus on solar and wind energy to secure energy access for the present as well as the future. The Baramati 50 MW solar project will be a major step in this direction and will certainly help to

meet state’s green energy goals.”

Vineet Mittal, Managing Director Welspun Energy Ltd. said, “Committed to energy security, we have been setting up solar power projects pan India. Moving forward we are expanding our commitment to support the illustrious state of Maharashtra in meeting its RPO obligations. This is the second project we have built in the state. Like our other projects across the state, we will be bringing our expertise in project development to this one as well. Best in class engineering

practices and project management excellence contributes towards our success. We are committed to build this 50 MW project as the highest generating one in the country.”

Welspun Energy is setting up the 50 MW project on a public-private partnership (PPP) model with Maharashtra State Power Generation Co. Ltd (Mahagenco). The power producer will be fully responsible for part-finance, design, and commissioning of this grid interactive solar power. WEPL will invest 60% of project cost and will be entitled to get 62% share in revenue.

The 50 MW capacity will be installed in two phases. Part 36 MW will be installed on 74.74 hectares of government land. Balance 14 MW capacity will be installed after acquisition of balance 29.97 hectares required for the project. Estimated 83,220 tonnes of carbon dioxide emissions will be mitigated each year. For the next 25 years, the project will generate enough green energy to power .24 million households. Among the three bids received for the project, Welspun Energy had emerged as the highest revenue sharing bidder.

Apart from Maharashtra the company is building large capacity solar projects in the states of Tamil Nadu &Punjab. Construction has begun on its 36 MW Punjab project site and an MoU has been signed for an additional 151 MW capacity. The organization is targeting to develop 1.75 GW of renewable capacity in next three years.




Steelhead LNG and First Nations sign for Canada Vancouver LNG project

Registered in Vancouver, British Columbia (B.C.), the newly established company Steelhead LNG Corporation (Steelhead LNG) signed with the Huu-ay-aht First Nations (HFN) an Opportunity Development Agreement to jointly design and build a liquefied natural gas (LNG) project on the Sarita Bay on the west coast of Vancouver Island in British Columbia, Canada.

This Vancouver LNG project is one more evidence of Canada to take a leading role through British Columbia in the global gas market. In November 2013, British Columbia Government published a report, the Ultimate Potential for Unconventional Petroleum from the Montney Formation of British Columbia and Alberta, where it updates the Province estimations of natural gas reserves. After

analyzing the Montney Basin in the northeast of British Columbia up to the boarder with Alberta, the B.C. Ministry of Natural Gas Development doubled compared with previous estimations the estimated gas -in-place reserves to 2,933 trillion cubic feet (tcf) of natural gas.

These reserves represent more than 150 years consumption out of which B.C. Authorities consider 1,965 tcf of natural gas are available reserves. Because of its ideal position to export to Asia and its stable legal and political environment British Columbia is promoting its west coast to LNG projects investors.

Steelhead LNG partners with First Nations to go fast

In each LNG project proposed in British Columbia, the investors promote their competitive advantage to facilitate acceptance and speed up the approval process. So far we could see British Columbia projects advertising around technology, environment, access to Asia market, old industrial sites remediation, ice-free port.

In the case of Steelhead LNG, the key value is the alliance with First Nations to build a very local B.C. project. The selected site belongs to the Huu-ay-aht First Nations as well located 10 kilometers north of Anacla at the southern entry of the Alberni inlet on the Sarita Bay on the west coast of Vancouver Island.

Benefiting from such easy access location for LNG carriers, Steelhead LNG is planning to invest $30 billion capital expenditure together with HFN to develop this Vancouver LNG project. In July 2014, Steelhead LNG submitted its application to the National Energy Board (NEB) for the export of 30 million tonnes per year (t/y) of LNG during 25 years. In this perspective Steelhead LNG and HFN are planning to phase up the project with a first series of four LNG trains and a fifth one later on. Vancouver LNG trains should have a capacity of 6 million t/y each. In order to save carbon dioxide emissions these Vancouver LNG trains should be electrical motors driven.




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

Your partner in Energy Services

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

Energy Services & Consultants Mobile : +97150-4822502

[email protected]

[email protected]

Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. COil & Gas sector. COil & Gas sector. COil & Gas sector. Currently working as urrently working as urrently working as urrently working as

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

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the local authorities. He has become a reference for many of the Oil & Gas Conferences hthe local authorities. He has become a reference for many of the Oil & Gas Conferences hthe local authorities. He has become a reference for many of the Oil & Gas Conferences hthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andeld in the UAE andeld in the UAE andeld in the UAE and Energy program broadcasted Energy program broadcasted Energy program broadcasted Energy program broadcasted

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

NewBase 14 July 2014 K. Al Awadi

Economy & Finance

New base special 14 july 2014