New base special 19 february 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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NewBase 19 February 2014 Khaled Al Awadi

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

Condenser installed on Barakah nuclear plant in Abu Dhabi The National staff , www.thenational.ae

The Emirates Nuclear Energy Corporation (Enec) completed another milestone in the development of the UAE’s peaceful nuclear energy programme on Tuesday. Sheikha Lubna Al Qasimi, Minister of International Cooperation and Development, visited the Barakah plants to witness the latest progress, with Enec’s chief executive, Mohammed Al Hammadi. The condenser plays an important role in the generation of electricity and is used in all types of power plants. In a nuclear reactor, nuclear fission creates heat that turns water into steam. The pressure of the steam turns a generator, producing electricity. The condenser cools the steam back into water, allowing the process to be continuously repeated.

Made in South Korea, it consists of three sections connected to equalising ducts, with each section 26 metres long and weighing 700,000 kilograms. Welding was completed in the Unit 1

reactor containment building after more than seven months.“We are pleased to be progressing safely and on schedule as we work to deliver the UAE’s first nuclear energy plant,” said Mr Al Hammadi. “The team will now focus on completing the fit-out of the condenser, including the installation of the duct sections, water boxes, low-pressure feed-water heaters and auxiliary systems. “The entire process is expected to take over another year before the condenser is complete.”

NewBase Comments :- I fully support the clean, safe, and dependable nuclear industry I believe this should be adopted widely by all civilized nations. Instead of a nation that had no nuclear because of a lack of fuel, our favorite fictional country now gets a range of existing and new power stations, and a long lasting nuclear fuel purchase contracts. There is also a sophisticated move for nuclear research studies in the UAE universities in order to conduct vital research into nuclear medicine and other allied industries.

Nuclear power makes sense, and for those of you out there who believe that energy should be clean and ‘carbon-free’, I’m glad to say that nuclear is only viable option available. Even if one rejects the need to cut carbon dioxide from the atmosphere (as I most certainly do), going nuclear is good for creating jobs, creates economic diversity, allows UAE to value-add to nuclear fuel imports , and breaks our reliance on gas & oil as the primary source of base-load electricity.




Egypt: Dana Gas signs North El Arish concession agreement offshore Nile Delta http://www.energy-pedia.com/

Dana Gas, the Middle East’s leading regional private sector natural gas company, has signed an agreement

for the North El Arish (Block 6) Concession Area, offshore the eastern Nile Delta. The 2,980 sq km block

was awarded in April 2013 as part of a competitive bidding process. This is the Company’s first offshore

block in Egypt, covering water depths from 20 up to a 1000 m. Multiple play types have already been

identified within the acreage and

plans for the first exploration phase

of four years, which has now

commenced, includes seismic

acquisition and the drilling of one

exploration well.

The Company is also pleased to announce the award of a new Development Lease, known as Balsam which is located in the West

El Manzala Concession, Nile Delta region. The lease, which is 32 sq km brings the number of current leases to thirteen. Alongside the award of Balsam, Dana Gas has secured an 18 sq km increase at its El Basant and

Sama Development Leases in West El Manzala and West Al Qantara Concessions respectively.

These extensions bring the full extent of the Allium-1 and West Sama-1 well discoveries, made in H2 2012, within development leases awarded to Dana Gas. Dana Gas has filed development plans for these leases and the fields can be brought on-stream very rapidly given Dana Gas’ comprehensive gas pipeline network and processing plants across its operating area.

Dr. Patrick Allman-Ward, Chief Executive Officer, said: 'We are very pleased to have signed the North El Arish Concession Agreement. We consider this Block to be highly prospective and it forms an important part of Dana Gas’ growth portfolio. Dana Gas remains fully committed to developing the natural gas industry in Egypt, and we are extremely optimistic about the future. We are continuing with constructive dialogue with the Egyptian Government in order to further reduce the outstanding receivables as soon as possible.'

Dr. Mark Fenton, General Manager, Dana Gas Egypt, added: 'The award of these development leases containing the Balsam, Allium and West Sama discoveries has allowed us to strengthen our position in the key gas rich Nile Delta region. These discoveries, together with prior discoveries such as the South Abu El Naga and Salma-Tulip Fields which have been brought on stream in 2013, create development opportunities that underpin our plans for sustained production growth in Egypt.'

Dana Gas' Egypt licences - excluding North El Arish

In line with the scheduled review periods enshrined in the Development Lease agreements the West El

Manzala Development Lease has been reviewed and reduced from 313 sq km to 130 sq. km. In addition, the Ward Development Lease (30 sq. km) has been relinquished as the Company considers its remaining




prospectively to be limited. Dana Gas is still in discussions with the government concerning the award of a development lease over its Begonia exploration discovery made early 2013. Dana Gas has also realigned its portfolio in Egypt to focus on the most profitable future growth opportunities for the Company in its core development leases and new exploration concession areas. As a result of this realignment and the need to execute an ambitious investment program, Dana Gas has sold its 50% interest in its Komombo assets

which comprise the Al Baraka and West Al Baraka Development Leases to Mediterra Energy’s subsidiary Sea Dragon Energy (Komombo) for $6.3 million in cash plus the working capital adjustments. At their peak the assets produced 1,100 bbls of oil per day reducing to an average of approx. 400 barrels of oil a day in 2013. Completion of the Komombo sale is subject to customary closing conditions, including Egyptian Government approvals.

As previously reported the Company received $53 million from the Egyptian Government in December 2013 against its receivables of about $330 million. This brought the receivables down to $274 million at year end 2013, an increase of $38 million from the preceding year. The Company is currently working with the Egyptian Government on a plan to repay the remaining receivables over an agreed time frame.

Dana Gas is currently the 6th largest gas producer in Egypt, and operates in the Nile Delta through the El Wastani Petroleum Company (Wasco), Dana Gas’ joint-venture company with the Egyptian Natural Gas Holding Company (EGAS), where almost all of its 695 employees are Egyptians. In 2013, production in Egypt averaged 36,700 boepd, a significant year on year increase of 14%. During the third quarter, the Company announced that it had achieved the highest production levels (equivalent to 41,500 boepd) in Egypt in the last two years. Production has improved significantly during 2013 as a result of bringing key discoveries on stream whilst addressing operational, maintenance and well optimisation issues at key facilities.




Algeria invites Gazprom, Lukoil to jointly develop oil and gas http://rt.com/business/algeria-gazprom-lukoil-oil-532/

Algeria, with Africa’s second biggest gas reserves, has asked Russia’s Gazprom and Lukoil to tender for the joint development and exploration of some of the 30 fields that make up a fifth of the country, says Gazprom International.

Both Russian oil and gas majors signed an agreement to cooperate with Algerian state-owned Sonatrach in August 2006, but so far no joint projects have been agreed, Vedomosti newspaper said.

Sonatrach is the largest Algerian and African company and the 11th largest oil consortium in the world. It has a huge potential in terms of oil and gas reserves, a representative from Gazprom International told the newspaper.

Algeria has Africa’s second biggest gas reserves behind Nigeria, and are estimated at 4.2 trillion cubic meters.

Valery Nesterov from Sberbank CIB says the discovered reserves have remained unchanged for the past decade, while domestic consumption is growing. This has eaten into Algerian exports to the rest of the world, with supplies to Europe falling 18.5 percent in 2013 to 37.9 billion cubic metres.

So, to meet its export obligations, Algeria needs investment in exploration and an increase in its

resource base and extraction, Aleksey Grivach, deputy director at Russia’s National Energy Security Fund explained. Sonatrach currently holds a monopoly in gas exports, so Gazprom may just bid for some service contracts, he added.

Algeria needs bigger extraction volumes not just to increase its exports to Europe but also to have more supplies of liquefied natural gas (LNG) available for Asia, which could become a point of cooperation with Gazprom, Grivach said.

Also, cooperation with Algeria’s Sonatrach would give Gazprom information about Algeria’s resource base and the potential for export growth, he added. On top of that, it’s important for Gazprom to keep an eye on Sonatrach, its main African rival, Nesterov said.




Dragon Oil lifts well drilling in 2014 to meet production target Reuters - UK Focus

Turkmenistan-focused oil company Dragon Oil (LSE: DGO.L - news) said it expected to drill 14-16 wells this year and around 20 wells in 2015, in a bid to meet its 100,000 barrels per day production target from next year.

"We continue our journey to achieve the 100,000 bopd production target in 2015, which will be maintained as a plateau from 2016," said Dragon Oil Chief Executive Abdul Jaleel Al Khalifa. The company saw a

string of delays and well testing difficulties in 2013 which resulted in a lower-than-expected production rate.

It now forecasts an annual production growth rate at the lower end of 10-15 percent for 2014. The company posted a 13 percent drop in operating profit to $687.7 million and revenue was down 9 percent at $1.1 billion, Dragon Oil said on Tuesday.

About DRAGON OIL PLC (http://www.dragonoil.com/)

Dragon Oil an international oil and gas exploration, development and production company, today announces its full-year results for the year ended 31 December 2013. These results are prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

.




China Looking At Role In Cyprus Natural Gas Plans by Reuters + www.rigzone.com/news/oil_gas

China is looking at playing a role in Cyprus' multi-billion-dollar plans to develop the island's natural gas reserves, including possible investment in a liquefied natural gas (LNG) export terminal. Cyprus hopes to attract large investors to take a stake in its gas fields, an option which a Chinese delegation is in Cyprus to discuss.

"There is very strong interest from China... in energy, in the whole value chain, upstream, downstream and midstream," Cypriot Energy Minister George Lakkotrypis told Reuters on Tuesday. He said the Chinese delegation includes China Shipbuilding Industry Corporation. He said delegates were interested in the development of an LNG export terminal, including potentially a floating LNG facility (FLNG).

"The Chinese delegation will also discuss taking a stake in Cypriot gas fields," a source with the delegation told Reuters. China is seeking to access new gas sources around the world as its energy demand rises and the

government encourages industry to move to cleaner gas from coal.

Italy Also Interested

Italian energy major ENI is also interested in Cyprus' gas fields, and is set to sign a memorandum of understanding (MOU) with the government over the construction of an LNG export terminal. ENI has already signed an exploration and production-sharing contract with the government to search in three offshore areas, with exploration expected to begin in the second half of this year.

In hopes gas can buoy the economy, which was rescued by an international bailout in March 2013, Cyprus has been planning the Vasilikos LNG export plant since U.S.-based Noble Energy discovered the Aphrodite field. The estimated $10 billion needed to build the LNG export terminal and infrastructure would be the largest investment in the island's history.

However, the project was thrown into doubt when drilling results revealed smaller reserves than initially hoped. Mean reserve estimates were reduced to 5 trillion cubic feet (140 billion cubic metres) from 7 tcf, which is not enough to justify building the LNG project unless more gas is found. The plans also face opposition from Turkey, which has said it would oppose any attempt to pre-sell Cypriot gas before a settlement over the divided island is found.

Cyprus's Greek and Turkish communities have been estranged since 1974, when Turkey invaded the island's north after a brief Greek-inspired coup, though the seeds of partition were sown years earlier, soon after independence from Britain in 1960. Cyprus's partition is a headache for the European Union. The island is represented in the EU by its Greek Cypriot side, which has veto-wielding rights over Turkey's wish to join the bloc.




Alara reports breakthrough in Washihi Copper-Gold Project by Oman Observer - By Conrad Prabhu - Australian minerals exploration and mine development company Alara Resources has announced a significant

increase in the grades of copper sampled from deposits in its potentially promising Washihi prospect in north Oman.

It follows a key test commissioned by the company that revised the grades of copper to 1.8 — 2 per cent, up from the

previous range of 0.9 — 1 per cent. Hailed as a technological breakthrough, the Heavy Media Separation (HMS) test

process has helped enhance the overall economics of its Washihi Copper-Gold Project, the company said.

“Alara Resources Ltd is pleased to inform the market that the Heavy Media Separation (HMS) test work on the

Washihi resource has been completed and has been successful in providing a breakthrough for the Washihi Copper-

Gold Project in Oman,” Alara said in an update to investors. The Perth-based company has a 70 per cent interest in

the joint venture company, Al Hadeetha Resources LLC, which holds the licenses over three areas that together form

the Washihi Copper Gold Project. The

areas in questions are Washihi (licence

area of 39 sq km), Mullaq (41 sq km)

and Al Ajal (25 sq km).

The Washihi Project has an indicated

resource potential of 6.84 million

tonnes at 0.90 per cent copper and

0.17 grams/tonnes of gold, while the

inferred resource potential is estimated

at 7.27 million tonnes at 0.71 per cent

copper and 0.20 grams/tonnes of gold.

Following the successful use of the

HMS process to test the grades of the

copper deposits in the Washihi

prospect, the company has resolved to

employ this process during the mineral

processing phase as well. By

incorporating this

process in the plant design, Alara aims

to “materially improve the overall

economics of the project”, it said. Heavy media separation (HMS), also referred to as the sink-float process, is one of

the simplest gravity separation methods used in mineral processing. The HMS process uses a heavy medium (fluid)

with a density set between the dense and light particles in the feed ore. When the feed ore is passed through the

heavy medium, the heavier, more mineralised particles will tend to sink thus resulting in the lighter non-economic

material to float out of the processing stream.

Encouraged by the positive test results, the company has also decided to update its scoping study which will evaluate

the performance of a 0.5 million tonnes per annum (mtpa) throughput mining operation, as well as an increased

throughput of 1.0 mtpa. Alara has a sizable portfolio in the Sultanate. The company has joint venture interests in four

(copper-gold) exploration licenses in north Oman extending over 692 sq km, five mining licences pending grant

totalling 10 sq km and 10 (base and precious metals) exploration licence applications pending grant totalling 2,677 sq

km. It includes the Daris Copper-Gold Project in which Alara has a 50 per cent interest via the JV company, Daris

Resources LLC. (OEPPA Business Development Dept)




Ineos to restore UK Grangemouth ethylene capacity with US shale gas http://www.2b1stconsulting.com The US-based junior companies Consol Energy Inc. (Consol) and Range Resources Corporation (RRC

or Range Resources) signed long term agreements with the Swiss registered petrochemical company Ineos

Group AG (Ineos) to import shale gas from the USA to supply its ethylene cracker at Grangemouth

complex in Scotland, UK. This brownfield Grangemouth ethane cracker project is one of the first example illustrating how the competitive shale gas produced in US can help to restore the European petrochemical industry. Based in Pittsburg, Pennsylvania, Consol is one of the largest independent producer of shale gas from the

Appalachian basin with 5.7 trillion cubic feet (tcf) proved

reserves of natural gas. In the same way Range Resources is a typical junior company which contributed to the extraordinary development of the shale gas and coal bed methane

development in the US with interests in the Appalachian

and Southwestern basins. In 2013, Range Resources increased its proved reserves by 26% and replaced 612% of its production on the same period. In this context of solid and sustainable growth, Range

Resources is interested to export a part of its shale

gas production to Europe where the gas prices are about four times higher than in US. This significant price gap between Europe and US is directly affecting profitability of large petrochemical complex such as Ineos Grangemouth. In October 2013, Ineos was about to close this

Grangemouth petrochemical complex, one of the largest in Europe. Not only the gas prices in Europe are higher than in US, but the decline of the maturing fields in the UK

North Sea is reducing by 50% the available capacity of natural gas to feed Ineos crackers at the scale of Grangemouth complex.

Ineos to build Grangemouth Ethane Terminal fast track In securing competitive feedstock from Consol and Range Resources, landed in UK at about 50% below current North Sea prices, Ineos is now able to reconsider the future of this critical petrochemical complex

to make it running at the optimal capacity of 700,000

tonnes per year (t/y) of ethylene. Ineos signed a shipment agreement with Evergas for the export of ethane through dedicated LNG carriers from US to Grangemouth where Ineos is planning a large LNG

import terminal. The construction of this Grangemouth LNG Import

Terminal will be implemented on fast track. It should have a storage capacity of 33,000 tonnes of ethane and downloading capacity of 2,000 tonnes per day

(t/d). Ineos selected the site in Grangemouth to build this new LNG import terminal and is expecting to complete the

front end engineering and design (FEED) at the end of first quarter 2014. Then Ineos is planning to award the engineering, procurement and construction (EPC) contract in following so that the first shipment of LNG could be landed in Grangemouth Ethane Terminal in 2016.









Your partner in Energy Services

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

Energy Services & Consultants Mobile : +97150-4822502

[email protected] [email protected] Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently working as 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 consulGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consulGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consulGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of tation for the GCC area via Hawk Energy Service as a UAE operations base , Most of tation for the GCC area via Hawk Energy Service as a UAE operations base , Most of tation for the GCC area via Hawk Energy Service as a UAE operations base , Most of

the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & 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 yearsthe yearsthe yearsthe years , he has developed great experiences in the designing & constructing, he has developed great experiences in the designing & constructing, he has developed great experiences in the designing & constructing, he has developed 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

years were spent drafting, & compiling gas transportation , operation & maintenance agyears were spent drafting, & compiling gas transportation , operation & maintenance agyears were spent drafting, & compiling gas transportation , operation & maintenance agyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for reements along with many MOUs for the local authorities. He has become a reference for reements along with many MOUs for the local authorities. He has become a reference for reements along with many MOUs for the local authorities. He has become a reference for

many of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

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

NewBase 19 February 2014 K. Al Awadi

Economy & Finance

New base special 19 february 2014