New base special 20 october 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 20 October 2014 Khaled Al Awadi

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

Japan’s Inpex begins oil production off Abu Dhabi GulfNews+ NewBase

Abu Dhabi: Inpex, Japan’s largest oil and gas exploration production company through its wholly owned subsidiary, Japan Oil Development Company Ltd (Jodco), commenced oil production from the Umm Lulu offshore oilfield in Abu Dhabi, the company said in a press release.

The Umm Lulu oilfield is located approximately about 30km north-west of Abu Dhabi city. Inpex has jointly developed the field with Abu Dhabi National Oil Company (Adnoc), BP and Total.

In the first development phase, Inpex commenced oil production from the Umm Lulu oilfield by utilising existing facilities of the Umm Al Dalkh Oil Field, located adjacent to the Umm Lulu Oil Field. “Full field development of the Umm Lulu Oil Field is currently in progress, and after completion, the field is expected to produce oil at a peak rate of 105,000 barrels per day,” the company said.

The oil produced from the Umm Lulu Oil Field in the first development phase is transported via an existing subsea pipeline to Zirku Island, and eventually supplied to customers in Japan and other Asian countries as Upper Zakum Crude, the company said.




Inpex has been engaged in the oil development business through Jodco in Abu Dhabi for over 40 years. It owns participating interests in the producing oilfields of Umm Shaif, Lower Zakum, Umm Lulu, Upper Zakum2, Umm Al Dalkh and Satah.

In addition, Inpex owns interests in the Nasr oilfield under development. Through Jodco, the oil and gas firm has also been supporting local communities in Abu Dhabi through human resources development and other activities.

“Inpex will continue to actively engage in the oil development business as well as social contribution activities in Abu Dhabi,” the company said.

Inpex headquartered in Tokyo has more than 70 active projects across 27 countries. Since 1966, the firm has steadily expanded its business in Japan and other parts of the world including Australia, Indonesia, the Middle East, the Caspian Sea region, the Gulf of Mexico and North and South America.

In January this year, it announced that the government of Abu Dhabi had decided on the extension of the concession for the Upper Zakum oilfield offshore Abu Dhabi to December 31, 2041 by adding more than 15 years to the previous term.

The field located approximately 80km offshore north-west of Abu Dhabi City is one of the largest in the world with an area of 1,150 square kilometres. The company officials did not give further details when contacted.

About INPEX

INPEX CORPORATION is a worldwide oil and gas exploration and production company based in Tokyo, Japan, with more than 70 active projects across 27 countries.

For more information, please visit: www.inpex.co.jp/

JODCO owns an interest in the ADMA Block located offshore Abu Dhabi in the United Arab Emirates. Oil production currently spans five fields in the block.

In addition, a number of development projects are currently under way to maintain and expand oil output, such as redevelopment of the Upper Zakum Fieldinvolving the use of artificial islands, as well as phase 1 development and other work with the aim of engaging in early production at the Umm Lulu and Nasr fields.




Saudi-Kuwait oilfield said to halt output due to 'environmental issues' By Reuters+NewBase

Crude production from the Khafji oilfield, jointly run by Saudi Arabia and Kuwait, has been shut down temporarily to comply with environmental regulations, according to an industry source familiar with Saudi policy and an internal letter seen by Reuters.

The field, whose production is around 280,000 bpd-300,000 bpd in the neutral zone between the two neighboring OPEC members, will be brought offline "immediately", according to a letter signed by Abdullah al-Helal, chairman of the Aramco Gulf Operations (AGOC) which operates the Saudi part of the field.

Helal did not give a timeframe for the closure of the field in the letter. The industry source told Reuters on Sunday the shut down had already taken effect and it was not immediately clear how long it would take to bring it back online after complying with the environmental regulations.




Oman Oil starts pre-qualification for Duqm Refinery-Petrochemical Duqm Refinery and Petrochemical Industries Corporation (DRPIC), a 50/50 joint venture between the wholly state-owned Oman Oil Company SAOC (OOC or Oman Oil) and International Petroleum Investment Company (IPIC) ,a sovereign fund of Abu Dhabi, is on the way to complete the front end engineering and design (FEED) work for its $ multi-billion project of integrated refinery and petrochemical complex to be built at Duqm, along the Arabian Sea coast, at the center of the Sultanate of Oman.

As Abu Dhabi sovereign fund, IPIC is recycling oil and gas $ revenues into world-scale projects, preferably providing growth and stability to the Gulf Co-operation Council (GCC) region.

In that respect the Duqm Refinery and integrated petrochemical complex is a perfect target proposed by Oman Oil as it will contribute to Sultanate economical growth in the Al-Wusta Governorate, a region strategically located on the Gulf of Oman to save traffic across the sensitive Strait of Ormuz.

From its central position, Duqm will facilitate the export and import of hydrocarbon products in a region still underdeveloped compared with the north of the country. The DRPIC joint venture was established in June 2012 by Oman Oil of IPIC. On March 2014, Oman Oil and IPIC awarded the FEED contract and selected Technip to provide project management consultancy (PMC) for the Duqm

Refinery and Petrochemical integrated complex project.




The Duqm Refinery and Petrochemical integrated complex project should be located in the dedicated Duqm Special Economic Zone (SEZ) on the Al-Wusta Governorate coast. The crude oil to feed the Duqm refinery should be imported from the GCC countries.

Then the refined transportation fuels and the hydrocarbon products issued from the petrochemical complex should be partly consumed by Oman domestic market and partly exported, thus propelling Duqm as a major trading and storage hub in the Middle-East region.

Because of its size, Oman Oil and IPIC has decided to build it up in two phases. In a first phase, Oman Oil and IPIC will spend $6 billion capital expenditure to build the refinery. In a second phase, the integrated petrochemical complex should require $9 billion investment.

Designed around 230,000 barrels per day (b/d) capacity the Duqm full conversion refinery should include a:

- Delayed coker

- Hydrocracker

- Hydrotreater

- Liquid petroleum gas (LPG) treatment

- Kerosene treatment

- Sulphur recovery unit

The ground work is planned to start on early 2015 while Oman Oil and IPIC will send the invitation to bid (ITB) for the engineering, procurement and construction (EPC) contracts for the

Duqm Refinery.

In the meantime Oman Oil and IPIC are proceeding to the pre-qualification of the engineering companies for this first phase.

Considering the qualified contractors to submit their tenders on second half 2015, Oman Oil and IPIC should award the EPC contracts on mid-2016 in order to start Duqm Refinery commercial operations by 2019.

Iraq: GPK strike oil commerciality for the Shewashan Kurdistan Source: GPK




GPK (Gas Plus Khalakan) has declared the Shewashan light oil discovery commercial and is preparing the

Field Development Plan (FDP) for submission to the MNR in accordance with the Khalakan PSC.

Shewashan-1 produced light oil (45API) on test from reservoir zones in the Cretaceous Shiranish, Kometan

and Qamchuga formations. The Shewashan-1 well will now be put on production to gather data ahead of the

final FDP approval.

Steve Lowden, Director of GPK, said: 'The Shewashan discovery establishes GPK as a production Operator

in the KRG's expanding oil and gas industry and has demonstrated the potential for significant quantities of

light oil to complement the country's growing reserves base.'

Dr Ashti Hawrami, KRG Minister for Natural Resources, said: 'We are pleased with this new light oil

discovery which will contribute to our stated target of 1 million barrels of oil per day by the end of 2015 /

early in 2016.'

Additional Information on the Khalakan PSC

Shewashan was the second exploration prospect drilled by GPK on the Khalakan Block situated between the

TaqTaq and Miran fields. The field is now delineated with a 122 km2 Production Area.

For further information on the Khalakan Block, see Range Energy Resources Corporate Presentation (Feb

2012)




Morocco mega solar project to open in 2015 AFP + NewBase

Morocco’s first solar energy plant will begin operating in 2015, an official said yesterday, as part of a multi-billion-euro project the oil-scarce kingdom hopes will satisfy its growing energy needs.

The so-called “Nour 1” thermo-solar plant at the southern desert city of Ouarzazate will be operational “next year”, Mustapha Bakkoury, the head of Morocco’s Masen solar energy agency said.

The North African country is aiming to become a world-class renewable energy producer and is eyeing the chance to export clean electricity to nearby Europe. Morocco expects to build five new solar plants by the end of the decade with a combined production capacity of 2,000 megawatts (MW) and at an estimated cost of Eu 7bn ($9bn).

The Nour 1 plant cost Eu 600m and is expected to have a capacity to generate 160MW. A consortium led by Saudi developer ACWA Power won the contract to build the plant, near Morocco’s desert gateway city, last September.

The World Bank, the African Development Bank and the European Investment Bank are helping to finance the solar complex. Bakkoury said the general project — the largest of its kind in the world — was progressing “in a satisfactory manner”.

The plant’s second phase, including the construction of two additional solar parks, will begin at the start of next year, Bakkoury said. He said a call for tenders had attracted seven firms, including French and Spanish groups, the result of which will be announced before the end of the year. A third and final construction phase at Ouarzazate will be announced “in the coming weeks”, Bakkoury said.

The kingdom has scarce oil and gas reserves and is hoping with the solar projects, along with a string of planned wind farms along its Atlantic coast, to raise renewable energy production to 42 percent of its total power supply mix by 2020.




Lithuania’s first LNG terminal ends Russian grip on Baltics By Vaidotas Beniusis + NewBase

As much of Europe anxiously awaits a Ukraine-Russia deal to avert the risk of winter gas cuts, Lithuania is breathing a sigh of relief as its first liquefied natural gas (LNG) terminal will sever

Moscow’s grip on gas deliveries to the Baltic states. Aptly dubbed “Independence”, the massive floating LNG facility measuring three football fields in length is due to dock in the port of Klaipeda on October 27.

Its arrival comes just as Russian President Vladimir Putin warned that Europe faces “major transit risks” to gas supplies coming from Russia this winter unless Ukraine resolves a gas dispute with Moscow.

The terminal gives Lithuania the capability to import up to four billion cubic metres of gas per year from sources like Norway’s Statoil — well above the 2.7 billion cubic metres it bought from Russia last year.

That leaves plenty of extra capacity for its Baltic neighbours Latvia or Estonia, analysts note. Despite joining the EU and Nato in 2004, Lithuania has been completely dependent upon Russia for natural gas, a legacy of five decades of Soviet domination that wound down in 1990.

The nation of three million will initially import 0.54 billion cubic metres of gas from Statoil in 2015, covering about one-fifth of its demand. Tensions have been running high between Vilnius and Moscow for years over gas, as Lithuania believes that state-controlled Gazprom has abused its monopoly position and driven up the price.

Gazprom’s prices are confidential, but Energy Minister Rokas Masiulis said that “Lithuania has paid the highest prices for natural gas in the EU in recent years”. Vilnius has not taken the situation lying down. In addition to arranging for the LNG terminal, it has asked the EU to conduct an anti-trust probe against Gazprom and launched an international arbitration procedure, with decisions expected within the coming year.

Gazprom’s contract with Lithuania expires at the end of 2015. While Gazprom is likely to remain a key supplier, Vilnius insists competition will improve pricing and energy security, and so curb Moscow’s political leverage in the region.

We’re “looking forward to important negotiations with LNG suppliers and Gazprom,” said Masiulis, adding that “in a worst-case scenario, we could buy all our gas via the terminal”. As the arrival date neared for the new LNG facility, which Lithuania is leasing for a decade, Gazprom already agreed to a price cut of around 20 per cent.

Gazprom has always denied monopoly practises in Lithuania and warned that shipped-in LNG will not come cheap. “If Lithuanian consumers are willing to pay more to reduce their dependence, it’s




their business,” Gazprom spokesman Sergei Kupriyanov said in Moscow. Lithuania’s state-owned Litgas LNG agency says Statoil’s LNG prices will depend on market factors.

The floating 294-metre (964-foot) terminal owned by Norway’s Hoegh LNG will also buoy tiny Lithuania’s political leverage towards its Soviet-era master Russia at a time when Moscow’s meddling in eastern Ukraine has sent geopolitical jitters in the Baltic states through the roof. “Dismantling Russia’s monopoly deprives it of yet another tool of political influence over Lithuania,” Marius Laurinavicius, an analyst at the Eastern Europe Studies Centre, a Vilnius-based think tank, said.

Lithuania’s Prime Minister Algirdas Butkevicius recently told US Vice President Joe Biden the terminal meant “de facto energy independence” and finally integrated the “Baltic States into the internal market of the continental EU.”

Fellow Baltic states Estonia and Latvia, also EU and Nato members dependent on Russian gas, say they could also use the terminal to seek out alternative suppliers. Latvia has the capacity to stockpile more than a year’s supply of gas, while Estonia is almost self-sufficient with shale oil. The Baltic states and Finland are also in talks with Brussels over a separate EU-funded LNG terminal in the Gulf of Finland.

Unlike Poland, Slovakia, Austria or Hungary, the Baltic trio have not seen any dip in deliveries from Gazprom this autumn. Russia cut off Ukraine in mid-June after a pro-Western government took power, accusing Kiev of not paying its gas bills.

The EU, which gets over a quarter of its gas from Russia, is seeking a deal to ensure that Russian gas will flow uninterrupted to European homes via Ukraine this winter. As Russia must pump gas to its Kalinigrad exclave via Lithuania, it is unlikely to suffer cuts.




UK: Wood Group Kenny awarded subsea pipeline FEED contract for

carbon capture and storage project. Source: Wood Group Kenny

Wood Group Kenny has been awarded the front end engineering design (FEED) for the subsea and pipeline

element of the Peterhead Carbon Capture and Storage (CCS) project in Aberdeenshire. The project, the

world’s first full-chain CCS project on a gas-fired power station, is being developed by Shell, with strategic

support from Scottish and Southern Energy (SSE).

The scope of the six-month contract includes: developing a landfall solution at the Peterhead Power Station;

design of a new carbon dioxide (CO2) export pipeline from Peterhead Power Station to a subsea tie-in with

the existing Goldeneye pipeline; and, a new subsea intervention valve (SSIV), including controls system and

tie-in spools.

A total of 80 engineers will support the project from Wood Group Kenny offices in Aberdeen and London.

Wood Group Kenny Regional Director Bob MacDonald said: 'We are honoured to be involved in this

unique project in the North Sea. Using our 30 years of subsea infrastructure design, Wood Group Kenny is

well placed to deliver high-quality, cost- effective solutions that will help achieve the targets of the UK

Government.'

Business, Enterprise & Energy Minister Matthew Hancock said: 'We are leading the way in Europe in

developing this innovative low-carbon technology. Testing the commercial feasibility of Carbon Capture

Storage is an important step.So far, more than 20 Front End Engineering and Design subcontracts have been

awarded supporting both the Peterhead and White Rose CCS Commercialisation Programme projects.

Combined, these projects if successful could support jobs during construction and generate enough clean

electricity for over one million homes upon completion.'

The Peterhead CCS project forms a significant part of the UK Government’s CCS roadmap. The

development of cost-effective technology and infrastructure is the only way to collect the CO2 from heavy

industry and achieve decarbonisation in the UK’s power and industrial sectors.




U.A.E. seeking candidacy to host 2019 World Energy Congress WAM + NewBase

Suhail bin Mohammed Faraj Faris Al Mazrouei, U.A.E. Minister of Energy, and Chair of the U.A.E.

National Committee for the World Energy Council, WEC, is leading a delegation of U.A.E. energy leaders to the Executive Assembly of WEC, the UN-accredited global energy body. Taking place in Cartagena de Indias, Colombia, from 20 to 22 October, the Executive Assembly is the annual convention of the 93 member committees of the WEC and is a key event for the governance of the organisation, as well as the election of the venue of the 2019 World Energy Congress. Earlier this year, the U.A.E. Committee for WEC headed by Al Mazrouei officially entered Abu Dhabi as a candidate city to host the prestigious World Energy Congress. Since then, the Committee has been engaging countries from around the world to support the candidacy of the capital of the U.A.E.. The final vote will take place on 22 October during

the plenary session of the Executive Assembly.

"The Abu Dhabi candidacy has received the full unequivocal support of the U.A.E. government and the nation s energy sector," said Minister Al Mazrouei. "During the Executive Assembly, the U.A.E. delegation will engage National Committees to support our candidacy, as we strongly believe that Abu Dhabi has a unique confluence of advantages that make it the ideal venue to host such a reputed event.

" The delegation of U.A.E. energy leaders to the WEC assembly includes Matar Al Neyadi, Undersecretary of the U.A.E. Ministry of Energy and Co-Chair of the U.A.E. National Committee for WEC, Fatima Al Foora Al Shamsi, Assistant Undersecretary of Electricity of the U.A.E. Ministry of Energy and Secretary of the U.A.E. National Committee for WEC, Dr. Thani Al Zeyoudi, Director of Energy and Climate Change of the Ministry of Foreign Affairs, Mohamed Al Hammadi, Chief Executive Officer of the Emirates Nuclear Energy Corporation, Humaid Al

Dhaheri, Acting Chief Executive Officer of ADNEC, Jasem Al Darmaki, Acting Director-General of the Abu Dhabi Tourism and Culture Authority, and Mubarak Suhail Al Ketbi, Deputy Director of Marketing and Refining Directorate at Abu Dhabi National Oil Company, ADNOC.

The World Energy Congress is the premier global forum for leaders and thinkers to debate solutions to energy issues. Running since 1923, World Energy Congress takes place every three years and has taken place in 20 major cities around the world. In its last edition in 2013 in Korea, the event hosted more than 7,500 delegates from over 120 countries and over 30 government ministers from around the world.




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

Your partner in Energy Services

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 Khaled Al Awadi is a UAE National with a total Khaled Al Awadi is a UAE National with a total Khaled Al Awadi is a UAE National with a total

of 24 yearsof 24 yearsof 24 yearsof 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas Oil & Gas Oil & Gas Oil & Gas

sector. Currently working as Tsector. Currently working as Tsector. Currently working as Tsector. Currently working as Technical Affairs Specialist for echnical Affairs Specialist for echnical Affairs Specialist for echnical Affairs Specialist for

Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external

voluntary Energy consultation for the GCC area via Hawk voluntary Energy consultation for the GCC area via Hawk voluntary Energy consultation for the GCC area via Hawk voluntary Energy consultation for the GCC area via Hawk

Energy Service as a UAE operations base , Most of the Energy Service as a UAE operations base , Most of the Energy Service as a UAE operations base , Most of the Energy Service as a UAE operations base , Most of the

experience were spent as the Gas Operations Manager experience were spent as the Gas Operations Manager experience were spent as the Gas Operations Manager experience were spent as the Gas Operations Manager in in in in

Emarat , responsible for Emarat Gas Pipeline Network Facility Emarat , responsible for Emarat Gas Pipeline Network Facility Emarat , responsible for Emarat Gas Pipeline Network Facility Emarat , responsible for Emarat Gas Pipeline Network Facility

& gas compressor stations . Through the years , he has & gas compressor stations . Through the years , he has & gas compressor stations . Through the years , he has & gas compressor stations . Through the years , he has

developed great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the of gas pipelines, gas metering & regulating stations and in the of gas pipelines, gas metering & regulating stations and in the of gas pipelines, gas metering & regulating stations and in the

engineeriengineeriengineeriengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance ng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance ng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance ng of supply routes. Many years 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 agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas 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 andConferences held in the UAE andConferences held in the UAE andConferences held in the UAE and EEEEnergy program broadcasted internationally , via GCC leading satellite Channels . nergy program broadcasted internationally , via GCC leading satellite Channels . nergy program broadcasted internationally , via GCC leading satellite Channels . nergy program broadcasted internationally , via GCC leading satellite Channels .

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

NewBase 20 October 2014 K. Al Awadi

Economy & Finance

New base special 20 october 2014