New base special 27 august 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 27 August 2014 Khaled Al Awadi

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

Qatar export of Oil & Gas U$D 7.3 billions (QR26.01bn) in July Gulf Times - Qatar

A marginal increase in exports helped Qatar post about 1% rise year-on-year in trade surplus to QR33.21bn in July this year, according to official figures.

The Gulf country’s total exports (valued free-on-board) was up 0.6% to QR41.48bn despite double-digit rise in shipments to Qatar’s major export destinations, especially to Asian countries, the preliminary estimates of the Ministry of Development Planning and Statistics (MD&PS) revealed.

Japan continued to be the top destination of Qatar’s exports, followed by South Korea, India, Singapore and the UAE. The country’s total exports of domestic products rose 0.6% to QR40.76bn in July in spite of drastic fall in crude cargoes.

The export of petroleum gases and other gaseous hydrocarbons rose more than 1% to QR26.01bn, non-crude petroleum oils and products by more than 4% to QR2.45bn and others by 23% to QR5.28bn; whereas that of crude petroleum oils and products tanked 14% to QR7.02bn.

Petroleum gases and other gaseous hydrocarbons constituted 63.81% of total exports of domestic products in July against 63.44% a year-ago period; followed by crude petroleum oils 17.22% (20.11%), non-crude petroleum oils and bituminous minerals 6.01% (5.8%) and other commodities 12.95% (10.64%).

On exports destinations, Japan accounted for 26% of total exports in July, followed by South Korea 16%, India 12%, Singapore 7% and the UAE 5%. Qatar’s exports to South Korea grew 13% to QR6.6bn, India by 17% to QR5.08bn and Singapore by 37% to QR2.72bn; while those to Japan fell 5% to QR10.86bn and the UAE by 4% to QR2.24bn.

Qatar’s re-exports were down 6% to QR0.71bn during the review period. Total imports (valued at cost insurance and freight) fell 0.3% year-on-year to QR8.28bn in July as shipments from China and Italy were on the decline.




The UAE, China, the US, Germany and Italy were among the top five destinations from where Qatar imported merchandise goods. The UAE accounted for 13% of Qatar’s imports in July followed by China (9%), the US (8%), Germany (6%) and Italy (6%).

Qatar’s imports from China slid 10% to QR0.72bn and Italy by 8% to QR0.52bn; whereas those from the UAE surged 22% to QR1.07bn, the US by 15% to QR0.68bn and Germany by 3% to QR0.53bn.

Motor cars and vehicles, aircraft spare parts, telephone sets and other group commodities were mainly imported by Qatar in July 2014. The imports of electrical apparatus for line telephony grew 16% to QR0.26bn, aircraft spare parts by 6% to QR0.23bn and motor cars by 2% to QR0.73bn; while those of other commodities fell 1% to QR7.06bn.

Motor cars constituted 8.81% of Qatar imports basket in July 2014 compared to 8.67% in the previous year period; followed by electrical apparatus 3.14% (2.65%); aircraft spare parts 2.78% (2.53%) other commodities 85.27% (86.14%).




Kuwait Energy company keen to invest more in Iraq - CEO Reuters + NewBase

The recent flare-up of violence in Iraq is past its worst and Kuwait Energy is keen to invest more in the country because of its potential, Chief Executive Sara Akbar said on Tuesday.

Several oil companies in Iraq's Kurdistan region withdrew staff earlier this month after Islamic State militants approached Arbil, the region's capital, threatening its vast oil infrastructure. "I think we've been through the worst and things will stabilise," Akbar told Reuters on the sidelines of an oil conference in Norway

"Most of the developments in Iraq are on plan, especially in the south, where most of the international oil companies are still working, with

field developments and exports going normal," said Akbar, whose firm operates in the southern part of the country and has been mostly unaffected.

Kurdish forces, assisted by U.S. air strikes, have pushed back Islamic State fighters in recent weeks but some firms have not returned to the country. Oil producer DNO , which operates the Tawke field near the Turkish border, recently said that some of its contractors had left the country and it would have to rely on local suppliers for future work, potentially slowing developments.

Akbar said she was not deterred by the violence, arguing that it was temporary and could not overshadow the country's vast potential for relatively easy oil. When asked it she would invest more, she said: "If we could get into more projects, yes, I'd love to."

Operations in Iraq : KEC.com.kw

• Siba and Mansuriya are 20 year gas development and production service contracts signed in

June 2011, adding 140mmboe in 2P WI reserves

• Block 9 is a 30 year exploration, development & production serviceagreement signed in Jan. 2013




Saudi Arabia’s economic reforms generate interest of investors Oxford Business Group launches ‘The Report: Saudi Arabia 2014’ new business guid

Saudi Arabia’s drive to create a more open business environment and broaden its economic base had generated a new audience of investors looking for information and data on the Kingdom, the global publishing, research and consultancy firm Oxford Business Group (OBG) regional director Jana Treeck said in unveiling “The Report: Saudi Arabia 2014” on Tuesday.

“Long the main engine of growth, the Kingdom’s hydrocarbons sector is now also supporting Saudi Arabia’s diversification efforts,” she said. “Our new report looks in detail at the sectors of the Saudi economy marked for expansion, while providing the growing number of investors who are keen to tap into these opportunities with the business intelligence they need,” Treeck noted. Andrew Jeffreys, OBG’s CEO, added that aside from the major infrastructure and transport projects in the pipeline, The Report: Saudi Arabia 2014 had also noted the Kingdom’s efforts to encourage small-business growth. “With expansion forecast in key non-oil industries, such as logistics, heavy industry and retail, there will be plenty of developments for our team to document in the next phase of its research and relay to investors,” he said.

The Report: Saudi Arabia 2014 marks the culmination of more than six months of field research by a team of analysts from OBG. The publication assesses trends and developments across the economy, including macroeconomics, infrastructure, banking and other sectoral developments.




The Report: Saudi Arabia 2014 analyzes the reforms which are being rolled out in a bid to boost foreign investment, including a landmark decision to liberalize the Kingdom’s capital markets. The publication also explores the role that improved access to raw materials is likely to play in attracting new international investors to lighter segments of industry. Saudi Arabia remains the world’s largest oil producer, accounting for 13.1 percent of global output, although its growing needs at home risk weighing on exports. OBG’s new report provides coverage of the Kingdom’s efforts to increase natural gas output as a means of meeting rising domestic demand. It also looks at the Kingdom’s decision to invest heavily in new water and power projects which will help boost generation significantly. The Report: Saudi Arabia 2014 also shines the spotlight on the long list of major upgrades planned for the Kingdom’s transport sector, which will improve connectivity and bolster the country’s logistics industry. The publication considers the part that the GCC rail project will play in linking the region, while also focuses on local initiatives, including the new metro planned for Makkah and the transport infrastructure which forms part of Jeddah’s urban regeneration. Moreover, OBG’s report puts Saudi Arabia’s new mortgage law under the microscope, analyzing the role that the legislation is expected to play in offering homebuyers more flexibility. The report also explores the potential for further growth and diversification in the Islamic financial services segment. The Report: Saudi Arabia 2014 contains contributions from the Governor of the Riyadh Region Prince Turki Bin Abdullah Bin Abdulaziz Al Saud, the Minister of Finance Ibrahim Bin Abdulaziz Al Assaf, the Minister of Petroleum and Natural Resources Ali Al Naimi, the Minister of Labor Adel Fakeih and the CEO of the Saudi Stock Exchange Adel Al Ghamdi, together with a detailed, sector-by-sector guide for investors. International representatives, including the Prime Minister of Ireland Enda Kenny, Singapore Minister for Trade and Industry Lim Hng Kiang and Secretary-General of the GCC Abdul Latif Al

Zayani also give their views on Kingdom’s development.




Morocco: Circle Oil provides update on Morocco operations Source: Circle Oil

The third drilling campaign in the Sebou permit and first campaign in the Lalla Mimouna permit continue

with the spud of the second well named CGD-12 to be drilled in the Sebou permit. The 12 locations initially

chosen for the campaign are targeting accumulations similar to the existing producing geological intervals in

the Sebou permit. This second well will test a dipping fault bounded sand lens at 1,021 metres MD in the

Guebbas Formation within which many of the previous discoveries have been successfully drilled.

Depending on progress rates the well is expected to take approx. 30 - 35 days to drill.

Both the Sebou and Lalla Mimouna permits are a partnership between Circle Oil Maroc Ltd (75%) and

ONHYM (Office National des Hydrocarbures et des Mines) (25%). The Petroleum Agreements include the

right of conversion to a production licence in the event of commercial discoveries.

Production Update

Production in Sebou is continuing at 6.8 - 7 MMscf/d gross.

Prof Chris Green, CEO, said:

'Circle is very pleased to announce the start-up of our second well in the third drilling campaign in Morocco.

We again thank our partner ONHYM for its continuing support and assistance as we continue our joint work

programme.'




Shell hits gas at Marjoram-1 offshore Malaysia Press Release, August 26, 2014; Image: Shell

Shell announces further exploration success in Malaysia with another gas discovery at the Shell-

operated deep-water Marjoram-1 well.

“Our strategy to expand our heartland areas through technologically advanced exploration

is delivering tangible success in deep-water in Malaysia,” said Andrew Brown, Shell

Upstream International Director.

“We have a long history in the region, and the addition of new natural gas resources this

year ensures we are able to continue to provide cost-effective, reliable, cleaner energy

options for the future,” he added.

The Marjoram-1 well is located 180 kilometres off the Malaysia coast in Block SK318, in

800 metres of water. Earlier this year, Shell announced the Rosmari-1 gas discovery, also in

this block. Block SK318 is operated by Shell with an 85% interest, with the remaining 15%

held by Petronas Carigali Sdn Bhd.




Wood Mackenzie: Malaysia could overtake Qatar on the LNG market Press Release, August 26, 2014; Image: Petronas

Wood Mackenzie asserts that by 2020, Malaysia has the potential to be the largest supplier of flexible

LNG to the global market, larger even than Qatar.

The supply capacity of Malaysia’s Petronas is growing through new capacity additions in eastern Malaysia

as well as Canada, offtake agreements with other suppliers and projects such as GLNG in Australia. Its

supply potential could grow by over 55%, from 27 million tonnes per annum (mmtpa) in 2013 to 42 mmtpa

in 2022. Some of this new capacity is committed to buyers, but some is not. In addition, some of its existing

commitments to buyers will expire over the next 10 years.

Wood Mackenzie’s analysis suggests that Petronas’s flexible LNG volume will grow from 2.5 mmtpa in

2013 to 26 mmtpa in 2022. By contrast Wood Mackenzie estimates that Qatar’s flexible LNG volumes in

2013 were 20 mmtpa. Whether Qatar or Malaysia will have the biggest flexible volume in 2022 will depend

on their contracting strategy in the interim. Wood Mackenzie’s Asia gas research analyst, Chong Zhi

Xin, says, “In addition to challenging Qatar, Malaysia’s growing volume of uncontracted LNG will provide

strong supply competition for new LNG projects, such as from the US, Canada and East Africa.”

Zhi Xin cites some of the additional advantages of Petronas having a long LNG portfolio. “Should other

new supply struggle to get developed, a long LNG portfolio would position Petronas well for a tight global

gas market. Also, flexible supply from its existing portfolio could be used to support marketing of Petronas’s

Pacific North West (PNW) LNG project in Canada, prior to production start-up. This will differentiate

Petronas’s project to other greenfield projects with uncertain start up times. It also removes pressure on

delivery and provides customers with a diversity of supply sources. In addition, Petronas has the

opportunity to supply LNG to Peninsular Malaysia when legacy offshore gas supply inevitably declines.”

Petronas could face challenges

with its flexible LNG portfolio

should we see a market

oversupply. However, Wood

Mackenzie recognises the

unique advantage domestic

markets offer Petronas. Zhi Xin

elaborates, “As a reliable LNG

supplier, Petronas will likely

secure contract renewals for a

proportion of the volume under

contract that expires. Also,

Petronas has the ability to find a

market for its LNG domestically,

an option not available to its

competitors.”

According to Wood

Mackenzie’s analysis, about 4

mmtpa of LNG is necessary to

balance the Peninsular Malaysia market by 2022. However, Petronas’s management of indigenous pipe gas,

both new supply and existing contracts, could enable some piped gas to be backed out in favour of LNG.

This would enable Petronas to increase Peninsular Malaysia LNG imports to as much as 8 mmtpa by 2022.




Ophir Energy provides update on drilling operations in Tanzania and Equatorial Guinea Source: Ophir Energy

Ophir Energy has provided an update on its operations in Tanzania and Equatorial Guinea.

Tanazania Successful Mzia-3 flow-test

The Mzia-3 appraisal well in Block 1, Tanzania was completed in November 2013 having successfully

encountered gas in the main Lower and Middle sand targets. The well was located approx. 6km to the north

of the original Mzia-1 discovery well. As part of the current drilling campaign across Blocks 1, 3 and 4, the

Mzia-3 well was side-

tracked and a Drill

Stem Test (DST) has

now been successfully

completed. The well

flowed slightly ahead

of expectations at an

average controlled

rate of 90mmcfd for 6

days with peak flow

of 101mmcfd,

constrained by

equipment limits. The

data acquired from

the DST and cores

from the Mzia-3ST1

well will be

incorporated into

planning of the

production wells as

part of development

of the field.

The Deepsea Metro I

drillship will now

move to Block 4 to

drill the Kamba-1 exploration well which will also target

the shallower Pweza North structure.

2- Equatorial Guinea drilling update

The Tonel North-1 appraisal well has been completed on Block R, Equatorial Guinea. The Tonel North-1

well was drilled approx. 5km north-east of the original Tonel-1 discovery well. The well encountered gas

pay combined in the lower target sands but the upper sands appear to be low gas-saturation. Analysis of the

well data is ongoing. The result is expected to marginally reduce the discovered volumes in the Tonel field

but will not impact the commerciality of the base case 2.5mmtpa FLNG project.




The Vantage Titanium Explorer drillship has now

moved to complete the Silenus East-1 exploration well which is targeting ca.420bcf of low-risk mean

prospective gas resource as a primary target and

will be deepened to test a secondary, high-impact

but high-risk oil target that on current mapping

could be a potentially extensive play across the

Block. The top hole of Silenus has already been

previously drilled and the well is expected to

complete within two weeks. There are several

analogous shallow gas prospects to Silenus East in

the Thrust Belt play sharing the same Direct

Hydrocarbon Indicators. If successful, the well

would de-risk ca.1.2TCF of upside (including

Silenus East volumes) in the immediate area that

could provide an additional production hub for the

FLNG development.

Nick Cooper, CEO, commented:

'The Mzia-3 flow-test is another

positive result on what will be a

core asset in our Tanzanian LNG

development. Momentum

continues to build on that project

with pre-FEED contracts

awarded on both the Midstream

and Upstream portions of the

development. The Tonel North-1

result has slightly reduced the

size of the Tonel field but this

remains a commercial asset within the overall 2.5mmtpa Floating LNG project. The project still has the

potential to be expanded to 3.0mmtpa once the current three well programme has completed and results

analysed. We are now completing the Silenus East-1 exploration well, with results expected imminently.

After a period of appraisal activity, Ophir now moves back to exploration, with two wells drilling

simultaneously in Tanzania and Equatorial Guinea, results from both of which are expected before the end

of September.'




Tanzania: BG Group, Mzia well test supports potential hub development Source: BG Group

BG Group, a world leader in exploration and LNG, has announced that results from a recently completed

second drill-stem test (DST) on the Mzia discovery in Block 1, offshore southern Tanzania, provided

further support for a hub development to supply a potential onshore LNG project.

The DST on the Mzia-3 appraisal well, drilled in approx. 1 800 metres of water around six kilometres north

of the original Mzia-1 discovery, included sustained gas production at a maximum flow rate of 101 million

standard cubic feet per day (mmscfd), equivalent to approx. 17 000 barrels of oil equivalent per day (boed).

In May 2013, BG Group announced

a test on the Mzia-2 well, the first

done on a Cretaceous discovery in

deep water offshore Tanzania, had

flowed at an equipment-constrained

rate of 57 mmscfd, or around 9 500

boed.

Sami Iskander, BG Group's Chief

Operating Officer, said: 'The

excellent results from this latest

drill-stem test further reduce

reservoir risk, a critical factor as we

progress design of the upstream

production facilities and

infrastructure. Also, the Mzia-3

DST, along with previous appraisal

activities, supports our efforts to

optimise the value of a development

across our Block 1 discoveries.'

Mzia, discovered in 2012, is a

multi-layered field of Upper

Cretaceous age with a gross gas

column in excess of 300 metres.

The Mzia and Jodari discoveries in Block 1 are estimated to hold

around 9 trillion cubic feet (tcf) of

total gross recoverable resources,

with around 15 tcf of total gross

recoverable resources, around 2.5 billion boe, across Blocks 1, 3 and 4.

The drill ship, the Deepsea Metro-1, will now move north to complete the exploration and appraisal

programme on the Block 4 discoveries by drilling the Kamba-1 well.

BG Group has a 60% interest in, and is operator of, Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 20% and Pavilion Energy 20%.




Senegal: Cairn Energy recovers oil samples in FAN-1 exploration well offshore Source: FAR

Oil samples have been recovered in the FAN-1 exploration well being drilled offshore Senegal by FAR Ltd

and its joint venture partners Cairn Energy (Operator), ConocoPhillips and Petrosen - the Senegalese

national oil company. Elevated gas and fluorescence were encountered in a shallow secondary target and the

presence of oil was confirmed by an intermediate logging program. Oil samples from a thin sand were

collected by an MDT wireline formation tester for further analysis. This well data confirms the existence of

a working petroleum system.

The FAN-1 well has reached a

depth of 4402 metres where

intermediate casing has now been

set. The well will be deepened to

planned Total Depth ('TD') of

approx. 5000 metres. Conclusive

results for this well will not be

available until drilling operations

are completed and all of the well

data is fully assessed. The

Operator anticipates that drilling

of the FAN-1 well will be

completed during the next month

after which time the rig will be

moved to the SNE-1 well location, the second well of the

two well program offshore

Senegal.

FAR Managing Director, Cath Norman said, 'The presence of oil In the secondary target is important in

helping our geological understanding of the margin and is significant because it confirms the existence of a

working petroleum generating system. It is very pleasing that the building blocks of a working petroleum

system are present and we look forward to drilling ahead to deeper objectives in FAN-1 and completing the

SNE-1 well.'

As previously announced, the drilling program has been designated as 'tight' by the Operator and hence no

information related to depth or formation will be provided during the drilling beyond what is required to

meet ASX continuous disclosure obligations.

This release in relation to the matter referred to in the Company’s trading halt announcement of 25 August

2014.

Pre-drill estimates

The FAN-1 well is designed to test a stacked fan structure with the potential to contain approximately 900

million barrels of oil (mmbbls) (unrisked prospective resources)* with approx. 135mmbbls net to FAR

which owns a 15% working interest. FAN-1 will be followed immediately by the SNE-1 well to be drilled

on the shelf targeting approx. 600mmbbls of oil (unrisked prospective resources) with approx. 90mmbbls

net to FAR (reference: FAR ASX release of 27 February 2013).

About the drilling offshore Senegal




FAN-1 is the first exploration well in a two well program, offshore Senegal with the wells to be drilled back

to back. The first well will be located on the North Fan prospect in 1,500m water depth. This well will be

immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water (See

figures 1, 2 and 3). These will be the first deep water (>1,000m) wells drilled in Senegalese waters and the

first offshore wells to be drilled for over 20 years. The two exploration wells will test combined prospective

resources of approx. 1.5 billion barrels of unrisked prospective resources (225 mmbbls net to FAR) and

FAR retains a 15% working interest in the blocks. (Reference: FAR ASX release of 27/2/2013).

The FAN-1 well is a pure exploration well and, even if successful, will not be completed as a commercial

production well. In the event of a success, the Joint Venture may decide to conduct further drilling and

evaluation activities.




PNG: Horizon Oil reports production testing results for Stanley-5 production well in PDL 10, Source: Horizon Oil

In its last quarterly report dated 31 July 2014, Horizon Oil advised that the Stanley-5 well,

which spudded on 16 June 2014 using Parker Rig 226, had been drilled to target total

depth. Pleasingly the observed quality and size of the objective Toro and Kimu reservoirs

were better than had been predicted, with a combined gross sand column of about 120 m

and net pay of about 96 m.

Horizon Oil, which is managing the drilling of the Stanley-5 and -3 development wells on behalf of the

PDL 10 joint venture, carried out a production test over the Toro and Kimu zones. After a clean-up period

of 24 hours, the Stanley-5 well flowed at approx. 68 million cubic feet of gas per day (mmcfd), with

associated condensate, on a 122/64" choke at a wellhead pressure of 3,233 psi (see photograph below). Log

and test data from the well, together with wellhead condensate samples obtained, are consistent with pre-

drill estimates and the Stanley -2 results.

The two production wells for the Stanley gas-condensate project (Stanley -2 and -5) are now completed,

ready for production and, through testing, have demonstrated the capacity to produce well in excess of the

design capacity of the Stanley gas plant (140 mmcfd). With a condensate gas ratio 30 barrels / mmcf, the

Stanley gas-condensate project is forecast to achieve initial production of approximately 4,000 barrels/ day

of condensate when the field commences production, scheduled in 2H 2016.




The Parker Rig 226 will now be skidded to commence drilling the final Stanley development well, the

Stanley-3 injection well, from the current surface location. The Stanley -3 well has an anticipated spud date

of 31 August 2014.

Stanley project development activities continue with current focus on finalisation and issue of equipment

fabrication and construction tender packages, preparation for early works and engagement with the Stanley

PNG State team (comprising representatives from key Government departments) and local landowners in

respect of local content opportunities.

Participants Interest: Horizon Oil (Papua) Limited 30%1; Talisman Niugini Pty Ltd (Operator) 40%1;

Osaka Gas Niugini Pty Ltd 20%1; Diamond Gas Niugini B.V.2 10%1.

1 Subject to finalisation of Stanley gas field unitisation adjustments (which do not reduce Horizon Oil group

interests) and PNG State Equity entitlement of 22.5%

2 Mitsubishi Corporation subsidiary




Brent Oil prices are on the down side @ U$D102.50 Oil prices are expected to continue to decline despite ongoing geopolitical concerns in Iraq & in Libya. Brent Crude, a London-traded global benchmark for oil prices, traded at $102.69 a barrel at midday trade on Monday, up from August 19’s 14-month low of $101.07 a barrel. On June 19,

Brent traded at $113.71 a barrel. Experts expect prices are now heading to $100 a barrel.

But over the next 12 to 18 months, experts say Brent prices could slide further with United States shale oil production expected to continue to be strong and recent data showing little

economic improvement in China.

The International Energy Agency (IEA) said in its oil market report this month, “Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected. Historically, oil prices have spiked in response to conflict in the Middle East. But the rapid advancement of Islamic insurgents in Iraq and subsequent bombing by the United States did not spur such a reaction.

Oil producing giant Saudi Arabia and other members of the Organisation of Petroleum Exporting Countries (Opec) are likely to stem production to maintain a $100 a barrel pricing, he said.It is also believed that prices starting to rebound off $102 a barrel and topping off at $108 a barrel but in response to positive economic news such as a clear signal that the European Central Bank will move to adopt quantitative easing.

Reasons behind oil price stability despite turmoil Zawya.com

These are really changing times. It is no longer enough to have a coup, a plane hijack or violence erupting in one oil producing country to have prices skyrocketing. The hotspots are all over the map of the Middle East from key producers such as Iraq and Libya to marginal ones like Yemen and the two Sudans to ongoing tightened sanctions against Iran. Brent crude prices that briefly rose in mid-June above $115 following the take-over of Iraq's city of Mosul by IS radicals dropped to 14-month low a few days ago. Moreover, and following the downing of the Malaysian Airliner in mid-July, prices rose some 2 percent or $1.99 a barrel in New York Mercantile Exchange, but only to reach $104 a barrel and briefly before retreating again. Who would have predicted that oil prices would continue trading at normal levels at a time of increased instability in the most important and volatile region. In fact the Paris-based the International Energy Agency concluded in a July report that, "the oil market today looks better supplied than expected", though it highlighted the risks in some producer states. There are several reasons that could explain what looks like a paradoxical




situation. On top of these and aside from the issue of supply and demand is the fact that the world got used to turmoil and the market has adjusted to that fact accordingly. It is not only the traditional media outlets that are full of stories of turmoil here and there. Social media channels are providing in real-time coverage of what is going on online 24X7. That helped in reducing price speculation seen responsible sometimes from 10 percent of prevailing price at a time. One result of this familiarity is that market getting used to this turmoil, which removes the sense of emergency from the scene. Since things are going the usual, normal way, prices are not affected as well. Part of the price spike is traditionally related to speculation, but with people carrying on with their normal lives despite growing violence that sense of drama is reduced to normalcy as

well. Moreover and despite violence rocking a number of producing countries like Iraq, Libya and Nigeria, production levels from these countries have not been affected as badly as expected and production volumes remain close to what they used to pump anyway.

One reason explaining this is that combating factions realize that stopping production is not in their interest as they need money. One good example is South Sudan where during the civil war one of the first actions to take was to target the emerging oil industry and force the US company Chevron to suspend its operation. Later and after a peace deal was signed the only reliable income came from oil exports and that is why the current rebel movement in South Sudan refrained from targeting the oil industry that lies in areas of its influence. Add to that the growing production from the US and Canada which is having a positive impact and minimizing the climate of panic. Canada has doubled its production, while US re-entered the market exporting products for the first time in decades dating back to post-World War II period. The US, which used to depend on imported oil to satisfy its growing domestic oil demand, is no longer in that position. And the euro zone still suffers economically and its energy demand continue to be weak. More important is the role played by the Gulf producers, led by Saudi Arabia, in ensuring that the market remains well supplied. These exporters continue to play the role of 'last resort suppliers'. This simply adds to the confidence placed in Gulf producers that have good track record in bridging the supplies gap whenever the need arises. It remains to be seen of course whether the world is getting used to uncertainties. But a supply crunch seems to be looming. Available figures suggest that the world needs some 100 million barrels of oil per day by the turn of this decade from 90 million at present and at the time there no new deposits awaiting discoveries




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, 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 eof eof eof experience in thexperience in thexperience in thexperience 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 GCC area via Hawk Energy Service as General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most oa UAE operations base , Most oa UAE operations base , Most oa UAE operations base , Most of f f f

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

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

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 satellite Channels . Energy program broadcasted internationally , via GCC leading satellite Channels . Energy program broadcasted internationally , via GCC leading satellite Channels . Energy 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 27 August 2014 K. Al Awadi

Economy & Finance

New base special 27 august 2014