New base 801 special 06 march 2016

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

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NewBase 06 March 2016 - Issue No. 801 Edited & Produced by: Khaled Al Awadi

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

UAE: DEWA appoints consultant to study use of ash from Hassyan clean coal power plant

(WAM)--Dubai Electricity and Water Authority (DEWA) has awarded RWE Power International ME the contract to conduct a comprehensive study on the uses of all by-products from using clean coal at the Hassyan power plant.

RWE was awarded the contract to conduct a comprehensive study on the use of clean coal ash in cement and building materials industries based on local and international standards. The research will help the Dubai economy by providing better-quality products at lower prices.

"The move demonstrates DEWA’s continuing efforts to help preserve the environment while securing diversified energy sources for the future, in line with the vision of Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, and the fifth pillar of the Dubai Clean Energy Strategy 2050 that focuses on creating an environmentally-friendly energy mix with 25% coming from solar power, 7% from nuclear energy, 7% from clean coal, and gas providing the remaining 61% by 2030. The mix will increase the




employment of clean energy to 75% by 2050," said Saeed Mohammed Al Tayer, MD & CEO of DEWA.

"This study will help us to maximise the use of by-products from the power plant, while maintaining international standards in end products. DEWA has always prioritised sustainable development to ensure the happiness of the current and future citizens and residents of Dubai. This is also shown by the increased prominence of solar power in the energy mix and the cooperation between DEWA and RWE" he added.

"RWE is proud of having been selected in a competitive process to conduct this important study for DEWA, after an extensive search. We are confident that the international expertise we bring to the project, which covers all necessary disciplines, will ensure a successful implementation and further support Dubai’s and DEWA’s ambition towards the ambitious Dubai Clean Energy Strategy 2050." said Pierre Samaties, CEO of RWE Power International Middle East.

The Hassyan clean coal power plant will be the first of its kind in the region. The facility will operate in compliance with

international standards,

including the use of ultra-

supercritical technology in its operations.

To help ensure further

compliance, DEWA has requested that the power plants should meet the limits set for flue gas

emissions, which are more stringent than the emission limits in the

Industrial Emissions Directive (IED) of the European Union and in the International Finance Corporation (IFC) guidelines. All required environmental studies were completed, and the Hassyan clean coal power plant project is being implemented by an Independent Power Producer, on a build-own-operate basis.

DEWA has selected the Consortium of Harbin Electric International and ACWA Power and Harbin Electric, as the preferred bidders for the first phase of the 2,400 megawatt (MW) Hassyan clean coal power plant.




Iraq: Eni starts three oil and gas treatment plants at Zubair field Source: Eni Eni and Kogas have introduced three new generation plants for the oil, gas and water treatment (Initial Production Facilities) in the Zubair field, Southern Iraq. The plants, which together with those existing, restructured and modernized, have increased the oil and gas treatment capacity to about 650,000 barrels per day, are positioned in the area of Hammar (4 trains for a total capacity of 200,000 bd), of Zubair and Rafydia (with a capacity of 50,000 bd each).

Hammar and Zubair have already started production as well as exportation, whereas Rafydia will be starting by the end of this March.

These plants have a water injection capacity of about 300,000 barrel per day that will be crucial for Zubair’s hydrocarbons production boost enabling then the maximization of the associated gas utilization.

Zubair, which is located near Bassora, in southern Iraq, is operated by Eni on behalf of the Iraqi state company South Oil Company (SOC). The current production of the field is around 360,000 barrels per day and the plan is to achieve 850,000 barrels per day over the next few years.

The production and development activities are under a Technical Service Contract. Since the contract start, the production of Zubair has doubled up to the current level. Eni has been present in Iraq since 2009. The equity production in 2015 was around 40,000 barrels of oil equivalent per day.




Algeria: Sonatrach awards Japan's JGC deal at Hassi Messaoud oilfield Source: Reuters Algeria's state energy company Sonatrach has awarded Japanese firm JGC a $339 million contract to help increase production at its largest oilfield in Hassi Messaoud, according to an internal Sonatrach document seen by Reuters on Thursday.

The contract includes the 'revamping and realization of a new system of production in Hassi Messaoud', the document said. OPEC member Algeria has been hit hard by the crash in world oil prices and has struggled to attract energy investments to help develop new fields and increase existing production.

Algeria's government has said it is looking to develop existing fields such as Hassi Rmel, Hassi Messaoud, Berkine and El Merk to increase oil and gas production.

Algeria last year announced it would postpone the launch of a new bidding round for oil and gas exploration rights, seen as a signal that Sonatrach is putting its house in order as it deals with the oil price crash.

Around 30 foreign energy firms are present in Algeria, but its last energy bidding round only placed four deals. Even before the fall in oil prices cut investment plans, oil companies complained about Algeria's offer terms and bureaucratic red tape.




Ghana: Tullow's TEN FPSO arrives in Ghana Source: GhanaWeb

A new Floating Production Storage Offloading vessel christenedFPSO Professor John Evans Atta Mills has arrived in Ghana. The vessel, according to a statement from Tullow Ghana, is expected to start producing oil from the TEN fields by July/August 2016. 'The FPSO began its voyage from Singapore to Ghana on 23rd January 2016 with almost zero 'carry over', meaning only 2,000 man hours of work remained to be completed during the voyage. This is a very significant industry achievement. The FPSO will move directly to the installation phase when it arrives on station,' the statement added. It noted: 'This will be followed by the hook-up of subsea facilities via flowlines, risers and control umbilicals, much of which has already been pre-installed. In addition, 6 wells have already been

completed, and the completion of the remaining wells is on schedule. The

integrated facilities will undergo final

commissioning and testing during the second quarter of this year before first oil.' The development of the TEN fields is being led

by Tullow Oil along with its

partners the Ghana

National Petroleum

Corporation (GNPC), Kosmos Energy, Anadarko Petroleum Corp and PetroSA (the TEN Partners). 'We are extremely pleased and proud that Ghana’s second FPSO has arrived safely here on our shores. It is a source of pride to note that many of the component parts of both the FPSO and the subsea infrastructure were built and supplied by Ghanaian companies. Tullow and its partners remain at the forefront of unlocking Ghana’s oil resources for the mutual benefit of the Nation and Shared Prosperity. We can look forward to First Oil from the TEN fields by July/August this year,' Tullow Ghana Managing Director, Charles Darku said. The FPSO Professor John Evans Atta Mills was constructed by MODEC and will be operated by MODEC Ghana Ltd on behalf of the TEN Partners.




U.S. Crude Exports Decline in January After Restrictions Lifted Bloomberg - Brian Wingfield

U.S. monthly crude oil exports fell to an average 364,000 barrels a day in January, the first full month of unfettered shipments since the nation repealed its 40-year-old trade restrictions on the commodity.

January’s cargoes totaling about 11.3 million barrels marked a 7 percent decline from U.S. crude exports in December, according to Bloomberg calculations from data released Friday by the U.S. Census Bureau. Shipments during the first month of 2016 went to Curacao and France, in addition to Canada, the primary destination.

Prior to the U.S. repealing its trade restrictions on crude exports in December, the nation allowed cargoes to Canada and -- occasionally -- other nations, subject to strict licensing requirements. Though those limits are no longer in place, U.S. crude shipments are hitting a global market in which supply has overwhelmed demand. Prices have tumbled as oil-rich nations in the Middle East and Russia have maintained production, and Iran is also poised to boost output with the removal of international sanctions.

"Soft prices, narrow spreads, falling domestic production and weak global demand undercut the case for U.S. crude exports, and January tends to be a weak month in any case," Kevin Book, managing director of Washington-based ClearView Energy Partners LLC, said in an e-mail.

U.S. crude exports reached a record 586,000 barrels a day in April 2015, according to the nation’s Energy Information Administration. Shipments include all grades of crude, including condensate "derived wholly from natural gas," according to the Census Bureau’s classification system.

Producers such as ConocoPhillips and Continental Resources Inc. favored repealing the trade restrictions. Exxon Mobil Corp. is now exporting crude amid the supply glut, according to people familiar with the matter.

"Lifting the ban sends a long-term investment signal to producers, but it doesn’t necessarily create short-term demand in a saturated world," Book said




US: Crescent Dunes concentrating solar plant begins producing Source: U.S. Department of Energy (photo) and U.S Energy Information Administration (map)

Crescent Dunes Solar Energy, a 110 megawatt (MW) concentrating solar power (CSP) electricity plant, began full operation in February, according to its press release. Crescent Dunes uses an energy storage system that developers expect will be able to store enough thermal energy to generate electricity for up to 10 hours after sunset or on cloudy days when direct sunlight is unavailable.

Through December 2015, CSP made up 8% of total U.S. solar electric generating capacity, while utility-scale solar photovoltaic (PV) made up 53%, and distributed solar PV made up 38%. Solar thermal electricity power plants differ from PV technology, which uses solar cells to convert direct and diffuse sunlight directly into electricity. Solar thermal plants rely on direct sunlight to focus the sun's heat energy onto collectors. Most of the earlier utility-scale CSP projects use parabolic trough technology, where curved mirrors focus sunlight onto receiver tubes of water or some intermediary fluid. EIA data now show 1,777 MW of operating CSP capacity in three states: California, Arizona, and Nevada. Concentrated solar power technologies use mirrors that direct sunlight to heat an intermediary fluid, which then heats water into steam to drive a turbine. Crescent Dunes is the second CSP plant, after California's 400 MW Ivanpah plant, to use thousands of sun-tracking mirrors called heliostats to capture and focus sunlight onto a receiver in a tall central tower. Unlike most other CSP plants that use synthetic oil as the intermediary fluid, Crescent Dunes uses molten salt, which has more advantageous thermal properties. Liquid salt in a 640-foot central tower is heated by concentrated sunlight. When electricity is needed, the molten salt is pumped through a heat exchanger to turn water into steam that spins a turbine to generate electricity.




Cooler salt flows back to a storage tank and the cycle repeats. Unlike the Ivanpah CSP plant, Crescent Dunes will not use natural gas as a secondary fuel. Crescent Dunes developers expect it to generate more than 500,000 megawatthours annually, equivalent to 1.3% of Nevada's 2015 utility scale net generation from all sources.

Large renewable projects like Crescent Dunes rely on many forms of financing. Developer and owner SolarReserve LLC received a $737 million loan guarantee from the U.S. Department of Energy. Ivanpah, the earlier power tower project, received $1.6 billion. Crescent Dunes is also eligible for the 30% federal investment tax credit. Two more CSP projects could come online by the end of 2017, but neither has received regulatory

approval or begun construction. Although individual CSP projects can be large, total installations of CSP systems have been small compared with PV systems, as 2,950 MW of utility-scale solar photovoltaic plants began operating in 2015 alone. Given its significant cost advantage, PV technology is expected to provide nearly all further growth in U.S. solar power in the foreseeable future.




NewBase 06 March 2016 Khaled Al Awadi

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

US oil closes at $35.92, posts 9.5 pct weekly gain Reuters + Newbase

U.S. oil prices rallied again on Friday after a one-day pause, helped by strong U.S. jobs data and technical buying after crude prices breached resistance levels on charts.

Also on Friday, the U.S. oil rig count fell by 8 to a total of 392, oilfield services firm Baker Hughes reported. At this time last year, drillers were operating 922 rigs in U.S. oil fields.

Brent futures rose $1.63 to $38.70 a barrel, while futures settled at $35.92 a barrel, up $1.35, or 3.91 percent for the session. U.S. oil also posted a 9.5 percent weekly gain.

Oil prices were mixed on Thursday after rallying for the first three days of the week.

U.S. jobs growth surged in February, the Labor Department reported, the clearest sign yet of employment market strength.

"We've had another good week, the market has been toying with resistance around the $37.50 area in Brent. We had a break above but it failed to hold — to me it indicates we could be in a Friday afternoon profit mode," Saxo Bank's head of commodities research Ole Hansen said.

"The psychology seems to have turned in the market and although we may see some profit-taking into the weekend, we potentially could still be moving higher next week."

Oil price special

coverage




U.S. crude breached the $35 per barrel level earlier this week, but a settlement above that price would set up markets for another move higher, Again Capital founding partner John Kilduff told CNBC.

"It's a technical trade here," he said. "Employment data was strong, and that speaks to strong gasoline demand we've been seeing."

Charts for Brent and WTI showed Relative Strength Index (RSI) at above 60, heading toward the overbought level of 70. RSI levels spiked as crude prices jumped more than 35 percent from 12-year lows hit less than 2 months ago.

Cuts in U.S. oil production have provided price support after the U.S. Energy Information Administration reported output fell for a sixth straight week to 9.08 million barrels a day, while U.S. crude inventories rose to a new record of 517.98 million barrels last week.

The combination of expected further cuts in U.S. output in coming months and a brightening demand outlook is also underpinning prices.

"Most support comes from the supply side but also the demand side seems to improve," Commerzbank analyst Carsten Fritsch said, pointing to Saudi Arabia raising its April selling prices for Asian customers and potential for Chinese oil demand to surprise to the upside.

Meetings between oil producers are expected to take place in March to discuss potential coordinated action although no decision on the date or venue of possible talks between OPEC and non-OPEC producers has been made yet.40 by the middle of this year.




NewBase Special Coverage

News Agencies News Release 06 March 2016

US shale frackers aim to be world’s biggest supplier of oil by 2020 despite bloodbath

IHS estimates that oil and gas investment by 2020 will be $1.8tr less than forecast two years

ago, risking an oil shortage as global demand grows.

Dozens of indebted US shale companies face annihilation over coming months as their hedge protection runs out and creditors pull the plug, but veteran frackers insist defiantly that the slump will not stop their march to world conquest.

“What is happening scares the heck out of you. We’re going to see a decimation for the industry, with bodies and corpses all over the place,” said Mark Papa, former head of EOG Resources.

“You run for cash. You ride out the storm. Our activity is at a bare minimum, and we’re just preserving our operational capability,” said John Hess, founder of the Hess Corporation.

“We had 17 rigs two years ago, eight last year, and now we’re running two. Very few things make sense at $30 (Dh110.19). It’s better to leave the oil in the ground,” he told the IHS CERAWeek energy summit in Houston.




Mr Papa said the 70 per cent crash in oil prices since mid-2014 will wipe out companies that leveraged to the hilt betting on $100 crude forever. Survivors will “rise from the ashes”, chastened but wiser.

Yet Papa, now at Riverstone, said Opec’s price war against shale will not stop the US juggernaut. Oil giants with deep pockets are waiting to “gobble up” distressed assets, and America’s nimble mid-cost frackers will have an edge when the cycle turns.

IHS estimates that oil and gas investment by 2020 will be $1.8 trillion (£1.3 trillion; Dh6.61 million) less than forecast two years ago, risking an oil shortage as global demand keeps growing by 1.2 million barrels per day (bpd) each year and wells deplete at an annual rate of 3 million bpd.

“The market is going to grow to 100m bpd. Where is the quantity going to come from? Capital spending on mega projects has stopped cold,” said Papa.

“I can see a case where US shale is the biggest supplier of oil in the world by 2020. We could turn

the whole thing on its ear, producing 13 million to 14 million bpd,” he said.

This would be 16 million bpd in total liquids, beating the combined exports of Saudi Arabia and Russia.

The International Energy Agency expects the US to make up much of the world’s output growth by 2020, after dropping 600,000 bpd this year. Papa said engineers will work out how to double the efficiency of shale extraction to 50 per cent. “That’s the next big breakthrough,” he said.

David Hager, head of Devon Energy, said frackers have slashed costs since the boom, when service fees were rocketing. “A lot of plays work at $45 to $50, and the vast majority from $55 to $60. They certainly don’t need $90,” he said. “Most companies will survive to take advantage of the recovery. We will ramp up, stay alive, and look forward to a brighter day. It is not just shale that doesn’t work at today’s prices, nothing much at all works.”

Raoul LeBlanc, from IHS, said the crash has stopped an extra 1.5 million bpd of shale coming on stream but frackers have been remarkably resilient, cutting well costs by 40 per cent.

“Restarting production may be easier than people think. Everything is ready to go. All the ingredients are there. There is a lot of money looking for the bottom of the cycle, waiting to get back in,” he said.

He described shale as a mix of “hogs and dogs”. Big companies produce most of output and will weather the storm: the dogs are mostly small, and while many are going bust, they are fringe players.




Some 48 oil and gas companies have defaulted since early 2015 on $17 billion of debt. The great unknown for world oil markets is how fast the frackers will come back. Hess says it will take two years once the crisis passes.

“It is a big logistical undertaking. You’ve got to mobilise rigs and find people. Assets need permits in the US, and that takes 90 days,” he said.

“The high-yield market has basically dried up and that was the primary source of financing for the shale boom,” he said.

He thinks shale will stabilise near $60 and then ratchet back up, long before it becomes worthwhile to launch offshore projects.

“Just to get the deep water going, you need a price closer to $70,” he said. Scott Sheffield, head of Pioneer, is bracing for a long slog. “US shale production won’t grow at $50. There’s not enough cash flow in the business. It needs $60 to $70 to grow,” he said.

Once prices get there, the Permian Basin of west Texas will come into its own. This “crown jewel” may be as big as the giant Ghawar field in Saudi Arabia, able to produce 6m bpd. Stephen Chazen, Occidental Petroleum’s grizzled veteran, warned peers not to get their hopes up. The rout will last into 2017.

“There will be a false bottom, or two, or three, or four,” he said.




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Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010

Mobile: +97150-4822502 [email protected] [email protected]

Khaled Al Awadi is a UAE National with a total of 25 years of experience in the 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 a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great experiences in the designing & constructing of gas pipelines, 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 local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and 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 06 March 2016 K. Al Awadi

New base 801 special 06 march 2016

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Transcript of New base 801 special 06 march 2016