New base special 07 september 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 07 September 2014 Khaled Al Awadi

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8 shortlisted for Dubai’s phase 1 Hassyan coal power project Emirates24 + NewBase

Dubai Electricity and Water Authority (Dewa) has shortlisted eight international developers, out of 17 qualification documents received, to send their bids for the first phase of the Hassyan Clean-Coal Power Project in response to the Request for Qualification it released last May.

The Hassyan clean-coal project supports the Green Economy for Sustainable

Development initiative launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. It also complements the Dubai Integrated Energy Strategy 2030 outlined by the Dubai Supreme Council of

Energy to diversify the energy mix by 2030.

The first phase of the project has a capacity of 1,200 MW using clean coal, and is expected to be operational by 2020. The tender closing date is 26 November 2014.

"The Hassyan project reflects our commitment to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the Dubai Integrated Energy Strategy to diversify the energy mix by 2030 to comprise 71% from natural gas, 12% from nuclear power, 12% from clean coal, and 5% from solar power. Pioneering projects like this one complement our efforts to carry out energy projects that meet increasing demand for energy in Dubai and support sustainable development," said Saeed Mohammed Al Tayer, MD and CEO of Dewa.

Al Tayer expressed his satisfaction with the interest of international organisations in the project, adding that the wide national and international participation reflects trust to invest in large projects in Dubai.




Kuwait Petroleum said to eye stake in Indian refinery Reuters + NewBase

Kuwait Petroleum Corp (KPC) aims to pick up a significant stake in Indian Oil Corp's Paradip refinery and supply about 60 percent of the oil needs of the plant, set to start up later this year, three sources with knowledge of the matter said.

Gulf oil producers want to lock in customers in Asia, which is experiencing a wave of refinery expansion, as the US shale boom has hit demand for their oil in Western economies. India, the world's fourth largest oil consumer, imports about 80 percent of its oil needs and plays a growing role as a regional refining hub.

The South Asian nation imports around 16 million tonnes of crude a month - more than it consumes - and exports about a third of that as refined products. State-run IOC, the country's biggest refiner, aims to start crude processing at its 300,000 barrels per day (bpd) coastal refinery in the eastern state of Orissa by the end of this year.

"Kuwait has sought a 50-percent stake in the refinery and the proposed petrochemical plant, along with marketing rights for fuels," said one of the sources, adding that IOC might settle for a smaller stake and keep control of the refinery. This source said KPC wanted to reserve the right to later sell a part of its stake in the Indian project to any international oil company.

The sources who spoke to Reuters declined to be identified because of the sensitivity of the topic. IOC Chairman B Ashok did not respond to telephone calls from Reuters seeking comment, while a KPC spokesman could not immediately be reached for comment.

Kuwait wants to strengthen its role in India's oil gas sector and wants to lease a part of its strategic storage, being built to hedge against energy security risks. Kuwait was India's fourth biggest oil supplier in fiscal 2013/14, supplying about 409,000 bpd. "KPC has several interests and

opportunities in India and this is one of the main ones," said a second source. "India is always on the radar. KPC is interested in Paradip but both sides haven't agreed on the details yet."

IOC, along with subsidiary Chennai Petroleum, controls about a third of India's oil refining capacity of 4.3 million bpd. KPC and IOC officials had a meeting in India during the last week of August to discuss KPC's participation, two of the sources said. KPC will acquire a stake through its overseas downstream subsidiary, Kuwait Petroleum International.

Kuwait wants a potential joint venture with IOC to sign a deal for long-term crude supply with KPC, they said. The new refinery will cater to rising demand for fuel as India is keen to boost the share of manufacturing in its economic expansion.

Paradip is IOC's most complex refinery and capable of handling cheaper grades that are more difficult to handle. The refinery will have a potential to produce about 6.3 million tonnes of diesel and 3.6 million tonnes of petrol, which will largely be absorbed by the

domestic market.




Iran: South Pars gas output to increase Zawya + NewBase

With the installation of platforms B and C of the South Pars Gas Field's Phase 12 before winter, SP's gas production capacity will increase by 50 mcm per day. Making the above statement, Shaham Anousheh, a director of the Iranian Offshore Engineering and Construction Company (IOECC), said platform B will be launched early December, IRNA reported. "The platform will reach its production peak five days after it becomes operational," he said. Anousheh added that 15 days after the deck of platform B is installed, platform C--with a daily production capacity of 25 mcm--is to go on stream.

He noted that 90 percent of the project's operations, including installation, have been completed

and the figure will amount to 95 percent in one month. "The installation project of platform B will progress by 90 percent in the next three months," he said.

The IOECC official said the project's installation and launching operations have been entirely carried out by domestic experts. Two decks of platforms B and C are to be installed in June, which weigh about 3,250 tons and 3,401 tons respectively.

With the completion of the installation of decks, the phase's gas output will increase by 65 mcm per day. Phase 12 is the field's biggest and has a production capacity of 75 mcm per day. The South Pars Gas Field is estimated to contain 14 trillion cubic meters of gas and 18 billion barrels of gas condensates.

South Pars covers 3,700 square kilometers of Iran's territorial waters in the Persian

Gulf. It adjoins Qatar's North Field, which measures 6,000 square kilometers.




Mubadala Petroleum begins Manora oil development drilling in

Northern Gulf of Thailand Source: Tap Oil

• Development drilling for the Manora Oil Development has commenced.

• Drilling of MNA-01 and MNA-02 is required ahead of introduction of hydrocarbons to the

Manora production facility.

• Production is expected to occur shortly after the completion of the MNA-01 and MNA-02

wells.

JV partner Tap Oil has provided an update on the Manora Oil Development in the Northern

Gulf of Thailand (TAP 30% interest).

Mubadala Petroleum, Operator of the Manora Oil Development joint venture, has advised

that at 10.00 (AWST) the Atwood Orca jackup drilling unit spudded the first of 15 planned

development wells, MNA-02. The MNA-01 and MNA-02 wells will be batch drilled to final

total depths of 2,104 m and 2,441 m measured depth respectively and shall be completed

with electric submersible pumps (ESPs) ahead of handover to Production. Drilling and

completion of

both wells is

planned to take

24 days on a

trouble free basis.

Both wells are

required ahead of

introduction of

hydrocarbons to

the Manora

production

facility.

Production is

expected to occur

shortly after the

completion of the

MNA-01 and

MNA-02 wells.

The Manora A

platform is




located within the Gulf of Thailand in 46 metres of water. The development drilling program

calls for drilling and completion of 15 wells (10 producers and 5 injectors), with the program

expected to take until the end of Q1 2015.

Tap has 2P reserves of 6.1 mmbbls (20.2 mmbbls gross) and 2C contingent resources of 3.2

mmbbls (10.9 mmbbls gross) booked for Manora (ASX release 27 October 2011). Tap will

review these reserves and contingent resources following development drilling and

production performance. Tap will make scheduled announcements upon commencement of

drilling and completion of each well or each batch. Tap’s next expected announcement is at

the completion of MNA-01 and MNA-02.




Tunisia: Gulfsands Petroleum announces update on the Chorbane

permit acquisition from ADX Energy. Source: Gulfsands Petroleum

Gulfsands Petroleum, the oil and gas production, exploration and development company with activities in Syria, Morocco, Tunisia, Colombia and the U.S.A., has provided an update on the acquisition of minority interests in the Chorbane permit, Tunisia, the subject of the Company's

announcement of 23rd December, 2013.

The Company is pleased to announce that the Tunisian Authorities (Comité Consultatif des Hydrocarbures or 'CCH') have now approved the transfer of all of ADX Energy's remaining interests in the Chorbane permit, onshore Tunisia to a wholly owned subsidiary of Gulfsands. Gulfsands is Operator of the Chorbane permit and legal owner of a 100% interest in the permit. The Chorbane permit covers an area of 1,940 sq kms in central Tunisia near the port city of Sfax and is principally an onshore permit. The permit is surrounded by several producing oil fields and extensive oil and gas infrastructure. Gulfsands is proposing to undertake a 2D

seismic programme of approx. 100 km on the permit to assist in the selection of drilling locations that have been provisionally identified from Gulfsands re-interpretation of a significant data base of legacy 2D seismic data.

Gulfsands is aware of recent ADX news releases announcing the approval of this transfer in which ADX has made unwarranted and unfounded allegations against the Company in relation to a dispute with ADX over ADX's performance of obligations arising under an Agreement reached between the parties in December 2013 and referred to in the Company's announcement of 23rd December, 2013. The nature and circumstances giving rise to the dispute are well known to ADX and as a consequence Gulfsands has legal claims against ADX that significantly exceed the sum of US$1.5 million payable by Gulfsands pursuant to that Agreement. Gulfsands is entitled to set off against the amount of its claims against ADX, the sum payable by Gulfsands and has notified ADX that it intends to do.

As the dispute is in the hands of the parties' lawyers and has been for some time, the Company has been advised that it would be inappropriate to comment further as this time. The Company will provide further updates on this matter as and when appropriate.




Senegal: Dolphin Geophysical commences operation of a 7,000

sq km 3D seismic survey offshore Senegal . Source: Dolphin Geophysical

Dolphin Geophysical has been formally awarded the acquisition and processing of a 7,000 sq km SHarp Broadband 3D survey offshore Senegal by Kosmos Energy.

The Dolphin high-capacity 3D vessel, Polar Duchess has commenced operations and it will take approx. four months to complete. Dolphin's OpenCPS software will be utilised both onboard the vessel to produce a PostSTM Fast-Track dataset and then for the final PSTM volume at Dolphin's UK Processing Centre.

Atle Jacobsen, Dolphin's CEO commented 'We are very pleased to have been awarded this large SHarp 3D acquisition and processing contract from Kosmos Energy, one of the leading acreage

holders in North West Africa.

This is our first seismic project for Kosmos and Dolphin's fifth survey in Senegal' This contract is included in the Q2 2014 backlog, previously announced by Dolphin.




Saudi offers big prospects in off-grid, solar markets TradeArabia + NeewBase Saudi Arabia is looking to offset diesel with off-grid solar photovoltaic (PV) applications and hybrid solutions, offering major opportunities to local developers and suppliers to power remote residential and industrial areas, said an industry expert. Nearly a quarter of the Saudi energy grid is currently powered by diesel, which is used extensively as a fuel for transportation and electricity generation despite the high cost of importing it, added Sabri Asfour, general manager of FAS Energy, a subsidiary of Saudi Arabia's Fawaz Alhokair Group with 2,400 MW of GCC-based solar projects in the pipeline. At least $1 billion is spent every month on diesel imports to the Kingdom, in addition to the cost and emissions from transporting the fuel to remote areas, he noted. "In Saudi Arabia, there are weaknesses in electricity grid connection; the demand is huge and the load as well," said Asfour. As a result, the idea of using PV-generated electricity to offset diesel usage - or to replace it altogether as energy storage costs decline - is becoming increasingly appealing for utilities and industrial corporations, especially those keen on eliminating the uncertainty of future energy costs, he added. "There are many business areas without electricity and they are waiting for their turn to be connected to the grid, but unfortunately, the queue is long. At FAS Energy, we build small, medium and large-scale hybrid power plants. It is well known that Saudi Arabia's solar irradiation is the best in the region so we have to use it," highlighted Asfour. He will be speaking at the second edition of the Desert Solar Saudi Arabia conference that will be held on September 17 and 18 in Riyadh at the Sheraton Riyadh Hotel & Towers. Building on the success of the first Desert Solar Conference, the event is once again gathering stakeholders in the Saudi Arabian solar energy market, hosting more than 150 decision makers from across the industry.

During the conference, Asfour, alongside Thierry Lepercq, chairman of SolaireDirect and Raed Bkayrat, VP of Business Development at First Solar KSA, will be exploring solar-powered desalination solutions for the Kingdom and the business case for utility-scale solar power plants. Mohammed Almudaiheem, operation manager at Taqnia, and Salem Alsalem, renewable energy director at Al Gihaz Holding will discuss the requirements needed to drive the off-grid market in




Saudi Arabia and the competitive off-grid and hybrid solar solutions for the country's desert areas. According to a report by K A CARE on Saudi Arabia's solar energy deployment roadmap, locations such as border posts, highway family rests, remotely located mosques and small-sized villages all represent excellent potential for micro-generation through hybrid designs, including solar-powered desalination and cooling. The daily electricity needs of such isolated areas are usually met via diesel generators that are transported periodically to these bases. Not only is the solution expensive and unreliable but the generators struggle to function during the hottest times of the day and often break down. The Nofa Equestrian Resort, located 85 km west of Riyadh, is already benefitting from the hybrid concept through its recently-commissioned 1 MW CPV plant, which is offsetting the resort's 14 MW diesel generator. Most significantly, Saudi Aramco and Saudi Electricity Company are discussing plans to replace as much as 300 MW of diesel generation in off-grid locations with solar PV. Companies like FAS Energy are now preparing to supply the local market with hybrid solutions, as Asfour noted. "We will start providing electricity to our own affiliates from our hybrid system, the solar GenSet and this will be very soon. We can build this kind of solution in shopping malls, farms, hotels, schools and universities, on rooftops, ground-mounted or in car parks,” he said. Solar energy, however, will not make the transition on its own, as Michael Sterner, professor of energy storage at the Technical University of Regensburg points out. "We need flexibility - flexible power generation, power networks, demand side management, and of course storage." At Desert Solar, Sterner will share his insights on the latest developments and cost reduction trends in PV energy storage and will present a case study from the German electricity market. The Desert Solar Conference is part of a week-long trade mission offering international solar executives and investors the opportunity to meet with a high-level delegation of Saudi solar stakeholders. The event will be held from September 14 to 18 and is jointly organised by international solar conference organizer Solarplaza and the Saudi Arabia Solar Industry Association.

Top 10 - Solar Projects Saudi Arabia (http://desertsolarsaudiarabia.com)




Australian Prime Minister Abbott in India over uranium deal BBC.com + Newbase

Australian Prime Minister Tony Abbott has arrived in India for a two-day visit, with a deal on uranium sales high on the agenda. Mr Abbott will stop first in Mumbai before meeting India's newly-elected PM Narendra Modi in Delhi on Friday.

He says he is "hoping to sign" an agreement allowing Australian uranium exports to India. Australia, which holds an estimated 40% of the world's uranium, already exports it to China, Japan, Taiwan and the US. The country has not sold uranium to India in the past because it is not a signatory to the Nuclear Non-Proliferation Treaty.

But the two nations began talks on a deal in 2012, after the previous Labor government overturned its long-standing ban. Trade Minister Andrew Robb said earlier this week that Australia believed adequate safeguards were in place to ensure the uranium was used for civilian purposes only.

"The negotiations and work that's gone on between authorities in India and Australia have gone on for some years to develop a bilateral nuclear co-operation agreement which meets the international requirements and we are satisfied... that all the requirements have been met," he said.

India is currently heavily dependent on coal for energy but has a small nuclear energy sector which is plans to greatly expand in the future. Ahead of Mr Abbott's arrival, an official said India expected "significant outcomes" from the visit.

"For us, Australia is a major supplier of resources, particularly energy necessary for our development needs," said Sanjay Bhattacharya, Indian foreign ministry joint secretary. The US reached a deal with India on civilian nuclear co-operation in 2008.




BP ruling ‘wakeup call’ for other oil companies BY BLOOMBERG NEWS

Washington: A US judge's watershed ruling means the final cost to BP for the 2010 Gulf oil spill may eclipse $50 billion, wiping out years of profits and highlighting the risks of drilling as the industry pushes into more dangerous areas such as deeper waters and ice-bound Arctic fields.

Thursday's court decision that BP acted with gross negligence in the Gulf of Mexico disaster may hamstring the company financially as the industry's search for resources becomes more expensive and dangerous.

Companies including Exxon Mobil and Royal Dutch Shell are also facing increasing pressure to show investors they can still grow as production declines

As producers scour the globe for oil and natural gas, the ruling shows they'll be held accountable for mistakes that may be inevitable given the complexity of the work, said Edward Overton, professor emeritus at Louisiana State University's department of environmental sciences in Baton Rouge.

While the judge has yet to rule on how much oil was spilled, a key factor in determining additional fines, millions of barrels of crude from the well harmed wildlife and fouled hundreds of miles of beaches and coastal wetlands

If $50 billion isn't "a wakeup call to do it right, to slow down, to make sure all your i's are dotted and t's are crossed in terms of safety — not

just for BP but also for the industry — I don't know what is," he said.

Chasing oil

The companies have little choice in the chase for big, new discoveries as access to resources continues to be limited. Exxon, BP, Shell, Chevron and Total earned more than $1 trillion in total profit during the past decade, almost all of which has been spent in the search for new pools of oil and natural gas

Since 2004, the five companies have tripled capital spending and their combined output has fallen by 1.4 million barrels a day, according to data compiled by Bloomberg.Problems have arisen as companies drill deeper and in more perilous conditions. Shell last week submitted a plan for drilling in Alaska's Arctic, after a vessel ran aground in 2012

The ultra-deep Davy Jones well in the Gulf, among the most expensive ever drilled, has yet to




produce what operator Freeport-McMoRan Copper & Gold has said may be trillions of cubic feet of gas. The complexity of deep drilling or navigating Arctic waters means that further accidents may be inevitable, said Ed Hirs, an energy economist at the University of Houston

Co-defendants' responsibility

US District Judge Carl Barbier found that BP's exploration unit acted with gross negligence in the case, which killed 11 men and fouled beaches from Texas to Florida. The company, which has spent more than $28 billion in response to the disaster so far, will be exposed to as much as $18 billion in additional government fines and penalties.

While co-defendants Transocean and Halliburton weren't found to be grossly negligent, the judge ruled they do share in the responsibility.

Oil Prices For :-




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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 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 experof experof experof experience in theience in theience in theience 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 of a UAE operations base , Most of a UAE operations base , Most of a UAE operations base , Most of

ththththe experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gae experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gae experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gae experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through s compressor stations . Through s compressor stations . Through s 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 pipelines, of gas pipelines, of gas pipelines, of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many gas metering & regulating stations and in the engineering of supply routes. Many gas metering & regulating stations and in the engineering of supply routes. Many 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 for ocal authorities. He has become a reference for ocal authorities. He has become a reference for ocal authorities. He has become a reference for

mmmmany of the Oil & Gas Conferences held in the UAE andany of the Oil & Gas Conferences held in the UAE andany of the Oil & Gas Conferences held in the UAE andany 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 .

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NewBase 07 September 2014 K. Al Awadi

New base special 07 september 2014

Economy & Finance

Transcript of New base special 07 september 2014