New base special 08 june 2014

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NewBase 08 June 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil majors urged to give longer service deals to cut costs
Reuters/Oslo
Oil producers must award longer service contracts if they want to cut costs – and should look to
Brazil’s Petrobras as an example – but they are struggling to change, said the CEO of Norway’s
Aker, a major shareholder in several energy firms.
Oil and gas producers around the globe are cutting back spending plans to save cash after a
decade-long spending bonanza cut deep into margins and reduced cash available for dividends.
Capital spending cuts by oil majors will last another “couple” of years, said Oeyvind Eriksen,
whose Aker is the biggest shareholder in oil services firms Aker Solutions and Kvaerner, and oil
producer Det norske .
But the cutbacks have not been too big, he added, because at the same time the sector is
struggling with surging costs partly caused by a lack of qualified labour – which has driven up

wages and extended the length of projects. Oil producers are now looking for ways to lower their
costs and Eriksen said that one way would be to give service firms, who do everything from
seismic surveying to maintenance, multi-year framework contracts instead of many smaller jobs
through frequent tenders.
He also said oil firms should allow for more standardisation in project developments to save on
cost. Such a process could involve allowing engineering firms to reuse design elements from
previous projects or to use preset design modules.
“A long-term partnership and predictability of volumes to be supplied is a prerequisite for
standardisation,” Eriksen told Reuters in an interview. “Petrobras is a role model. Petrobras
awards five-year framework agreements, creating predictability for suppliers.”
“It would be a big change for big organisations ... and realistically I don’t expect major changes
compared to how the industry operates today,” said Eriksen, a long-time business partner of
Norwegianbnaire Kjell Inge Roekke, Aker’s controlling shareholder.
Oil services companies have touted standardisation as a way to cut costs and Aker Solutions
already plans combined work on two Statoil fields, but Eriksen said such an approach is proving
slow to catch on.
“Standardisation is not new, it’s been the buzzword in the industry for years,” he said. “What we
have experienced repeatedly is that individual customers have individual preferences, due to
reservoir characteristics, due to their installed base and their maintenance programme.”
Costs can still be reduced, like by outsourcing engineering work to Asia, as Aker Solutions has
done, and through new technology. But certain work, like maintenance, depends on local costs
and firms may have gone too far in cutting spending in that area, Eriksen added.
Norway is one of the most expensive countries for oil and gas as it has the highest oil tax at 78%
and, according to consulting firm Hays, workers in the country’s oil and gas sector earn on
average $179,200 a year.
But Eriksen says the sector is still
competitive even if there was little
chance for salaries to come down.
“The Norwegian oil services industry is
competitive and the best proof is the
subsea success,” Eriksen said.
“Companies like GE, Aker Solutions
and FMC Technologies all have
significant subsea business in
Norway, competing in the global
market, and I expect that to last for
decades to come.”
He also dismissed arguments that Norway, which generates almost a quarter of its gross domestic
product from oil and gas, is too reliant on its energy sector.
“The oil and gas industry is the strength of Norway and if we manage to play to our strength, with
so many opportunities far beyond the (Norwegian) oil sector, we should not turn such an asset
and advantage into a problem,” Eriksen said.

Sabic at feasibility study on Saudi Arabia Oil-To-Chemicals complex
The world largest ethylene producer, Saudi Basic Industries Corporation (Sabic) is mulling over the design
and construction of the world ever largest Oil-To-Chemical (OTC) complex in Saudi Arabia. In the same
way as Saudi Aramco invested heavily these last years on the downstream activities, Sabic is considering
again massive capital expenditure to expand its petrochemical activities in the Kingdom.
Saudi Arabia is looking desperately for reducing its reliance on crude oil
export at the same speed as the USA are ramping up their production of oil
just in case the oil market should follow the natural gas market after the
shale gas development.
In addition each $billion invested in the downstream sector is producing
four times more employment that the same $billion in the upstream
side.This shale gas glut has also provided the US market with a major
competitive advantage to produce olefin and polyolefins.
On its side Saudi Arabia is running short of gas and all the investigations to
develop local reserves of unconventional gas have returned little hope to see such exploration – production
project in operations before long because of the water and costs required with current technologies.
Therefore the only alternative for Sabic to consider taking a new leap in the petrochemical sector is to
develop commercially viable Oil-To-Chemical solutions. In 2013, ExxonMobil started up the first large
scale Oil-To-Chemical plant in Singapore. To be located in Yanbu on the west coast of Saudi Arabia,
Sabic Oil-To-Chemical complex should have a capacity of 200,000 barrels per day (b/d).
In addition the energy required to run such large plant may represent 50,000 b/d.
In the Oil-To-Chemical process the crude oil refining is fully integrated in the petrochemical process
transforming and recycling all the by-products. In this Oil-To-Chemical project, Sabic is considering to use
the refined crude oil to feed directly three steam crackers, each one dedicated to:
- Naphtha
- Fuel oil
- Natural gas liquids (NGL)
Then olefin and aromatic petrochemical units will be integrated together around these crackers to produce:
- Ethylene , - Propylene, - Benzene, - Toluene & - Xylene
With more than $30 billion capital expenditure, Sabic Yanbu Oil-To-Chemical should become by far the
largest project ever built in Saudi Arabia. To be commercially viable such Oil-To-Chemical supposes a long
term agreement between Sabic and Saudi Authorities regarding the transfer price of the crude oil barrel.
The working scenario is to align the barrel price on its gas price equivalent per million BTU in the
Kingdom. At the end the choice for Saudi Arabia is to export this additional crude oil at high price, but at
the risk to influence market prices down, or to keep control of the oil market as today and build added value
on subsidized crude oil at home through Sabic.
Sabic is targeting to run its Yanbu Oil-To-Chemical project by 2020.

SABIC creates thermoplastic carbon composite wheel
by Arabian Oil & Gas Staff on Jun 4, 2014
SABIC, Kringlan Composites, and other industry partners are working to further advance the
development of the world’s first thermoplastic composite wheel. This ground breaking innovation
leverages SABIC’s proprietary ULTEM resin and Kringlan’s proprietary three-dimensional
composite design capabilities to create a material solution that can be used to replace traditional
materials, such as metal and aluminum alloy, helping reduce weight and emissions, and
potentially save manufacturing costs across industries from aerospace to automotive, and
consumer goods, Ernesto Occhiello, SABIC Executive Vice President, Technology and
Innovation, has announced.
Thierry Materne, Vice President,
Technology & Innovation for SABIC’s
Innovative Plastics business, said, “This
ongoing collaboration with Kringlan is an
excellent example of how we identify
innovative companies with unique
technology to collaborate on developing
industry breakthrough for the benefit of the
downstream industries that we serve.”
He added, “Combining SABIC’s high-
performance ULTEM resin with Kringlan’s
proprietary three-dimensional
manufacturing technology for carbon
composites offers OEMs the opportunity
for reduced weight, lower production
costs, as well as material recyclability. When compared to other thermoplastic materials, the
ULTEM resin composite concept offers superior strength at high temperatures, dimensional
stability as well as resistance to chemicals.”
To advance the wheel’s development, SABIC and Kringlan have been working on a prototype for a
German automotive manufacturer. This innovative and lightweight wheel – the first of its kind in the world –
is strong, light, stunning in design. The significant weight savings made possible through Kringlan’s
revolutionary wheel design, coupled with the ground-breaking material technology employed, can improve
fuel economy. The concept also offers a more sustainable solution. Not only can emissions associated with
the vehicle’s use phase be reduced, but the wheel can be manufactured with less environmental impact
compared to conventional processes and it offers full system recyclability.
The design of the part also provides the flexibility for the wheel to be mounted with traditional
metal spokes, or spokes with carbon fiber-reinforced ULTEM resin composites, potentially
enabling even greater weight savings.
The full composite wheel prototype complies with current standards set for metal wheels by the
German testing institute TüV, enhancing the opportunity to work with additional global automotive
OEMs for the prototyping of lightweight wheels according to their specific design and
specifications.
“This new material technology resulting from the ongoing collaboration between Kringlan and

SABIC has the potential to be a breakthrough for OEMs in multiple industries,” said Steffen
Heinecke, CEO of Kringlan. “SABIC’s support is critical to the success of this project. In addition to
their world-class material technology, they provide application and secondary operation expertise.
Already, in the automotive industry alone, several OEMs have shown interest in the carbon
composite wheel application, which can enable the reduction of CO2 from a passenger car by two
to three percent.”
While the first application of this new technology is being driven in the automotive industry, its
potential reach extends to multiple industries where weight reduction is a key driver.
To illustrate this, in consumer appliances, OEMs are focused on designing their products to
achieve energy efficiency certifications. With this carbon fiber composite using ULTEM resin,
appliance OEMs can replace metal with a lighter and equally strong technology, which can help to
reduce the amount of energy used during operation and contribute to the energy efficiency
performance required for certification.
In washing machines, for example, this new three-dimensional carbon fiber composite technology
can reduce the inertia – the amount of energy needed – to start the machine drum moving,
compared to current metal alternatives, which can mean greater efficiency, and potentially a lower
carbon footprint for the machine. Additionally, by considering the use of the ULTEM resin-based
carbon fiber composites with Kringlan’s manufacturing technology, appliance manufacturers can
potentially save costs by reducing the number of secondary operations required to develop key
parts.

Iraq: DNO reports Tawke field production exceeds 100,000 bopd
Source: DNO International
DNO International announced Thursday that production from the Tawke field in the Kurdistan region of
Iraq reached 120,021 barrels of oil per day in May, the first time average monthly production has exceeded
100,000 barrels per day. May production was split 60-40 between local sales and deliveries to the export
pipeline at Fish Khabur. Ahead of its Annual General Meeting, the Company also announced that
production from the Tawke field passed the 75 million barrels cumulative mark on 31 May.
Plans to increase Tawke deliverability to 200,000 barrels per day by year-end 2014 continue on schedule.
As part of that expansion program, production testing has commenced on Tawke-26, the first of two
recently completed Tawke horizontal wells, with Tawke-24 to follow. A third horizontal well, Tawke-25, is
drilling ahead at 1,873 metres.
Elsewhere in Kurdistan, sales of natural gas from the Summail field to the Dohuk power plant commenced
in late May and currently average 60 million cubic feet per day from the first well, some 20 percent ahead of
plan. Sales will climb as a second well is put on production in June, followed by a third well later this
summer. 'We are focused like a laser on scale and speed of delivery, notwithstanding stretch targets, across
our portfolio of assets,' said Bijan Mossavar-Rahmani, DNO International's Executive Chairman.
In the Sultanate of Oman, the West Bukha-5 well has been returned to service following an extensive
workover, and tested 2,600 barrels per day of oil and liquids and 10 million cubic feet per day of natural
gas, increasing Block 8 deliveries.
In the Republic of Yemen, at 7,804 barrels per day, gross oil production in May from Blocks 32, 43 and 53
was up some 20 percent from the first quarter 2014 figure, although security conditions remain challenging
and continue to impact certain drilling and production operations.

Pakistan: Oil struck near Jhelum
Published in Dawn, June 7th, 2014
A major oil reserve has been discovered near Jhelum in Punjab, opening up a new area for
exploitation of hydrocarbon potential.
With an estimated production of 5,500 barrels per day, the Ghauri X-1 oil well is expected to be
the country’s largest oil-producing well and is likely to start contributing its output to the system by
the end of this month.
With the Petroleum Ministry’s consent, the Mari
Petroleum Company Limited (MPCL) which
operates the Ghauri Joint Venture (GJV),
formally announced that it had made “a
significant oil discovery” in the Ghauri X-1 oil
well, located in the Dhemak village of district
Jhelum.
“We have made a major oil discovery in the
Sakessar Formation, in the eastern Potohar
region in Ghauri X-1 Well,” said the company in
a public announcement. “The 3,800 metre-deep
Ghauri Well is a landmark achievement, being
the first hydrocarbon discovery in the eastern
part of Potohar Plateau,” said the
announcement.
This will go a long way in exploiting the so-far
untapped potential in the area for other
exploration and production companies, the
statement said.
The oil from the Ghauri X-1 well has an API
gravity of 22º and flows from the Sakessar
Formation at a rate of 5,500 barrels per day.
The well’s pressure (post-acid) is 1100psi and
the well’s gauge or choke size is 32/64, the
statement said, adding that oil reserves at the well are estimated at 22 million barrels. Crude oil
with an API gravity of 22º is known as heavy crude.
According to the company, additional reserves may also be present in the Kussak Formation,
where oil flows at the rate of 136 barrels per day with a nitrogen kick-off, owing to the tight nature
of the reservoir. Sources said the company would be widening the road from the oilfield to the
Rawalpindi-Lahore Grand Trunk Road, but would start transporting oil to the Attock Refinery near
Rawalpindi by end of this month.
The company has also taken up the laying of a 14-kilometre pipeline from the Dhemak oil field to a
filling point near Sohawa on the G.T. Road so that oil could be transported through tankers to the
Attock Refinery. The company is also considering setting up a refinery near Sohawa to refine
crude oil as production from other fields is also expected to increase, an official said.

Report: Exxon May Take Over as Kashagan Operator
by Reuters
LONDON, June 6 (Reuters) – U.S. oil major Exxon Mobil is in line to take over as operator of the
giant Kashagan field in an attempt to fix the beleaguered $50 billion project offshore Kazakhstan,
industry publication Nefte Compass reported on Friday.
Discussions are continuing but Exxon could be appointed as soon as at the end of June, the
newsletter quoted a senior Kazakh official as saying. Exxon was not immediately available for
comments.
Italy's Eni was given the job of operating the project in 2001. It later lost its role as the sole lead
operator following major delays and cost overruns. Production finally started last September but
was halted in early October after the discovery of gas leaks in the pipeline network.
Oil output may now not restart until early 2016, Kazakh Oil and Gas Minister Uzakbai Karabalin
said in May, urging foreign partners to start replacing leaky pipelines at the deposit. It could take
another two-three years for the field to reach the targeted plateau output of 370,00 barrels per
day.
The Kashagan shareholders are Eni, Exxon Mobil, Royal Dutch Shell, France's Total and Kazakh
state oil company Kazmunaigas, each with 16.8 percent, and Japan's Inpex and China National
Petroleum Corp. (CNPC) as junior partners.

Det norske to use ‘Maersk Giant’ for North Sea well
Det norske oljeselskap ASA has received consent for exploration drilling using the
Mærsk Giant jack-up rig to drill well 2/9-5 S Heimdalshø, in production licence 494,
offshore Norway
The well is in the southern part of the North Sea,
around 34 km west of the Valhall field. Water
depth at the site is approximately 65 metres.
Drilling is planned to begin in July 2014, with a
duration of around 60 days, depending on whether
a discovery is made. The rig is owned and
operated by the A.P. Møller-Mærsk Group.
It was built in Japan by Hitachi and completed in
1986. Mærsk Giant can operate in water depths of
up to 107 metres and accommodates 87 people.

Pipe buckling caused Deepwater Horizon disaster, U.S. CSB says
Press Release, June 06, 2014
Deepwater Horizon disaster caused by drill pipe buckling, U.S. Chemical Safety Board
discovers.
The blowout preventer (BOP) that was intended to shut off the flow of high-pressure oil and gas from the
Macondo well in the Gulf of Mexico during the disaster on the Deepwater Horizon drilling rig on April 20,
2010, failed to seal the well because drill pipe buckled for reasons the offshore drilling industry remains
largely unaware of, according to a new two-volume
draft investigation report released today by the U.S.
Chemical Safety Board (CSB).
The blowout caused explosions and a fire on the
Deepwater Horizon rig, leading to the deaths of 11
personnel onboard and serious injuries to 17 others.
Nearly 100 others escaped from the burning rig,
which sank two days later, leaving the Macondo
well spewing oil and gas into Gulf waters for a total
of 87 days. By that time the resulting oil spill was
the largest in offshore history. The failure of the
BOP directly led to the oil spill and contributed to
the severity of the incident on the rig.
The CSB report concluded that the pipe buckling
likely occurred during the first minutes of the
blowout, as crews desperately sought to regain
control of oil and gas surging up from the Macondo
well. Although other investigations had previously
noted that the Macondo drill pipe was found in a
bent or buckled state, this was assumed to have
occurred days later, after the blowout was well underway.
After testing individual components of the blowout preventer (BOP) and analyzing all the data from post-
accident examinations, the CSB draft report concluded that the BOP’s blind shear ram – an emergency
hydraulic device with two sharp cutting blades, intended to seal an out-of-control well – likely did activate
on the night of the accident, days earlier than other investigations found. However, the pipe buckling that
likely occurred on the night of April 20 prevented the blind shear ram from functioning properly. Instead of
cleanly cutting and sealing the well’s drill pipe, the shear ram actually punctured the buckled, off-center
pipe, sending huge additional volumes of oil and gas surging toward the surface and initiating the 87-day-
long oil and gas release into the Gulf that defied multiple
efforts to bring it under control.
The identification of the new buckling mechanism for the
drill pipe – called “effective compression” – was a central
technical finding of the draft report. The report concludes
that under certain conditions, the “effective compression”
phenomenon could compromise the proper functioning of
other blowout preventers still deployed around the world
at offshore wells. The complete BOP failure scenario is

detailed in a new 11-minute computer video animation the CSB developed and released along with the draft
report. The CSB draft report also revealed for the first time that there were two instances of miswiring and
two backup battery failures affecting the electronic and hydraulic controls for the BOP’s blind shear ram.
One miswiring, which led to a battery failure, disabled the BOP’s “blue pod” – a control system designed to
activate the blind shear ram in an emergency. The BOP’s “yellow pod” – an identical, redundant system that
could also activate the blind shear ram – had a different miswiring and a different battery failure. In the case
of the yellow pod, however, the two failures fortuitously cancelled each other out, and the pod was likely
able to operate the blind shear ram on the night of April 20.
“Although both regulators and the industry itself have made significant progress since the 2010 calamity,
more must be done to ensure the correct functioning of blowout preventers and other safety-critical elements
that protect workers and the environment from major offshore accidents,” said Dr. Rafael Moure-Eraso, the
CSB chairperson. “The two-volume report we are releasing today makes clear why the current offshore
safety framework needs to be further strengthened.”
“Our investigation has produced several important findings that were not identified in earlier examinations
of the blowout preventer failure,” said CSB Investigator Cheryl MacKenzie, who led the investigative team.
“The CSB team performed a comprehensive examination of the full set of BOP testing data, which were not
available to other investigative organizations when their various reports were completed. From this analysis,
we were able to draw new conclusions about how the drill pipe buckled and moved off-center within the
BOP, preventing the well from being sealed in an emergency.”
The April 2010 blowout in the Gulf of
Mexico occurred during operations to
“temporarily abandon” the Macondo
oil well, located in approximately
5,000-foot-deep waters some 50 miles
off the coast of Louisiana. Mineral
rights to the area were leased to oil
major BP, which contracted with
Transocean and other companies to
drill the exploratory Macondo well
under BP’s oversight, using
Transocean’s football-field-size
Deepwater Horizon drilling rig.
The blowout followed a failure of the
cementing job to temporarily seal the well, while a series of pressure tests were misinterpreted to indicate
that the well was in fact properly sealed. The final set of failures on April 20 involved the Deepwater
Horizon’s blowout preventer (BOP), a large and complex device on the sea floor that was connected to the
rig nearly a mile above on the sea surface.
Effective compression, as described in the draft report, occurs when there is a large pressure difference
between the inside and outside of a pipe. That condition likely occurred during emergency response actions
by the Deepwater Horizon crew to the blowout occurring on the night of April 20, when operators closed
BOP pipe rams at the wellhead, temporarily sealing the well. This unfortunately established a large pressure
differential that buckled the steel drill pipe inside the BOP, bending it outside the effective reach of the
BOP’s last-resort safety device, the blind shear ram.
“The CSB’s model differs from other buckling theories that have been presented over the years but for
which insufficient supporting evidence has been produced,” according to CSB Investigator Dr. Mary Beth

Mulcahy, who oversaw the technical analysis. “The CSB’s conclusions are based on real-time pressure
data from the Deepwater Horizon and calculations about the behavior of the drill pipe under extreme
conditions. The findings reveal that pipe buckling could occur even when a well is shut-in and apparently in
a safe and stable condition. The pipe buckling – unlikely to be detected by the drilling crew – could render
the BOP inoperable in an emergency. This hazard could impact even the best offshore companies, those
who are maintaining their blowout preventers and other equipment to a high standard. However, there are
straightforward methods to avoid pipe buckling if you recognize it as a hazard.”
The CSB investigation found that while
Deepwater Horizon personnel performed
regular tests and inspections of those BOP
components that were necessary for day-to-
day drilling operations, neither Transocean nor
BP had performed regular inspections or
testing to identify latent failures of the BOP’s
emergency systems. As a result, the safety-
critical BOP systems responsible for shearing
drill pipe in emergency situations – and safely
sealing an out-of-control well – were
compromised before the BOP was even
deployed to the Macondo wellhead. The CSB
report pointed to the multiple miswirings and
battery failures within the BOP’s subsea
control equipment as evidence of the need for
more rigorous identification, testing, and
management of critical safety devices. The
report also noted that the BOP lacked the
capacity to reliably cut and seal the 6-5/8 inch drill pipe that was used during most of the drilling at the
Macondo well prior to April 20 – even if the pipe had been properly centered in the blind shear ram’s
blades.
Despite the multiple maintenance problems found in the Deepwater Horizon BOP, which could have been
detected prior to the accident, CSB investigators ultimately concluded the blind shear ram likely did close
on the night of April 20, and the drill pipe could have been successfully sealed but for the buckling of the
pipe.
“Although there have been regulatory improvements since the accident, the effective management of safety
critical elements has yet to be established,” Investigator MacKenzie said. “This results in potential safety
gaps in U.S. offshore operations and leaves open the possibility of another similar catastrophic accident.”
The draft report, subject to Board approval, makes a number of recommendations to the U.S. Department of
Interior’s Bureau of Safety and Environmental Enforcement (BSEE), the federal organization established
following the Macondo accident to oversee U.S. offshore safety. These recommendations call on BSEE to
require drilling operators to effectively manage technical, operational, and organizational safety-critical
elements in order to reduce major accident risk to an acceptably low level, known as “as low as reasonably
practicable.”
“Although blowout preventers are just one of the important barriers for avoiding a major offshore accident,
the specific findings from the investigation about this BOP’s unreliability illustrate how the current system
of regulations and standards can be improved to make offshore operations safer,” Investigator MacKenzie
said. “Ultimately the barriers against a blowout or other offshore disaster include not only equipment like

the BOP, but also operational and organizational factors. And all of these need to be rigorously defined,
actively monitored, and verified through an effective management system if safety is to be assured.”
Companies should be required to identify these safety-critical elements in advance, define their performance
requirements, and prove to the regulator and outside auditors that these elements will perform reliably when
called upon, according to the draft report.
The report also proposes recommendations to the American Petroleum Institute (API), the U.S. trade
association for both upstream and downstream petroleum industry. The first recommendation is to revise
API Standard 53, Blowout Prevention Equipment Systems for Drilling Wells, calling for critical testing of
the redundant control systems within BOP’s, and another for new guidance for the effective management of
safety-critical elements in general.
CSB Chairperson Rafael Moure-Eraso said, “Drilling continues to extend to new depths, and operations in
increasingly challenging environments, such as the Arctic, are being planned. The CSB report and its key
findings and recommendations are intended to put the United States in a leading role for improving well-
control procedures and practices. To maintain a leadership position, the U.S. should adopt rigorous
management methods that go beyond current industry best practices.”
The CSB is an independent federal agency charged with investigating industrial chemical accidents. The
agency’s board members are appointed by the president and confirmed by the Senate. CSB investigations
look into all aspects of chemical accidents, including physical causes such as equipment failure as well as
inadequacies in regulations, industry standards, and safety management systems.

Thailand: Salamander Energy in agreement to sell 40% stake in
Greater Bualuang Area. Source: Salamander Energy
Salamander Energy has signed a non-binding HoA with SONA Petroleum to sell an effective 40% working
interest in both the B8/38 concession (containing the Bualuang Field) and the surrounding G4/50
concession for a total cash consideration of US$280 million.
Under the terms of the Transaction:
• SONA will pay Salamander US$250
million for a 40% effective interest in the
B8/38 concession
• SONA will pay Salamander US$30
million for a 40% effective interest in the
G4/50 exploration concession
• Salamander will carry SONA's costs
associated with the drilling of two exploration
wells in the G4/50 concession up to an agreed
cap
• SONA will pay Salamander a
contingent cash payment in the event of a
commercial discovery in G4/50 of up to $15
million
As at 31 December 2013, Salamander's
estimated gross Bualuang Field 2P
reserves were 32.7 million barrels of oil
('MMbo') and gross 2C resources were
32.3 MMbo.
The Transaction has an effective date of 1
January 2014 and following its successful
completion, the Board has approved a
US$50 million capital return to
shareholders, equivalent to approx. 11
pence per share. Post closure of the
Transaction, and ahead of the next phase
of development of the Bualuang Field, the
Group expects to retire between $200
million and $250 million of current debt.
The HoA remains subject to, amongst
other things, the signature of final documentation, including share sale and purchase and shareholders'
agreements, which is anticipated to occur prior to the end of June. A further announcement will be made at
that time. The Transaction is expected to close by the end of Q3 2014 following satisfaction of all
conditions, including receipt of both regulatory and shareholder approvals of both Salamander and SONA.

Increases in U.S. crude oil production come from light, sweet
crude from tight formations . Source: U.S. Energy Information Administration,
U.S. crude oil production has grown rapidly in recent years, primarily from light, sweet crude (a
characteristic of crude quality, as measured by API gravity and sulfur content) from tight resource
formations. Roughly 96% of the 1.8-million-barrel per day (bbl/d) growth in production from 2011 to 2013
consisted of light sweet grades with API gravity of 40 or above and sulfur content of 0.3% or less.
EIA's new forecast of U.S. crude production by quality indicates that the U.S. supply of light, sweet crude
will continue to outpace that of medium and heavy crude through 2015. More than 60% of EIA's forecasted
production growth for 2014 and 2015 consists of sweet grades with API gravity of 40 or above.
The growth in this particular type of crude oil (as well as many forecasts for a continuation of this trend) has
sparked discussion of how rising crude oil volumes will be absorbed into the market. Given the likelihood of
continued growth in domestic crude production, and the recognition that some absorption options, such as
like-for-like replacement of import streams, are inherently limited, the question of how a relaxation in
current limitations on crude exports might affect domestic and international markets for both crude and
products continues to hold great interest for policymakers, industry, and the public.
This new production forecast along with a series of analytic papers will provide a starting point for further
EIA analyses on the market outlook and the effects of a possible relaxation of existing restrictions on crude
oil exports.

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Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently wOil & Gas sector. Currently wOil & Gas sector. Currently wOil & Gas sector. Currently working asorking asorking asorking as
Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical 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 Operatiothe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operatiothe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operatiothe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsnsnsns
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedhas developedhas developedhas developed
great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in thof gas pipelines, gas metering & regulating stations and in thof gas pipelines, gas metering & regulating stations and in thof gas pipelines, gas metering & regulating stations and in the engineering of supplye engineering of supplye engineering of supplye engineering of supply
routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forOUs forOUs forOUs for
the local authorities. He has become a reference for many of the Oil & Gas Conferences held in thethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in thethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in thethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andUAE andUAE andUAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
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NewBase 08 June 2014 K. Al Awadi

New base special 08 june 2014

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New base special 08 june 2014