New base 05 june 2019 energy news issue 1250 by khaled al awadi

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 Energy News 05 June 2019 - Issue No. 1250 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE Dragon Oil Buys BP interest in Gulf of Suez Egypt assets to
WAM/Hatem Mohamed
Saeed Mohammed Al Tayer, Vice Chairman of Dragon Oil, has welcomed the Dubai-based
company's purchase of BP's stake in Egypt. BP has agreed to sell its interests in Gulf of Suez oil
concessions in Egypt to the company, which is owned by Dubai government.
Under the terms of the agreement, Dragon Oil will purchase producing and exploration
concessions, including BP’s interest in the Gulf of Suez Petroleum Company (GUPCO).
The deal, which is subject to the Egyptian Ministry of Petroleum and Mineral Resources’ approval,
is expected to complete during the second half of 2019 and is part of BP’s plan to divest more
than $10 billion of assets globally over the next two years.
Ali Rashid Al Jarwan, CEO of Dragon Oil, said the deal will enhance the company's production
and investments in a number of countries, including, Turkmenistan, Iraq and Afghanistan.

Egypt: Rockhopper provides update on its Egyptian portfolio
Source: Rockhopper Exploration
AIM-listed Rockhopper Exploration, the oil and gas company with key interests in the North
Falkland Basin and the Greater Mediterranean region, has provided an operational update in
relation to its Egyptian portfolio, in which Rockhopper holds a 22 per cent working interest.
Al Jahraa-11
The Al Jahraa-11 in-fill well reached TD of 4,150m MD on 15 April 2019 in the Kharita formation.
Mudlogs and petrophysics indicate the following oil net pay: ARC: 7.2m TVD; ARD: 4.0m TVD;
ARG: 2.5m TVD; Bahariya: 15m TVD.
The well has been successfully tested across the ARC, ARG and Bahariya and has been
completed with a dual string to produce from these three reservoirs. The well is currently
producing approx. 787 bopd gross. In addition to the oil production from Al Jahraa-11, the
operator, Kuwait Energy, is evaluating a gas commercialisation solution through bids for the
construction of a sales gas pipeline from Al Jahraa to the gas plant at El Salmiya.
Al Jahraa-7
The Al Jahraa -7 in-fill well was spudded on 26 May 2019. As of 2 June 2019, the well is drilling
ahead at 1,195m in 12 1/4" hole. This well is planned to TD in the Kharita formation with its
primary objective being an infill oil producer in the ARC reservoir and having a secondary
objective in the Bahariya. The well is planned to take around 60 days to drill and complete.

The next well in the programme will be Al Jahraa Water Injector-1, followed by SW-ASH
commitment exploration well.
Abu Sennan 6 development lease
As previously announced a development lease, which contains the ASX-1X discovery in the ARC
formation, was awarded on 25 March 2019, and the well brought on stream shortly thereafter. The
well is currently producing 150 bopd gross.
As of 2 June 2019, the total gross production from Abu Sennan was 5,135 boepd (1,130 boepd
net to RKH).
Abu Sennan–Western Desert, Egypt (Rockhopper22%)
Sam Moody, Chief Executive of Rockhopper, commented:
'We are delighted to have drilled yet another highly successful well at Abu Sennan with multiple
pay zones encountered across four reservoirs including the Bahariya and maintaining the
momentum we enjoyed during 2018 where we were successful in three out of four wells.'

Saudi Arabia used less crude oil for power generation in 2018
Source: U.S. Energy Information Administration, Joint Organizations Data Initiative
In 2018, Saudi Arabia reported burning an average of 0.4 million barrels per day (b/d) of crude oil
for power generation, the lowest amount since at least 2009, the earliest year that data are
available from the Joint Organizations Data Initiative (JODI).
Saudi Arabia burns considerably more crude oil directly for power generation than any other
country. Between 2015 and 2017, Saudi Arabia used more than three times the amount of crude
oil for power generation than Iraq, the second-largest user of crude oil for power during those
years.
Saudi Arabia relies on crude oil and other fossil fuels, such as petroleum products and natural
gas, for power generation. During the summer months, Saudi Arabia’s electricity consumption
increases as domestic demand for air conditioning rises. Saudi Arabia’s direct crude oil burn for
power generation reached a record high during the summer of 2015, averaging 0.9 million b/d
from June to August. In comparison, direct crude oil burn in the summer of 2018 was 41% lower at
0.5 million b/d.
Despite steady increases in both population and electricity consumption, Saudi Arabia reduced its
reliance on crude oil for power generation by increasing the use of other energy sources, such as
natural gas and fuel oil.
Most of the natural gas that Saudi Arabia produces is associated gas, which is natural gas
produced along with crude oil from an oil well. Yet Saudi Arabia’s production of natural gas from
wells not associated with oil production has also increased, leading to higher consumption of
natural gas in the country.
Natural gas processing capacity is also increasing. Consumption of natural gas in Saudi Arabia
reached 10.6 billion cubic feet per day in 2017, the latest year for which data are available.
In addition to natural gas, Saudi Arabia has also been using fuel oil as a partial replacement of
crude oil in power generation. Saudi Arabian fuel oil consumption has increased despite fuel oil

consumption declining in most regions of the world because of environmental concerns and
competition with other fuels.
Some trade press reportsindicate that one potential side effect of the upcoming changes to
the sulfur limits in marine fuels in 2020 is that the stranded high-sulfur fuel oil could be sent to
Saudi Arabia to further replace crude oil in power generation.
With less crude oil directly used for power generation, more crude oil is available for Saudi
Arabia’s refining and exports. For many years, Saudi Arabia has worked to increase its domestic
refinery capacity and is currently able to process 2.9 million b/d of crude oil.
Crude oil refinery runs averaged 1.8 million b/d in 2009, and they subsequently rose to an average
of 2.6 million b/d by 2018, according to JODI data. As a result of increased refinery runs, Saudi
Arabia also increased the amount of petroleum products it could export and most recently
exported an average of 2.0 million b/d of petroleum products in 2018.

Bahrain LNG terminal likely to start operations in Q3
TradeArabia News Service
Teekay LNG Partners, one of the world’s largest marine energy transportation, storage and
production companies, said start-up of its joint venture liquefied natural gas (LNG) import terminal
in Bahrain has been delayed to the third quarter of this year from May.
Besides the Bermuda-based Teekay LNG Partners, Bahrain LNG, which is developing the
terminal, is jointly owned by the National Oil and Gas Authority (Noga) of Bahrain, Samsung
Construction and Trading and the Gulf Investment Corporation.
The terminal was initially
scheduled to be completed and
start supplying natural gas to the
Bahrain network in the first
quarter of 2019, said the company
while releasing its financial results
for the first quarter.
The engineering phase of the
project was executed by the
engineering, procurement and
construction (EPC) contractor GS
Engineering and Construction
(GS) of South Korea and work is
now nearing completion.
“Looking ahead, we expect
contract start-up of four additional
LNG carrier new buildings and the Bahrain LNG terminal in the second half of 2019, which we
anticipate will continue to drive further growth in total adjusted ebitda throughout the rest of 2019
and into 2020,” remarked Mark Kremin, the president and CEO Teekay Gas Group.
"Despite the near-term weakness in the spot LNG carrier market since the start of the year, we
have recently been able to take advantage of the improving medium-term fundamentals by
securing multiple attractive charters on our LNG carriers for periods ranging from one to three
years," stated Kremin.
"This has allowed us to lock-in charters at attractive rates and maximize utilisation, thereby further
enhancing our earnings stability and improving our cash flows," he added.
Kremin said the company remains committed to its balanced capital allocation plan, which returns
additional capital to unitholders, including the recent 36 per cent cash distribution hike, while also
creating equity value through continued delivering of our balance sheet.
"The new charters that we recently secured are expected to enable Teekay LNG to delever faster
and with better visibility, which provides us with greater flexibility to allocate excess capital in the
future," he added.

Iraq picks Hyundai E&C for $2.4 billion seawater injection
project: state oil company director
Reuters + NewBase
Iraq has selected Hyundai Engineering & Construction Co Ltd to build a $2.4 billion seawater
injection facility, a project vital to increasing the country’s oil production capacity, the director of
the state-run Basra Oil Co said.
Ihsan Abdul Jabbar told reporters late on Sunday that the awarding of the deal to Hyundai E&C
still required the final approval of the oil ministry.
The project work should be finished in four years and initially produce 5 million barrels per day
(bpd) of water and eventually reach a capacity to produce 7.5 million bpd of water, Abdul Jabbar
said.
Iraq, OPEC’s second-largest producer, needs to inject water into its wells or risk losing pressure
and face severe decline rates, especially at its mature oilfields. As freshwater is a scarce resource
in Iraq, using treated seawater is one of the best alternatives.

U.S. hydrocarbon gas liquids production reaches 5MBPD
Source: U.S. Energy Information Administration, Petroleum Supply Monthly - Principal contributor: Warren Wilczewski
U.S. production of hydrocarbon gas liquids (HGLs) reached 5 million barrels per day (b/d) in 2018,
an increase of more than 0.5 million b/d (13%) over 2017 levels. HGLs accounted for over a
quarter of total U.S. petroleum products output in 2018.
The increase in HGL production since 2010 is largely a result of growing domestic natural gas
production. In 2018, U.S. natural gas production, measured as gross withdrawals, averaged 101.3
billion cubic feet per day (Bcf/d), a 38% increase over 2010 levels and the highest volume on
record. As natural gas production has grown, an increasing share of HGLs are produced at natural
gas processing plants, from about 75% in 2010 to nearly 90% in 2018.
HGLs produced at natural gas processing plants are called natural gas plant liquids (NGPL),
which include ethane, propane, normal butane, isobutane, and natural gasoline. A smaller share
of HGLs are produced at petroleum refineries, which include refinery olefins and refinery liquefied
petroleum gases (LPG). HGL production has been relatively flat at petroleum refineries since
2010, averaging about 630,000 b/d.
Ethane and propane account for two-thirds of HGL production. Ethane production reached 1.71
million b/d in 2018, a 20% increase over 2017 levels. Ethane, the lightest NGPL, can (within some
limits) be left in the processed natural gas stream at natural gas processing facilities—a process
called ethane rejection—or it can be recovered from natural gas if ethane’s value is sufficient to
cover the additional costs to produce and distribute the ethane to markets.
Demand for ethane in 2018 was driven by increased use in the petrochemical sector, which
converts ethane into ethylene for use in the production of plastics, resins, and fibers that go into
the production of many consumer goods.

Several new petrochemical crackers were commissioned in the United States in 2018. Chevron
Phillips Chemicals and ExxonMobil each commissioned facilities that process an estimated
90,000 b/d of ethane as feedstock. Indorama Ventures commissioned a smaller petrochemical
cracker estimated to consume 20,000 b/d of ethane as feedstock.
International demand for ethane also increased, and new export infrastructure—the 50,000 b/d
Utopia pipeline to Canada—has increased the capacity to ship ethane abroad.
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
Besides the petrochemical sector, where demand growth has been robust, the capacity of the
U.S. domestic marketto consume HGLs has not expanded at the pace of growing supply. The
international market has become the preferred destination for most of the incremental growth in
U.S. HGL production. HGL exports have been growing rapidly, particularly for propane, increasing
14% over 2017 levels. In 2018, nearly a third of U.S. HGL production was exported.
Propane production grew from 1.54 million b/d in 2017 to 1.70 million b/d in 2018, a 10% increase.
Changes in domestic demand for propane, which is used in the residential and commercial
sectors as a heating and cooking fuel and in the industrial sector as a petrochemical feedstock,
are mostly driven by weather and consumption. Propane demand has been fairly flat on an annual
basis in recent years.
U.S. production of butanes, natural gasoline, and refinery olefins also increased in 2018. Domestic
markets for normal butane, isobutane, and natural gasoline have experienced relatively slow
growth, meaning much of the production increase has been exported.

NewBase 05 June 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil slumps as crude stocks surge unexpectedly as oil builds
Reuters + NewBase
After the data, U.S. crude dropped 4.5%, or $2.4, to $51.07 a barrel while Brent crude was down
$2.19, or 3.53%, at $59.78 a barrel as of 13:04 .
Gasoline stocks rose 3.2 million barrels, compared with analysts’ expectations in a Reuters poll for
a 630,000-barrel gain, and were about 2% above the five year average for this time of year.
U.S. crude stockpiles posted another unexpected build last week, sending oil prices 4% lower,
while gasoline and distillate inventories grew more than forecast, the Energy Information
Administration said on Wednesday.
Crude inventories rose 6.8 million barrels in the week to May 31, compared with analyst
expectations for a decrease of 849,000 barrels, mainly due to a jump in imports, record high
production and sluggish refining rates for summer.
Oil price special
coverage

Crude inventories have risen in three of the last four weeks in the face of expectations for
declines, even as the government released supplies from the Strategic Petroleum Reserve in
May.
However, without an SPR release last week, overall commercial crude stocks rose to 483.3 million
barrels, their highest since July 2017 and about 6% above the five year average for this time of
year.
Net U.S. crude imports rose last week by 1.1 million barrels per day, while crude production added
another 100,000 bpd to a new peak at 12.4 million bpd.
Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures rose 1.8 million
barrels to 50.8 million barrels, their highest levels since December 2017, the EIA said.
Distillate stockpiles, which include diesel and heating oil, rose by 4.6 million barrels, versus
expectations for a 499,000-barrel increase, the EIA data showed.
Refinery utilization rates rose by 0.6 percentage point to 91.8% of their operating capacity, lower
than the 94% it was at this point last year.
“It is surprising that refinery utilization is still significantly below this time last year. As refineries
increase their crude rates, products will continue to be well supplied,” said Andrew Lipow of Lipow
Oil Associates in Houston.

NewBase Special Coverage
News Agencies News Release 05 June 2019
Renewable energy 101: Key terms you need to know
CNBC - Anmar Frangoul
KEY POINTS
 Across the world, major companies and countries are turning to renewable sources of
energy such as wind and solar.
 Here, Sustainable Energy breaks down some of the most important words and terms in the
renewable energy world.
The world’s energy mix is changing. Across the world, major companies and countries are turning
to renewable sources such as wind, solar and geothermal to green their operations and become
more sustainable.
But what do all these terms mean? Here, CNBC’s “Sustainable Energy” takes a look at some of
the most important words and phrases in the renewable energy lexicon.

Biomass
The International Energy Agency (IEA) defines biomass as being “any organic matter” that is
“available on a renewable basis.”
This could include organic waste from industrial sources, or feedstock from plants or animals.
Bioenergy is energy produced from “products derived from biomass,” according to the IEA. It
represents around 9% of the planet’s primary energy supply, the agency says.
Geothermal
Described by the U.S. Department of Energy (DOE) as a “vital, clean energy resource,”
geothermal energy refers to heat from below the Earth’s surface which can be used to produce
renewable energy.
The DOE adds that geothermal energy “supplies renewable power around the clock” but emits
little or no greenhouse gases.

Hydropower
Energy that comes from the flow of water. Turbines are crucial components of hydropower
systems — it’s the powerful flow of water that “drives” them, producing electricity.
The IEA describes hydropower as the world’s largest source of renewable electricity.
Renewable energy
A phrase that encompasses a vast amount of other words, terms and energy production
methods. The U.S. Energy Information Administration describes it as “energy from sources that
are naturally replenishing but flow-limited.”
These sources are “virtually inexhaustible in duration.” Examples of renewable energy include
solar, wind, geothermal and wave power.

Solar power
Energy from the sun. Can be harnessed in several ways, including through photovoltaic and
concentrated solar power systems (CSP).
Photovoltaic refers to a way of directly converting light from the sun into electricity.
For CSP systems, the Solar Energy Industries Association describes them as using mirrors “to
concentrate the Sun’s energy to drive traditional steam turbines or engines that create electricity.”
Tidal power
The 2 megawatt SR2000 turbine produced more than 3 gigawatt hours of renewable electricity in
less than 12 months.
Energy that’s produced from the tides of the sea.
According to the major utility EDF, tidal power makes use of “the differential between low and high
tides to generate electricity.” Tidal power is predictable, carbon-free and inexhaustible.
In August 2018, it was announced that a tidal stream turbine had generated record levels of
production in its initial year of testing at the European Marine Energy Centre in Orkney, Scotland.
The 2-megawatt SR2000 turbine produced more than 3 gigawatt hours of renewable electricity in
12 months.

Wave power
Wave power is described by the IEA as being the “kinetic and potential energy associated with
ocean waves.”
The European Commission has described “ocean energy” as being both abundant and renewable.
Ocean energy could potentially contribute around 10% of the European Union’s power demand by
2050, according to the Commission.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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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
khdmohd@hawkenergy.net
khdmohd@hotmail.com
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

New base 05 june 2019 energy news issue 1250 by khaled al awadi

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