New base 07 september 2017 energy news issue 1068 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 September 07 - 2017 - Issue No. 1068 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 and India working to substantially augment trade and
investment relations
(WAM) - Governments of India and the UAE, through various agencies and departments are
closely working to substantially augment the trade and investment relations between the two
countries.
The relations between the two countries are at an upswing following the exchange of visits at the
highest levels in the past two years. Prime Minister Modi paid a historic visit to UAE in August
2015 and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and
the Deputy Supreme Commander of the UAE Armed Forces paid official visits to India in 2016 and
2017.
He was the Chief Guest at India’s Republic Day this year. During his visit the two countries
elevated their relationship to comprehensive strategic partnership. The two sides also signed 14
agreements and it was envisioned that UAE would invest US$75 billion in to India. Prime Minister
Modi and H.H. Sheikh Mohamed bin Zayed Al Nahyan also set a target of 60% increase in
bilateral trade in the next five years.
India and UAE have been working closely to enhance their cooperation in a range of fields to
realize the vision of their leaderships. There has been regular exchange of high level visits in the
past few months. For instance, India’s MOS for Food Processing Industries Sadhvi Niranjan Jyoti
visited UAE in August 2017 and UAE’s MOS for Foreign Affairs H.E. Mr. Anwar Gargash also paid
a visit to India at the same time.

The status of the flow of investment and strategic partnership will further be elaborated at a two-
day India-UAE Partnership Summit (IUPS) to be held at the Armani Hotel, Burj Khalifa, from
October 30-31, 2017, which will be attended by more than 800 Delegates from India and the UAE,
including top government officials, private entrepreneurs and business leaders belonging to
Corporate UAE and Corporate India.
The Summit – with a theme of Investment Implementation – will deliberate about how important
projects in India could be financed and executed with the participation of the local business
houses of UAE. It will also review the trade and investment relations between the two countries in
light of the Joint Statement adopted by the two sides during the visit of His Highness Sheikh
Mohamed bin Zayed Al Nahyan in January 2017.
This is the only business conference of its kind to be pro-actively supported by the Government of
India through the Embassy of India, Abu Dhabi and Consulate General of India, Dubai as well as
the UAE Ministry of Economy. IUPS is also the only such bilateral summit where Ministers of
Government of India as well as UAE will be participating.
Senior Ministers from two Indian states will also participate, the names of which will be announced
later. India-UAE Partnership Forum is supported by knowledge partners, KPMG and attracted the
interests of the media, including, Gulf News, Forbes Middle East, Sony TV and Times Now
television channels.

UAE and India share age-old ties whose foundation lies in trade and investment. The annual two
way trade between the two countries today stands at about $ 53 billion and the leadership of the
two countries is committed to increase it by 60% over the next 5 years.
While India remains the UAE’s top trading partner, the UAE is India’s third largest trading partner
– something that the strategic partnership could boost further India is also looking at significant
increase in UAE investments into the country especially on the infrastructure side. UAE has
invested more than $4.7 billion in FDI into India since 2000.
The Joint Statement of January 2017 envisaged $75 billion investments from UAE to India. An
MOU on the framework for facilitating the participation of UAE Institutional Investors in National
Infrastructure Investment Fund, with Abu Dhabi Investment Authority agreeing to contribute
towards the NIIF Master Fund, has recently been signed.
Indians companies and Indians are also one of the largest investors in the UAE economy by
setting up companies, industries, warehouses and other facilities as well as in real estate. Indians
invested AED 20.4 billion into Dubai’s real estate in 18 months from January 2016 till June 2017,
according to Dubai Land Department. This is on top of the AED 20 billion invested by Indians in
Dubai’s real estate in 2015. As an expatriate national business community, NRIs are also
collectively the largest employer group in the private sector.
A large number of Indians and Indian companies have made investments in UAE across various
Emirates. These include Lulu Group, NMC, Aster Group, Hinduja Group, Sobha Developers,
Tatas, Mahindra, Dabur, Essar, Apollo tyres, Zee Entertainment, IFFCO etc. A number of Indian
universities have opened international campuses in UAE and several banks have representative
offices.
"India and the UAE are undergoing through an exciting time in our bilateral relationship that
started with the historic visit of Prime Minister Modi to UAE in August 2015. His visit was followed
by the very successful visits of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown
Prince of Abu Dhabi and the Deputy Supreme Commander of the UAE Armed Forces to India in
2016 and 2017. Today we are cooperating across a wide spectrum of areas, including such
strategic areas as space and defence. India and the UAE are all set to leverage on our mutual
strengths and create synergies to help both the nations achieve their respective national economic
visions. We are also very confident of attracting a lot of investment from UAE to India given our
close relationship and the opportunities that exist in India," Navdeep Singh Suri, Ambassador of
India to the UAE, said.
The private sector of India and the UAE, especially the NRI business community has also come
forward to support the strategic government-to-government partnership, first by creating a new
pan-UAE business entity, the Business Leaders Forum (BLF) in March 2017. BLF, set up under
the direct guidance of the UAE Ministry of Economy, Embassy of India and Consulate General of
India, is the new umbrella organisation of business leaders in the UAE.
Vipul, Consul General of India, said, "Government vision can’t become successful without the
active participation of the private sector. It’s heartening to see that the private sectors of both the
countries have come forward to support the strategic partnership vision of both the countries and
we are pleased to extend our all-out support to this important event.
IUPS will bring the public sector and private sectors of both India and the UAE and help create a
new eco-system that will help channel investment, boost trade and socio-economic cooperation
that will see continuous engagement to ensure smooth flow of investment in to India and the
UAE."

Dr Azad Moopen, President of Business Leaders Forum and Founder Chairman of Aster DM
Healthcare Group, said, "As the platform formed by high-net worth NRIs and UAE nationals, the
BLF wants to synergise our resources to contribute to the economies of India and the UAE and
the IUPS will provide the first breakthrough in our quest to support both the economies in a bigger
way and we are not talking in just setting up companies or industries – but taking part in mid- to
large-size projects that will help the economies.
"IUPS is one of many future initiatives to be undertaken by the BLF, which will elevate our role to a
new level – and make us the strategic partner of India and the UAE. All of us at the BLF are more
than happy to support the visions of our respective countries."
Paras Shahdadpuri, Vice President of BLF and Chairman of Nikai Group of Companies, said,
"Both India and the UAE are two major global economic powers to reckon with. India ranks 7th in
GDP on nominal basis, but on Purchasing Power Parity basis, India ranks 3rd in the world after
US and China. India and UAE have historic trade, economic, investment and even family relations
for centuries. Indians are the biggest foreign investors in UAE.
"There has been a paradigm shift in India-UAE relationship after the historic visit of Prime Minister
Modi to UAE, which took place after 3 decades, from being traditional economic partners to now
strategic partners. This visit has been reciprocated twice by His Highness Sheikh Mohamed bin
Zayed Al Nahayan in February 2016 and later as Chief Guest at India’s Republic Day in 2017.
"This new G-to-G relationship has provided enormous boost in strategic fields such as in Food
security, energy security, cooperation in Space research, in Defence Production, etc. At this
stage, it is important for private sector, and particularly we as NRIs to join hands with our Emirati
investor friends to encourage investments in India. As investors in both the countries, we feel
there is a strong need amongst ourselves to play a greater role in reshaping the destinies of our
two great countries.
"India not only has a lot of solid resources, scientific capabilities, research and development, but
also a large pool of soft power – including Ayurveda, Yoga, Unani, Siddha and Homeopathy
(AYUSH) as well as Indian cuisine and culture – that could create new opportunities for both the
countries," Shahdadpuri added.
Sudesh Aggarwal, Board Member and Sector Chairman-Investments of BLF, Chairman of Giant
Group & India Trade and Exhibition Centre (ITEC), said, "IUPS will be a game-changing summit
and will redefine the role of the private sector in realising the governments’ vision. The event will
help generate new ideas on how the UAE’s private sector businesses can leverage their
complementary strengths to raise funds to finance major infrastructure projects.
"The event will be full of surprises, announcements and will be full of real-time project funding
initiatives that will change the way private sector funding is carried out. The Summit will see
government authorities finding a strong desire and participation by the private companies willing to
share the burden of the public sector and create a genuine public-private partnership that will
reduce governments’ financial burden and see the private sector extend its hands to
governments."

Morocco: Eni secures rig for Rabat Deep Offshore well
Source: Chariot Oil & Gas
JV partner Chariot Oil & Gas has announced the assignment of a drilling rig for its
upcoming RD-1 well which will target the JP-1 prospect.
Saipem 12000 Drilling Rig
Eni, the operator of the Rabat Deep Offshore licence (Eni 40%, Woodside 25%, ONHYM 25%,
Chariot 10%), has secured the Saipem 12000, a sixth generation ultra-deepwater drillship, for a
drilling programme to include a one-well drilling slot in Rabat Deep Offshore in Morocco. It is
currently anticipated that the rig will arrive on location in the latter part of Q1 2018 and that the
drilling of the RD-1 well on the JP-1 prospect will commence shortly thereafter.
The JP-1 Prospect
The JP-1 prospect is a large, four-way dip closed structure of approx. 200 sq kms areal extent,
with Jurassic carbonate primary reservoir objectives and an independently audited gross mean
prospective resource estimate of 768mmbbls.
Location of the RD-1 well in Rabat Deep Offshore (Source: Chariot Oil & Gas)
As previously detailed in the announcement of 9 January 2017, Eni partnered with Chariot in
return for a capped carry on the drilling of the JP-1 prospect as well as a carry on other geological

and administrative costs relating to Rabat Deep Offshore and a recovery of Chariot’s investment
prior to farm-out.
Larry Bottomley, CEO commented:
'We are pleased to see Eni progress operations on the Rabat Deep Offshore acreage and secure
the high-performance Saipem 12000 drillship to drill the JP-1 prospect, one of Chariot’s priority
targets. JP-1 has the potential to create transformational value in the success case due to the
large scale prospective resources, excellent commercial contract terms and robust economics.
Success will also materially de-risk other targets we have identified within our neighbouring
Mohammedia and Kenitra permits in which Chariot holds a 75% interest.'

Tanzania: Aminex submits Ntorya Development Plan
Source: Aminex
Aminex has announced that a Development Plan for the Ntorya field, located onshore in the
Ruvuma Basin, Tanzania has been submitted to the Tanzania Petroleum Development
Corporation (‘TPDC’) for approval. The Development Plan is a key step towards obtaining a
development licence and the commercialising of the resources from the Ntorya appraisal area
which sits within the Ruvuma Basin.
The Development Plan, which
incorporates the findings from io
oil and gas consulting’s Gas
Commercialisation Study, is a
comprehensive review of the
existing data and includes the
findings of recent mapping and
the upgraded unrisked resource
estimates of approximately 1.3
TCF Pmean GIIP.
The Plan takes into account
several options for gas
monetisation including
Compressed Natural Gas, Gas
to Power and directly connecting
the gas produced from the
Ntorya field to the Madimba
Plant in South Eastern Tanzania
via an approx. 35 km spur line.
The Company has applied for a
staged development of the field
to allow for an early production
system with existing wells and a
programme that drills further
development wells based on
demand.
The Development Plan is now
subject to review by the
Tanzanian authorities and the
Company will provide an update
on this and the timing for
spudding the Ntorya-3 well
during Q4 2017.
Jay Bhattacherjee, CEO of Aminex, said:
'Submission of the Ntorya field Development Plan is a major milestone for the Company as we
progress towards unlocking the value across Ntorya and Ruvuma as a whole. The Company
continues to work on further well plans in order to maximise development of the field and looks
forward to updating shareholders in Q4 on the status of the Ntorya-3 well.'

Norway: Threat to Oil Becomes Real as Climate Crashes Norway Election
By Mikael Holter
Politicians and activists that have been fighting to rein in Norway’s mighty oil industry are eyeing a
breakthrough.
Several parties opposed to further oil exploration could emerge as kingmakers in the Sept. 11
election. That will threaten a push to search for about 9 billion barrels in Arctic crude and natural
gas, which is necessary to prolong the petroleum age that made Norway one of the world’s richest
countries.
“I’m very worried,” said Stale Kyllingstad, chief executive officer of IKM Gruppen AS, one of the
biggest suppliers to the oil industry.
Big oil’s enemies are now gaining ground with both moral and financial arguments. Norwegians
are increasingly questioning how to reconcile their role as western Europe’s biggest oil and gas
producer with fighting climate change and whether searching for more petroleum is the financially
sound thing to do in a world where renewable energy is taking over more and more.
The Green Party, which wants to end exploration immediately and phase out the industry in 15
years, is poised to become a key parliamentary force. The race is too close to call between
Conservative Prime Minister Erna Solberg’s government and the opposition, headed by Labor
leader Jonas Gahr Store. Polls suggest both blocs could fail to win a majority.
Labor, a historic supporter of the oil industry, has seen its backing
plunge in recent weeks, making it dependent on support from smaller
parties seeking to curtail drilling. A key Labor politician last month
even suggested reviewing tax subsidies for exploration, shocking the
industry before the party clarified that it wasn’t about to change a
system prized by oil companies for its stability.

That failed to reassure Kyllingstad, who said he feared a weak Labor Party would be forced to
“prostitute itself” to “extremist parties.”
The Socialist Left (Labor’s government partner until 2013) and the Red Party, which both want to
end license awards and new field developments, also stand to gain.
To be sure, Labor and the current government parties, the Conservatives and the Progress Party,
all industry backers, are likely to remain the three biggest groups after the election, sharing well
over half the votes.
But the smaller parties, which for now have had little more to celebrate than a ban on drilling off
the Lofoten islands, could extract deeper concessions, said Anders Holte, an analyst at Danske
Bank A/S in Oslo. That could include fewer license awards and possibly jeopardize a program that
lets loss-making companies collect 78 percent of exploration expenses in cash, he said.
For an industry that lost 50,000 jobs during the oil crash, it would be a bad blow. It could
especially threaten an expansion in the Arctic Barents Sea, which holds the bulk of the country’s
undiscovered oil and gas resources and is seen as key to maintaining production 10 years from
now after it already dropped by 12 percent since a 2004 peak.
“For the first time in a long while, there’s increasing political risk,” Holte said.
Rasmus Hansson, the only Green lawmaker for now, said the top priority is to end exploration for
new oil. That’s a moral obligation because of climate change and a financial imperative because
spending on exploration could be throwing money into the sea if the resources are never used as
the world moves beyond fossil fuels, he said.
“It’s particularly naïve to believe that the oil industry will be profitable for a long time to come,” he
said in an interview last week. “An increasing number of Norwegians are saying in polls that they
see a future after oil.”
One survey showed last month that 44 percent of Norwegians would be willing to leave some oil in
the ground if it helped cut emissions.

At Statoil ASA, Norway’s biggest oil company, outward appearances are cool for now.
“I’m registering that there’s a greater diversity and a bigger stretch in the views on the Norwegian
oil and gas industry,” Eldar Saetre, the company’s CEO, said in a phone interview this week.
Saetre said he wasn’t worried about a change in the fundamental framework conditions for oil
companies. The powerful Norwegian Oil and Gas Association and the country’s biggest oil union,
Industry Energy, also said they trusted the big parties to safeguard the industry because of its
importance for jobs, value creation and government income.
But the industry could be overplaying its hand and Solberg has vowed to help the country wean
itself off oil. Its dominance is slowly fading, and production now comprises about 12 percent of the
economy, down from more than 20 percent pre-oil crisis. To be sure, that doesn’t factor in how oil
cash seeps through other sectors of the economy.
“I understand that people in the oil industry are worried,” said Frode Alfheim, who represents
thousands oil workers as head of the union. “I’m pretty certain that once one or the other
constellation starts running the country after the election, the broad lines will remain firm.”

North Sea: BP Still Loves the North Sea Despite Asset Sales
Bloomberg - Rakteem Katakey
Europe’s biggest energy companies have a message for the aging U.K. North Sea oil industry: We
may be selling assets, but that doesn’t mean we’re heading for the exit.
The North Sea will always be “one of the great basins,” said BP Chief Executive Officer Bob
Dudley. Royal Dutch Shell Plc will keep investing in a place where it has “deep roots,” said CEO
Ben van Beurden. Total SA offered more than just words, with a $7.45 billion deal that was a vote
of confidence in the region last month.
Like many 40-year-olds who are past their prime and contemplating a long slide into decrepitude,
the North Sea would certainly welcome a few kind words from some old friends. While a flurry of
new oil fields this year brings back memories of its former vigor, oil production in the region is just
a third of its 2.9 million barrel-a-day peak almost 20 years ago. Deep cuts to jobs and investments
during the crude-price slump mean the future looks less than rosy.
Still, big producers like Shell see the opportunity to keep generating profit if the region’s industry
can combine new technology with the vast infrastructure of drilling rigs, tankers and processing
plants already in place to cut costs.
“The North Sea has a fine and proud history,” and its workers have shown time and again their
ability to innovate and improve, Shell’s van Beurden said. “But the work is not done. The basin still
needs to earn its right to grow.”

The extent to which the North Sea’s glory days are long past was evident in the nostalgia-tinged
speeches on Tuesday at the Offshore Europe conference in Aberdeen, Scotland -- the regional
hub.
Old Frontier
“This was my home back when I was a production engineer in the 1980s,” said BP’s Dudley. “It’s
where my son was born. Around that time Aberdeen was the new frontier -- showing the world
how to explore and operate in some of the harshest conditions anywhere on the planet. It’s where
many of the great innovations of the offshore industry began.”
Back then, the North Sea represented the industry’s cutting edge and a vital source of new supply
in a world reeling from the 1973 Arab oil embargo and the rising power of the Organization of
Petroleum Exporting Countries. The U.K. pumped almost 5 percent of world oil supply in the mid-
80s -- on a par with OPEC-member Iraq today. Now, the region accounts for just 1 percent of the
total and U.S. shale explorers have seized the mantle of high-tech cartel-busting upstart.
Many major companies have been reducing their presence in the North Sea, either to free up
more money to invest elsewhere or simply because the oldest fields are running dry. Shell this
year agreed to offload a package of fields to private-equity backed Chrysaor Holdings Ltd. and
removed the platform from the Brent Delta field, oil from which once underpinned the international
crude benchmark.
Despite headlines like these, Shell “intends to invest hundreds of millions of dollars a year in the
area over the coming years,” van Beurden said.
BP, which sold its stake in one of the U.K.’s most importantpipeline networks in April, is focused
on waters west of the Shetland Islands. A large discovery by Hurricane Energy Plc there shows
“the prospect of major new resources,” Dudley said. His company started output at the Quad 204
project in May and is redeveloping the aging Schiehallion and Loyal fields, all of which will help the
company double its output in the region by the end of the decade.

Fourteen projects including Quad 204, Total’s Edradour and Glenlivet fields and EnQuest Plc’s
Kraken put the North Sea on track for the biggest year of startups in a decade. Those fields will
pump as much as 12 percent of the U.K. continental shelf’s 1.9 million barrels equivalent a day of
oil and gas output next year, according to data from consultant Wood Mackenzie Ltd.
However, most of those fields are the result of investments made before oil prices slumped from
above $100 three years ago to about $50 today. Since then investments have fallen dramatically,
said Catherine Macgregor, drilling group president at oil-services giant Schlumberger Ltd.
“If you look at development drilling, it fell this year to its lowest level since the 70s,” Macgregor
said. “Without fresh investment the U.K. will experience a significant decline in production post
2020.”
The industry faces many challenges, but the support of the majors and the $6 billion of deals in
the first half of 2017 that brought new companies into the North Sea is a strong vote of
confidence, Oil and Gas U.K., the industry lobby group, said in a report.
“It has been a tough time” for people in the industry and their families, Dudley said. “But in this
tough environment, we see the North Sea turning things around. Costs are coming down and oil
production is back up.
Figures from the industry’s 2016 Activity Survey revealed nearly half of the UK’s North Sea oil
fields will be loss-making by the end of the year if prices stay low. Less than £1billion is expected
to be invested in projects, down from the typical £8billion a year. Just 13 exploration and 13
appraisal wells were drilled in 2015.
Industry body Oil & Gas UK is calling for the Government to change the tax structure that is crippling the industry’s
growth. Chief executive Deirdre Michie said: ‘We want Government to level the playing field and to help attract
investment into the UK.’ ompanies across the UK pay 20 per cent corporation tax which is set to reduce to 18 per
cent. However, North Sea oil firms pay special taxes at a headline rate of 50 per cent which rises to 67.5 per cent for
fields paying Petroleum Revenue Tax on production.

UK North Sea set for surge in oil and gas start-ups
The UK North Sea is on track for the biggest year of oil and gas field start-ups in a decade,
continuing the ageing province’s surprising resilience to the crude-market slump.
Fourteen projects with combined
peak production of 230,000 barrels
of oil equivalent a day will start in
the region this year, according to
data from consultant Wood
Mackenzie. That is the most since
2007, reflecting the pay-off from
multi-year investments begun
when oil prices were still over
US$100 a barrel.
“It’s really the fruits of a very high
level of investment in the 2010 to
2014 period,” said Mhairidh Evans,
a senior research analyst for North
Sea upstream at Edinburgh-based
Wood Mackenzie.
After a long period of decline, production in the UK bounced back in recent years even as crude
languished below $50. Executives gathering in the industry hub of Aberdeen, Scotland last week
for the Offshore Europe conference will see reasons for both optimism and concern. Explorers are
still making notable discoveries, while Total’s acquisition last month of AP Moller-Maersk’s oil unit
was a $7 billion vote of confidence in the region.
Still, the lack of investment since prices plunged weighs on the outlook beyond 2018. “Really 2017
is the last year of that tranche of projects” started when prices were high, said Ms Evans.
Wood Mackenzie expects the UK continental shelf to pump about 1.9 million barrels equivalent a
day of oiland gas on average in 2018, with production from the new fields this year accounting for
as much as 12 per cent of that total.
Eight fields have already started up this year with an estimated peak production of 140,000 barrels
of oil equivalent per day, Wood Mackenzie data show. Most recently, Total announced the start of
its Edradour and Glenlivet fields in west of the Shetland Islands, which will add as much as 56,000
barrels of oil equivalent a day at their peak.
That followed on from Cairn Energy’s Kraken field in June and BP’s Quad 204 in May. Investors
will be watching for Premier Oil’s Catcher project, which the company expects to bring onstream in
December.
Next year, BP’s Clair Ridge project west of Shetland will further add to production, but the
increase could stall beyond 2018 because fewer projects have been given the go-ahead
since oil prices slumped in 2014.
The International Energy Agency, which advises industrialised countries on energy policy, sees
UK oil output declining every year from 2019 to 2022.
“We urgently need to secure capital to bring new projects into the UK continental shelf to prevent
the potential significant production decline that could occur post-2020,” said Mike Tholen, the
upstream policy director at industry lobby Oil & Gas UK.

NewBase September 07 - 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil steady on rising US refining demand, but ample crude supplies weigh
Reuters + NewBAse
Oil prices held steady on Thursday, supported by rising demand from the United States where
Gulf Coast refineries are restarting in the wake of Hurricane Harvey.
But ongoing high crude output, including from the Organization of the Petroleum Exporting
Countries (OPEC), meant there were ample supplies to meet demand.
U.S. West Texas Intermediate (WTI) crude futures were at $49.12 barrel at 0146 GMT, 4 cents
below their last settlement, but not far off more than three-week highs reached in the previous
session.
Brent crude futures, the benchmark for oil prices outside the United States, dipped 8 cents to
$54.12 a barrel, though still not far from May highs reached the previous day.
U.S. Gulf Coast facilities were slowly recovering from the devastating effects of Hurricane Harvey,
which hammered Louisiana and Texas almost two weeks ago, shutting key infrastructure in the
heart of the U.S. oil and natural gas industry.
As of Wednesday, about 3.8 million barrels of daily refining capacity, or about 20 percent, was
shut in, although a number of the refineries, as well as petroleum handling ports, were in the
process of restarting.
ANZ bank said on Thursday that U.S. crude prices should be supported "as U.S. refineries
increase their oil demand as they recover from recent flooding."
Outside the United States, the bank said that the return of Libya's largestoil field to production was
"less supportive" of prices.
Oil price special
coverage

Oil production at Libya's Sharara field, the country's largest, was resuming on Wednesday after a
valve was reopened on a pipeline shut by an armed group for more than two weeks, Libyan oil
industry sources said.
Overall, global oil supplies remain plentiful despite a dip in OPEC's August exports.
OPEC's crude exports in August were 25.19 million barrels per day (bpd),their lowest level since
April, according to Thomson Reuters Oil Research.
Still, average 2017 levels for January-August of 25.05 million bpd were above the average 24.85
million bpd in 2016, despite OPEC's pledge to hold back supplies between January this year and
March 2018.
Oil Trades Near Four-Week High as Refining Returns After Harvey
Oil traded near a four-week high as U.S. refiners returned from shut downs caused by Hurricane
Harvey, boosting demand for crude.
Futures rose 0.2 percent in New York, extending the almost 4 percent increase in the previous two
sessions. While Motiva Enterprises LLC works to return its Port Arthur refinery, the largest in the
U.S., to 40 percent production by the end of the weekend, another Atlantic hurricane
is approaching. Industry data showed crude inventories rose by 2.79 million barrels last week. If
government figures Thursday also report an increase, it would be the first since the end of June.
Ports, refineries, pipelines and offshore platforms shut as Harvey intensified before making
landfall on Aug. 25, leading to widespread flooding in Texas and driving up refining margins in
Europe and Asia to the highest level in about two years. Many of those facilities on the U.S. Gulf
coast are back in service, and Goldman Sachs Group Inc. forecast half of the refining capacity lost
to the storm will be back online by Thursday and may prove positive for the oil market in a few
months.

“While refineries in the U.S. Gulf are returning and creating demand, high margins are indicating
to all other refineries in the world to run as much as you can, helping draw down crude
inventories,” said Giovanni Staunovo, an analyst at UBS Group AG in Zurich. “There is potential
for WTI prices to rise above $50 in the short term, but that might trigger some hedging and keep
the curve flat.”
West Texas Intermediate for October delivery was at $49.25 a barrel on the New York Mercantile
Exchange, up 9 cents, at 9:54 a.m. in London. Total volume traded was about 4 percent below the
100-day average. Prices gained 1 percent to close at $49.16 on Wednesday, the highest since
Aug. 9.
See also: Gas Trucks Turn Around as Shortage Shifts From Texas to Florida
Brent for November settlement gained 34 cents to $54.54 a barrel on the London-based ICE
Futures Europe exchange. Prices added 82 cents, or 1.5 percent, to close at $54.20 on
Wednesday. The global benchmark traded at a premium of $4.85 to November WTI.
Hurricane Irma, a Category 5 that is forecast to hit Florida on Sunday, may develop into the most
expensive storm in U.S. history after devastating a chain of small Caribbean islands. Miami-Dade
County issued a mandatory evacuation order for some coastal areas and Barclays Plc has
estimated insured losses in a worst-case scenario from the storm at $130 billion.
WTI Crude Oil Daily Analysis – September 7, 2017
ByR Ponmudi
Oil prices settled higher for the third day in a row on Wednesday, and edge higher on Thursday
morning as the refinery activity resumed on the Gulf Coast, following the disruptions caused by
Hurricane Harvey last week.
The development of Storm Irma gained investor’s interest, as the storm can create a serious
disaster and add to fuel shortages. Alexander Novak, Russian energy minister said on Tuesday
that representatives from both Saudi Arabia and Russia had discussed on supply extension but
that no specific resolution had yet been agreed on.
According to the American Petroleum Institute (API) data released on Wednesday– oil inventories
rose by 2.79 million barrels at the end of last week, less than the expected 4.0 million barrels
build.
Technical Outlook – Long-term View
Crude oil prices have formed
“Megaphone chart pattern” as
prices failed to hold above the
resistance line at $50. It is likely
that crude oil prices will make their
third attempt to break above $50. A
break above could lead towards
$55. On the other hand, if it’s
unable to break above $ 49.50, the
downside momentum will continue
towards $48-47.5. The 50-day
moving average crossovers 100-
day moving average at $47.40
which indicates a bullish momentum.

NewBase Special Coverage
News Agencies News Release September 07-2017
No Oil, No Credit History, No Problem
By Marcus Ashworth
Tajikistan, the poorest state in central Asia, is trying for its first international bond deal. After a few
false starts over the years, this time it might pull it off -- showing emerging market investor caution
is being thrown to the wind. Or in this case, water.
The deal will finance construction of the world's tallest dam and the largest hydroelectric power
station in central Asia. That could lead to energy independence and overseas income from
electricity exports to neighboring Pakistan and Afghanistan. Excellent news for the issuer.
The country has said it wants to issue benchmark bonds maturing in 10 years. If the order book is
sufficient for $1 billion of debt, the deal would almost certainly enter J.P. Morgan's Emerging
Market Bond Index. That would make it a must-buy for most emerging-focused funds.
But as with Iraq's issue last month, the lure of higher yields and the demands of investing
according to index rules look set to override conventional logic.
Early indications are Tajikistan's new bond will yield modestly more than the recent 10-year
Belarus deal, which currently trades just above 6 percent. At first this may not make sense --
Tajikistan is rated one notch higher, at B3 by Moody's Investors Service. But this is from an
unknown issuer, and investors will rightly want a premium.
Tajikistan's Peer Group
Pricing on the country's new 10-year dollar bond may put it between Belarus and Iraq
This potential yield still looks pretty low. There is no guarantee the $3.9 billion project will be
completed. It has dragged on for years, and is not expected to be fully operational until 2032. Just

$200 million of financing has been put in so far. One thing for sure, though, is that country's ratio
of debt to GDP would jump to 57 percent from 43 percent. Risky stuff for a tiny economy with little
real industry to speak of -- it's got one big aluminum plant, a lot of overseas workers' remittances,
and not much else.
Emerging Demand
Belarus's recent 10-year $600 million bond highlights the strength of demand for emerging market
credits that offer a bit of yield
A big external risk is a long-standing dispute with the country's more-powerful neighbor,
Uzbekistan, which is worried about damage to its irrigation of its cotton fields that lie downstream
of the dam. Resolution depends on the outcome of negotiations with the new Uzbeki president.
On top of this, the new bond will not be secured on any assets, nor are there any guarantees from
supranational development banks. The risk is the full faith the investor has in the Tajiki
government, and whether this project ever kicks into life and produces revenue.
Tajikistan has barely $600 million of foreign currency reserves, largely gold, which according to
Moody's covers less than 10 percent of its existing annual debt repayment -- prior to any new
foreign bond issuance.
That this debt deal is even feasible, for what is not even a frontier country credit, is a clear
illustration of the risks now acceptable to emerging market investors -- the yields that investors
might clinch with this one aren't too far off from what's been seen in recent deals. This is a sign
more of the frothiness of the credit markets than the relative merits of Tajikistan.
Success in getting this new borrower away will no doubt encourage Ukraine to return to the bond
market. There has been relatively little issuance from the former vassal states of the Soviet
Union and that scarcity value will surely bolster demand. They'll be putting the World Bank out of
business at this rate.
This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
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 27 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 September 2017 K. Al Awadi

New base 07 september 2017 energy news issue 1068 by khaled al awadi

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