New base 1025 special 03 may 2017 energy news

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,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 1
NewBase 03 May 2017 - Issue No. 1025 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 : Mubadala Investment unveils new logo
WAM / Hatem / Majok
Mubadala Investment Company, established after the merger of Mubadala Development
Company and International Petroleum Investment Company, began operations on Monday with a
new logo purporting a welcome to the employees.
The new entity is expected to accelerate Abu Dhabi’s economic diversification as it is active in 13
business sectors in more than 30 countries globally.
The company has four investment platforms - petroleum and petrochemicals, alternative
investments and infrastructure, technology, manufacturing and mining, and aerospace,
information and communications technology, renewable energy and the management of diverse
financial holdings.
According to Mubadala, the work includes the
development of global industrial champions in sectors
such as aerospace, ICT, semi-conductors, metals &
mining and renewable energy, and the management of
diverse financial holdings.
Khaldoon Khalifa Al Mubarak, Group CEO and Managing
Director of Mubadala Investment Company, addressed
employees at an internal event on Monday to mark the
first day of operations for the new company in Abu Dhabi.

UAE to start educating SMEs on new bankruptcy law
Gulf News 2017. Samir Salama
Members of the Federal National Council yesterday (Tuesday) passed a draft law levying tough
penalties on petrol smugglers in a bid to protect consumers, the environment and its oil industry.
Under the bill, which requires final approval of the President His Highness Shaikh Khalifa Bin
Zayed Al Nahyan, petrol smugglers will face a prison term of not more than a year and a fine of up
to Dh500,000.
Suhail Mohammad Al Mazroui, Minister of Energy, appealed to the House to pass the draft law
and said: “Our hands were on our hearts as the image of the UAE was at stake [because of the
smuggling into the country of substandard oil products] and our priority is to have a law that fights
smuggling of petroleum products, especially gasoline and fuel oil, and to maintain the flow of
quality products and clean environment,” Al Mazroui said.
The bill, which is meant to curb illegal activities involving petroleum products, will give companies
dealing in oil products a grace period of two years from the date it takes effect to adjust their legal
status.
The Cabinet may extend the grace period for a third year, according to the bill. The draft law regulates
handing, storage, transport and trade of petroleum products and unlicensed parties will face a fine of up to
Dh500,000.
Repeat offenders will face a jail term of one year and a fine of up to five million dirhams. The court may
also order confiscating the oil products, transport vehicles and equipment used in the offence, without
prejudice to rights of third parties, according to the law.
Al Mazroui told the House, the primary goal is to have a federal law to cover the economic, safety and
distribution aspects of oil products, while targeting negative practices, such as smuggling of and trading in
substandard oil products.
The minister said unlicensed distributors often caused environmental and public safety hazards while trying
to hide their goods from authorities. Offenders are ordered to remove causes of the offences at their
expense, failing which, the authorities will repair any damage at the offenders’ expense and incurring them
25 per cent extra charges as administrative fees.
Individual emirates have their own laws to regulate such practices, which are often allied to issues such as
the protection of water sources, environmental protection and customer care. The UAE’s environmental law
forbids dumping petroleum at sea. If the offence includes smuggling, which is covered under the new law,
the court will follow the law that imposes a tougher penalty. The Port of Fujairah expects its tank storage
capacity for petroleum products to rise 75 per cent or 14 million cubic metres by 2020.

Omani firm wins Duqm Refinery utilities contract
Oman Observer
Local Omani firm Qurum Business Group (QBG) has been selected by the Special Economic
Zone Authority at Duqm (SEZAD) to undertake the construction of a utilities corridor that will link
the Duqm Refinery complex with a major Liquid Jetty under development at the nearby Port of
Duqm.
The contract award comes just days after Oman Oil Company, the energy investment arm of the
Omani government, and Kuwait Petroleum International (KPI), inked a landmark partnership
agreement, paving the way for the construction of a world-scale grassroots refinery at Duqm with
an investment of around $7 billion.
Running the length of the corridor spanning
the distance from the refinery to the Liquid
Jetty, currently under construction on the
Northern Breakwater of Duqm Port, will be a
series of dedicated pipelines that will carry
refined fuels and petroleum products for
export.
Products that will be handled by these
pipelines include LPG, diesel, jet fuel and
naphtha. Provision will also be made for the
installation of a crude pipeline that will carry
crude as feedstock from the jetty to the
refinery.
QBG’s contract, valued at just under RO 10
million, will also include the detailed design of
the Service Corridor. A concept design was
earlier undertaken by SembCorp of
Singapore, a pioneer in utilities operation and
management.
Once completed, operation and management
of the Service Corridor will be undertaken by
the Centralised Utilities Company (Marafiq), a
joint venture between Takamul Investment
Company (a subsidiary of Oman Oil Company) with a 65 per cent stake, and utilities specialist
Sembcorp of Singapore (35 per cent). Marafiq has been established as a one-stop provider of a
wide range of centralised utilities, including power and desalinated power to processing plants
coming up in Duqm. As the exclusive provider of such utilities at Duqm SEZ, Marafiq will also
operate and manage a Seawater Intake and Outfall System that will be built at the SEZ.
Photographer: STR/AFP/Getty Images

China Refiner Stars Fall Foul of Smog Fight, as oil Traders Idled
Bloomberg News
A little over a year ago, China’s fast-growing private fuel makers were the newly minted stars of
the global oil market, importing crude from the world’s biggest producers and seeking to sell their
products abroad in a threat to rivals across Asia.
Now, as the government cracks down on pollution and a glut of fuel at home, some traders who
the refiners lured with an ambition to establish a global footprint are finding they have nothing to
do.
The processors, known as teapots, have been denied export licenses by the government,
meaning they’ll have to remain home to compete with state-owned refining giants. That’s a relief
for the wider Asian fuel market already overwhelmed by cheap supplies of Chinese gasoline and
diesel, according to BMI Research.
“We had specially hired three independent oil-products traders, who are now basically idled, which
is quite a waste,” said Zhang Liucheng, director and vice-president at Shandong Dongming
Petrochemical Group, the biggest of the private refiners. “We are still actively pitching to the
Chinese government to grant us oil-product export quotas.”
It’s the latest setback for the private refiners since they burst into the global oil market in 2015
armed with approvals to import crude. After being wooed by OPEC members Saudi Arabia and
Iran, as well as trading giants including Trafigura Group and Glencore Plc, teapots have seen their
appeal fade over the past year. Apart from the lack of pipeline and storage infrastructure, many
face increased government scrutiny on taxes, and there’s mounting concerns about their
environmental records.
To make matters worse, China’s powerful state-owned enterprises haven’t welcomed the
competition.
Pollution Threat
“The government’s reluctance to grant the teapots export quotas is likely driven by the ongoing
debate about their contribution to pollution,” said Michal Meidan, a London-based analyst at
industry consultant Energy Aspects Ltd. “The state-owned enterprises have probably sought to lay
much of the fault with the teapots on this point.”
China, the world’s biggest emitter, is strengthening its commitment to fight the air pollution that’s
prompted health concerns due to the heavy smog cloaking its cities. The nation’s output of carbon
dioxide from the energy industry fell 1 percent in China in 2016, helping emissions flatline for a
third year in a row, according to data from the International Energy Agency.
The government controls fuel-export volumes by granting oil refiners shipment quotas through the
year, which they must fulfill or risk a cut or review of those allowances. Private processors didn’t

use up the export allocations they received for last year, providing the government with a reason
to deny them quotas for 2017, Meidan said. They also contributed to a domestic fuel glut by
boosting operations at the end of 2016 to use up crude import quotas.
“Beijing seems to have realized that while the granting of crude import quotas to teapots have
allowed for greater competition at home, rampant buying and subsequent production of fuels have
contributed to a domestic glut,” said Peter Lee, an analyst at BMI Research, a unit of Fitch Group.
“The relentless surge in Chinese output and exports has swamped the regional fuels market.”
While the private processors received approval to buy overseas crude in 2017, the amount they’ve
been allowed to directly import in the first batch of quotas this year is 62 percent of 2016’s total
levels. Meanwhile, the Commerce Ministry awarded 12.4 million tons of fuel export quotas to only
state firms in the first batch for 2017. In the second, government-run companies were given
approval for a total of 3.34 million tons.
“Lower Chinese fuel exports will prove supportive for refining margins in Asia, as the region has
been grappling with an exodus of Chinese fuels over the past few quarters,” Lee said. “The void
created by the easing of Chinese exports could be filled by supplies from the likes of South Korea
and Japan that remain keen to win back some market share.”
China exported a record 15.4 million tons, or about 314,000 barrels a day, of diesel overseas and an
unprecedented 9.69 million tons, or 221,000 barrels a day, of gasoline in 2016, data from the nation’s
General Administration of Customs show.
Teapots started getting licenses to import foreign crude in 2015 as part of a government effort to boost
private investment in China’s energy industry and reform its sprawling state enterprises by encouraging
competition. The refiners previously had to rely on state-owned oil majors including PetroChina Co. and
China Petroleum and Chemical Corp., known as Sinopec, for supplies of crude.

Wind turbines provide 8% of U.S. generating capacity, more
than any other renewable … EIA, Preliminary Monthly Electric Generator Inventory
Wind generators accounted for 8% of the operating electric generating capacity in the United
States in 2016, more than any other renewable technology, including hydroelectricity. Wind
turbines have contributed more than one-third of the nearly 200 gigawatts (GW) of utility-scale
electricity generating capacity added since 2007.
The increase in wind development in the United States over the past decade reflects a
combination of improved wind turbine technology, increased access to transmission capacity,
state-level renewable portfolio standards, and federal production tax credits and grants.
More than half of U.S. wind capacity is located in five states: Texas, Iowa, Oklahoma, California,
and Kansas. In three states—Iowa, Kansas, and Oklahoma—wind makes up at least 25% of in-
state utility-scale generating capacity. Several states with the highest wind capacity are located in
the Midwest, a region with favorable wind resources. As of December 2016, nine U.S. states had
no operational utility-scale wind facilities: Alabama, Arkansas, Florida, Georgia, Kentucky,
Louisiana, Mississippi, South Carolina, and Virginia.

Texas alone accounts for almost a quarter of total U.S. wind capacity, and electricity generated by
these turbines made up 13% of Texas's total electricity output in 2016. At particularly windy times,
wind can provide a much larger share of Texas’s electricity generation. For instance, in the early
hours of March 23, 2017, wind output on the Electric Reliability Council of Texas (ERCOT) grid in
Texas accounted for up to 50% of the electricity generation mix, the highest wind penetration level
seen in the ERCOT electric system to date.
Although wind makes up about 8% of total U.S. electricity generating capacity, wind generators
provided a smaller share (5%) of total U.S. electricity generation in 2016 because wind turbines
have relatively low capacity factors. Capacity factors, which measure actual output over a certain

period as a percent of the total mechanical ability of the turbine to generate given sufficient wind,
average between about 25% and 40% for wind generators and vary based on seasonal patterns
and geographic location.
The average wind generating facility in the United States consists of about 50 turbines. However,
the Alta Wind Energy Center in Kern County, California, is the largest wind power site in the
United States with 586 turbines and a combined 1,548 megawatts (MW) of capacity across
several separate projects.
Until late 2016, all U.S. wind capacity was on land. The first U.S. offshore wind project, Block
Island Wind Farm, began commercial operation off the coast of Rhode Island in December 2016
with a generating capacity of 29.3 MW. Two other offshore wind projects off the coasts of Ohio
and Virginia are not yet under construction but are seeking regulatory approvals.
Distribution of wind power plants Wind generating capacity

NewBase 03 May 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil rebounds on US stocks drawdown, declining OPEC compliance weighs
Reuters + NewBase
Crude oil prices bounced back on Wednesday as a decline in U.S. inventories underpinned the
market, although a dip in compliance with OPEC efforts to reduce output capped gains.
U.S. West Texas Intermediate crude rose 48 cents, or 1 percent, to $48.14 a barrel by 0030 GMT.
On Tuesday, the market slid 2.4 percent to its lowest close since March 21. Benchmark Brent
futures gained 59 cents, or 1.2 percent to $51.05 a barrel.
U.S. crude stocks fell last week, and both gasoline and distillate inventories also dropped, data
from industry group the American Petroleum Institute showed on Tuesday. Crude inventories fell
by 4.2 million barrels in the week ended April 28 to 528.3 million barrels, compared with analyst
expectations for a decrease of 2.3 million barrels. Crude stocks at the Cushing, Oklahoma,
delivery hub fell by 215,000 barrels, API said.
"The supply of crude oil continues to decline. This is evident in both spot and forward supply
data," commodities brokerage Marex Spectron said in a note. "Demand remains strong and in
spite of lower refinery profitability we see increasing capacity utilization rates."
Production from the Organization of the Petroleum Exporting Countries (OPEC) fell for a fourth
straight month in April, a Reuters survey found on Tuesday, as top exporter Saudi Arabia kept
production below its target while maintenance and unrest cut production in exempt nations Nigeria
and Libya.
But more oil from Angola and higher UAE output than originally thought meant OPEC compliance
with its production-cutting deal slipped to 90 percent from a revised 92 percent in March,
according to Reuters surveys. Brent is trading close to its lowest level since late November, when
OPEC agreed to cut supply.
Oil price special
coverage

Oil Decline Eases as Industry Said to Report Stockpile Plunge
Bloomberg - Mark Shenk and Jessica Summers
Oil futures pared losses in New York after a U.S. industry report was said to show a drop in crude
and gasoline stockpiles.
The American Petroleum Institute’s tally for American crude supplies shrank by 4.16 million
barrels last week, and the one for gasoline fell by 1.93 million, people familiar with the
data said Tuesday. In an Energy Information Administration report due Wednesday,
crude stockpiles are forecast to have decreased, while fuel supplies are seen rising, according to
a Bloomberg survey.
Oil has fallen the past two weeks on concern that increasing U.S. crude production will offset
efforts by the Organization of Petroleum Exporting Countries and its allies to eliminate a global
supply glut. OPEC will meet again May 25 in Vienna to decide whether to extend the cuts through
the second half of the year.
There seems to a be a general consensus to do so, Khalid Al-Falih, the Saudi minister of energy
and industry, said last week. Industry data showed American rigs targeting oil rose to the highest
level in two years.
“The reaction is warranted given a rather bullish set of stats,” Kyle Cooper, director of research
with IAF Advisors in Houston, said by telephone. “If the EIA in some fashion confirms these draws
and crude is unable to rally, then I’d say it’s an extra ordinarly bearish price reaction.”

West Texas Intermediate for June delivery traded at $48.13 a barrel as of 6:02 p.m. in New York
after settling at $47.66. Total volume on the New York Mercantile Exchange was about 11 percent
above the 100-day average.
Brent for July settlement fell $1.06, or 2.4 percent, to $50.46 a barrel on the London-based ICE
Futures Europe exchange. The global benchmark crude traded at a $2.47 premium to July WTI.
The EIA is forecast to show that crude stockpiles dropped by 3 million barrels last week, according
to the Bloomberg survey. U.S. gasoline supplies probably rose by 1 million barrels and inventories
of distillate fuel, a category that includes diesel and heating oil, by 2 million.
Deal Extension
OPEC output fell by 40,000 barrels a day to 31.895 million barrels in April, according to a
Bloomberg News survey of analysts, oil companies and ship-tracking data. Iraq, the second-
biggest producer in the group, and Venezuela came closer to their targets.
Among the 10 members bound by the caps, compliance strengthened to 102 percent from 89
percent in March, the survey showed. Total output --
including Libya and Nigeria -- remains 135,000 barrels a
day above target, putting the group about 90 percent of
the way toward its goal.
All countries participating in the cuts must agree to any
extension, United Arab Emirates Energy Minister
Suhail Al Mazrouei said Tuesday in the U.A.E. capital
Abu Dhabi. Russia believes that extending last year’s
oil-output deal with OPEC makes sense for at least six
more months given current market situation, a Russian
government official with knowledge of the matter said,
asking not to be named as the decision isn’t public yet.

Signs of Easing U.S. Supply Glut
Oil rebounded from a six-week low after a U.S. industry report signaled a supply overhang in the
world’s biggest consumer may be easing.
Futures in New York rose as much as 1.1 percent after closing at the lowest since March 21
Tuesday. U.S. crude inventories fell by 4.16 million barrels last week and gasoline dropped by
1.93 million, the American Petroleum Institute was said to report Tuesday. OPEC deepened
production cuts last month, with overall output dropping by 40,000 barrels a day, according to a
Bloomberg News survey.
The API figures precede government data that will be released Wednesday, which is forecast to
show a drop in crude inventories. Oil has fallen the past two weeks on concern that increasing
U.S. output will offset efforts by the Organization of Petroleum Exporting Countries and its allies to
eliminate a global glut. OPEC will meet again May 25 in Vienna to decide whether to extend the
cuts through the second half of the year.
“The market was already expecting a draw-down in the U.S. inventory numbers and the API
numbers back that up,” said Chris Weston, chief market strategist in Melbourne at IG Ltd. A
potential drop in gasoline stockpiles “might help to offset some momentum which has built to the
downside in the market.”
West Texas Intermediate for June delivery rose as much as 51 cents to $48.17 a barrel on the New York
Mercantile Exchange and was at $48.03 as of 2:43 p.m. in Singapore. The contract lost $1.18, or 2.4
percent, to $47.66 on Tuesday. Total volume traded was about 9 percent below the 100-day average.
Brent for July settlement gained as much as 59 cents, or 1.2 percent, to $51.05 a barrel on the London-
based ICE Futures Europe exchange. The global benchmark crude traded at a $2.56 premium to WTI.

NewBase Special Coverage
News Agencies News Release 03 May 2017
Baker Hughes introduces revolutionary multistage fracturing
service for deep water Source: Baker Hughes
Baker Hughes has announced the introduction of its DEEPFRAC™ deep water multistage
fracturing service, which can save operators hundreds of millions of dollars in offshore
developments through unprecedented efficiency gains across the completion phase.
Using multi position sleeves and patented flow back control technology, the service accelerates or
eliminates certain steps of conventional multizone completion operations and enables rapid
stimulation of 20+ stages.
This translates into significantly greater reservoir contact, with an average OPEX savings of USD
30 to 40 million per well.
Proprietary flow back
control media is
incorporated directly into the
multi position sleeve's
production ports to enable
long-term, sand-free
production without the need
for conventional sand
screens. (Photo: Business
Wire)
'Historically, operators who
needed to stimulate their
offshore wells were faced
with complex completion operations that could take longer than a month and with costs
approaching a hundred million dollars,' said Jim Sessions, Vice President, Completions at Baker
Hughes.
'By adapting some of the technologies and techniques that delivered game-changing efficiencies
in unconventional land to an offshore service, we’ve enabled a new level of deepwater completion
design flexibility and streamlined operations—all without compromising our commitment to safety
and compliance.'
Typically, after a deep water well has been drilled, the subsequent completion phase involves
multiple, time-consuming steps. In contrast, the DEEPFRAC service eliminates casing and
cementing operations and simplifies fluid logistics by using ball-activated, multi position sleeves
that can be installed in open hole wellbores containing drilling mud.
And, unlike conventional offshore systems’ complicated tool running procedures and extensive
mechanical manipulation requirements, no tool movement is needed during the DEEPFRAC

service’s stimulation process. The sleeve’s ball activation enables continuous pumping from the
first stage to the last, cutting the lower completion phase from weeks to days.
Conventional offshore stimulation systems are often limited to only five zones or ‘stages’ and
these systems lack configuration flexibility that often results in uneven treatments and creates long
sections of ‘dead space’ that cover up hundreds of feet of viable pay.
The sleeves used in the DEEPFRAC service are modular and flexible, enabling placement of 20+
tightly-spaced stages across the pay zone to ensure more uniform treatments and to maximize
reservoir contact.
After stimulation operations are complete, Baker Hughes IN-Tallic™ disintegrating frac balls allow
production to flow without intervention. Patented Baker Hughes BeadScreen™ proppant flowback
control technology built directly into the DEEPFRAC sleeve’s production ports provides increased
reliability over conventional sand screens through higher burst/collapse ratings and improved
erosion/plugging resistance, helping to ensure long-term, sand-free production.
On a recent job, the DEEPFRAC service saved an estimated 25 days rig time and USD 40 million
on a first-ever 15-stage deep water completion in the Gulf of Mexico’s Lower Tertiary. The
DEEPFRAC service is the latest example of Baker Hughes’ strategy to improve well efficiency,
optimize production and increase ultimate recovery.

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
NewBase May 2017 K. Al Awadi

Solar power is the key to renewable development in the GCC. Installed solar capacity is expected
to reach 76 GW by 2020, representing massive opportunity for suppliers in the region.
Co-located with The Big 5 Dubai, The Big 5 Solar launches this November 26 - 29th 2017. 20% of The Big 5
visitors in 2016 were looking for solar technologies making The Big 5 Solar an ideal platform to meet
dedicated buyers, get inspired at the Global Solar Leader's Summit and open up to new markets.

New base 1025 special 03 may 2017 energy news

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