New base 11 february 2021 energy news issue 1405 by khaled al awadi

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NewBase Energy News 11 February 2021 - Issue No. 1405 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: ADNOC awards offshore exploration block to Cosmo
in Abu Dhabi’s second competitive block bid round
Source: ADNOC
Cosmo awarded exploration concession for Offshore Block 4 and will invest up to $145 million
(AED532 million) during the exploration phase Agreement further strengthens ADNOC’s long-
standing partnership with Cosmo as well as the UAE-Japan strategic bilateral relationship
The Abu Dhabi National Oil Company (ADNOC) has signed an exploration concession agreement,
awarding the exploration rights for Abu Dhabi’s Offshore Block 4 to Cosmo E&P Albahriya, a wholly-
owned subsidiary of Japan’s Cosmo Energy Holdings. The award has been approved by Abu
Dhabi’s newly formed Supreme Council for Financial and Economic Affairs (SCFEA) and marks the
first of such awards endorsed by the SCFEA.

The exploration concession agreement further strengthens Abu Dhabi’s long-standing partnership
with Cosmo as well as the UAE-Japan strategic bilateral relationship. The award of Offshore Block
4 follows the recent exploration block awards to Occidental as well as a consortium led by Italy’s
Eni and Thailand’s PTTEP, highlighting ADNOC’s ability to continually deliver value in Abu Dhabi’s
second competitive block bid round and leverage its strategic partnerships to accelerate the
exploration and development of Abu Dhbi’s hydrocarbon resources.
The exploration concession agreement was
signed by His Excellency Dr. Sultan Ahmed Al
Jaber, UAE Minister of Industry and Advanced
Technology and ADNOC Group CEO, and
Hiroshi Kiriyama, Group CEO of Cosmo.
H.E. Dr. Al Jaber said: 'This concession award
builds on our long-standing relationship with
Cosmo and reinforces the deep-rooted and
successful strategic relationship between the
UAE and Japan, ADNOC’s largest importer of oil
and gas products. We are delighted to extend our
partnership with Cosmo, particularly as this
award underscores, once more, the important role of energy cooperation in enhancing economic
relations between the UAE and Japan as we focus on the post-Covid recovery.
'Cosmo was selected after a very competitive bid round. They bring expertise and understanding of
our offshore environment, technology, and market access – key ingredients that underpin ADNOC’s
targeted approach to strategic partnerships, which is enabling us to unlock and maximize value from
our assets and resources as we continue to deliver on our 2030 strategy.'
Under the terms of the agreement, Cosmo will hold a 100 percent stake in the exploration phase,
investing up to $145 million (AED532 million) towards exploration and appraisal drilling, including a
participation fee, to explore for and appraise oil and gas opportunities in the block that covers an
offshore area of 4,865 sq kms northwest of Abu Dhabi city.
Hiroshi Kiriyama said: “The Government of Abu Dhabi and Cosmo have a strong partnership in the
oil and gas sector which we have built for more than half a century. This award represents a
significant milestone for us to accelerate our upstream business in Abu Dhabi and further
strengthens our seamless and multi-faceted partnership with both Abu Dhabi and ADNOC.
“We are excited to explore this promising block to unlock the hydrocarbon value by leveraging our
expertise and experience. We are also certain that our success in this block can be crystallized by
creating the synergies with Cosmo group’s existing oilfields and Mubarraz island which are operated
by our affiliate, Abu Dhabi Oil Co.'
Following a successful commercial discovery during the exploration phase, Cosmo will have the
right to a production concession to develop and produce such commercial discoveries. ADNOC has
the option to hold a 60 percent stake in the production phase of the concession. The term of the
production phase is 35 years from the commencement of the exploration phase and the block offers
the potential to create significant in-country value for the UAE over the lifetime of the concession.
In addition to drilling exploration and appraisal wells, the exploration phase will see Cosmo leverage
and contribute financially and technically to ADNOC’s mega seismic survey, which is acquiring 3D
seismic data within the block area. The data already acquired over a large part of the block

combined with its proximity to existing oil and gas fields, suggests the concession area has
promising potential.
ADNOC launched Abu Dhabi’s second competitive block bid round in 2019, offering a set of major
onshore and offshore blocks, on behalf of the Government of Abu Dhabi. Based on existing data
from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data,
estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple
trillion cubic feet of natural gas.
Cosmo has long-standing partnerships in Abu Dhabi’s upstream sector with stakes in Abu Dhabi Oil
Co., Ltd. (ADOC) and Bunduq Company Limited. Last month, ADNOC and ICE Futures Abu Dhabi
(IFAD) signed an agreement with Cosmo Oil Co., Ltd. – one of Cosmo Energy Group companies –
to explore the potential opportunity to price crude oil with reference to the new ICE Murban Crude
Oil Futures.
Bilateral economic relations between the UAE and Japan date back to 1961 when the first shipment
of UAE crude oil was exported from the Umm Shaif offshore field in Abu Dhabi to Japan.
Today, Japan imports approximately 30% of its crude oil from the UAE.
In January 2020, ADNOC signed an agreement with the Agency for Natural Resources and Energy
of Japan for the storage of over 8 million barrels of crude oil at facilities in Japan, extending and
expanding the scope of the previous agreement which expired in 2019, the same year ADNOC
awarded the exploration rights for Abu Dhabi Onshore Block 4 to Japan’s INPEX Corporation.

U.A.E’s NPCC and NMDC merger gains regulatory approvals
The National
A deal to combine Abu Dhabi's National Petroleum Construction Company with the National Marine
Dredging Company is complete after the companies obtained all of the necessary regulatory
approvals.
The deal, which gained shareholder approval on December 14, creates a much larger engineering
and construction company specialising in oil and gas and marine dredging work. The combined
group had revenues of almost Dh8.9bn in 2019.
“Today is the beginning of the next phase of the journey for our companies. Together we will focus
on creating a new success story, from Abu Dhabi for the world, which we hope will benefit our
stakeholders, shareholders, the UAE and our employees,” NMDC's chief executive Yasser Zaghloul
said in a statement.
"We are looking forward to working together on projects that will further strengthen our ‘Made in
UAE’ value proposition. This promising venture will further solidify our position as [a] regional EPC
champion, and support our efforts to explore new growth avenues," NPCC chief executive Ahmed
Al Dhaheri said.
Prior to the merger, state holding company ADQ held a 32 per cent stake in Abu Dhabi Securities
Exchange-listed NMDC and was the majority owner (through its Senaat subsidiary) of NPCC. It is
effectively a reverse takeover, with NMDC issuing mandatory convertible bonds for NPCC's entire
share capital, which are being converted into 575 million ordinary shares, or 69.7 per cent of the
combined entity. The business will maintain its market listing.
ADQ holds government stakes in a broad portfolio of companies, including Abu Dhabi Airports, Abu
Dhabi Ports, Emirates Steel, Emirates Nuclear Energy Corporation, Etihad Rail, Abu Dhabi Securities
Exchange, healthcare operator Seha, media hub TwoFour 54 and others. Within the past year, a number of
its subsidiaries have been merged to create stronger entities.
In July, Abu Dhabi Power Company and Abu Dhabi National Energy Company completed a merger creating
a utilities business with Dh200 billion ($54.4bn) of assets. Abu Dhabi Ports also acquired industrial zones
operator Zones Corp in the same month and in November, dates company Al Foah was acquired by food
and beverage group Agthia, which is also part of ADQ's Senaat subsidiary.
The world’s largest fixed oilfield platform, built by NPCC at its campus in Musaffah in
Abu Dhabi. The contractor's merger with NMDC will create a group that earned almost
Dh8.9bn of revenue in 2019. Pawan Singh / The National

Saudi Aramco prepares $B 10 loan for pipeline business buyers
Reuters + NewBase
Saudi Aramco is preparing a financing package of up to $10 billion that it
could offer to buyers of its pipeline business unit, three sources said, as
the oil giant seeks to extract value from its assets in an era of lower oil
prices.
Aramco is in talks with banks to
provide “staple financing”, which
is a financing package provided
by the seller that buyers can use
to back their purchase.
International investors including
BlackRock, KKR and Brookfield
Asset Management, which could
invest in the pipeline business,
are also in talks with lenders on
possible financing, said the
sources, speaking anonymously
because the talks are private.
The loan could be up to $10 billion, said two of the sources, covering much
of the value of the assets. Aramco and Brookfield declined to comment.
BlackRock and KKR did not respond to comment requests.
The planned pipeline sale would be similar to infrastructure deals signed
over the last two years by Abu Dhabi’s national oil company ADNOC, which
raised billions of dollars by leasing its oil and gas pipeline assets to
investors, sources have previously said.
Aramco, the world’s biggest oil company, completed the largest initial
public offering yet in late 2019, raising $25.6 billion. It later sold more
shares, taking the total to $29.4 billion.
Those funds were transferred to the Public Investment Fund (PIF), Saudi
Arabia’s sovereign wealth fund responsible for transforming the economy,
as society grapples with climate change and shifts from fossil fuel towards
lower carbon energy.

The pandemic has dealt a further blow to the fossil fuel industry by
destroying demand. Saudi Aramco’s profits plummeted last year, but it
stuck to a promised $75 billion annual dividend, most of which goes to the
government.
It will likely need to transfer significant amounts of money to the Saudi
government and the PIF in the coming years. Saudi Arabia’s Crown Prince
Mohammed bin Salman, the kingdom’s de facto ruler, said last month
Aramco will sell more shares in the coming years to bolster PIF’s coffers.

Malaysia: PTTEP confirms its largest-ever gas discovery with
Lang Lebah-2 appraisal well offshore …. ,,,,, Source: PTTEP
PTT Exploration and Production Public Company Limited (PTTEP), through a wholly-owned
subsidiary PTTEP HK Offshore Limited (Malaysia Branch) or PTTEP HKO, successfully completed
the Lang Lebah-2 appraisal well in the Sarawak SK 410B Project. The drilling result registers a new
record for PTTEP’s largest gas discovery.
PTTEP confirms its largest-ever gas discovery offshore Malaysia
Mr. Phongsthorn Thavisin, PTTEP Chief Executive Officer, disclosed that the appraisal drilling at
Lang Lebah structure followed the gas discovery of its first exploration well, Lang Lebah-1RDR2, in
2019. The appraisal well Lang Lebah-2 was completed in mid-January 2021.
It was drilled to a total depth of 4,320 meters with proven over 600 meters of net gas pay, indicating
a larger reservoir than the initial estimate. The well test shows a flow rate of 50 million cubic feet of
gas per day (MMSCFD). The result will accelerate the development plan for the project.
'We are delighted to confirm the largest-ever gas discovery by PTTEP. The experience and
expertise from our operations in the Gulf of Thailand and overseas have contributed to this
achievement. The Lang Lebah gas discovery strengthens PTTEP’s investment base in Malaysia
and demonstrates that our ‘Execute strategy’ has translated into reserves increase for the
company’s long-term growth,' said PTTEP CEO.
The Sarawak SK 410B Project is located approximately 90 kilometers offshore Sarawak, Malaysia.
PTTEP HKO is the operator with 42.5 percent participating interest while KUFPEC Malaysia (SK-
410B) Limited (KUFPEC) and PETRONAS Carigali Sdn. Bhd. (PCSB) hold 42.5 percent and 15
percent participating interests respectively.

Apart from the Sarawak SK 410B, PTTEP’s portfolio in Malaysia comprises Block K, SK 309 and
SK 311, and the Malaysia–Thailand Joint Development Area (MTJDA) which are producing projects;
Block H which is a development project; and SK 417, SK 314A, SK 438, SK 405B, PM 407 and PM
415 which are exploration projects. PTTEP also jointly invests with PTT in the MLNG Train 9 Project,
an LNG liquefaction plant, through PTT Global LNG Company.
Malaysia is a net importer of electricity. GlobalData noted that the country is primarily dependent on
thermal resources for electricity generation and, although it possesses substantial fuel reserves, it
faces the risk of declining energy security.
As of 2018, gas-fired thermal power dominated the country’s power portfolio, with a share of 43%
of the total installed capacity. Coal and oil followed with a share of 30.4% and 5.9%, respectively.
Whilst hydropower held a 17.2% share, other renewables together accounted for less than 4% of
the total capacity.
The government had considered adopting nuclear power in order to establish energy independence
and at the same time avoid greenhouse gas (GHG) emissions. The government also set up a
Nuclear Power Development Steering Committee and deployed three working groups to plan and
coordinate the development of nuclear power.
The share of thermal power is estimated to decrease slightly from 79.2% in 2018 to 71.2% in 2030;
whilst that of non-hydro renewable power is estimated to increase from 3.6% in 2018 to 8.7% in
2030.

U.S. crude stockpiles plunge as refining activity picks up: EIA
Reuters + MewBase
U.S. crude oil stocks plunged unexpectedly last week, tumbling by more than 6 million barrels, as
refiners ramped up production rates to pre-pandemic levels in March amid rising fuel demand, the
Energy Information Administration said on Wednesday.
Crude inventories fell by 6.6 million barrels in the week to Feb. 5 to 469 million barrels, compared
with expectations in a Reuters poll for a 985,000-barrel rise.
Refinery utilization rates rose by 0.7 percentage point in the week to 83%, the highest level of
refining utilization since March.

Refinery crude runs rose by 152,000 barrels per day in the last week, the EIA said, as refiners
expect fuel demand to continue to rebound from last year’s coronavirus-induced weakness.
Fuel demand was also higher, with refined product supplied rising to 20.2 million bpd. Gasoline
demand over the last four weeks, however, is still 10% lower than at the same time a year ago.
Crude prices were little changed after
the data, with U.S. futures up six
cents to $58.43 a barrel as of 10:49
a.m. EST (1549 GMT), while Brent
rose 19 cents to $61.28 a barrel.
“A combination of higher refining
activity and lower imports resulted in
a fourth consecutive draw to oil
inventories, and a chunky one at
that,” said Matt Smith, director of
commodity research at ClipperData.
Net U.S. crude imports rose last
week by 216,000 bpd, EIA said.
U.S. gasoline stocks rose by 4.3 million barrels in the week to 256.4 million barrels, compared with
expectations for a 1.8 million-barrel rise. Distillate stockpiles, which include diesel and heating oil,
fell by 1.7 million barrels in the week, versus expectations for a 790,000-barrel drop.

NewBase February 11-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil cease climbing drops after strong rally, demand hopes limit losses
Reuters + NewBase
Oil prices fell on Thursday, giving up some of the recent strong gains, although losses were curbed
by production cuts and hopes that rollouts of vaccines will drive a recovery in demand.
Brent crude fell 33 cents, or 0.54%, to $61.14 a barrel, as of 06.47 GMT, after touching its highest
since January 2020 on Wednesday. U.S. crude slid 33 cents, or 0.56%, to $58.35 a barrel.
“Crude oil futures rallied following a bigger than expected fall in inventories in the U.S.,” ANZ said
in a note. “However, sentiment was curtailed by a rise in gasoline inventories.”
Oil price special
coverage

Crude stocks last week fell for a third straight week, dropping 6.6 million barrels to 469 million
barrels, their lowest since March, according to the Energy Information Administration. Analysts in a
Reuters poll had forecast a 985,000-barrel increase.
Brent has risen for the previous nine sessions, its longest sustained period of gains since January
2019. On Wednesday, was the eighth daily rise for U.S. crude.
However, some analysts say prices have moved too far ahead of the underlying fundamentals.
Stocks were flat in early trading in Asia on Thursday as investors kept tapping the brakes on runs
in asset prices after taking in tepid U.S. inflation data and comments from the Federal Reserve chief
affirming the outlook for a slow recovery.
Crude has jumped since November as governments kicked off vaccination drives for COVID-19
while putting in place large stimulus packages to boost economic activity, and the world’s top
producers kept a lid on supply.
Top exporter Saudi Arabia is unilaterally reducing supply in February and March, supplementing
cuts agreed by other members of the Organization of the Petroleum Exporting Countries (OPEC)
and allies, known as OPEC+.
Shale Rig Owner Touts New Price Model as Drilling Speeds Up
The biggest provider of oil and gas rigs to the U.S. shale patch is pushing a new pricing model as
speedier drilling cuts into contractors’ revenue.
Rigs are typically rented out at a daily rate for a period of a few months, which has meant less
money for oilfield service providers as drilling becomes quicker and more efficient. So Helmerich &
Payne Inc. is touting a new pricing model based on overall well performance, and almost a third of
its U.S. rigs are now being leased on that basis, Chief Executive Officer John Lindsay said
Wednesday on an earnings call.

NewBase Special Coverage
The Energy world – Feb-11- -2021
The Wind Energy of Denmark 'first energy island' in North Sea
A project to build a giant island providing enough energy for three million households has been
given the green light by Denmark's politicians. The world's first energy island will be as big as 18
football pitches (120,000sq m), but there are hopes to make it three times that size.
It will serve as a hub for 200 giant offshore wind turbines.
It is the biggest construction project in Danish history, costing an estimated 210bn kroner (£24bn;
€28bn: $34bn). Situated 80km (50 miles) out to sea, the artificial island would be at least half-owned
by the state but partly by the private sector.
It will not just supply electricity for Danes but for other, neighbouring countries' electricity grids too.
Although those countries have not yet been detailed, Prof Jacob Ostergaard of the Technical
University of Denmark told the BBC that the UK could benefit, as well as Germany or the
Netherlands. Green hydrogen would also be provided for use in shipping, aviation, industry and
heavy transport.
Under Denmark's Climate Act, the country has committed to an ambitious 70% reduction in 1990
greenhouse gas emissions by 2030, and to becoming CO2 neutral by 2050. Last December it
announced it was ending all new oil and gas exploration in the North Sea.
Energy Minister Dan Jorgensen said the country was simply "changing the map".

"This is gigantic," Prof Ostergaard told the BBC. "It's the next big step for the Danish wind turbine
industry. We were leading on land, then we took the step offshore and now we are taking the step
with energy islands, so it'll keep the Danish industry in a pioneering position."
image captionThe plan is for the island to grow from an initial 120,000 sq m in size to 460,000 sq m
Green group Dansk Energi said that while the "dream was on the way to becoming a reality" it
doubted the North Sea island would be up and running by the planned 2033 start date.
But Danish politicians across the spectrum have given their backing to the plan. Former energy
minister Rasmus Helveg Petersen of the Social Liberal party said energy islands had begun "as a
radical vision" but there was now a broad agreement to turn it into a reality.
A smaller energy island is already being planned off Bornholm in the Baltic Sea, to the east of
mainland Denmark. Agreements have already been signed for electricity to be provided from there
to Germany, Belgium and the Netherlands.
Last November the European Union announced plans for a 25-fold increase in offshore
wind capacity by 2050, with a five-fold increase by 2030. Renewable energy provides around a third
of the bloc's current electricity needs:
 According to the EU, offshore wind supplies a current level of 12 gigawatts
 Denmark supplies 1.7 gigawatts
 The new island would supply an initial 3 gigawatts, rising to 10 over time
 The smaller Bornholm energy island would provide 2 gigawatts

While there is some secrecy over where the new island will be built, it is known that it will be 80km
into the North Sea. Danish TV said that a Danish Energy Agency study last year had marked two
areas west of the Jutland coast and that both had a relatively shallow sea depth of 26-27m.
The island, which in its initial phase will be the size of 18 football fields, will be linked to hundreds
of offshore wind turbines and will supply both power to households and green hydrogen for use in
shipping, aviation, industry and heavy transport.
The move came as the European Union unveiled plans to transform its electricity system to rely
mostly on renewable energy within a decade and increase its offshore wind energy capacity 25-fold
by 2050.
“This is truly a great moment for Denmark and for the global green transition,” Energy Minister Dan
Jorgensen told a press briefing.
“(The island) will make a big contribution to the realisation of the enormous potential for European
offshore wind,” he said.
The energy island is an important part of Denmark’s legally binding target to cut greenhouse gas
emissions by 70% by 2030 from 1990 levels, one of the world’s most ambitious.
The Nordic country, with its favourable wind speeds, was a pioneer in both onshore and offshore
wind, building the world’s first offshore wind farm almost 30 years ago. In December, it decided to
halt the search for oil and gas in the Danish part of the North Sea.
The artificial island, to be located 80 kilometres off Denmark’s west coast, and its surrounding wind
turbines will have an initial capacity of 3 gigawatts, cost around 210 billion Danish crowns ($33.87
billion), and be operational around 2033.
Denmark also has plans for an energy island in the Baltic Sea.

NewBase Energy News 11 February 2021 - Issue No. 1405 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. 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 the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2021 K. Al Awadi

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