New base 22 august 2019 energy news issue 1271 by khaled al awadi

Copyright © 2018 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 Energy News 22 August 2019 - Issue No. 1271 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 Dh13.2bn in contracts to local suppliers
The National + NewBase
The casing and drilling contracts form part of the company's efforts to generate more in-country
value , Adnoc started its in-country value programme last year with an expenditure of Dh18 billion.
Abu Dhabi National Oil Company (Adnoc) awarded Dh13.2 billion worth of contracts in casing and
tubing for drilling activities to three suppliers as it looks to drive more in-country value.
Local companies Consolidated Suppliers Establishment representing Luxembourg-based Tenaris,
Abu Dhabi Oilfield Services Company on behalf of France's Vallourec as well as Habshan Trading
Company for Japan's Marubeni were awarded the contracts. The firms have the potential to
generate 50 per cent in-country value, said Adnoc.
More than $100 million (Dh367.2m) foreign investment is also expected to be directed over the next
five years, including to establish a repair centre and a training academy in Abu Dhabi.
"The award of contracts with a combined scope that is one of the world’s largest for tubing and
casing follows a highly competitive bid process," said Adnoc upstream director Abdulmunim Saif Al
Kindy.
"It underscores Adnoc's optimisation efforts to drive commerciality across our growing portfolio. In
addition, it is testament to our targeted approach to engage with value-add partners to unlock value
as well as enhance the performance and returns on our assets and capital," he added.
Adnoc started its in-country value programme last year with an expenditure of Dh18bn as part of
efforts to ensure that local suppliers and companies are engaged across its value chain to boost
the local economy.
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UAE: Unit 3 Transformers Energized at Barakah Nuclear Plant
Enec
The Emirates Nuclear Energy Corporation (ENEC) has achieved another milestone in the
construction of Unit 3 of the Barakah Nuclear Energy Plant, being built at the Al Dhafra region of
Abu Dhabi, United Arab Emirates. ENEC has safely and successfully energized Unit 3’s Main Power
Transformer and Gas Insulated Bus (GIB), an important step in the continued testing and
commissioning of the plant.
In addition to the Main Transformer and GIB, Unit 3’s Auxiliary Power Transformers and Excitation
Transformer were energized safely and successfully in normal operating configuration. This work
was performed with the approval and support of Abu Dhabi Transmission & Despatch Company
(TRANSCO), and comes approximately one year after the completion of similar work on Unit 2, and
two years after the completion of the same work on Unit 1, demonstrating the benefits of building
four identical Units at the same time.
“I am proud of the continued progress being made at Unit 3 of the Barakah Nuclear Energy Plant.
We have maintained our track record of safety and efficiency with the successful energization of the
unit’s transformers, and we continue to establish Barakah as the benchmark for new nuclear
construction projects worldwide,” said H.E. Eng. Mohamed Al Hammadi, Chief Executive Officer of
ENEC. “This construction milestone was achieved as a result of our extensive collaboration with our
Prime Contractor and Joint Venture partner, the Korea Electric Power Corporation (KEPCO), as
well as expert teams from Nawah Energy Company and Abu Dhabi Transmission & Despatch
Company.”
With the accomplishment of this milestone, the testing and commissioning teams will begin preparing for the
commencement of Hot Functional Testing (HFT) at Unit 3, implementing the lessons learned during their
testing of Units 1 and 2. HFT takes place over a number of weeks and consists of almost 200 individual and
integrated tests performed on major systems to check their performance under normal operational conditions,
without the presence of nuclear fuel assemblies in the reactor vessel.
The construction of the Barakah plant is progressing steadily; the latest construction completion percentages
show that Unit 2 stands at 95%, Unit 3 is more than 91%, and Unit 4 is more than 82%, while the overall
construction completion percentage is more than 93%. The construction of Unit 1 has been completed in
accordance with the highest global standards of quality and safety, and it is currently undergoing
commissioning and testing, prior to regulatory review and receipt of the Operating License from the FANR.
All four units will deliver clean, efficient and reliable electricity to the UAE, preventing the release of up to 21
million tons of carbon emissions each year.

Oman Masirah Block on track for the first oil by year-end
Oman observer - Conrad Prabhu
Rex International Holding Limited, the majority shareholder in Masirah Oil Limited (MOL) — which
has a 100 per cent interest in the offshore Block 50 enveloping Masirah Island — says it is on track
to bringing its landmark ‘GA South Discovery’ — the first of its kind off Oman’s eastern seaboard —
into production before the end of this year.
Singapore-listed Rex International — well-known for its proprietary Rex Virtual Drilling technology
— has a 92.65 per cent shareholding in Masirah Oil Limited, the license holder of Block 50 (also
known as ‘Masirah Block’) under an Exploration & Production Sharing Agreement (EPSA) signed
with Oman’s Ministry of Oil and Gas.
The reaffirmation of its commitment to Block 50 follows the successful monetisation of its Norway
assets, which helped “recharge” the company’s “war chest”, in turn boding well for its strategy to put
its Oman discovery into production, said Rex in a statement.
Måns Lidgren, Chief Executive Officer, stated: “Although we achieved discoveries in Oman and
Norway respectively, this monetisation strategy could not be executed during the oil price rout which
started in 2014 until early this year when an opportunity to divest arose. While we will continue with
this proven strategy for our operations in Norway, our plan for value creation in Oman remains to
achieve first oil by end- 2019.”
The GA South discovery dates back to February 4, 2014, when Masirah Oil announced a first-ever
hydrocarbon find in the 17,000 sq km concession off the east coast. A second exploration well drilled
in the concession had successfully reached the well target depth of more than 3,000 metres into
the Cambrian formation.
“Hydrocarbons were discovered in several formations with good oil sample extracted. The oil
discovery is significant as it is the first offshore discovery east of
Oman, after 30 years of exploration activity in the area and won the ‘Offshore Discovery of the Year’
award,” said Rex International in its 2018 Annual Report.
“During a 48-hour test, hydrocarbons were flowed to the surface and the well achieved a restricted
flow rate of 3,500 barrels per day of light oil of high quality without water production from a sandstone
reservoir of excellent quality.

In 2017, the Karamah#1 well which was drilled identified a 5-metre oil bearing interval on the wireline
logs in a carbonate reservoir, further confirming the presence of a working petroleum system in the
block,” it further stated.
An evaluation of the GA South discovery resulted in a positive feasibility report concluding that
development of the reservoir would be commercially attractive, the company said, citing also strong
support from the Omani authorities for “this possible first offshore development on the Arabian Sea
part of Oman”.
“The work was taken further into a concept selection phase, concluding with the invitation of several
contractors to bid for delivery and operations of the production equipment. At the time of writing,
negotiations with selected contractors are on-going with the view to start production by end-2019,”
it added.
MOL is also 2.35 per cent held by Petroci, the National Oil Company of the Ivory Coast (also known
as Côte D`Ivoire) and 5 per cent held by Schroder & Co Banque SA.

TAQA exceeds monthly production target of 1 million barrels of
oil in Kurdistan Region of Iraq…… WAM/Rasha Abubaker
Abu Dhabi National Energy Company PJSC (TAQA) announced today that its subsidiary, TAQA
Atrush B.V. (TAQA Iraq), has set a new production record from the Atrush oil field in the Kurdistan
Region of Iraq. For the first time since the field commenced production operations in July 2017, the
total monthly production volume exceeded 1 million barrels of oil in July 2019.
The 1 million barrel mark is a key milestone in TAQA Iraq’s ongoing production improvement and
expansion plans for the Atrush block and is a testimony to the effort, professionalism, and
commitment to deliver safe and efficient operations in Iraq.
The current rate of gross production at the Atrush block is approximately 34,000 barrels of oil per
day, which is line with the company’s targets for Q2 2019. The increase in production was largely
due to new wells coming on stream and the impact of de-bottlenecking work over the past few
months, which has increased the capacity of volumes handled by the production facility. The facility
has continued to meet targets at minimal spend and is a result of a focus on integrated planning
and optimization.
Speaking on the milestone, TAQA Chief Executive Officer Saeed Al Dhaheri said, "This significant
achievement is a direct result of our Iraq team’s technical expertise and strategic planning efforts.
As a global energy player with operations spanning four continents, our operations in Iraq have
allowed us to strengthen our expertise as a leading developer of greenfield projects.
We look forward to building on this achievement to continue to deliver energy to our strategic
partners in the Kurdistan region, and to continue to forge strong relationships with local communities

around the Atrush block." AbdulKhaliq Al Ameri, Managing Director of TAQA Iraq, added, "Our focus
for the past two years has been to improve the value of our asset while ensuring cost-optimization
and uphold our commitment to health and safety.
I am particularly proud of our team, which comprises more than 300 people, many of whom are from
the Kurdistan region. This achievement is a result of their hard work and dedication to TAQA’s
vision."
The Atrush field is located 85 km northwest of Erbil and is one of the largest new oil developments
in the Kurdistan Region of Iraq. The field was first discovered in 2011 and production started in
2017. In its two years of production, the Atrush field has produced of 17 million barrels of oil, with
increasing efficiency.
In May 2019, TAQA Iraq completed the acquisition of an additional 7.5% working interest in the
Atrush block from Marathon Oil KDV B.V. With this acquisition, TAQA Iraq’s working interest in the
Atrush block increased from 39.9% to 47.4% and represents an AED 116 million addition to the
company’s assets.
TAQA Iraq is the operator of the Atrush block and has a 47.4% working interest under the Atrush
block Production Sharing Contract. TAQA Iraq’s partners in the project are the Kurdistan Regional
Government (25%) and General Explorations Partners, Inc. (27.6%).

Egypt: Zohr gas production reaches 2.7 bcfd
Source: Eni
Eni has announced that the production from the Zohr field has now reached more than 2.7 billion
cubic feet per day (bcfd), about 5 months ahead of the Plan of Development (PoD).
This remarkable result has been achieved following the completion of all eight onshore treatment
production units – the last one commissioned in April 2019 – and all Sulphur production units in
August, the production start-up of two wells in the southern culmination of the field (in addition to
the ten wells already drilled in the northern culmination) as well as the start-up on August 18th 2019
of the second 216 km long 30” pipeline connecting the offshore subsea production facilities to the
onshore treatment plant.
The new pipeline, in conjunction with the completion and optimization of the plant treatment
capacity, paves the way to increase, by the year end, the field potential production rate up to 3.2
bcfd against the POD’s plateau rate of 2.7 bcfd.
Location of Shorouk Concession and Zohr gas field (Source: Eni)
The Zohr field, the largest gas discovery ever made in Egypt and in the Mediterranean Sea, is
located within the offshore Shorouk Block. In the Block, Eni holds a 50%
stake, Rosneft 30%, BP 10% and Mubadala Petroleum 10% of the Contractor’s Share.
The project is executed by Petrobel, the Operating Company jointly held by Eni and the state
corporation Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, jointly
held by Contractor (Eni and its partners) and the state company Egyptian Natural Gas holding
Company (EGAS).
Eni has been present in Egypt since 1954, where it is the main producer with approximately 360,000
barrels of oil equivalent per day equity. Such production is expected to further grow within the year,
thanks to the ramp-up of Zohr and the start-up of Baltim South West fields.

Thailand: Tap Oil completes Manora Development drilling
Source: Tap Oil
Tap Oil has provided updated information in relation to the completion of the Manora Development
drilling program which commenced with the first well spudded on the 9th July 2019 using the Ensco
115 jack-up drilling rig. The program entailed batch drilling of the top-holesections of three wells
followed by drilling of the reservoir sections.
As previously reported on the ASX release dated 5th August 2019, both the MNA-24H and MNA-
23H horizontal development wells targeting undeveloped reserves in the 300 series sands were
both drilled from the Manora platform. The MNA-24H well reached final total measured depth of
2,216 metreswhilst the MNA-23-H well reached a final total measured depth of 2,216.1 metres.
Both MNA-23H and MNA-24H wells have been completed and handed over to production
operations. Currently multi rate testing is being carried out on both wells ahead of moving into long
term production. Tap will provide a further update on these wells once production from the wells has
stabilised.
MNA-22H update
The objective of theMNA-22H well was to provide a second drainage point in the 490-60 and 500 reservoirs
completed in the nearby MNA-20well. On 4 August 2019 at 06:00 hours (WST) the MNA-22 well reached
final total measure depth of 2113 m. Petrophysical interpretation of well logs show a total oil net pay of 56.5
m in the 490-60 and 500 sands. The well has been suspended and will be completed with a work over rig at
a later date.Tap will provide a further update on MNA-22H when the work over activities have been
completed.
Forward Plan
With the Development drilling program now completed ahead of schedule and on budget, the rig was
demobilised on the 14thAugust 2019. Tap expects the Ensco 115 jack up rig to return for further exploration
drilling in November 2019. Tap will provide further updates once the exploration program has been finalised.

NewBase August 22 – 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil dips amid economic concerns after U.S. fuel stocks build
Reuters + NewBase
Oil prices slipped on Thursday, paring earlier gains, weighed down by lingering worries about the
global economy and bigger-than-expected builds in oil product inventories in the United States, the
world’s biggest oil consumer.
Brent crude futures dropped 19 cents, or 0.32%, to $60.11 a barrel by 07.28 GMT on Thursday.
West Texas Intermediate (WTI) crude CLc1 futures were down 13 cents at $55.55 per barrel.
“Oil markets continue to move lower after the gloomy surprise build in U.S. fuel inventories,” said
Stephen Innes, managing partner at Valour Markets. U.S. gasoline and distillate stockpiles rose
more than expected last week, while crude inventories fell as refineries hiked production, the Energy
Information Administration said on Wednesday.
Oil price special
coverage

“Overall oil prices have come under pressure from worries about the China-U.S. trade war, signs
of slowing economic activity, evidence of slowing end-user oil demand, and reports of counter-
seasonal OECD product inventories,” energy analytics firm Kayrros said in a note.
Traders were worried on the prospects of global oil demand especially amid trade tensions between
the U.S and China, the world’s two biggest economies and oil users.
U.S. President Donald Trump on Wednesday said he was “the chosen one” to address trade
imbalances with China, even as congressional researchers warned that his tariffs would reduce
U.S. economic output by 0.3% in 2020.
Oil traders, along with equity and bond markets, are awaiting a speech from Federal Reserve
Chairman Jerome Powell on Friday at an economic conference in Jackson Hole, Wyoming, that
could indicate whether the central bank will continue to cut interest rates and ease monetary policy.
Minutes of the Federal Reserve’s July meeting showed the bank’s board members were deeply
divided over whether to cut interest rates as sharply as markets were wagering.
“With positioning in equities, bonds and energy all heavily weighted to this outcome, the resulting
correction from a lack of Powell love, could be both ugly and emotional,” said Jeffrey Halley, analyst
at OANDA.
Meanwhile, oil markets found some support from the simmering tensions between U.S. and Iran,
after Iranian President Hassan Rouhani said if Iran’s oil exports are cut to zero, international
waterways will not have the same security as before.
“We’ve got the concerns surrounding U.S. and Iran but there’s not really anything to push oil out of
the current range. It just seems to be volatile within it,” said Jonathan Barratt, the chief investment
officer at Probis Securities in Sydney.

NewBase Special Coverage
News Agencies News Release August 22-2019
The U.S. leads global petroleum and natural gas production
with record growth in 2018
Source: U.S. EIA, based on International Energy Statistics
U.S. petroleum and natural gas production increased by 16% and by 12%, respectively, in 2018,
and these totals combined established a new production record.
The United States surpassed Russia in 2011 to become the world's largest producer of natural gas
and surpassed Saudi Arabia in 2018 to become the world's largest producer of petroleum. Last
year’s increase in the United States was one of the largest absolute petroleum and natural gas
production increases from a single country in history.
Note: Petroleum includes crude oil, condensate, and natural gas plant liquids.
For the United States and Russia, petroleum and natural gas production is almost evenly split; Saudi
Arabia's production heavily favors petroleum. Petroleum production is composed of several types
of liquid fuels, including crude oil and lease condensate, natural gas plant liquids (NGPLs), and

bitumen. The United States produced 28.7 quadrillion British thermal units (quads) of petroleum in
2018, which was composed of 80% crude oil and condensate and 20% NGPLs.
U.S. crude oil production increased by 17% in 2018, setting a new record of nearly 11.0 million
barrels per day (b/d), equivalent to 22.8 quadrillion British thermal units (Btu) in energy terms.
Production in the Permian region of western Texas and eastern New Mexico contributed to most of
the growth in U.S. crude oil production. The United States also produced 4.3 million b/d of NGPLs
in 2018, equivalent to 5.8 quadrillion Btu. U.S. NGPL production has more than doubled since 2008,
when the market for NGPLs began to expand.
U.S. dry natural gas production increased by 12% in 2018 to 28.5 billion cubic feet per day (Bcf/d),
or 31.5 quadrillion Btu, reaching a new record high for the second year in a row. Ongoing growth in
liquefied natural gas export capacity and the expanded ability to reach new markets have supported
increases in U.S. natural gas production.
Russia’s crude oil and natural gas production also reached record levels in 2018, encouraged by
increasing global demand. Russia exports most of the crude oil that it produces to European
countries and to China.
Since 2016, nearly 60% of Russia’s crude oil exports have gone to European member countries in
the Organization for Economic Cooperation and Development (OECD). Russia’s crude oil is also
an important source of supply to China and neighboring countries.
Russia’s natural gas production increased by 7% in 2018, which exceeded the growth in exports.
The Yamal liquefied natural gas (LNG) export facility, which loaded its first cargo in December 2017,
can liquefy more than 16 million tons of natural gas annually and accounts for almost all of the

recent growth in Russia’s LNG exports. Since 2000, more than 80% of Russia’s natural gas exports
have been sent to Europe.
Saudi Arabia’s annual average crude oil production increased slightly in 2018, but it remained lower
than in 2016, when Saudi Arabia’s crude oil output reached a record high. Saudi Arabia’s crude oil
production reached an all-time monthly high in November 2018 before the December 2018
agreement by the Organization of the Petroleum Exporting Countries (OPEC) to extend production
cuts.

In addition to exporting and refining crude oil, Saudi Arabia consumes crude oil directly for electricity
generation, which makes Saudi Arabian crude oil consumption highest in the summer when
electricity demand for space cooling is relatively high.
Since 2016, Saudi Arabia’s direct crude oil burn for electric power generation has decreased for a
number of reasons, including demand reductions from a partial withdraw of power subsidies, greater
use of residual fuel oil, and increased availability of domestic natural gas.
Crude oil exports account for about 60% of Saudi Arabia’s total economic output. China, along with
Japan, South Korea, Taiwan, and the United States remain critical markets for Saudi Arabia’s
petroleum exports.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
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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
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 a total of 28 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 2019 K. Al Awadi

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