New base 24 december 2020 energy news issue 1395 by khaled al awadi

Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Energy News 24 December 2020 - Issue No. 1395 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: ADNOC awards Eni and PTTEP offshore block 3
Pipeline Oil & Gas + NewBase
ADNOC announced the signing of an exploration concession agreement, awarding the exploration
rights for Abu Dhabi’s Offshore Block 3 to a consortium led by Italy’s Eni, and Thailand’s PTTEP.
The award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC).
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; Claudio Descalzi,
CEO of Eni; and Phongsthorn Thavisin, CEO of PTTEP.
H.E. Dr. Al Jaber said: “This concession award reinforces ADNOC and Eni’s growing partnership
across our value chain and deepens our relationship with Thailand’s PTTEP, one of the key markets
for our crude oil and products. This again validates our targeted approach to value-add partnerships
that contribute the right combination of capital, technology, capabilities and market access to
accelerate the development of Abu Dhabi’s hydrocarbon resources.
“Despite volatile market conditions, we are making very good progress in delivering Abu Dhabi’s
second competitive block bid round, underscoring our world-class resource potential and the UAE’s
www.linkedin.com/in/khaled-al-awadi-38b995b

stable and reliable investment environment. We continue to welcome partners that share our vision
to sustainably unlock value from our hydrocarbon resources for our mutual benefit, as we deliver on
our 2030 strategy and enable long-term returns to the UAE.”
Under the terms of this agreement, Eni will operate the exploration phase of the concession, and
PTTEP and Eni will collectively hold a 100 per cent stake in the exploration phase, investing up to
AED1.51 billion ($412 million) towards exploration and appraisal drilling, including a participation
fee, to explore for and appraise oil and gas opportunities in Offshore Block 3.
This award underscores the attractiveness of Abu Dhabi’s huge untapped resource potential and
ADNOC’s ability to continue to secure foreign direct investment (FDI) to the United Arab Emirates
(UAE), despite the tough market environment. Offshore Block 3 offers the potential to create
significant in-country value for the UAE over the lifetime of the concession.
Claudio Descalzi said: “This award follows the one achieved by the same consortium in 2019 for
offshore exploration Blocks 1 and 2 and represents a further important step towards the realization
of Eni’s strategy to become a leading actor in the development and production in Abu Dhabi, a
leading region for the oil and gas industry, while contributing through its expertise in exploration to
add further resources and exploit all potential synergies with the surrounding fields. It also further
strengthen our relationship with our valuable partner PTTEP. Offshore Block 3 represents a
challenging opportunity that can unlock significant value thanks to exploration and appraisal of
shallow and deep reservoirs”.
Following successful commercial discovery during the exploration phase, Eni and PTTEP will,
together, have the right to a production concession to develop and produce such commercial
discoveries. ADNOC has the option to hold a 60 per cent stake in the production phase of the
concession. The term of the production phase is 35 years from the commencement of the
exploration phase.
Phongsthorn Thavisin said: “This concession award offers another great opportunity for PTTEP to
strengthen collaboration with world-class strategic partners Eni and ADNOC. The consortium will
bring capabilities, experiences and technology to accelerate the development of Offshore Block 3,
as well as Offshore Blocks 1 and 2, and lead to a successful discovery. The strategic partnership

has been established to jointly contribute to the petroleum development in UAE and be part of the
growing industry. Meanwhile, this business progress has also reinforced our presence in the Middle
East following the company’s Execute and Expand strategy. Such approach aims to sustainably
increase both petroleum reserves and production in the future.”
Offshore Block 3 covers an offshore area of 11,660 square kilometers northwest of Abu Dhabi city.
New 3D seismic data has been acquired for a part of the block, which, combined with its proximity
to the existing onshore oil and gas fields, suggests the concession area has promising potential.
In addition to drilling exploration and appraisal wells, the exploration phase will see Eni and PTTEP
leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is
already acquiring seismic data within the block area. This world’s largest 3D seismic survey is
deploying industry-leading technologies to capture high-resolution 3D images of the complex
geology at ultra-deep locations below the surface and will be used to identify potential hydrocarbon
reservoirs.
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 SPC.

U.A.E: Masdar get funding for 100-MW solar plant in Uzbekistan
The National + NewBase
The company will pursue renewable projects in Uzbekistan as part of a wider collaboration with
Mubadala Investment Company. Abu Dhabi clean energy company Masdar said it finalised the
financing for a 100-megawatt solar plant it is developing in Uzbekistan.
Loan and guarantee agreements to finance the Nur Navoi plant were signed between Masdar and
Uzbekistan’s ministry of investments and foreign trade as well as the International Finance
Corporation, Asian Development Bank, the World Bank and the European Bank for Reconstruction
and Development, the company said on Wednesday.
Nur Navoi is the country’s first successfully financed independent power producer (IPP) solar project. “This
project will serve as a benchmark for the country as it looks to transform its energy sector and drive
sustainable recovery," Mohamed Jameel Al Ramahi, chief executive of Masdar, said.
The project was awarded to Masdar last year after it tendered the lowest tariff in a competitive auction.
Masdar subsequently signed a power purchase agreement and government support accord with National
Electric Grid of Uzbekistan to design, finance, build, own and operate the solar plant, located in the Navoi
region.
Masdar also established Nur Navoi Solar as the local project company to deliver the photovoltaic plant, which
is scheduled to start operations in the third quarter of 2021. The new project company will also operate and
maintain the plant for 25 years.
The project “will drive the development of Uzbekistan’s independent power producer market, and enable us
to increase the share of renewable energy in the energy mix”, Shukhrat Vafaev, deputy minister of
investments and foreign trade of Uzbekistan, said. “By opening new markets for private investment, we can
support energy sector reform, integrate renewables into the grid and address climate change challenges.”
Masdar, which is wholly owned by Mubadala Investment Compay, is active in more than 30 countries,
including the UAE, Jordan, Saudi Arabia, Mauritania, Egypt, Morocco, the US, Australia and other countries.
Masdar will also pursue new renewable energy projects as part of a wider collaboration between Uzbekistan
and Mubadala Investment Company, the company said. Masdar is currently developing a 500-megawatt
wind farm project in Zarafshon district of Uzbekistan.
Earlier this month, Masdar announced a joint venture with a subsidiary of Indonesia’s electricity
company PT Perusahaan Listrik Negara to develop the 145-megawatt floating photovoltaic power
plant in Cirata reservoir in West Java with a total investment of $100 million.

UAE: World’s largest solar power plant near full operation
The National + NewBsae
Abu Dhabi National Energy Company along with other partners reached a financial close on the
world’s largest 2-gigawatt solar power plant being built in Al Dhafra region of Abu Dhabi..
A consortium led by Abu Dhabi National Energy Company (Taqa) and Masdar, in partnership with
France’s EDF Renewables and China's JinkoPower, reached financial close on the world’s largest
solar power plant in Abu Dhabi.
The 2-gigawatt Al Dhafra Solar PV plant is being financed by seven international banks, Taqa said
in a statement on Tuesday.
"The financial closing of the world’s largest solar plant marks the beginning of an important chapter
for this IPP [independent power producer] project, for Taqa Group and for the UAE as we continue
to deliver on our bold clean energy ambitions, while demonstrating the commercial and operational
viability of utility-scale single-site solar projects,” Jasim Husain Thabet, group chief executive and
managing directorof Taqa, said.
Taqa will own 40 per cent of the Al Dhafra
project, while Masdar, EDF Renewables and
JinkoPower will each have a 20 per cent stake.
The plant is expected to become fully
operational in 2022 and will generate enough
electricity for about 160,000 homes across the
UAE.
“We have an expanded portfolio of power and
water assets that we will grow further through a
disciplined approach, adding value for our

shareholders and delivering a diverse supply of energy for our stakeholders and the communities
in which we operate," Mr Thabet said.
Earlier in the year, bidding for the project led to one of the world's most competitive tariffs for solar
power, which was set at Dh4.97 fils per kilowatt hour ($1.35 cents/kWh). The tariff was further
improved to Dh4.85 fils/kWh “primarily driven by hedging and financing cost improvements, in
addition to other optimisation efforts”, Taqa said.
The project “underlines the growing appeal of renewable energy from both a commercial and
environmental perspective, and the attractiveness of the UAE as a location for the world’s largest
and most cost-competitive renewable energy projects,” Mohamed Jameel Al Ramahi, chief
executive of Masdar, said.
The UAE is diversifying its energy mix and turning to solar and nuclear energy as it looks to free up
hydrocarbons for export markets and generate up to 44 per cent of its energy from clean sources
by 2050.

Oman: Abraj completes 1st well stimulation on Oman's Block 61
BP Oman
BP Oman has announced the successful completion of the first well stimulation on Block 61 by Abraj
Energy Services, marking a significant milestone in its relationship with the Omani well services
contractor. The well, located in the Ghazeer field, also represents one of the largest stimulations
completed by Abraj, an ONA report said.
BP Oman President Yousuf al-Ojaili commented: “We’re delighted to reach this important milestone
with Abraj. This is the first time the company has worked with us on a well stimulation. It’s great to
see what can be achieved when working collaboratively and with a commitment to in-country value.”
He added that Abraj was initially awarded 30% of the stimulation scope for Block 61, with the
opportunity to potentially increase this based on performance.
The gas in Block 61’s Khazzan and Ghazeer reservoirs is known to be ‘tight’. This means that the
hydrocarbon – gas and condensate - is tightly held within the reservoir formations and will not flow
naturally to economic rates without stimulation. To do this, fluids and proppant are pumped into the
formation at high pressures and rates which open the reservoir’s rock – creating a ‘super-highway’
which allows the hydrocarbons to flow.
The well was stimulated late November and started to flow shortly thereafter with productivity better
than expected.BP Oman has worked to increase its well construction spend with Omani companies.
This has significantly increased with the Abraj contract and is set to grow further in 2021 with the
recent award of a highly challenging well test contract to local company FOS.-- Tradearabia News
Service

N.Korea LG, Magna to set up JV for electric car gear
LG + NewBase
LG Electronics and Canada’s Magna International have announced a joint venture (JV) to
manufacture e-motors, inverters and on board chargers and related e-drive systems to support the
growing global shift toward vehicle electrification.
The new company, tentatively called
LG Magna e-Powertrain, marries
Magna’s strength in electric
powertrain systems and world class
automotive manufacturing with LG’s
expertise in component development
for e-motors and inverters,
accelerating both partners’ growth in
the electric powertrain market.
The JV enables the two companies to
continue to grow their electric
powertrain product offerings by
leveraging existing technologies,
engineering capabilities and global
footprints. The market for e-motors,
inverters and electric drive systems is expected to have significant growth between now and 2030,
and the JV will target this fast-growing global market with a world-class portfolio.
LG has established experience in the development of electric vehicle components most notably for
the Chevrolet Bolt EV and Jaguar I-PACE. LG will help accelerate Magna’s time to market and scale
of manufacturing for electrification components, while software and systems integration are
competencies that Magna brings to this venture. This JV will allow customers to select from a
portfolio of reliable components through to integration of an entire electrified powertrain.
“This partnership fully aligns with our strategy of being at the forefront of electrification and
supporting automakers with a diverse and world-class portfolio,” said Magna president and incoming
CEO Swamy Kotagiri.
“By combining our strengthens, we expect to gain investment efficiency and speed to market with
synergies to achieve more, all while continuing to capitalize on the acceleration of the electrified
powertrain market.”
“Manufacturers need to be disruptive to maintain leadership positions in electrification and, through
this deal, LG is entering a new phase in its automotive components business, a growth opportunity
with enormous potential,” said Dr Kim Jin-yong, president of the LG Electronics Vehicle component
Solutions Company. “We believe that the combination of our in-house prowess and the experience
and extensive history of Magna will transform the EV powertrain space faster than if we proceed
alone.”
The JV will include more than 1,000 employees located at LG locations in the US, South Korea and
China.The transaction is expected to close in July of 2021, subject to a number of conditions
including obtaining LG shareholder approval and all necessary regulatory approvals

NewBase December 24-2020 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rises on U.S. inventory draw, Brexit deal hopes
Reuters + NewBase
Oil extended gains on Thursday as a drawdown in U.S. stockpiles of crude and gasoline lifted
demand hopes, while investors also cheered a potential Brexit trade deal.
U.S. West Texas Intermediate (WTI) crude futures rose 9 cents, or 0..2%, to $48.21 a barrel by
09.00 GMT, while Brent crude futures climbed 07 cents, or 0.14%, to $51.27. Both contracts gained
more than 2% on Wednesday.
“Oil markets are quiet as all investors are in a holiday mode,” said Hiroyuki Kikukawa, general
manager of research at Nissan Securities.
“Lower U.S. inventories of crude and fuels as well as signs of a potential Brexit deal which led to
weaker U.S. dollar were good news, but lingering worries over a new variant of the novel coronavirus
capped gains,” he said.
Oil price special
coverage

U.S. crude inventories fell by 562,000 barrels in the week to Dec. 18 to 499.5 million barrels, the
Energy Information Administration said on Wednesday.
Gasoline stocks fell by a surprise 1.1 million barrels to 237.8 million barrels, the EIA said, while
distillate stockpiles fell by a more-than-expected 2.3 million barrels to 148.9 million barrels.
Oil prices also drew support from news than Britain and the European Union were on the cusp of
striking a narrow trade deal on Thursday, swerving away from a chaotic finale to the Brexit split.
The potential deal boosted sterling, which was up 0.13% against the dollar after closing up 0.9%. A
softer dollar makes commodities priced in the greenback more affordable for holders of other
currencies.
Still, investors remain jittery about the recovery of oil demand as a more contagious variant of the
coronavirus that is quickly spreading across Britain prompts countries to shut their borders to the
UK.
Americans were also warned again not to travel for Christmas as the latest surge in cases
overwhelmed hospitals.
Raising concerns over a supply glut, U.S. energy firms this week added oil and natural gas rigs for
a fifth week in a row.
The oil and gas rig count, an early indicator of future output, rose 2 to 348 in the week to Dec. 23,
energy services firm Baker Hughes Co said.

U.S. drillers add oil and gas rigs for fifth week in a row
U.S. energy firms this week added oil and natural gas rigs for a fifth week in a row as higher energy
prices prompt producers to keep returning to the wellpad in recent months.
The oil and gas rig count, an early indicator of future output, rose 2 to 348 in the week to Dec. 23,
energy services firm Baker Hughes Co said in its closely followed report on Wednesday.
The number of operating rigs has surged since August, when it hit a record low of 244, according
to Baker Hughes data going back to 1940.
Baker Hughes released its North American rig count report two days earlier than usual due to the
Christmas holiday on Friday.
U.S. oil rigs rose to 264 this week, their highest since mid-May, while gas rigs rose to 83, their
highest since the end of April, according to Baker Hughes data.
U.S. crude traded around $48 a barrel this week.

NewBase Special Coverage
The Energy world – Dec. 08 -2020
Energy’s Distress May Ease as, So Many Already Went Bust
Bloomberg + IEA + NewBase
Better days may be ahead for energy companies after a busy year of bankruptcies, with the
coronavirus pandemic culling the weakest borrowers and investors pricing in a sharp economic
recovery when vaccines become widely available.
About $144 billion of energy bonds were trading at distressed levels in the middle of March, when
the pandemic sent oil demand plunging, but that number receded to $37 billion by the end of
November. That’s because some oil and gas companies have filed for bankruptcy while others have
seen their fortunes rebound, according to Bloomberg Intelligence.
Nabors Industries Ltd., Transocean Ltd., and Callon Petroleum Co. are among the relatively few
energy companies with debt still trading at distressed levels that have not filed for bankruptcy, and
may never. The average yield on the Bloomberg Barclays High Yield Energy Index has dropped to
6.2% -- by definition, no longer high yield -- since spiking to 24% in March.
Representatives for Nabors, Transocean and Callon didn’t respond to a request for comment.
Industry watchers say this year’s energy distress boom is unlikely to be repeated in 2021. In part,
the wave of restructurings left fewer maturities to trip up borrowers. Support may also come from
buoyant credit markets and an expectation that economic activity will pick up in the second half as
more people get vaccinated. That said, it won’t be completely smooth sailing.

“The pace next year is not going to be the same pace as 2020, but there are still going to be Chapter
11s,” said Becky Roof, a Houston-based adviser at AlixPartners.
It’s been the second-busiest year for energy restructuring since 2016 -- the height of the fallout from
$100 oil -- with 107 producers, oilfield servicers and midstream companies filing for bankruptcy,
according to data from law firm Haynes & Boone.
Bankruptcy Boom
Coronavirus has led to the most energy filings since 2016
The commodity price has stabilized around $45 a barrel, after briefly dipping to negative prices in
the spring, and natural gas prices have rebounded. Energy companies have been buoyed by
expectations that coronavirus vaccines will reach most of the population by summer, bringing a
return in demand for fuel.
But current prices still aren’t enough for most producers to survive long term, according to Spencer
Cutter, an analyst at Bloomberg Intelligence. He sees bankruptcies slowing next year, but mostly
as a pause before maturities start to tick up in 2022 and 2023, which could put some companies
back into trouble.
“The weakest have been culled from the herd,” Cutter said. “Most of the remaining companies may
not be making much or any money with oil at $45 and natural gas below $2.75, but they have the
liquidity to ride things out for awhile.”
Seeing Green
The fossil-fuel industry has to deal with being out of favor among many investors, who are shifting
to more climate-friendly companies, and a new U.S. government that could push tougher
regulations, according to Roof at AlixPartners.

“There’s so much liquidity that used to be available to this market, and it’s gone,” she said. “Any
company that is planning on a traditional refinancing, there are just much fewer sources available
now because it’s an industry that’s out of favor.”
Matthew Warren, a restructuring partner at law firm King & Spalding, foresees more consolidation
in the sector, with some companies using bankruptcy to complete transactions.
Many borrowers renegotiated terms of their debt or resorted to bonds that pay interest in the form
of more bonds instead of cash to make it through this year, Warren said. But with oil prices still too
low to sustain them, the clock may finally run out in 2021.
“I don’t think by any stretch a lot of energy companies are out of the woods, despite the stabilization
in energy prices,” he said.
Energy investment is set to fall
The speed and scale of the fall in energy investment activity in the first half of 2020 is without
precedent. Many companies reined in spending; project workers have been confined to their homes;
planned investments have been delayed, deferred or shelved; and supply chains interrupted.
At the start of the year, our tracking of company announcements and investment-related policies
suggested that worldwide capital expenditures on energy might edge higher by 2% in 2020. This
would have been the highest uptick in global energy investment since 2014. The spread of the
Covid-19 pandemic has upended these expectations, and 2020 is now set to see the largest decline
in energy investment on record, a reduction of one-fifth – or almost USD 400 billion – in capital
spending compared with 2019.
Oil (50%) and electricity (a further 38%) were the two largest components of worldwide consumer
spending on energy in 2019. However, we estimate that spending on oil will plummet by more than
USD 1 trillion in 2020, while power sector revenues drop by USD 180 billion (with demand and price
effects accompanied in many countries by a rise in non-payment). Among other implications, this
would mean an historic switch in 2020 as electricity becomes the largest single element of consumer
spending on energy.

Not all of these declines are felt directly by the energy industry. Energy-related government
revenues – especially in the main oil and gas exporting countries – have been profoundly affected,
with knock-on effects on the budgets available to state-owned energy enterprises.
The revisions to planned spending have
been particularly brutal in the oil and gas
sector, where we estimate a year-on-year
fall in investment in 2020 of around one-
third. This has already triggered an
increase in borrowing as well as the
likelihood that restrained spending will
continue well into 2021.
The power sector has been less exposed to
price volatility, and announced cuts by
companies are much lower, but we
estimate a fall of 10% in capital spending.
In addition, sharp reductions to auto sales
and construction and industrial activity are
set to stall progress in improving energy
efficiency.
Overall, China remains the largest market for investment and a major determinant of global trends;
the estimated 12% decline in energy spending in 2020 is muted by the relatively early restart of
industrial activity following strong lockdown measures in the first quarter. The United States sees a
larger fall in investment of over 25% because of its greater exposure to oil and gas (around half of
all US energy investment is in fossil fuel supply). Europe’s estimated decline is around 17%, with
investments in electricity grids, wind and efficiency holding up better than distributed solar PV and
oil and gas, which see steep falls. Developing countries, especially those with significant
hydrocarbon industries, see the most dramatic effects of the crisis, as falling revenues pass through
more directly to lower funds for investment.
Pre-crisis expectations of modest growth have turned into the largest fall in global energy investment
on record.

NewBase Energy News 24 December 2020 - Issue No. 1395 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. 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, and 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 2020 K. Al Awadi

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