New base 26 september 2019 energy news issue 1281 by khaled al awadi (1)

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,
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NewBase Energy News 26 September 2019 - Issue No. 1281 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 Offshore selects Weatherford for directional drilling
Source: Weatherford International
Weatherford International has signed a $220 million, three-year contract with the Abu Dhabi
Company for Offshore Petroleum Operations ('ADNOC Offshore') to provide directional drilling
services for the stated goal of increasing offshore production for ADNOC Offshore in the UAE. The
agreement entails using the Weatherford Magnus® rotary steerable system in both re-entry wells
and new wells.
'Magnus is demonstrating consistent reliability, a critical element of this contract award,' said Tony
Azizi, Vice President of the Arabian Sea Geozone for Weatherford. 'Operations in some of the
world’s most challenging geophysical environments are proving Magnus’ ability to deliver very
accurate wellbore placement and wellbore quality, in conditions requiring vertical, lateral or curved
directional drilling.
Magnus’ independently controllable and addressable steering pads, in tandem with its unique
modular design, allow for increased reliability, improved utilization, efficient turn-around time of idle
assets and local repair, all of which will drive greater benefits for ADNOC Offshore.'
Using a push-the-bit design, Magnus addresses operators’ need for speed without sacrificing
directional control. Unique design elements, including a true inclination hold, make Magnus the best-
in-market rotary steerable system for maximizing reservoir exposure and monetizing the value of
the well. Azizi added, 'This contract aligns with the ADNOC In-Country Value strategy and its
commitment to engaging with, and supporting, the local private sector.'
www.linkedin.com/in/khaled-al-awadi-38b995b

Oman-India Fertiliser to Debottlenecking plant to boost capacity
Oman Observer - Conrad Prabhu
Oman India Fertiliser Company SAOC (Omifco), which owns and operates a two-train urea and
ammonia production complex at Sur, will be debottlenecked to help boost the capacity of the plant,
a top official revealed here yesterday.
Eng Isam al Zadjali (pictured), Chairman of Omifco, also said that a decision on whether to proceed
with a longstanding plan to add a third train to the complex will be taken sometime next year.
“The board has decided to move forward with a debottlenecking project to expand the existing
facilities with literally no additional gas use. So this is something on the table we are working on,”
Al Zadjali, who is also CEO – Upstream at Oman Oil and Orpic Group (a 50 per cent shareholder in
Omifco) said.
A joint Oman-India venture, Omifco was launched in 2006 with a capacity to 1.65 metric tons/year
of urea and 350,000 tons/yr of ammonia. Indian fertiliser cooperatives Krishak Bharati Cooperative
(25 per cent), and Indian Farmers Fertilisers Cooperative (25 per cent) are also shareholders in the
project.
In remarks to journalists on the sidelines of the 10th Fertiliser Convention, under way at the
Kempinski Hotel Muscat, Al Zadjali said Omifco was still discussing growth plans with its
shareholders.
“We have run studies – technical and commercial – on expanding the current capacity of Omifco,
but any decision will depend a lot on the future (outlook) for urea and ammonia, as well as the
markets we are going into. This discussion is still ongoing with our shareholders and with the
government here to see what is the best way of expansion: Is it the (conventional) third train or any
other ideas of producing new materials perhaps.”
Omifco, which exports the bulk of its fertiliser output to India under long-term offtake arrangements,
is keen to expand, said the official. “We are interested to grow, but is it in urea and ammonia, or
something else, is something we are continuing talking. This decision is not only market driven, but
also driven by the gas price driven, operational efficiency, and so on,” he added.

Egypt's Benban Solar Park: a success story by public, private sectors
© 2019 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info)
The total capacity of solar power projects in Benban reached about 1,465MW, It took Egypt five
years to become the favourite destination of investment in renewable energy. Arab and foreign
companies are now racing to establish solar power plants and wind farms, and are always on the
lookout for an opportunity to pump further investments in the renewable energy sector.
The Benban Solar Park in Aswan can be seen as a success story by the government and the private
sector. It became a model for many foreign companies that intend to invest in Egypt.
The giant project involved a hundred Egyptian companies, and created about 640 permanent jobs
besides 18,000 temporary ones. The Banban project is not just a project in Egypt, but an
interdependent government venture which received support from the ministries of electricity and

investment, as well as international financing institutions. It also delivered a positive image about
Egypt and its support of investors.
Recently, companies willing to invest in renewable energy have asked for land from the New and
Renewable Energy Authority (NREA) to set up projects worth $3bn. Other investors are discussing
with existing companies in Benban to acquire their projects.
The total capacity of solar power projects in Benban reached about 1,465MW. Thirty-two companies
established energy projects in the solar park with total investments of about $2bn.
Lessons learned from Benban project, and steps to follow
Hafez Salmawy, professor of energy engineering, Zagazig University, and former head of the
Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA), said the feed-in
tariff projects in Benban constituted about 15% of investment flows into Egypt, and proved the
attractiveness of investment in the energy sector. It also showed that investment exists when clear
rules and regulations are set.
He added that the business community responded quickly, and formed partnerships and alliances
with international companies to compete for the implementation of renewable energy projects in

Egypt. “Renewable energy can beat the petroleum sector and attract Arab and international
companies to invest in Egypt,” Salmawy said.
He pointed out that the Benban project created a new market as it encouraged several factories to
establish production or assembly lines of solar cells in Egypt. This will enhance Egypt’s
competitiveness and enable Egyptian factories to export to African markets.
Salmawy noted that Egypt managed to end the long-time crisis of power shortage and shifted from
depending on a single source to producing electricity to an energy mix.
“We need, in the coming period, to continue attracting foreign companies to implement projects in
the energy sector in Egypt. The government should define a clear plan every three or four years on
the opportunities and projects to be implemented,” he urged.
Investors should also engage in the preparation of such plans so that they can be achievable, in
addition to updating the regulatory and legal system to cope with global developments, Salmawy
stressed.
Moreover, Mohamed Salah El-Sobky, former head of the NREA, said the future of solar energy is
promising and there are many opportunities for investment, but it requires clear rules to regulate the
process.
He described the Benban project as an achievement and partial recovery of the sector, as it still
requires the full activation of the Electricity Law. “Current rules are not clear enough, and should be
put into effect,” he added.
El-Sobky further added that contractual relations in Benban have been of great benefit for all parties,
as they witnessed technical, financial, and legal improvements. The coming period will see better
contracts and agreements based on the experience gained from the feed-in tariff projects.
Meanwhile, Hossam Allam, CEO of Hassan Allam Services, said the Benban solar complex gave
his company a great experience in managing services, security, safety, and occupational safety
procedures, as well as setting rules and regulations governing work inside solar projects.
He stressed that the Benban complex is a great success story that we need to repeat in similar
projects.

Allam noted that his company met with more than 23 families and tribes from Aswan, and explained
to them the importance of the project and its economic impact on the governorate, adding that they
were indeed an element of success.
Investors await new regulations of electricity direct selling by private sector
The most important part of the success story of Benban is the ability of Arab and foreign companies
to invest in Egypt and the government’s commitment to buy electricity produced from these projects
for 25 years, which gained the confidence of international financing institutions and international
companies.
Hassan Amin, country director of Acwa Power Egypt, said the solar complex in Benban provided
many jobs and contributed to the preparation of Egyptian engineers and technicians to efficiently
work in the field of solar energy.
He added that Acwa Power has implemented three solar stations with a total capacity of 120MW
within the feed-in tariff programme. The company is also awaiting the contract for the construction
of a solar plant in Kom Ombo with a capacity of 200MW.
He pointed out that Egypt’s political and economic stability helped improve the investment climate
and reassured investors, stressing that many companies seek to implement renewable energy
projects in Egypt. Amin noted that opening the market for the private sector decreased energy sale
prices.
He stressed that the serious steps taken by the state in the framework of economic reform, including
the liberalisation of the exchange rate and the restructuring of subsidies, contributed to improving
the investment and legislative environment. In addition, the New Investment Law granted many
benefits to investors represented in some tax exemptions.
Hisham El-Gamal, head of public relations and communications at Infinity Solar, said after the
issuance of the Renewable Energy Law and the feed-in tariff programme, the company became
confident in the government’s vision and willingness to implement renewable energy projects.
Hence, Infinity was the first company to implement a solar plant in the programme’s first phase.
He added that the company will continue to invest in the renewable energy sector in Egypt, however
it needs more acceleration of procedures, offering of more lands, and issuing clear regulations
governing the establishment of renewable energy plants and the direct selling of electricity by the
private sector under the IPP scheme.
“Infinity Solar aims to set up a plant with a capacity of 100MW and investments of up to $100m in
its first phase, and then bring up the total capacity to 300MW. But we are waiting for the executive
regulations of direct selling of electricity by the private sector,” El-Gamal said.
He explained that the company plans to expand in the construction of renewable power plants under
the IPP scheme next year, with financing from the international banks which previously financed the
company’s projects in the feed-in tariff programme.
Finally, Al-Fanar CEO, Gamal Wady, revealed that his company aims to launch a wind power plant
with up to $200m investments. The financing will be arranged after reaching an agreement with
the Egyptian Electricity Transmission Company to implement the project.
“The company aims to implement projects under the IPP scheme to sell electricity directly and pay
fees for using the national grid. When the legislations and rules are completed, the company will
invest in several projects, given that Saudi Arabia has many projects working under this scheme,”
Wady said.

India Scrambles for LPG to Meet Peak Demand as Saudis Defer Flow
Bloomberg - Debjit Chakraborty + Saket Sundria
Fuel retailers in India are scampering for liquefied petroleum gas ahead of the nation’s most
celebrated festival, as demand looks set to climb just as drone attacks on Saudi Arabian facilities
hurt exports.
Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. are scouring the market
for prompt LPG supplies for delivery before Diwali in late October, after Aramco deferred some
shipments, said an official from Indian Oil, the nation’s biggest fuel retailer. The surge in buying
interest comes amid a tight Asian market, with Bharat Petroleum’s buy tender attracting no
offers this week.
“We are anticipating higher demand for LPG next month and Saudis have also indicated deferment
of the first couple of shipments for October,” said Sanjiv Singh, chairman of Indian Oil in a phone
interview. “We are pursuing very hard for some extra LPG. Everyone is trying, because October-
November are tricky months.”
Seasonal Demand
LPG consumption in India gathers pace in the last quarter
Source: Oil ministry
India, the world’s second-largest LPG importer, gets about half of its requirements from foreign
suppliers, mostly from Middle Eastern producers in Saudi Arabia, Qatar, Oman and Kuwait. Demand
for the fuel typically climbs after the monsoon season ends in around September, and festive season
begins in the fourth quarter.

Seasonality aside, the nation’s demand has also received a boost from Prime Minister Narendra
Modi’s plans to link poorer communities to LPG supply networks in efforts to reduce the use of
pollutive fuels such as wood and cow dung.
Earlier this week, Abu Dhabi National Oil Co. filled the gap for Aramco, offering two additional
shipments of LPG to India. The cargoes will reach the Asian nation in the next two weeks, India’s
Oil Minister Dharmendra Pradhan tweeted on Sept. 24.
Indian Oil’s Singh expects
supplies from Abu Dhabi to be
shared among state fuel
retailers, which typically source
cargoes collectively. The
shipments will provide a buffer
for any demand spikes.
“We are not seeing any crisis,
but just taking extra precaution
for festivals,” Singh said.
Saudi Arabia’s exports may be
cut by about 600,000 tons during the outage that’s expected to last about three weeks, said Thomas
Olney, global head of natural gas liquids at industry consultant FGE. That’s a significant volume
when compared to the kingdom’s monthly sales, which he estimates at about 708,000 tons.
“We have no other choice but to keep importing LPG continuously,” BPCL refineries director R.
Ramachandran said. “We need the ships to keep coming, all the time.”

NewBase September 26 – 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices steady amid concerns of rising supplies and sluggish demand
Reuters + NewBase
 Brent crude futures were at $62.33 a barrel, down 6 cents, or 0.10%, from the previous close,
by 0555 GMT.
 U.S. West Texas Intermediate (WTI) crude futures were 17 cents lower, or 0.30%, to $56.32
a barrel.
Oil prices were steady on Thursday after falling the previous two sessions on industry concerns
about rising supplies and signs of slowing demand.
Brent crude futures were at $62.33 a barrel, down 6 cents, or 0.10%, from the previous close, by
0806 GMT. U.S. West Texas Intermediate (WTI) crude futures were 17 cents lower, or 0.30%, to
$56.32 a barrel.
Brent prices have dropped 3.6% since the close on Monday, while WTI is down 3.7% over the same
period, weighed down by a surprise 2.4 million-barrel build in U.S. crude inventories last week and
Oil price special
coverage

a faster than expected recovery of Saudi production capacity after the Sept. 14 attacks on its
production plants. Prices found slight support on hopes that the U.S.-China trade dispute may
ease, potentially boosting oil demand.
U.S. President Trump said on Wednesday — a day after a stinging rebuke to China for its trade
practices — that Beijing wanted to make a deal “very badly” and that a deal “could happen sooner
than you think.”
Trump and Japanese Prime Minister Shinzo Abe also signed a limited trade deal that would open
up Japanese markets to some $7 billion worth of U.S. products annually. Aside from that, analysts
said there was little to help lift crude futures higher.
“There’s not too much to be cheery about on oil markets today,” said Jeffrey Halley, senior market
analyst for Asia Pacific at OANDA.
“Saudi Arabia is restoring production much faster than expected (and) the EIA crude inventories
came in higher,” said Halley. Both Brent and WTI on Wednesday fell to their lowest since the
attacks on Saudi Arabia.
Crude futures were also pressured by sluggish economic data in leading European economies and
Japan, analysts said. “Fundamentally, a much weaker than expected Germany manufacturer PMI
data painted a tepid outlook for energy demand,” said Margaret Yang, market analyst at CMC
Markets.
“This bearish outlook is further strengthened by a rise in U.S. crude oil stockpile in the past weeks,”
said Yang.
A firmer dollar, which posted its sharpest daily gain in three months overnight and held steady in
Asian trade, also weighed on oil prices as it makes dollar-traded fuel imports more costly for
countries using other currencies.
“Baring new inputs to adjust price expectations, both contracts are in grave danger of fully unwinding
their Saudi attack rallies and retesting their pre-attack lows, around $60.00 and $54.00 respectively,”
said Halley.

Saudi Arabia crude oil production outage affects global crude oil
and gasoline prices Source: U.S. Energy Information Administration, based on data from Refinitiv
On Saturday, September 14, 2019, an attack damaged the Saudi Aramco Abqaiq oil processing
facility and the Khurais oil field in eastern Saudi Arabia. The Abqaiq oil processing facility is
the world’s largest crude oil processing and stabilization plant, with a capacity of 7 million barrels
per day (b/d) or about 7% of global crude oil production capacity.
On Monday, September 16, the first full day of trading after the attack, Brent and West Texas
Intermediate (WTI) crude oil prices experienced the largest single-day price increase in the past
decade.
On Tuesday, September 17, Saudi Aramco reported that Abqaiq was producing 2 million b/d, and
they expected its entire output capacity to be fully restored by the end of September. In addition,
Saudi Aramco stated that crude oil exports to customers will continue by drawing on existing
inventories and offering additional crude oil production from other fields.
Tanker loading estimates from third-party data sources indicate that loadings at two Saudi Arabian
export facilities were restored to the pre-attack levels. Likely driven by news of the expected return
of the lost production capacity, both Brent and WTI crude oil prices fell on Tuesday, September 17.
Crude oil prices are the biggest factor for the retail price of gasoline, the most widely consumed
transportation fuel in the United States. Each dollar per barrel of sustained price change in crude oil
translates to an average change of about 2.4 cents per gallon in petroleum product prices.

On Monday, September 16, U.S. average regular retail gasoline prices averaged $2.55 per gallon,
according to the U.S. Energy Information Administration’s (EIA) Gasoline and Diesel Fuel Update.
EIA estimates that Saudi Arabia was producing 9.9 million b/d of crude oil in August. Estimates from
the Joint Organizations Data Initiative (JODI) indicate the country exported 6.9 million b/d during
July, the latest month for which data are available.
Estimates from a third-party tanker tracking data service, ClipperData, indicate Saudi Arabian crude
oil exports in August remained at 6.7 million b/d. Saudi Arabia’s crude oil production and export
levels are each 0.5 million b/d lower than their respective 2018 annual averages.
Although U.S. imports of crude oil from Saudi Arabia have declined during the past three years—
and recently hit a four-week average record low of 380,000 b/d in the week ending September 6—
the United States still imports about 7 million b/d of crude oil. As a result, a tighter global crude oil
market and increased global crude oil prices will ultimately increase the price of crude oil and
transportation fuels in the United States.
Global inventories of crude oil are the most readily available alternative source of supply during a
supply outage. JODI data indicate that Saudi Arabia held nearly 180 million barrels of crude oil in
inventory at the end of July 2019.
Saudi Arabia can use these inventories to maintain a similar level of crude oil exports as before the
attack, assuming the production outage doesn’t last long, which Saudi Aramco indicated in its
update on September 17.
As of September 1, commercial inventories of crude oil and other liquids for Organization for
Economic Cooperation and Development (OECD) members were estimated at 2.9 billion barrels,
enough to cover 61 days of its members’ liquid fuels consumption. On a days-of-supply basis, OECD
commercial inventories are 2% lower than the previous five-year (2014–18) average.

The United States has two types of crude oil inventories: those that private firms hold for commercial
purposes, and those the federal government holds in the Strategic Petroleum Reserve (SPR) for
use during periods of major supply interruption.
Weekly EIA data for September 13 indicate total U.S. commercial inventories were equivalent to 24
days of current U.S. refinery crude oil inputs. The SPR holds additional volumes equivalent to
slightly more than 37 additional days of current refinery inputs for a total of about 62 days.
The supply coverage provided by oil inventories can also be measured by days of net crude oil
imports (imports minus exports). By this metric, as of June 2019, the United States could meet its
net import needs by drawing down the SPR for 162 days.
The Energy Policy and Conservation Act states the President may make the decision to withdraw
crude oil from the SPR should they find that there is a severe petroleum supply disruption. The
United States has used the SPR in this capacity three times since its creation: in 1991, at the
beginning of Operation Desert Storm; in 2005, following Hurricane Katrina; and in 2011, to help
offset crude oil supply disruptions in Libya.
More analysis—particularly of spare capacity available to produce more crude oil—is available in
the latest This Week in Petroleum. EIA is closely monitoring the developments related to the oil
supply disruption in Saudi Arabia and the effects that they have on oil markets. EIA’s findings will
be reflected in the October Short-Term Energy Outlook (STEO), scheduled for release on October 8.

NewBase Special Coverage
News Agencies News Release Sep. 26-2019
EIA projects nearly 50% increase in world energy usage
by 2050, led by growth in Asia
Source: U.S. EIA, International Energy Outlook 2019 Reference case
In the International Energy Outlook 2019 (IEO2019) Reference case, released at 9:00 a.m. today,
the U.S. Energy Information Administration (EIA) projects that world energy consumption will grow
by nearly 50% between 2018 and 2050.
Most of this growth comes from countries that are not in the Organization for Economic Cooperation
and Development (OECD), and this growth is focused in regions where strong economic growth is
driving demand, particularly in Asia.
EIA’s IEO2019 assesses long-term world energy markets for 16 regions of the world, divided
according to OECD and non-OECD membership. Projections for the United States in IEO2019 are
consistent with those released in the Annual Energy Outlook 2019.

The industrial sector, which includes refining, mining, manufacturing, agriculture, and construction,
accounts for the largest share of energy consumption of any end-use sector—more than half of end-
use energy consumption throughout the projection period.
World industrial sector energy use increases by more than 30% between 2018 and 2050 as
consumption of goods increases. By 2050, global industrial energy consumption reaches about 315
quadrillion British thermal units (Btu).
Transportation energy consumption increases by nearly 40% between 2018 and 2050. This
increase is largely driven by non-OECD countries, where transportation energy consumption
increases nearly 80% between 2018 and 2050. Energy consumption for both personal travel and
freight movement grows in these countries much more rapidly than in many OECD countries.
Energy consumed in the buildings sector, which includes residential and commercial structures,
increases by 65% between 2018 and 2050, from 91 quadrillion to 139 quadrillion Btu. Rising income,
urbanization, and increased access to electricity lead to rising demand for energy.

The growth in end-use consumption results in electricity generation increasing 79% between 2018
and 2050. Electricity use grows in the residential sector as rising population and standards of living
in non-OECD countries increase the demand for appliances and personal equipment.
Electricity use also increases in the transportation sector as plug-in electric vehicles enter the fleet
and electricity use for rail expands.
With the rapid growth of electricity generation, renewables—including solar, wind, and hydroelectric
power—are the fastest-growing energy source between 2018 and 2050, surpassing petroleum and
other liquids to become the most used energy source in the Reference case.
Worldwide renewable energy consumption increases by 3.1% per year between 2018 and 2050,
compared with 0.6% annual growth in petroleum and other liquids, 0.4% growth in coal, and 1.1%
annual growth in natural gas consumption.
Global natural gas consumption increases more than 40% between 2018 and 2050, and total
consumption reaches nearly 200 quadrillion Btu by 2050. In addition to the natural gas used in
electricity generation, natural gas consumption increases in the industrial sector. Chemical and
primary metals manufacturing, as well as oil and natural gas extraction, account for most of the
growing industrial demand.
Global liquid fuels consumption increases more than 20% between 2018 and 2050, and total
consumption reaches more than 240 quadrillion Btu in 2050. Demand in OECD countries remains
relatively stable during the projection period, but non-OECD demand increases by about 45%.

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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