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NewBase 21 January 2015 - Issue No. 523 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Kuwait: Petrofac awarded US$4 billion heavy oil project in Kuwait
Source: Petrofac + NewBase
Petrofac, the international oil and gas services provider, has received an award notification for
the first phase of Kuwait Oil Company's (KOC) Lower Fars heavy oil development
programme, which is located in the north of the country. With a total project value of more than
US$4 billion, Petrofac is leading a consortium with Greece based Consolidated Contractors
Company (CCC) as its partner.
The scope of work covers greenfield and brownfield facilities and includes engineering,
procurement, construction, pre-commissioning, commissioning (EPC), start-up and operations
and maintenance work for the main central processing facility (CPF) and associated
infrastructure as well as the production support complex. This includes a pipeline of almost 162
kms which will transport the heavy crude from the CPF to South Tank Farm located in Ahmadi,
from where KOC has the option to send it to the proposed Al-Zour refinery in the south of
Kuwait.
The EPC element of the project, which includes 10 months commissioning and ramp-up work, is
anticipated to be completed in approximately 52 months following which the plant will be turned
over to KOC. Petrofac and CCC will continue to provide an integrated team at the site for a
further eight months to undertake operations and maintenance alongside KOC. When fully
operational it is expected that the initial phase of the Lower Fars heavy oil project will produce
around 60,000 barrels of oil a day.
Subramanian Sarma, Managing Director of Petrofac's Onshore Engineering & Construction
(OEC) business, commented: "This is a significant award for Petrofac in one of our core markets
and complements the ongoing projects we have in hand for both KOC and Kuwait National
Petroleum Company. With a track record extending over the last 14 years, it represents our
eleventh project in the country and reinforces the strategic importance of Kuwait as part of our
OEC portfolio. We look forward to working closely with CCC and KOC to deliver the project
safely and on time."
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Egypt prepares tender for 250-megawatt wind energy project
The National + NewBase
Egypt has announced that it is readying a tender for 250 megawatts of wind energy, according to
the country’s National Renewable Energy Association (NREA). The NREA chairman Mohamed El
Sobki said yesterday at the World Future Energy Summit in the capital that more renewables
projects would help the country restructure its power market, including substantially decrease fuel
subsidies. “The number of
studies addressing
electricity in Egypt show
fuel costs represent 60 per
cent of our power
generation costs,” he said.
Mr El Sobki said that Egypt
was exposed to the market
for natural gas and that
based on current domestic
demand if fuel prices go up
even “a little” then its costs
could soar. If natural gas
prices increase three times
over what they are now for example, to US$9 from $3 per million British thermal units, then
“generation costs will reach 80 per cent”, he said. The government spent 45 billion Egyptian
pounds (Dh23.04bn) on energy subsidies in the first six months of the fiscal year that began in
July. The subsidies have helped to turn Egypt from a net energy exporter into a net importer over
the past few years.
Yesterday’s wind project announcement comes after the Egyptian president Abdel Fattah El Sisi
said on Monday that the country would maintain its aggressive energy strategy, which includes
4300MW of renewable energyprojects. Wind accounts for 2000MW of that. Gabriel Castelain,
Mena vice president of business development for France’s EDF, said the 250MW wind tender is
still at an early stage compared to solar projects – which account for the remaining 2300MW – that
are in more advanced stages.
“Egypt is a great country of interest for us for both solar and wind,” Mr Castelain said, adding that
the French company was already pre-qualified for solar projects in Egypt. “For wind, we are
looking at where to come and develop, but we’re still at the early stages.”
Dubai-based Access Power MEA is also keen to get a larger hook into Egypt. The company has
applied to finance a portfolio of 300MW of solar power projects and in the next weeks expects the
government to announce the winners.
In terms of wind projects in the North African country, the Access Power chairman Reda El Chaar
said that the announcement is “only an idea”. “When the tenders come out, we will be in touch,”
he said.
The company recently announced a deal with Eren Developpement for a new, early stage
financing facility for renewable energy projects in Africa. The privately-funded vehicle plans to
have a portfolio of power assets in Africa worth US$500 million – and Egypt is slated to take a
sum. Mr El Chaar said Access Power expects to fund $150m worth of projects a year over the
next three to five years. “The quicker we get our money working the better it is,” he said.
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Oman plans to award an oil and gas block this year
TIMES OF OMAN + NEWBASE
Oman government plans to award an oil and gas block to an international oil company on
production sharing basis this year, according to a senior official at the Ministry of Oil and Gas.
"Hopefully, we will award one oil block, which has both oil
and gas deposits," Dr Saleh A. Al Anboori, director
general of Management of Petroleum Investment,
told Times of Oman
Dr Al Anboori said the recent fall in oil prices would not
affect investment in oil and gas sector in the country. "I
don't think it will affect investments. (development) activity
is continuing as per the plan." According to the latest
budget estimate, investment expenditure in oil and gas
sector is 9.35 per cent higher in 2015 at OMR1,520
million, against OMR1,390 million last year.
Oman government has been encouraging multinational
oil giants to find new reservoirs in a move to sustain
production levels. As huge investment is required for
bringing crude oil and natural gas above the ground in
view of the peculiar nature of reservoirs in the Sultanate,
the government has been encouraging multinational firms
to undertake exploration on production sharing basis.
The government is trying to open up both offshore and
onshore blocks for development in a bid to enhance
hydrocarbon resources in the country. Oman government
last year signed one each production sharing agreement
with Total Exploration and Production Oman Petroleum B V and Petrogas Kahil for developing an
offshore oil block in northern coast and an onshore block in Al Wusta region
The first agreement with Total was for developing offshore block 41 spread in a large 23,850
square kilometres area off northern coast, while pact with Petrogas was for onshore block 55,
spread in an area of 7,564 square kilometres. According to latest available figures, twenty-nine oil
blocks have already been awarded to international firms for exploration and in recent years, the
initiative is gaining prominence. Some of these blocks started producing oil, while others are in
various stages of studies and development
While eight companies are engaged in oil production, 12 others are carrying out either exploration
or geological studies in 19 oil blocks. The number of companies operating in the oil and gas sector
has reached 18, working in 29 concession areas. Presently, multinational oil companies contribute
30 per cent of total crude production, while majority state-owned Petroleum Development Oman
(PDO) constitutes the remaining 70 per cent oil output
Referring to the recent commissioning of Oman Oil Company Exploration and Production's 27
million cubic feet per day natural gas field in Abu Butabul, Dr Al Anboori said that it would help the
country in meeting growing natural gas demand from both industries and power sectors. The
successful production of gas from the deep and tight reservoir substantially enhanced gas
availability to meet the growing local demand — which is vital for the economic development of
the country
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Saudi Aramco to cut drilling costs, hold rig count steady’
Reuters+ NewBase
State oil giant Saudi Aramco has asked oilfield service companies for discounts due to tumbling
crude prices and is expected t o keep its overall rig count steady this year, industry sources said
yesterday.
Aramco deployed 210 oil and gas rigs in 2014, marking an exceptionally busy year. But global oil
prices have fallen steeply since June last year, losing 60% of their value on oversupply and
weakening demand.
The collapse of crude prices has prompted some oil service companies to cut spending.“(Aramco)
are asking for 20% (discounts); some complied, others negotiated, (it’s) part of a plan to reduce
cost,” an industry source, who like others declined to be identified, told Reuters.
“Saudi Aramco is optimising costs to maintain the current production,” another industry source
said. “Will service companies be able to offer more discounts? If oil prices remain low, this could
result in releasing some rigs.”
Saudi Aramco declined to comment on this report. Industry sources in Saudi Arabia said it
remains unclear how Aramco’s drilling plans for this year would look but that there was more focus
on drilling for gas as domestic demand is rising.
One source said he had already seen a few rigs moving to gas. “Gas demand in the kingdom has
not changed, consumption is high and getting higher,” said another source. third source said:
“There will be more rigs on the gas side based on gas requirements and internal demand ... Most
of the oil rigs will be kept to maintain potential (oil capacity).”
Aramco will continue looking for unconventional gas in 2015 including exploration for tight and
shale gas, the source said. “Aramco has 2mn barrels of spare capacity so a reduction in oil drilling
rigs does not mean a near-term reduction in oil production,” said Sadad al-Husseini, a former
senior executive at Saudi Aramco and now an energy consultant. Industry sources in Saudi Arabia
said it remains unclear how Aramco’s drilling plans for this year would look but that there was
more focus on drilling for gas as domestic demand is rising
5. Copyright © 2014 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
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Report: Yemen LNG stops ops
Yemen’s only LNG export facility in Balhaf has reportedly stopped its operations after
foreign experts were evacuated from the plant on Sunday.
According to Reuters, the Shi’ite Houthis seized President Abd-Rabbu Mansur Hadi’s chief of
staff, Ahmed Awad bin Mubarak on Saturday amid a dispute over a proposed new constitution
that threatens to bring down the government.
Several oil firms with small production capacities have closed their operations in protest of the
kidnapping, Reuters informs.
Yemen LNG said in December that two explosions occurred offshore and onshore outside the
Balhaf plant, coming from two rocket-launched explosive devices. There was no damage or
casualties.
The company did not answer calls and e-mail seeking comment on the operations shutdown by
the time this article was published.
The Yemen LNG project, operated by France’s Total, consists of two liquefaction trains with a total
capacity of 6.7 Mtpa. It has three long-term contracts to supply LNG to GDF Suez, Kogas and
Total Gas & Power.
6. Copyright © 2014 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 6
Turkmenistan:Dragon Oil issues trading statement - updates operations
Source: Dragon Oi + NewBase
Dragon Oil, an international oil and gas exploration, development and production company, has
issued the following trading statement, which includes an operational update, financial highlights
for 2014 and
results of the latest
reserves
assessment for the
Cheleken Contract
Area,
Turkmenistan. All
information referred
to in this update is
unaudited and
subject to further
review. Dragon Oil
expects to publish
its 2014 full-year
financial results on
17 February 2015.
Key operational highlights
• Fourteen development wells, including two sidetracks, completed;
• 6.8% increase in average daily production rate to approximately 78,790 barrels of oil per
day (bopd) in 2014 compared to 73,750 bopd in 2013;
• Average daily production rate for the month of December 2014 was approximately 89,680
bopd with the exit rate of 92,008 bopd;
• Four drilling rigs are on site in the Cheleken Contract Area.
Key corporate highlights
• Reserves replacement of 60% achieved, which is attributable to ongoing drilling
operations and well performance;
• 2014 year-end oil and condensate 2P reserves amount to 663 (2013: 675) million barrels;
• Gas reserves (1.3 TCF) and contingent gas resources (1.3 TCF) amount to 2.6 TCF;
• 2C contingent oil resources of 198 million barrels and 2C contingent gas resources of 56
Bscf net to Dragon Oil on a working interest basis in the Mishrif formation in Block 9, Iraq.
Key financial highlights
• Capital expenditure on infrastructure, drilling and exploration assets amounted to US$677
million for 2014 (2013: US$331 million);
• Group's cash balance (net of abandonment and decommissioning funds) as at 31
December 2014 was US$1,975 million (31 December 2013: US$1,924 million).
7. Copyright © 2014 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 7
Norway:Lundin spuds Zulu,
Lundin + NewBase
Petrolia’s subsidiary, Petrolia Norway AS, has announced that drilling of exploration well 26/10-1
in PL674BS, offshore Norway, has started.
The well will investigate the hydrocarbon potential of the Zulu prospect in PL674BS, located 100
km west of Stavanger on the Norwegian west coast and approximately 30 km northeast of the
Johan Sverdrup discovery.
The main objective of well 26/10-1 is to test the reservoir properties and hydrocarbon potential of
Miocene aged sandstones of the Utsira Formation in the Patch Bank Ridge. Operator Lundin
Petroleum estimates the Zulu prospect to have the potential to contain unrisked, gross prospective
resources of 153 million barrels of oil (MMboe).
The planned total depth is 1,020 metres below mean sea level and the well will be drilled using the
semi-submersible drilling rig Island Innovator. According to the company, the drilling is expected to
take approximately 25 days.
Petrolia Norway holds 35 per cent working interest in PL674BS. Partners Lundin Norway,
operator, and E.ON E&P Norge holds 35 and 30 per cent working interest respectively.
8. Copyright © 2014 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 8
Exxon, Rosneft start oil production from Arkutun-Dagi field
Exxon Mobil Corporation and Rosneft have started oil production at the Sakhalin-1 project’s
Arkutun-Dagi field – the last of the three fields to be developed. Peak daily production from the
field is expected to reach 90,000 barrels.
The field, located off the northeast coast of Sakhalin Island in the Russian Far East, will bring total
daily production at Sakhalin-1 to more than 200,000 barrels. The other two fields – Chayvo and
Odoptu – began production in 2005 and 2010, respectively.
Production from Sakhalin-1’s
Arkutun-Dagi field will be routed
through the existing Chayvo
onshore processing facility on
Sakhalin Island and delivered
through pipelines to the De-
Kastri oil export terminal located
in Khabarovsk Krai, Russia.
Exxon Neftegas Ltd. is the
Sakhalin-1 Consortium operator
with 30 percent interest.
Coventurers include Sakhalin
Oil and Gas Development Co.
Ltd., with 30 percent interest,
and affiliates of Rosneft, the
Russian state-owned oil
company, RN-Astra with 8.5
percent, Sakhalinmorneftegas-Shelf, with 11.5 percent, and ONGC Videsh Ltd. with 20 percent.
9. Copyright © 2014 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 9
Norway: Statoil send ‘West Epsilon’ for Gudrun drilling
Statoil + NewBase
Statoil has received consent from the Petroleum Safety Authority (PSA) Norway to use West
Epsilon rig for production drilling on the Gudrun field located in the North Sea.
Gudrun is 50 kilometres north of the Sleipner Øst and Sleipner Vest fields. Water depth is around
110 metres.
Gudrun has been developed using a facility with a steel jacket and first stage processing. It is tied
to Sleipner A through two pipelines, one for oil and one for rich gas.
Statoil formerly received consent to use West Epsilon for drilling and completion of well 15/3 on
the Gudrun field and has now received consent to drill the remaining sections of well 15/3 – A- 14.
Jack-up West Epsilon
The PSA has now granted Statoil consent to use the West Epsilon jack-up drilling rig for these
activities. West Epsilon is operated by North Atlantic Drilling, formerly known as Seadrill Offshore
AS.
The Petroleum Safety Authority Norway issued an Acknowledgement of Compliance (AoC) for
West Epsilon on February 14, 2003.
10. Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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US: Schlumberger buys stake in Russian drilling EDC for $1.7B
Schlumberger, the world’s largest provider of oilfield services, will buy interest in a Russian drilling
contractor Eurasia Drilling Company Limited (“EDC”).
Under the agreement, the principal shareholders of EDC will take the company private. Upon
delisting of the company from the London Stock Exchange, Schlumberger, through one or more
subsidiaries, will acquire a minority equity ownership interest of 45.65% in EDC, in exchange for
consideration of $22 per share.
The total cost of acquiring this minority interest, including the cost of a call option and various non-
competition agreements, is approximately $1.7 billion. The call option will allow Schlumberger, at
its election, to purchase the remaining shares in EDC during a two-year period starting three years
from the closing of the transaction. This transaction is expected to close during the first quarter of
2015, and is subject to customary closing conditions.
EDC is the largest provider of onshore drilling services in Russia, as measured by the number of
meters drilled, providing onshore integrated well construction services and workover services. The
company also provides offshore drilling services in the Caspian Sea and is the largest provider of
such services in the sectors where it operates based on the number of jack-up drilling rigs.
The company offers its onshore integrated well construction services and workover services to
local and international oil and gas companies primarily in Russia and its offshore drilling services
to Russian and international oil and gas companies in the Russian, Kazakh and Turkmen sectors
of the Caspian Sea. In addition, the company provides onshore drilling services in Iraq.
11. Copyright © 2014 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 11
Norway: Eni nets two Norway licences
Eni Norge has been awarded two licenses as part of the APA 2014 – Awards in Pre-Defined
Areas.
Following the award, Eni Norge is now operator in PL 806 in the Barents Sea, with a share of 40
per cent, while E.ON E&P, Edison International and Petoro are partners with 20 per cent
respectively.
In PL 044 C in the North Sea,
Eni Norge is partner with a
13.12 per cent share, with
ConocoPhillips as operator with
41.88 per cent share, Statoil
with 30 per cent and Total with
15 per cent.
Eni Norge says that these
awards confirm the company’s
long-term strategy on the
Norwegian continental shelf
and in the Barents Sea in
particular.
The APA 2014 award was
announced by the Ministry of
Petroleum and Energy on
January 20, 2015 .
12. Copyright © 2014 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
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Oil Price Drop Special Coverage
Oil Rebounds From Biggest Slide in a Week as Volatility Rises
Bloomberg + NewBase
Oil rebounded from the biggest drop in a week amid the most volatile prices in more than three
years. Futures rose as much as 1.1 percent in New York, retracing a 4.7 percent slide on
Tuesday. The CBOE Crude Oil Volatility Index climbed to 60.16, the highest level since October
2011. Crude stockpiles in the U.S., the world’s biggest oil consumer, probably expanded by 2.4
million barrels last week, a Bloomberg News survey shows before data from the Energy
Information Administration on Jan. 22.
Oil fell almost 50 percent last
year, the most since the 2008
financial crisis, as the U.S.
pumped crude at the fastest rate
in more than three decades and
the Organization of Petroleum
Exporting Countries resisted calls
to reduce supply. BHP Billiton
Ltd., the largest overseas investor
in U.S. shale, said it will cut the
number of active drill rigs in the
nation by nearly 40 percent.
“We’re seeing further reports of
rigs being withdrawn from active service in the U.S.,” Michael McCarthy, a chief strategist at
CMC Markets in Sydney, said by phone. “It’s a step in the right direction but incremental at this
stage. We need to break up through $50 or down through $45 for West Texas to get the next
direction on the market.”
Oil Volatility
West Texas Intermediate for March delivery gained as much as 52 cents to $46.99 a barrel in
electronic trading on the New York Mercantile Exchange and was at $46.87 at 12:48 p.m.
Singapore time. The February contract expired on Jan. 20 after falling $2.30 to $46.39. The
volume of all futures traded was about 24 percent below the 100-day average.
Brent for March settlement climbed as much as 51 cents, or 1.1 percent, to $48.50 a barrel on the
London-based ICE Futures Europe exchange. It slid 85 cents to $47.99 on Jan. 20. The European
benchmark crude traded at a premium of $1.49 to WTI.
The CBOE Crude Oil Volatility Index measures price fluctuations using options of the U.S. Oil
Fund.Volume (USO) of the fund, the largest exchange-traded product tracking WTI futures, rose
to 50 million shares on Jan. 15, more than double from the end of last year.
Crude Stockpiles
13. Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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U.S. crude inventories probably increased to 390.2 million barrels in the week ended Jan. 16,
according to the median estimate in the Bloomberg survey of eight analysts. Supplies in the prior
period were more than 9 percent above the five-year average for this time of year, EIA data show.
The nation produced 9.19 million barrels a day through Jan. 9, the most in weekly records dating
back to January 1983, said the Energy Department’s statistical arm. The U.S. oil boom has been
driven by a combination of horizontal drilling and hydraulic fracturing, which has unlocked shale
formations from Texas to North Dakota.
BHP Billiton will reduce the number of operating rigs to 16 from 26 by July, the Melbourne-based
company said in a statement. Drillers have cut the number of rigs in service by 209 since Dec. 5,
the steepest six-week decline since Baker Hughes Inc. began tracking the data in July 1987.
Current prices should slow U.S. production growth in the second half of 2014 and Canadian
output after two years, according to Daniel Yergin, the vice chairman of IHS Inc., a consultant in
Englewood, Colorado.
Oil won’t rebound until supply slows as even political tension in the Middle East and Africa remain
secondary to the market glut, said the Pulitzer Prize-winning oil historian.
“There’s a surplus of geopolitical risk but there’s an even greater surplus of supply,” he said in an
interview on Jan. 20 at the World Economic Forum in Davos, Switzerland. “When the market
will make a response in supply, there will be a response in prices.”
14. Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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UK: Talisman Sinopec Energy UK to cut 300 jobs
Source: Reuters + NewBase
North Sea oil and gas field operator Talisman Sinopec Energy UK said it would cut 300 jobs due
to falling production and rising operating costs in the wake of plunging oil prices. Talisman
Sinopec becomes the latest company to cut jobs after oil majors BP and ConocoPhillips cut more
than 500 jobs in the North Sea.
The company said it would be letting 100 regular employees and 200 contractors go. Oil prices
have dropped almost 60 percent in the last six months. The company said it will continue to
review its numbers in the current climate and also introduced immediate reductions in contractor
rates.
Talisman Sinopec Energy UK is a joint venture between Canada's Talisman Energy
Inc and Addax Petroleum UK, a wholly-owned subsidiary of China Petrochemical
Corporation (Sinopec Group). The company, which is based in Aberdeen, Scotland, has a total
workforce of 3,000.
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Tullow Oil could be next target for Dragon Oil
Source: The Irish Times + NewBase
According to a report in The Irish Times, Irish exploration group Tullow Oil could be Dragon
Oil’s next takeover target, given the former’s decline in value as a result of the rout in oil prices.
In a note Tuesday, UK corporate finance boutique SP Angel, speculated that with a valuation of
about $5 billion, the decline in value of Tullow 'has put it in the sphere of Dragons interest and
ability to fund, especially as the range and number of assets within Tullow’s portfolio would enable
a number of further transactions, either to reduce debt or gain further strategic interests
elsewhere'. As a result of falling oil prices, Tullow wrote off about € 2 billion against exploration
work and the value of some of its assets in 2014, and job losses have been mooted.
Pointing out that Dragon’s operations are still cash generative, albeit at a lower level, and it has
about $2bn sitting on the balance sheet, 'at no time has it been more opportune to go on a
spending spree with its available financial resources' SP Angel said, adding that it expects such a
deal from Dragon, and it’s 'now a question of when and where'.
International oil and gas exploration, development and production company Dragon Oil last
month dropped its $800m takeover bid for Petroceltic, on the back of falling oil prices.
Tuesday morning it updated the Dublin and London listed updating investors, announcing that it
will cut its capital expenditure (capex) forecast for 2015 by as much as 26 per cent, but is still
targeting 100,000 barrels per day by the end of 2015. Its capex for 2015 will be in the range of
$500mn to $600mn on drilling and infrastructure in the Cheleken Contract Area and excluding
the cost of the Gas Treatment Plant. This compares with a spend of $677m in 2014.
Dragon Oil said it completed 14 development and appraisal wells in 2014 and commenced drilling in the
Dzhygalybeg (Zhdanov) field. However, while it grew average gross production in the Cheleken Contract
Area by 6.8 per cent, it was slower than hoped, Dr Abdul Jaleel Al Khalifa, CEO, said, although drilling
accelerated in the second half. 'In December, we reached an agreement with two buyers to export our
entitlement share of the crude oil production using two routes. We achieved diversification in export routes
and negotiated a better price for our crude,' Mr Al Khalifa said.
On the exploration front, Dragon Oil reported 'excellent results' in Block 9 in Iraq: together with its partner,
Kuwait Energy, it made two oil reservoir discoveries in both targeted formations.
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Your Guide to Energy events in your area
17. Copyright © 2014 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 17
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Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile : +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years , he has developed great
experiences in the designing & constructing of gas pipelines, gas metering & regulating stations
and in the engineering of supply routes. Many years were spent drafting, & compiling gas
transportation , operation & maintenance agreements along with many MOUs for the local
authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE
and Energy program broadcasted internationally , via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 21 January 2015 K. Al Awadi
18. Copyright © 2014 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 18