WETEX 2015 records international participation

Copyright © 2015 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 21 April 2015 - Issue No. 587 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
WETEX 2015 records remarkable international participation
WAM + NewBase
The 17th Water, Energy, Technology, and Environment Exhibition (WETEX 2015)
has witnessed remarkable international participation as it hosts national pavilions from many
countries across the world. It also hosted a Government Pavilion, with 27 government
organisations from the UAE and the General Pavilion, which hosts a large number of national and
international companies.
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), and
Chairman and Founder of WETEX, welcomed the wide participation by international companies
and organisations, noting that WETEX has become a leading regional platform for energy, water,
and the environment.
"WETEX has established its position among global specialised exhibitions. It has become the
meeting point for experts and specialists in energy, water, and green economy from around the
world. The success of WETEX year after year, underlines Dubai’s commitment to the shift towards
a green economy and sustainable development.

Field of bidders for Abu Dhabi oil concession has narrowed, says Adnoc
The National + NewBase
The field of companies bidding for a stake in Abu Dhabi’s prime onshore concession has
narrowed, the head of Adnoc said. Abdulla Al Suwaidi, the director general of Adnoc,
however, would not say which companies were still in
the running for the concession known as Adco.
Speaking at the Middle East Petroleum and Gas
Conference in the capital, he said that all of the planned
projects to expand oil production in the emirate were
progressing despite the decline in oil prices since last
year.
Oil prices have recovered from their lowest levels earlier
this year, but they are still well below the average of about $100 per barrel in the previous four
years. This has led private sector international oil companies to cut capital expenditure by 20 per
cent on average, leading to thousands of industry job losses.
The European benchmark Brent crude was up 0.3 per cent at US$63.65 early afternoon UAE
time. But the Middle East has been more resilient on projects, with the national oil companies
generally taking a long-term view.
“The rising source of oil supplies, including from unconventional sources in North America, has
changed the role of traditional oil suppliers,” Mr Al Suwaidi said. “But it has not changed our goals:
all of our committed projects are in progress and our production targets are the same.”
Abu Dhabi has a goal to increase its crude oil production capacity. “Adnoc’s current crude oil
production capacity is around 3 million barrels per day and is well on its way to achieve 3.5 million
bpd by 2018,” Mr Al Suwaidi said.
The UAE has been producing at a rate above 2.9 million bpd since December, up from about 2.7
million bpd in previous months, with the additional production from the offshore Umm Lulu likely
accounting for the extra barrels.

The increased production capacity is coming from onshore and offshore in roughly equal
proportion, with the Adco onshore fields aiming to increase output from a current level of about 1.6
million bpd to 1.8 million bpd by the end of 2017 and plateau there for a decade.
The original onshore Adco concession expired at the end of 2013 and competition for the new 40-
year concession has been tough. Total of France won the prime contract this year, getting a 10
per cent stake in Adco and the most sought- after of its 15 fields, South East and Bu Hasa.
Adnoc owns 60 per cent of Adco, leaving another 30 per cent to allocate.
Of the partners in the original concession, BP and Shell have remained in the running, although
ExxonMobil dropped out last year, preferring to concentrate on its offshore Upper Zakum
concession.
Other bidders have included Korea National Oil Company (KNOC), PetroChina and Inpex of
Japan. Rosneft of Russia and Norway’s Statoil are, according to industry sources, not in
contention.
Total surprised some in the industry by meeting the fee required to enter the Adco deal, which
was more than US$2 billion. Others have had to match those terms to stay in the deal.
“Whoever meets our conditions will be considered,” Mr Al Suwaidi said, adding, when asked if
remaining contenders had, “some yes, but … we have no timeline”.
Adnoc has played its cards close to its chest but KNOC is considered likely to be awarded a piece
as it has been a major and consistent buyer of Abu Dhabi crude oil and has recently deepened its
relationship with the emirate by taking on work in a complicated marginal oilfield.
“The Koreans seem to be likely to get a stake but it won’t be above 5 per cent,” said a senior oil
company executive familiar with the process. Adnoc has offered bidders either 5 per cent or 10
per cent stakes in Adco.

Saudi Aramco enlists ACWA, Air Products on Jazan gas plant
Saudi Gazette + NewBase
Air Products has been awarded a contract by Saudi Aramco under a joint venture of Air Products
and ACWA Holding to build, own and operate the world’s largest industrial gas complex to supply
75,000 metric tons per day (20,000 oxygen and 55,000 nitrogen) to Saudi Aramco’s refinery being
built in Jazan for 20 years.
“We are very pleased that Saudi Aramco trusts Air Products and our partner ACWA Holding to
economically and reliably supply the critical gases needed for its refinery in Jazan, ” said Seifi
Ghasemi, chairman, president and chief executive officer at Air Products.
“This award also demonstrates the value of our outstanding relationship with our partner in ACWA
Holding, who has worked so closely with us to develop this great project,” he added. The industrial
gas complex will be designed and built by Air Products using its proprietary technology. Once
built, this facility will be owned by a joint venture of Air Products (25 percent) and ACWA Holding
(75 percent).
“We at Air Products are very excited about being awarded this very significant project,” said Seifi
Ghasemi, chairman, president and chief executive officer at Air Products. “We consider it an
honour and a privilege to use our proprietary technology to design and build the world’s largest
industrial gas complex for an outstanding client and the largest company in the world, Saudi
Aramco.
“We are proud and thrilled to be selected as the partner of choice by Saudi Aramco to develop this
world scale industrial gases project. This mammoth undertaking complements the portfolio of
power, water, renewable energy, district cooling, integrated waste and resource recovery projects
of ACWA Holding as the premier infrastructure developer in the region.
The partnership with Air Products, the world leader in the field, is further testimony to ACWA
Holding’s superior capability to develop large and critical infrastructure projects in Saudi Arabia
and the region,” said Mohamed Abunayan, ACWA Holding chairman.

BP eyes record gas output from Oman field by 2017
Reuters + NewBase
British oil major BP expects to start natural gas production from Oman's Khazzan field by 2017 at
a rate of 1 billion cubic feet (bcf) a day, a senior company executive said on Monday.
"2017 is when we plan to have the first gas from the field, and that ramps up to 1 bcf a day - it may
actually ramp up to 1 bcf a day very quickly," Michael Townshend, president of BP Middle East,
told reporters in Abu Dhabi.
The company plans to drill 20 wells in 2015, boosting that number to 50 wells in the next couple of
years, and is already building a plant to handle the first 1 bcf of gas, he said. Total investment in
the first phase to reach the initial gas production target will be $16 billion, he added.
BP has previously said it expects to invest around $9.6 billion, in accordance with its 60 per cent
stake in the project; state-owned Oman Oil Company Exploration & Production has 40 per cent.
The British oil major said last October that it had awarded two drilling contracts worth $730 million
for the project.

Oman seeks to utilise 10mbd of oilfield produced water efficiently
Times of Oman + NewBase
Muscat: Oman is exploring ways to better utilise the 10 million barrels of water that is inevitably
produced as a byproduct in its oil fields every day, said a senior official at the Ministry of Oil and
Gas.
The accompanying water, which is termed 'oilfield produced water', is pumped up when oil is
extracted from underground, and now with the increasing amount of produced water, the
Sultanate is studying various ways to use it for beneficial purposes, such as agriculture.
"(On average), nine barrels of water are produced for every barrel of oil per day," Salim bin
Nasser Al Aufi, Undersecretary at the Ministry of Oil and Gas,
told Times of Oman in an interview. He was speaking on the
sidelines of the first Middle East Oilfield Produced Water
Management Conference, which opened at Golden Tulip Seeb Hotel
on Monday and concludes on Wednesday.
The conference, which has brought together around 100 participants
including senior officials and speakers, is organised by NEFT event management company in
coordination with the Ministry of Oil and Gas and is supported by the Oman Water Society.
Produced water disposal
Al Aufi explained that currently the produced water is not being treated for agriculture or similar
purposes but part of it is being re-used for extraction operations, and part of it goes into
evaporation ponds.
The issue is becoming more serious as the amount of produced water is on the rise and it costs a
lot of money to dispose it, he said, adding that treating the water can be a better option than
disposing it or injecting it to the reservoir again.
"If you inject it back again into the reservoir, you are only increasing the water production. The
aquifer also produces water so the volume of produced water is increasing," the official noted.
According to him, Oman has one of the highest rates of oilfield water production in the Gulf
Cooperation Council (GCC) region.
Asked whether it would be economical to treat the produced water given the fact that it requires
advanced technologies, Al Aufi said, "It costs us today a lot of money to dispose the water so what
should be taken into account is not only how much it will cost us to treat the water but also how
much money will be saved by not having to inject (it again into the reservoir)." He added that gas
wells also produce water but in smaller proportion than in oil fields.
In the opening speech of the conference, the undersecretary stated that the ministry is in talks
with other bodies to find the best solutions for oilfield produced water treatment, including the
Ministry of Agriculture and Fisheries, the Research Council, the Oman Water Society and oil
producers.
Hamdan Al Wahaibi, from the Ministry of Agriculture and Fisheries, said at the conference that
produced water is one of the non-conventional water recourses for agriculture purposes, along
with treated wastewater and saline groundwater.

Treated produced water can be used for agricultural purposes (non-food, non-feed crops) or
industrial crops such as cotton, he said. According to Al Wahaibi, contaminants in produced water
including heavy metals is a challenge in the face of water treatment for drinking purposes.
Ratio prospects
Imad Al Amri, from the water management team of the Petroleum Development Oman (PDO),
also delivered a presentation at the conference, in which he said that the current ratio of 9 barrels
of water for every barrel of oil is expected to increase to 12 barrels of water per oil barrel in 10
years and 17 barrels in 20 years.
The Petroleum Development Oman official said that currently 45 per cent of the produced water
is re-used for 'water flood', which is the practice of pumping water into the ground around an oil
well nearing depletion in order to loosen and force out additional oil.
The work is in progress to convert produced water in Petroleum Development Oman from liability
to opportunity, Al Amri further added.

Qatar ‘2015 Al-Attiyah Int’l Energy Awards’ to honour Total’s
Christophe de Margerie. Gulf Times + NewBase
Total’s former CEO, Christophe de Margerie, will be honoured posthumously with the 2015
Special Lifetime Achievement Award during the ‘3rd Abdullah bin Hamad Al-Attiyah International
Energy Awards’ to be held in Doha on May 3.
The Abdullah bin Hamad Al-Attiyah International Energy Awards
recognises individuals for their lifetime achievement in the advancement of
the global energy industry. It is divided in five categories: Opec, education,
journalism, Qatar energy industry, and producer-consumer dialogue This
year, the trophy will be presented to de Margerie’s wife, Bernadette, in a
gala dinner at the Museum of Islamic Art here. Last year’s winner was the
late Rilwanu Lukman, former Opec secretary-general and Energy Minister of
Nigeria.
De Margerie, who died in a plane crash in
Moscow last year, was known to be influential in
helping shape the French government’s energy
policy, said former US Ambassador to France
Craig Stapleton.
Known as “big mustache” among his colleagues
for his signature handlebar moustache, de
Margerie was on friendly terms with heads of state
and national industry leaders from across the
Middle East, a region he led for Total from 1995 to
1999.
“There is no doubt that Christophe de Margerie
had a sharp technical intellect, but it was this skill, combined with his celebration of the human
side of business partnerships, which not only allowed him to secure much commercial success in
this region but to also make many lifelong friendships,” said
HE the former Energy Minister of Qatar Abdullah bin
Hamad al-Attiyah.
Foreign Affairs Minister and former prime minister Laurent
Fabius said, “Christophe de Margerie was passionate
about his company; he knew how to internationally develop
and place it at the forefront of innovation. He was an
exceptional business leader, who knew how to shine light
on France.”
Both al-Attiyah and de Margerie have been recognised with
France’s Légion d’Honneur, the National Order of the
Legion of Honour. Established by Napoleon Bonaparte, it is
France’s highest honour and is divided into five degrees
from Chevalier to Grand Croix.

Algeria: GDF Suez, Partners Strike Gas in Touat
GDF Suez, through its subsidiary GDF Suez E&P International, has made a gas discovery in the
Illizi Basin located in southeast Algeria.
The TESO-2 well was drilled to a depth of 1,307 meters in the Ordovician reservoir and produced
a gas flow of 175,000 cubic meters per day, the company said. Appraisal work will be conducted
later to assess the size of the discovery.
TESO-2 is the first well of the second exploration program carried out under this licence, which
started in January 2015. The drilling program includes at least four additional appraisal wells. Two
discoveries had been made during the first exploration phase in 2012 and 2013 respectively with
the TIHS-1 and TDE-1 wells.
GDF SUEZ holds 20% of the Sud-Est Illizi licence alongside the operator Repsol (52.5%) and
Enel Spa (27.5 %). SONATRACH will participate with a 51% stake in the development and
production phases. The Sud-Est Illizi licence is the second project of GDF SUEZ in Algeria, after
the Touat project that is currently in development phase, with a 2017 production target.
Located in southwest Algeria and operated in partnership with SONATRACH, Touat
is a major natural gas production project for GDF Suez, with proven and probable
reserves of 68.5 billion cubic meters, plus 8.5 million barrels of condensate.

Oil Price Drop Special Coverage
Oil eases as Saudi keeps output near record high
Oil prices eased on Tuesday on expectations of another rise in US stockpiles and as Saudi Arabia
keeps output near record highs, but prices remained near a 2015-peak reached last week.
Crude prices have climbed around 18 per cent since the start of April on speculation about falling
US output after the domestic oil rig count hit 2010 lows. They have also been supported by
tension in the Middle East.
Still, US commercial crude oil inventories are likely to have increased by 2.4 million barrels last
week, marking a rise for the 15th consecutive week, a preliminary Reuters survey showed. Brent
crude for June delivery was down 17 cents at $63.28 by 0141 GMT, after settling flat on Monday.
US crude for May delivery, which expires later in the day, was down 15 cents at $56.23 a barrel,
after settling 64
cents higher. US
Senator Lisa
Murkowski said
on Monday she
would introduce
legislation this
year to allow US
crude exports,
saying the Obama
administration
should not dare lift
sanctions on Iran
before scrapping
the US crude
export ban.
Saudi oil minister
Ali al-Naimi told
Reuters in Seoul that the No. 1 crude exporter expected to produce at near record highs of around
10 million bpd in April. Despite near record production, analysts warn that Opec's ability to cope
with an unexpected surge in demand is diminishing fast.
"If the demand and non-Opec supply responses to lower price are similar to what was
experienced in the 1980s, the very low level of spare capacity carries a risk of a price spike in the
not too distant future," said analysts at PIRA Energy.
Opec's spare capacity could halve to as low as 1.7 million barrels per day (bpd) this year, much
below the more than 10 million bpd in the 1980s, when Saudi Arabia last opted for market share
over price. – Reuters

Oil demand to swell ‘over coming months’
News Agencies + NewBase
Demand for oil will rise during 2015, OPEC said in its Monthly Market Report issued April 16.
“Higher global refinery runs, driven by increased (summer) seasonal demand, along with the
improvement in refinery margins, are likely to increase demand for crude oil over the coming
months,” the report said.
OPEC forecasts demand at an average of 29.27 million barrels per day in the first quarter 2015, a
rise of 80,000 bpd from its previous prediction made in its March report. At the same time, it said,
OPEC’s own total output will increase by only 680,000 barrels per day, less than the previous
expectation of 850,000 barrels per day, due to lower US and other non-OPEC production.
At its November meeting in Vienna, its members agreed to maintain production at 30 million
barrels per day despite falling prices caused by an oversupply of oil.
Average global oil prices began plunging in late June 2014 from more than $110 per barrel to a
low of around $50 in January. They’ve now settled to around $60, and Laurence Fink, the CEO of
Black Rock, the world’s largest asset manager, said in an interview April 16 on CNBC that the
price of a barrel of oil probably would go no lower than $60 this year, but also rise no higher than
$80.
The initial oversupply came mostly from a boom in US shale production, which was turning
Americans from OPEC’s biggest customer into a competitor. But shale oil extraction requires
hydraulic fracturing, or fracking, which is more expensive than conventional drilling and isn’t
profitable if the price of oil falls below a threshold of about $60 per barrel.

As a result, OPEC said, it expects that US supplies of oil will increase to around 13.65 million
barrels a day in this year’s second quarter, but then flatten and begin to turn down for the rest of
the 2015. This applies to Canadian production as well. “US tight oil and Canadian oil sands output
are expected to see lower growth following the recent strong declines in rig counts,” the report
said.
OPEC produced 30.79 million barrels of oil per day in March, 800,000 more barrels than in
February, the report said, citing not its own members but independent sources including industry
sources, oil analysts and shippers.
As for global
demand for
OPEC’s own
crude oil, the
report said it
would rise only
marginally to
an average
level of about
29.3 million
barrels a day this year. “Almost two thirds of 2015 oil demand growth is seen coming from China,
Other Asia [Indonesia, Malaysia, the Philippines and Thailand] and the Middle East,” the report
said.
Brent crude LCOc1 was trading down $1.20 at $62.25 by 1147 GMT, down from an intraday peak
of $64.34. US crude for May delivery CLc1 was down 74 cents at $55 a barrel, down from an early
high of $56.65. The dollar was up 0.47 percent against a basket of currencies. A strong
greenback makes dollar-traded commodities like crude oil less attractive for holders of other
currencies.
Production in the world's biggest crude exporter would stay near record peaks around 10 million
bpd in April, Saudi Arabian Oil Minister Ali Al-Naimi told Reuters on Monday in Seoul, where he is
due to attend a board meeting of the state oil firm Saudi Aramco.
"I have said many times we will always be happy to supply to our customers with what they want.
Now they want 10 million," he said. Naimi earlier this month said Saudi Arabia produced 10.3
million bpd of crude in March, eclipsing a previous record of 10.2 million bpd, in what is seen as a
move to defend market share against non-OPEC competition, including the United States.
US oil drilling rigs fell for a record 19th straight week to the lowest since 2010, data from oil
services firm Baker Hughes showed, which has helped lift prices from six-year lows reached in
January.
Since the beginning of April, oil prices have risen around 17 percent, pushed up by reports of a
possible dip in US output, but Morgan Stanley warned that Saudi production could be more
important than developments in the United States.
"We worry about the market's fixation on the US ... OPEC production may be more important as
production increased 1 million barrels per day month-on-month in March. Saudi Arabia alone
added the equivalent of half of Bakken (the largest US shale oilfield) production in a matter of
months – far beyond any US slowdown," the bank said in a note.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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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 April 2015 K. Al Awadi

WETEX 2015 records international participation

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