New base 738 special 29 november 2015

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 29 November 2015 - Issue No. 738 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE fuel prices fall for fourth consecutive month
The National staff
UAE drivers will get a holiday boost when filling their tanks as prices at the pump have dropped for
the fourth consecutive month. Petrol prices continue to fall for the month of December after the
Federal Government in August changed the way it set prices for fuel.
Super will cost Dh1.79 a litre compared with Dh1.81 in November, Special Dh1.68 from Dh1.70
and diesel Dh1.83 from Dh1.87 with E Plus making its way to subsidised costs at Dh1.61 from
Dh1.63.
The liberalisation of the pricing of fuel led to a reduction in fuel subsidies. Petrol prices began to
fall in September as the price of oil remains weak at about US$50 a barrel.

UAE VP launches AED 50 bn Dubai Clean Energy Strategy to
produce 75% of its energy from clean sources by 2050
(WAM) - His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime
Minister of the UAE and Ruler of Dubai, today launched Dubai Clean Energy Strategy 2050, which
aims to make Dubai a global centre of clean energy and green economy.
His Highness said that the UAE, through its diverse strategies and investments in clean and
renewable energy, is now leading global efforts in this area despite having the second-largest oil
reserves in the world.
"The strategy that we are launching today will shape the energy sector in Dubai over the next
three decades. It aims to provide 75% of the emirate s energy through clean energy sources by
2050, reflecting our commitment to establish a sustainable model in energy conservation which
can be exported to the whole world, and support economic growth without damaging the
environment and natural resources. Our goal is to become the city with the least carbon footprint
in the world by 2050," His Highness Sheikh Mohammed said.
His Highness added: "Every investment in the development of clean energy sources is at the
same time an investment to protect the environment for future generations. It is an effort to build
our sustainable economic sectors which do not depend on non-renewable energy resources and
are unaffected by volatile energy prices.

Through this strategy, which is based on innovation, research and development, we aim to
explore the future of the energy sector to unveil initiatives that will make use of the scientific and
technological developments in this sector and take the lead in their development and application."
His Highness asserted that the UAE is keen to become a global reference platform in
sustainability practices by transforming concepts into real applications. His Highness called on
international companies and R&D centres to make Dubai a base for testing and applying the next
generation of clean energy technologies to create a global model that can benefit the world.
His Highness stated this during the inauguration of the second phase of the Mohammed Bin
Rashid Al Maktoum Solar Park at Al Marmum area in Dubai. The solar park is considered as the
largest of its kind in the world, which will produce 5,000 megawatts in a single location by 2030,
and involves total investments worth AED 50 billion.
His Highness also inaugurated the construction works of DEWA Innovation Centre, which includes
under its umbrella a group of research and development laboratories in the field of clean energy
with a total investment of AED 500 million.
During the inauguration, His Highness Sheikh Mohammed bin Rashid Al Maktoum was
accompanied by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of
Dubai, H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and
Chairman of the Dubai Technology and Media Free Zone Authority, H.H. Sheikh Ahmed bin
Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority and Chairman of Emirates Group,
Mohammed bin Abdullah Al Gargawi, Minister for Cabinet Affairs, Dr. Sultan bin Ahmed Sultan Al
Jaber, Minister of State, Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai
Electricity and Water Authority (DEWA), Khalifa Saeed Sulaiman, Director-General of the Dubai
Protocol Department, and acrowd of social and econimoc personalities and senior officials.
A strategy with ambitious goals and clear pillars Dubai Clean Energy Strategy aims to provide 7%
of Dubai s energy from clean energy sources by 2020. It will increase this target to 25% by 2030
and 75% by 2050.
The strategy consists of five main pillars: Infrastructure, legislation, funding, building capacities
and skills, environment friendly energy mix.

Infrastructure: The infrastructure pillar includes initiatives such as Mohammed Bin Rashid Al
Maktoum Solar Park, which is the largest generator of solar energy in the world from a single
location with a capacity to produce 5,000 MW by 2030, and total investment of AED 50 billion. The
first phase of this project began operations in 2013.
The second phase will begin operations in April 2017 with a capacity of 800 MW , the third phase
will begin operations in 2020 with a capacity of 1000 MW, while the fourth phase will begin
operations in 2030 with a capacity of 5000 MW, which is 25% of the total energy production in the
emirate of Dubai as estimated.
The infrastructure pillar also includes a comprehensive innovation centre which will be built using
3D printing technology. The innovation centre features a group of research and development
centres specialised in the next generation of clean energy technologies such as solar energy
technology test centre, drones research centre, 3D printing technology, and solar energy based
desalination tests centre. AED 500 million will be invested in research and development in areas
such as integration of smart grids, energy efficiency and electricity generation from solar energy.
The infrastructure pillar also includes the establishment of a new free zone under the name Dubai
Green Zone dedicated to attracting research and development centres and emerging companies
in the field of clean energy.
Legislation The second pillar focuses on the establishment of a legislative structure supporting
clean energy policies in two phases. The first phase will be implemented through Shams Dubai
initiative which aims to encourage building owners to place solar panels on the roofs and link them
to the main network of Dubai Electricity and Water Authority.
The second phase includes coordination with Dubai Municipality to issue a set of decisions on the
integration of consumption rationalization technology and energy production and the requirement
to install solar panels on the roofs of all building in Dubai by 2030.
Funding through the Dubai Green Fund The third pillar is related to financing solutions for
investment in research and development on clean energy and its application. This pillar includes
the establishment of Dubai Green Fund worth of AED 100 billion which will contribute through its
financial resources easy loans for investors in the clean energy sector in the emirate at reduced
interest rates. Dubai Electricity and Water Authority will ensure the demand management and
economic value of the project.
Building capacities and skills The fourth pillar aims to build human resources capabilities through
global training programmes in the field of clean energy in cooperation with international
organisations and institutes such as International Renewable Energy Agency (IRENA) as well as
international companies and R&D centres. The pillar will contribute to the creation of a sustainable
model for research and development in the area of clean energy based on specialised human
capabilities in this field.
Environment friendly energy mix The fifth pillar is focused on creating an environment friendly
energy mix comprising solar energy 25%, nuclear power 7%, clean coal 7%, gas 61% by 2030.
The mix will gradually increase the employment of clean energy sources to 75% by 2050, making
Dubai the city with the least carbon footprint city in the world. This pillar also activates energy
generation mechanisms through waste by employing state-of-the-art technologies in this area that
will contribute to turn 80% of the emirate waste to energy by 2030.

Saudi Aramco to invest more in Indonesia's oil and gas sector
Source: Reuters
Saudi Aramco is looking for further investment opportunities in Indonesia's downstream refining and
petrochemicals industry, the company's CEO said on Thursday, after initiating a $5.5 billion project to
upgrade the country's largest refinery.
The Saudi Aramco CEO's comments are positive for Indonesian President Joko Widodo's efforts
to attract investment after a clean-up of the country's oil and gas sector that followed a series of
scandals.
'Indonesia is an important country for Saudi Arabia, a rising global economy, we would like to be a
part of the growth of Indonesia,' Saudi Aramco CEO Amin H Al-Nasser said at the signing of the
initial agreement to upgrade the Cilacap refinery in Indonesia's Central Java province.
Indonesia will rejoin OPEC as its 13th member nation next month.
The project is expected to increase the refinery's crude processing capacity to 370,000 barrels per
day (bpd) from 348,000 bpd at present, and is also likely to include an agreement to import crude
from Saudi Arabia, the world's top crude exporter.
The upgrade will include a new hydro cracker unit, as well as units to increase production of
paraxylene and polypropylene production, according to a Pertamina statement.
'It's a great opportunity for growth in a global market,' Nasser said. 'We're hoping this is the start.'
Aramco was also expected to join a tender to develop a greenfield refinery project in East Java,
Wiratmaja Puja, Indonesia's director general of oil and gas, said.
Further details on a strategic partnership between Aramco and Indonesia's state energy company
Pertamina have yet to be finalised, including how a joint venture between the two will be shared.
Indonesia broke off talks on building two refineries with Aramco and Kuwait Petroleum in 2014
due to a disagreement over taxes and fiscal terms.

India needs to invest $200bn in clean energy project by ’22
Bloomberg + NewBase
Indian Prime Minister Narendra Modi needs to invest $200bn in seven years to clean India’s filthy
air, cut greenhouse gases and build wind and solar farms. Issuance of more than $1bn of green
bonds has been a welcome first step.
IDBI Bank this week became the nation’s third issuer of notes whose proceeds will be used for
clean energy projects, raising $350mn from overseas investors. Demand was almost triple that
amount even as global green bonds gained just 0.78% through October, compared with 6.2% a
year earlier, in a Bank of America Merrill Lynch index.
Modi’s 2022 investment target supports his plan to steer the world’s second-most populous
nation’s dependence on fossil fuels toward renewable sources. About 70% of the outlay will be
funded by debt, according to clean energy researcher Mercom Capital Group. Global green bond
issuance is expected to surpass $40bn this year, about 10% more than in 2014, according to
Moody’s Investors Service.
“The potential for green bonds in the country is tremendous,” NS Venkatesh, Mumbai-based chief
financial officer at IDBI Bank said in a phone interview on November 24. “IDBI has a pipeline of
about $2bn for funding eligible green projects.” Mumbai-based Yes Bank issued India’s inaugural
green bond in February to raise Rs10bn ($150mn), followed by a Rs3.2bn private sale in August,
according to data compiled by Bloomberg.
State-controlled Export-Import Bank of India offered the first dollar-denominated issuance in
March to raise $500mn. IDBI’s sale makes India the second-largest issuer of green bonds behind
Australia in the Asia-Pacific region, where a total of $4.2bn have been offered. The lender
received about $1bn of orders for its five-year bond sale at a yield premium of 255 basis points

more than US Treasuries. That compares with average spreads of 296 basis points for all Indian
issuers, according to JPMorgan Chase & Co indexes.
Others are beefing up the green bond pipeline. NTPC, India’s largest electricity producer, is
seeking central bank approval for a planned $1bn sale of global notes, its finance director said in
September. Yes Bank is returning to green bonds with a $500mn note to be listed on the London
Stock Exchange next year.
“Green bonds have an appetite globally as funding renewable energy initiatives is seen mitigating
challenges posed by global warming and climate change,” said Ajeet Agarwal, New Delhi-based
finance director at Rural Electrification Corp, the third- biggest issuer of rupee bonds this year.
At the climate talks in Paris next week, developing nations are looking for Modi to champion their
interests in winning funds to mitigate the worst effects of climate change. Richer countries
including the US are wary India could end up scuttling any deal.
While a new website is providing round-the- clock updates on “Green India,” Modi has set a target
for reducing emissions that’s so low that
the world’s third-largest polluter will
meet it without committing to anything
new.
The summit is also an opportunity for
Modi to claim his spot among the
world’s top statesmen. By making 32
overseas trips since taking office in May
2014, he has won about $160bn in
pledges for loans and investment from
global companies of all kinds.
That’s more than $8bn a month on
average, which may give environmental
issuers and investors optimism for the
long-term. “I see green bond issuance
picking up in 2016,” Nirav Dalal, Mumbai-based group president and senior managing director for
financial markets at Yes Bank said in a phone interview on November 24. “The ability and
willingness of banks to finance and build up more green assets will be the driver for future
issuance.”
Clean Power wind farm India

Turkmenistan to Launch Third Development Phase of Galkynysh Gas
Turkmenistan will launch the third phase of development of the Galkynysh gas field, Trend News
Agency quoted chairman of the Turkmengaz Ashirguly
Begliyev as saying.
Begliyev said with the launch of the third phase sometime
later this year, annual production from the field is likely to
rise to 95 billion cubic meters (bcm).
Currently, Turkmenistan exports gas to China, Iran, and
Russia. The Trans-Caspian gas pipeline across the Caspian
Sea to Europe through Azerbaijan and the TAPI gas pipeline
are two major projects envisioned.
Construction of much delayed Turkmenistan-Afghanistan-
Pakistan-India (TAPI) gas pipeline is finally expected to
commence on Dec. 13, Turkmenistan Ambassador to
Pakistan Atadjan Movlamov said Tuesday.
Turkmenistan produced over 76 bcm of natural gas in 2014,
and exported around 45 bcm.

Turkmenistan: UAE's Dragon Oil, talks on $10 bln TAPI pipeline
Reuters + Newbase
The UAE Dragon Oil is in talks with Turkmenistan on its potential involvement in the
Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline project, the company said
on Friday.
Ashgabat plans to begin construction of the $10 billion, 1,735-kilometre (1,084-mile) pipeline next
month in order to diversify exports away from China and Russia. It remains unclear how the
project will be financed.
Dragon Oil, which produces about 100,000 barrels per day of oil equivalent from two fields in the
Caspian Sea just off the Turkmen coast, provided no details of the potential deal.
"There are some negotiations on the TAPI going on between Dragon Oil and Turkmenistan
government... no specific agreement has been reached at this point yet," the company quoted
Faisal Rabee Al Awadhi, its general manager in Turkmenistan, as saying in a written response to
a question from Reuters .
Chevron , ExxonMobil , BP and
Total have expressed an interest
in TAPI in the past, but the lack of
access to Turkmen gas deposits
and other concerns, such as
security, have meant none have
committed fully to the project.
Turkmenistan's official policy is to
only sign production-sharing
agreements with foreign
companies for offshore fields,
while for its main, onshore
deposits, it invites foreign firms as
contractors, meaning those
companies cannot count their
reserves as assets.
Dubai-based Emirates National Oil Co Ltd (ENOC) took over Dragon Oil in August. ENOC is
owned by the Dubai government and operates service stations, fuel terminals and oil tankers as
well as a refinery.

Malaysia: Octanex awards EPCIC contract for Ophir field
offshore Malaysia to Muhibbah Engineering Source: Octanex
Octanex has advised that its 50% owned Malaysian joint venture company, Ophir Production
Sdn Bhd (OPSB), has awarded a contract for the Engineering, Procurement, Construction,
Installation and Commissioning (EPCIC) of a Wellhead Platform for the Ophir oil field offshore
Peninsular Malaysia to Muhibbah Engineering.
The contract award follows a successful
tender by Muhibbah, a large
engineering company listed on Bursa
Malaysia (the Malaysian Stock
Exchange), with a track record of
platform construction and installation.
The Ophir platform will be fabricated at
the Muhibbah yard at Klang approx.
40km south west of Kuala Lumpur,
before being installed in the Ophir field.
The schedule for the EPCIC of the Ophir platform will see the platform installed in the field Q3
2016. A jack-up drilling rig will then be mobilised to site and development drilling will commence.
The current schedule has the Ophir filed commencing oil production in late 2016.
Octanex’s share of the Ophir project is fully funded via OPSB’s 75% project financing and
Octanex’s strategic alliance and funding arrangements with major shareholder, Malaysian, Sabah
International Petroleum (SIP). SIP is an entity wholly owned by the Malaysian State of Sabah via
the Sabah Development Bank.
Octanex COO, Rae Clark said 'The award of the wellhead platform contract is a significant step
towards first oil for the Ophir development and marks a major milestone in the transformation of
Octanex from an exploration company to a producer.'
Ophir field
The Ophir oil field is being developed via
three production wells, a well head platform
(WHP) and leased Floating Production
Storage and Offload (FPSO) vessel. OPSB
was formed by Octanex together with its two
Malaysian joint venturers, Scomi Energy
Services Bhd (Scomi) and Vestigo Petroleum
Sdn Bhd (Vestigo). Octanex holds a 50%
interest in OPSB with Scomi 30% and
Vestigo 20%. Scomi is a Malaysian
downstream oil and gas services company
listed on the Main Board of Bursa Malaysia.
Vestigo is a wholly owned subsidiary of
PETRONAS Carigali Sdn Bhd with a focus
on marginal field development

UK: InfraStrata provides update on Islandmagee gas storage project
Source: InfraStrata
In the Company's update announcement on 4 September on the 2015 programme of work,
InfraStrata confirmed that following successful drilling of the Islandmagee-1 data gathering well
to obtain core samples of the Permian Salt and wireline data, all end of well reports had been
finalised and the initial results from the laboratory testing on the cores were encouraging and
being used by InfraStrata's engineering team to update the facility design and costs estimates.
Test results on the salt cores
and rock mechanics have now
been incorporated into the
preliminary design of the
subsurface and surface facility
and cost estimates for the
project have been updated.
InfraStrata is therefore
pleased to confirm that with
the finalisation of this work, the
five stages of the £3.8 million
programme of work have been
successfully completed, on
time and within budget. The
overall results from the
technical programme of work
are positive and the objective
to confirm the feasibility of the development of an underground gas storage facility in salt caverns
in this location has been met.
The thickness and depth of the Permian Salt were both within 10% of pre-drill estimates. The
Permian Salt average thickness over the area of the proposed gas storage caverns is approx. 200
metres to a depth of approx. 1,300 metres sub-sea. The rock mechanical properties of the salt
determined from the core data are in line with data for Permian Salt at other locations across
northern Europe where caverns for gas storage have been constructed and are in operation.
The successful completion of the programme is a major milestone for the project and InfraStrata
can now commence the monetisation process to attract investors into the project to take it through
to detailed design and on to full construction.
In addition, InfraStrata is pleased to announce that the status of the Islandmagee gas storage
project as an EU Project of Common Interest ('PCI') was reconfirmed recently with the adoption of
the latest PCI list by the European Commission on 18 November 2015. The list of PCIs is
reviewed and updated every 2 years and continued inclusion is a significant boost for the project.
Islandmagee is the only gas storage project in northwest Europe to be awarded PCI status.
Under PCI rules, PCI projects benefit from accelerated permitting procedures and improved
regulatory conditions and are also eligible to apply for financial support from the Connecting
Europe Facility ("CEF"). A budget of €5.35 billion has been allocated under CEF for 2014-20 to
help PCIs be implemented faster and make them more attractive to investors. As an existing PCI,
InfraStrata, on behalf of the project company Islandmagee Storage Limited ("IMSL"),

NewBase 29 November - 2015 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
US oil settles down $1.33, or 3.09%, at $41.71 a barrel
Reuters + NewBase
Crude oil futures ended sharply lower on Friday 27/11/2015 as the U.S. dollar index hit a fresh
eight-month high, adding more pressure to an already oversupplied, bearish market. Strength in
the greenback, which makes oil more expensive for holders of other currencies, joined with
negative sentiment that kicked off earlier in the day due to disappointing Chinese economic data.
Brent crude was down 59 cents to
$44.87 per barrel by 1:35 p.m.
EDT, after settling down 71 cents
at $45.46 in the previous session. It
traded as low as $44.80 earlier in
the session.
West Texas Intermediate (WTI)
futures, the U.S. crude benchmark,
settled $1.33 lower, or 3.09%, at
$41.71 per barrel. Trading in U.S.
futures was muted due to holidays
in the country. Both crude
contracts were on track for small weekly gains, but were down by roughly 9 percent since the start
of November.
On Friday, officials with the Organization of the Petroleum Exporting Countries (OPEC)
questioned an upbeat forecast from its researchers, with some skeptical there will be a quick
easing of the supply glut in 2016.
The group is scheduled to convene its annual policy meeting on Dec. 4.
Earlier in the day, Chinese shares slumped 5 percent, hit by regulatory worries and declining
industrial sector profits. Worrying economic indications in the world's largest energy consumer
typically filter quickly through to oil prices, particularly given the nagging global surplus of physical
oil.
But Bjarne Schieldrop, chief commodities analyst at SEB in Oslo, said the shooting down of a
Russian jet by the Turkish military this week had gone from being a geopolitical risk concern to
worries about falling oil demand due to potential economic sanctions.
"Rather than being bullish ... it's now bearish for marginal demand," Schieldrop said.
Oil price special
coverage

NewBase Special Coverage
News Agencies News Release 26 Nov.. 2015
Biggest Oil Buyers Pick Themselves as Winners From OPEC Meeting
Bloomberg - Heesu Lee
Oil buyers in Asia are sure of one thing as OPEC prepares to meet: They’ll emerge as winners
from the group’s rift over production.
Members of the Organization of Petroleum Exporting Countries will gather Dec. 4 in Vienna,
where Iran has said it will announce plans to boost production by 500,000 barrels a day. That may
further lift the 12-member group’s output, which has exceeded its target for 17 months. The
increase in volumes would exacerbate a global glut and benefit the biggest oil-consuming region’s
refiners, which are seeking cheaper sources of crude.
OPEC is forecast to stick with its strategy of defending market share by maintaining output and
driving down higher-cost production elsewhere, according to analysts and traders surveyed by
Bloomberg. That’ll leave members including Saudi Arabia free to continue pumping even amid
calls from Iran to make room for its extra supply after international sanctions over its nuclear
program are lifted.
“This is probably the best time we’ve ever had as a buyer,” said Kim Woo Kyung, a
spokeswoman for SK Innovation Co., South Korea’s largest refiner. “We are enjoying an overflow
of oil.”
OPEC has exceeded its output target of 30 million barrels a day since June 2014 as it pumps near
record amounts of crude, boosted by increases from its biggest members, Saudi Arabia and Iraq.

The group’s strategy to defend market share has helped lift refining margins for Asian processors,
who have been treated to a steady flow of cheap cargoes from the Middle East to Mexico, Nigeria
and Russia.
Profits from turning crude into naphtha, which is used to produce gasoline as well as
petrochemicals, surged to $9.42 a barrel this month, the highest level since at least May, data
compiled by Bloomberg show. Purchasing costs for refiners have slumped. Japan, Asia’s second-
biggest oil consumer, spent an average of $51.22 a barrel in September for supplies, down from
$113.47 in January 2014, according to data from the nation’s Ministry of Finance.
While oil’s decline has spread to fuels such as gasoline, the pace of crude’s slide has been faster.
Spot prices of the motor fuel loading from Singapore have fallen about 37 percent over the past
year, compared with a slump of about 45 percent in Dubai crude, a benchmark for shipments to
Asia. Additionally, cheaper fuel has boosted consumer demand for the supplies that refiners sell.
“Refining margins in Asia have stayed very strong, certainly much stronger than in 2014, largely
because feedstock prices have dropped significantly,” Victor Shum, a vice president at IHS Inc.,
an Englewood, Colorado-based industry consultant, said by phone from Singapore.
Brent crude, the benchmark for more than half the world’s oil, has dropped 22 percent this year
after falling by almost 50 percent in 2014. Futures in London slipped 1.3 percent to a $44.86 a
barrel on Friday. West Texas Intermediate, the U.S. marker, decreased to $41.71 a barrel, down
37 percent from 12 months earlier.
The Asia-Pacific region will consume 31.87 million barrels a day of oil in 2015, exceeding demand
of 31.28 million barrels from the Americas, the International Energy Agency said in a report on
Nov. 13. China, India, Japan and South Korea will be among the biggest users of oil, according to
the Paris-based IEA.
“For six months to a year, I see markets flush with supply,” said Naveen Kumar, general manager
for international trade and supplies at Hindustan Petroleum Corp., an Indian state-run processor.
“As a refiner, low crude prices are benefiting us, so we would continue to hope for prices to remain
low.”

Canadian Energy Companies seen disappearing in oil new world
Bloomberg + Gulf News + NewBase
Canada is poised to lose energy companies as the industry faces the “new normal” of lower and
more volatile oil prices along with tougher climate and regulatory policies, billionaire investor
Murray Edwards warned Friday.
The chairman of the nation’s largest heavy-oil producer, Canadian Natural Resources Ltd., likened
the oil industry to a horse race in which western Canadian producers are struggling to compete
with developers of light crude from US shale. While cost cuts and innovation are allowing some
oil-sands developers to stay in the game, parts of the Canadian industry will go by the wayside,
Edwards said at a conference hosted by Bennett Jones LLP in the mountain community of Lake
Louise, Alberta.
“We have a lot of wind blowing in our face right now, a lot of challenges before us,” Edwards told
reporters after delivering remarks to a crowd of more than 300 at a ski resort hotel. “Only those
that are going to be top in class on execution are going to be able to survive in that environment.”
Snow-covered peaks in the background at the conference offered an uplifting contrast to the pall
cast over Calgary. Office buildings in the Centre of the nation’s oil patch are emptying with a
persistent price slump that began in June 2014, which has led to 40,000 lost jobs across the
Canadian industry and 100,000 cumulatively with the spillover to other industries, according to the
latest figures Friday from the Canadian Association of Petroleum Producers. US crude is down
about 60 per cent since its high last year, hovering just above $40 a barrel.
Higher Levies
Oil companies in Alberta are facing higher levies, with a new climate policy this month including a
rising carbon tax, and await the results of a policy review to finish later this year on the royalties
the provincial government collects on their production. Some parts of the industry won’t outlive the
new regime, said Peter Tertzakian, chief energy economist at ARC Financial Corp. and a member
of the royalty review panel.

“I am confident that segments of the industry will remain competitive,” Tertzakian told reporters. In
an earlier presentation, he outlined a “new world” facing oil companies since the Organisation of
Petroleum Exporting Countries last year decided to maintain output amid a supply glut, boosting
competition, complicated by rising use of renewable energy that’s damping demand for crude.
“We are in the mother of all market share battles.”
Canada is one of the most expensive places to extract crude, yet some of its largest energy
companies publicly embraced the province’s new climate policy even if it means that only oil-
sands projects with the lowest carbon footprint get developed in the future, Edwards said.
Producers are seeking to “change the conversation,” he said, after years of environmental
opposition that has held back the development of export pipelines, including Keystone XL to the
US and Northern Gateway to Canada’s Pacific Coast.
Edwards, who joined environmentalists on stage Nov. 22 to announce the policy, challenged the
US and other countries to tax the emissions from their oil and natural gas production to level the
playing field.
“I hope that Canadians are taking a leadership role on this one and that others will start to follow,”
Edwards said. “It’s going to lead to a more positive discussion, rather than the adversarial
discussion we’ve had in the past.”

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
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 25 November 2015 K. Al Awadi

New base 738 special 29 november 2015

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