New base 768 special 19 january 2016

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,
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 1
NewBase 19 January 2016 - Issue No. 768 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 oil producer Adnoc to receive Dh 12bn (U$D 3.3 B) loan
The national + Reuters
Japan’s Bank for International Cooperation (JBIC) signed a loan agreement on Sunday with the
UAE’s state-owned Abu Dhabi National Oil Company (Adnoc) for up to $2.1 billion to help secure
long-term oil supplies.
Seven other Japanese firms, including the Bank of Tokyo-Mitsubishi UFJ, will provide additional
financing, taking the total loan amount to $3.3bn, JBIC said in a statement on Monday.
The loans will help Japanese companies in their efforts to renew oil field concessions in the
emirate of Abu Dhabi, of which 60 per cent will expire in 2018, said JBIC. Japan relies on Abu
Dhabi for about a quarter of total crude imports.
“Under such circumstances, the objective of this facility is to give indirect support towards the
renewal of such offshore oil field concessions,” JBIC said. JBIC and other Japanese banks have
provided three other loan facilities to Adnoc since 2007.
The other co-financing firms are Sumitomo Mitsui Banking Corporation, Mizuho Bank, Mitsubishi
UFJ Trust and Banking Corporation, Citibank Japan, Sompo Japan Nipponkoa Insurance, and
Sumitomo Mitsui Trust Bank.

UAE:Shell exits from Abu Dhabi’s $10 billion Bab sour gas projc
The National - Anthony McAuley and LeAnne Graves
Royal Dutch Shell has withdrawn from a US$10 billion gas project in Abu Dhabi citing technical
challenges and costs. The company made the disclosure as Brent crude traded near a 12-year
low, briefly dropping below $28 per barrel.
Royal Dutch Shell is finalising a plan to buy BG Group in what would be one of the biggest oil and
gas mergers in years. In a brief statement it said it had decided to leave the joint development of
the Bab sour gas reservoirs with Abu Dhabi National Oil Company (Adnoc) after evaluating the
project.
“The evaluation concluded that for Shell, the development of the project does not fit with the
company’s strategy, particularly in the economic climate prevailing in the energy industry.”
Adnoc would need to find a replacement for the project as energy companies struggle to respond
to the collapse of the price of oil.
The Bab field is about 150 kilometres south-west of Abu Dhabi city and is the largest onshore field
in the emirate based on total area. While it contains both oil and gas reservoirs, its gas is sour.
That means it contains a high amount of hydrogen sulphide, which is difficult and expensive to
process.
The collapse in the price of oil to under $30, from more than $110 18 months ago, has triggered
spending cuts across the industry as oil majors are forced to reassess the viability of projects
undertaken in better times.
“The reason most probably is going to be a commercial reason,” said the UAE’s energy minister,
Suhail Al Mazrouei, on the sidelines of the World Future Energy Summit in Abu Dhabi yesterday.
“The price of gas has dropped by more than 50 per cent. Developing a more expensive solution is

not going to be viable at this time. But that is good news also for us because we do not want to
develop gas that is more expensive than the gas that we can import.”
He added that the government was working on several ideas about importing liquefied natural gas
as well as expanding imports from Dolphin gas project.
“So we are not worried about the supply of gas,” he said.
A Shell spokesman said the decision to exit the Bab project was not related to Shell’s planned £55
billion (Dh288.27bn) takeover of BG, which was announced in April.
That takeover, if it clears final hurdles, will make the combined company the largest publicly listed
in the UK.
The spokesman declined to comment on how many of its own or other companies’ employees
might be affected by the decision to withdraw from the project but said Fluor was the
subcontracted engineering company conducting most of the work at this stage on the project.
It won the Bab concession in 2013 after a lengthy evaluation process, beating BP, ExxonMobil
and Korea National Oil Company.
Shell was 40 per cent owner and the operator of the project, with Adnoc’s Gasco subsidiary
owning 60 per cent.
It is due to release its latest results tomorrow, the first oil major to report earnings as oil falls
further.
Shell won in 2013 a tender that was valued at the time at $10 billion to develop
over a 30-year venture the complex sour gasfield that involves treating potentially
deadly gasses.
The Bab sour joint venture envisaged
the construction of a 1 billion cubic
feet sour gas processing plant for
domestic market consumption.

Singapore LNG Spot Index Falls to Lowest Since 2014 Amid Glut
Bloomberg - Stephen Stapczynski
A Singapore liquefied natural gas spot index has dropped to the lowest since it started as new
production capacity in Australia and the U.S. adds to a global oversupply.
The index price fell for the sixth consecutive week to $5.461 per million British thermal units on
Monday, the lowest since the price assessments began in Sept. 2014, according to Singapore’s
Energy Market Co. The spot price for LNG shipments to northeast Asia have tumbled to $6.45,
matching the lowest price since 2010, according to New York-based Energy Intelligence Group.
“We are moving from deficit to excess in the Asian spot market in 2016,” David Hewitt, the co-
head of global oil and gas equity research at Credit Suisse Group AG, said by phone. “Spot prices
can go a little further lower than what we are seeing. There is further pressure in the spot market,
and I think it runs not just through 2016, but at least into 2017 and maybe beyond.”
Asia LNG suppliers are grappling with a global supply glut and tepid demand as low energy prices
for alternative fuels, including coal, lure utilities. Global LNG output is expected to rise by a third to
about 330 million metric tons annually by 2018, according to Sanford C. Bernstein & Co.
Chevron Corp.’s Gorgon project off northwest Australia, the most expensive LNG project in history
at $54 billion, is getting ready to commence deliveries to the Asian market later this year. The first
LNG shipment from Origin Energy Ltd. project in Australia to Asia left earlier this month.
The U.S. may become a net exporter of gas, U.S. Energy Information Administration forecasts.
The first of what’s expected to be a deluge of LNG shipments out of the lower 48 states is slated
to leave Cheniere Energy Inc.’s Sabine Pass terminal on the U.S. Gulf Coast as soon as
February.

India: Oil make you rich Reliance Is Gaining From $30 Crude
Bloomberg - Debjit Chakraborty
Oil’s plunge and the impact on the global economy is hurting many a billionaire. Indian tycoon
Mukesh Ambani isn’t one of them.
Reliance Industries Ltd., controlled by Ambani, is benefiting from low crude prices as margins
swell at the company’s refining complex, the world’s largest.
Ambani’s net worth increased $620 million as of Friday, the most in the world in 2016, according
to the Bloomberg Billionaires Index. That’s almost five times more than the second-biggest gainer
this year, Wal-Mart heiress Alice Walton, who’s up $130 million. Among India’s 13 billionaires in
the world’s richest 400, Ambani is also the only one to see an increase in his fortune.
Profit for the December quarter, to be announced later Tuesday, is projected to rise to an eight-
year high to 69.8 billion rupees ($1 billion), from 50.9 billion rupees a year earlier, according to the
median estimate of 16 analysts in a Bloomberg survey. Higher refining margins will underpin the
performance as oil prices during the quarter were 42 percent lower on average from the year-
earlier period.

That’s attracted investors including BlackRock Inc. to Reliance, making the Mumbai-based
company the best performer on the Bloomberg World Oil & Gas Index over the past three months.
“Any increase in refining margin helps Reliance’s profit significantly because that business is the
largest contributor to the bottom line,” said Sanjeev Panda, Mumbai-based analyst at Sharekhan
Ltd. The shares have gained “because of the sharp fall in crude reflecting positively on the
margins.”
Brent oil has fallen more than 70 percent the last 18 months as the Organization of Petroleum
Exporting Countries effectively abandoned output limits amid a surplus. The global benchmark
crude on Tuesday added 54 cents, or 1.9 percent, to $29.09 a barrel on the London-based ICE
Futures Europe exchange at 2:31 p.m. Singapore time.
Reliance’s shares climbed about 14 percent in 2015, ending a seven-year jinx of under-
performing the S&P BSE Sensex. The stock slid 37 percent from 2008 through 2014, versus a 35
percent advance in India’s benchmark equity gauge, as the company spent billions of dollars to
expand its chemicals capacity and plowed $15 billion in a telecommunications venture.
Reliance Jio Infocomm Ltd., Ambani’s telecom unit, plans to sell150 billion rupees of shares to
existing stockholders, according to an exchange filing late Monday. “Start of projects worth $30
billion across segments will make 2016 the biggest year in Reliance’s history,” Vikash Kumar Jain,
an analyst at CLSA, wrote in a Jan. 4 note.

Germany: RWE puts £1bn onshore wind investment on holdThe
telegraph - By Emily Gosden
UK onshore wind farm projects worth £1bn have now been scrapped or put on hold by RWE
Innogy following recent policy changes, the German energy giant has disclosed. Up to £800m
investment in 10 to 12 proposed wind farms in Scotland and Wales is on hold until ministers
confirm whether any subsidies will be available to support them, the company said.
Hans Bünting, RWE Innogy chief executive, said it had
"stopped all further investment" and completely frozen
its development pipeline while it awaited an
announcement from the Department of Energy and
Climate Change.
The projects on hold are in addition to £250m
investment in nine wind farms in England that RWE
Innogy announced last year it was cancelling, due to
the hostile planning environment and restrictions on
subsidies. Although the Conservatives vowed in their manifesto to end all new onshore wind
subsidies, Mr Bünting said he believed ministers could yet offer financial support that could allow
the Scottish and Welsh projects to proceed. "As far as I understand it, Amber Rudd has not
cancelled onshore forever," he said.
He suggested the "industrial logic" behind onshore wind as one of the cheapest forms of
renewable power would win through. To date, Ms Rudd's implementation of the Conservatives'
manifesto pledge has focused on shutting down the
Renewables Obligation subsidy scheme a year early.
But a generous grace period for projects that were
seeking RO subsidies means None of RWE's proposed
projects were affected by the early closure. Far more
significant is the question of whether any more support
will be available for onshore wind through a successor
scheme of subsidy contracts, which would have been
the route to market for most projects still in development.
Ms Rudd has previously suggested these contracts too would be ended, telling MPs last summer
the Government would be "implementing the terms of our manifesto" in respect of the scheme.
She also said that the entire pre-consent onshore wind development pipeline of about 7GW, or
about 250 projects, was "unlikely to go ahead".
Yet she has also given hope to the onshore wind industry by confirming the Government is
considering the concept of so-called "subsidy-free" contracts. Under industry proposals, these
could see onshore wind farms paid the same level of support as new gas plants would need to be
built.
Ms Rudd has already acknowledged that no form of power generation can be built in the UK
without financial support, so the wind industry argues support at the minimum level required for
new build no longer constitutes a subsidy.
On Monday night, ministers vowed to press ahead with plans for the early closure of the RO
scheme, reintroducing the proposals into the House of Commons after they were thrown out in the
Lords last year.

US: Strong oil imports lift U.S. crude stocks near record
REUTERS - BY JOHN KEMP
U.S. crude oil imports have accelerated over the last four weeks, pushing commercial crude
inventories within a whisker of the record set in April. Crude imports surged to 8.3 million barrels
per day (bpd) last week, up from 7.0 million bpd four weeks earlier, according to the U.S. Energy
Information Administration .
Imports are running at the fastest rate since September 2013, with almost all the extra crude
arriving at ports along the U.S. Gulf Coast. Both the timing and the location are unusual because
refineries and traders try to minimize stocks held along the Gulf Coast at year-end to avoid
storage taxes imposed by Texas and Louisiana.
Faster imports have pushed crude stocks higher even as refiners have boosted the amount of
crude they process to a seasonal record 16.6 million bpd.
Crude imports are notoriously volatile: while pipeline imports from Canada are somewhat regular
and stable, tanker imports from other countries are much more variable.
Each very large crude carrier (VLCC) arrives with around 2 million barrels of crude, which is
recorded in U.S. inventories once it has cleared customs.
The timing of ship arrivals and customs clearances can therefore have a big influence on reported
weekly import volumes. Heavy seaborne imports one week are often followed by a sharp drop the
following one due to the timing of ship arrivals.

But the past four weeks have seen a fairly unusual and sustained increase in imports along the
Gulf Coast, where imports have risen from the equivalent of around 9 VLCCs to 14 VLCCs per
week.
Most of the additional crude has come from Saudi Arabia (roughly an extra two tankers per week),
Mexico (one to two tankers per week), Venezuela (one tanker) and Iraq (one tanker). The reason
for the upsurge in seaborne imports is not clear .
The reason could be purely timing-related as tankers unload now after being delayed in transit or
unloading back in November. Or crude could be flowing to storage facilities in the United States
because it is easier and cheaper to store there as terminals in the Caribbean, Europe and Asia fill
up.
There are also strong commercial reasons to put oil into storage in the United States. The
contango is running at nearly $1 per barrel per month on average for the first six months (more
than enough to cover the cost of financing the inventory and leasing tank space).
Traders have a strong incentive to source as many surplus cargoes as possible from oil exporters
in the Middle East and Latin America and bring them to the United States .
The sudden increase in importing could be a sign the market is running out of storage in other
locations, in which case the rise in imports and inventories can be expected to continue through
the end of the year and into the first quarter of 2016.
On the other hand it may be a short-term storage-related trading play, in which case import levels
could revert to a lower level in the next few weeks.

NewBase 19 January 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil stabilizes on strong China demand data, but looming Iran
exports still weigh on market
Reuters + NewBase
Oil prices stabilized on Tuesday, supported by strong Chinese fuel consumption and halting a
slide to 2003 levels earlier in the week after the full return of Iran to markets added to an already
huge supply overhang.
Front-month Brent crude futures LCOc1 were trading at $28.94 per barrel at 0439 GMT (11.39
p.m. ET on Monday), up 39 cents from their last settlement.
Traders said prices were supported by strong oil data from China, where preliminary oil demand
for 2015 was at a record 10.32 million barrels per day, up 2.5 percent from a year ago, despite a
slowing economy.
But Brent struggled to break back above $29 a barrel as Iran's return to world oil markets
weighed. U.S. crude futures CLc1 were at $29.31 a barrel, down 11 cents but defending its
premium over Brent.
Oil price special
coverage

The U.S. premium over Brent CL-LCO1=R hit its highest level since 2010 on Monday as Iran's oil
will be exported to Brent-priced Europe and Asia while regulations still restrict it from going to the
United States.
The U.S. government has also revoked a 40 year old ban on its crude reserves, resulting in oil
flows out of the U.S. crude price zone and into Brent. Overall prices fell to their lowest since 2003
on Monday as western sanctions against Iran were lifted. Tehran then ordered a sharp increase in
output to take immediate advantage.
Despite Tuesday's firmer prices, most analysts remained bearish.
"It is clear that investor sentiment is driving oil prices... Bearish bets are at their highest level since
1983, indicating heightened concerns around Iran oil flooding the market," ANZ bank analysts said
in a note on Tuesday.
Oil prices have fallen over 70 percent in the past 18 months as exporters around the world pump
out over a million barrels of crude every day in excess of demand. Since January, the prospect of
the lifting of sanctions on Iran accelerated the rout.
Most analysts expect Iran's full return to oil markets to be relatively slow due to the need to
overhaul its infrastructure following years of under-investment, but Iran is also estimated to have
stored 12-14 million barrels of crude and 24 million barrels of condensates for immediate sale.
Goldman Sachs said that Iran's production would rise by 285,000 barrels per day (bpd) year-on-
year in 2016 while BMI Research said the rise would be by 400,000 bpd.
In OPEC-member Venezuela, state-owned producer PDVSA requested partners to pay for
naphtha imports, which it is contractually obliged to provide itself, to produce exportable crudes.

Oil speculators raise bets on falling prices January 18 2016 21:38
Bloomberg + NewBase
Hedge funds increased bearish oil wagers to a record as global equities fell and Iran was poised
to add to the crude supply glut.
Oil dropped below $30 a barrel in New York for the first time in 12 years on January 12 amid
concern that turmoil in China’s markets will curb fuel demand. Prices dropped further as the week
progressed on signs that sanctions against Iran would be lifted, allowing a boost in crude
shipments from Opec’s fifth- biggest member. The restrictions were removed on January 16.
“There’s escalating
recognition that any added
production will prolong the
surplus,” said Tim Evans,
an energy analyst at Citi
Futures Perspective in New
York. “Oil is also down on
worries about demand. The
impact of concerns about
China on all markets
underscores worries about
global economic growth.”
Speculators’ short position
in West Texas Intermediate
crude rose 15% in the week
ended January 12, data
from the US Commodity
Futures Trading
Commission show. It’s the
highest in records dating
back to 2006. Net-long
positions fell to the lowest in more than five years.
WTI slumped 15% to $30.44 a barrel in the report week on the New York Mercantile Exchange.
Prices yesterday dropped as much as 3.6% to $28.36 a barrel, the lowest in intraday trade since
October 2003, and changed hands at $29.38 as of 12:32 p.m. London time.
The International Atomic Energy Agency concluded on January 16 that the Islamic Republic had
curbed its ability to develop an atomic weapon as required under the July accord with world
powers. The US and five other nations agreed to lift the economic sanctions related to Iran’s
nuclear program “simultaneously with the IAEA-verified implementation” of the deal.
Iran is targeting an immediate increase in shipments of 500,000 barrels a day, Amir Hossein
Zamaninia, deputy oil minister for commerce and international affairs, said on Sunday. It plans to
add another half million barrels within months. Analysts and economists surveyed by Bloomberg
said it can only add 400,000 barrels after six months.
US crude inventories climbed in the week ended January 8, adding to the glut, Energy
Information Administration data show. Supplies at Cushing, Oklahoma, the delivery point for WTI,
rose to a record.

Speculators’ short position in WTI rose by 25,899 contracts to 200,975 futures and options, CFTC
data show. Longs, or bets that prices will rise, climbed 7.4%, the biggest gain in a year. Net longs
dropped 9.3%.
“There are a lot of people who thought oil can’t go down much further and tried to call a
bottom,”said Michael Corcelli, chief investment officer of hedge fund Alexander Alternative Capital
in Miami. “When we have monster pullbacks, things don’t end politely. I think we’ll drop to $24 or
$25 and then have a sharp V-shaped rally.”
Data on Brent crude trading show a divergence from the trend in WTI. A report from ICE Futures
Europe showed yesterday that hedge funds and other money managers raised bullish bets on
Brent crude by 17,507 contracts in the week ended January 12.
Speculative bets that prices will rise, in futures and options combined, outnumbered short
positions by 202,559 lots, the London-based exchange said in its weekly Commitments of Traders
report.
In other markets, net bearish wagers on US ultra-low sulfur diesel decreased 27% to 22,951
contracts. Diesel futures slid 12% in the period. Net bullish bets on Nymex gasoline slipped 38%
to 16,786 contracts as futures dropped 14%.
Falling prices are curbing investment, setting the stage for output declines that will reduce the
global glut later this year, according to Bank of America Corp and Goldman Sachs Group.
US output should be down by about 1mn barrels in the second quarter from last year’s peak,
Daniel Yergin, vice-chairman of industry consultants IHS, said January 15 on Bloomberg
Television.
”There will eventually be signs of falling production and that will be the first indication that the
market is going to stabilise and start to recover,” said Sarah Emerson, managing director of ESAI
Energy, a consulting company in Wakefield, Massachusetts.

NewBase Special Coverage
News Agencies News Release 19 January 2016
Mideast Stocks Plummet as Iran Plans to Boost Crude Exports
Bloomberg - Tamim Elyan
Stocks across the Middle East tumbled as the easing of sanctions against Iran raised the prospect
of a surge in oil supplies to a market already reeling from the lowest prices in more than a decade.
Shares in Tehran gained.
Saudi Arabia’s Tadawul All Share Index dropped 5.4 percent to its lowest level since March 2011.
Abu Dhabi’s ADX General Index fell into a so-called bear market. The Bloomberg GCC 200 Index,
which tracks 200 of the six-nation Gulf Cooperation Council’s biggest companies, traded at 9.5
times estimated 12-month earnings, the lowest in almost seven years. Iran’s TEDPIX Index
climbed 0.9 percent, according to data on the bourse’s website, extending Saturday’s 2.1 percent
advance.
Oil's collapse has prompted investors to price the BGCC 200 Index at the deepest discount to
emerging markets in almost five years.
Iran, home to almost 10 percent of the world’s proven oil reserves, is starting preparations to
boost exports after the United Nation’s nuclear agency on Saturday said the country

has complied with the terms of an international agreement to curb its nuclear program. That
threatens to put further pressure on prices, hurting the oil-dependent economies of the GCC.
"Iranian oil supply will come to the market as early as today or tomorrow," said Nayal Khan, the
Riyadh-based head of institutional equities sales trading at Saudi Fransi Capital. "The market’s
recovery will depend on whether we can get oil back above $30."
Oil Pressure
Iran is targeting an immediate increase in shipments of 500,000 barrels a day, Amir Hossein
Zamaninia, deputy oil minister for commerce and international affairs, said on Sunday. It plans to
add another half million barrels within months.
Concern that Iran may exacerbate the global supply glut sent Brent crude, a benchmark grade for
more than half the world’s oil, to a new 12-year low on Friday, helping to spur a global stock rout.
The Standard & Poor’s 500 Index fell to the weakest level since Aug. 25 in the worst start to a
year for U.S. equities on record. Emerging-market stocks posted a third straight weekly decline,
dropping to the lowest level since 2009.
The countries of the GCC account for about 30 percent of the world’s proven oil reserves.
Company Earnings
Saudi Arabia’s Al Rajhi Bank and Saudi Basic Industries Corp., one of the world’s largest
chemicals manufacturers, were among the biggest contributors to the drop on the Tadawul, losing
2.4 percent and 3.7 percent, respectively.
The gauge has tumbled 35 percent over the past year as the slump in oil has hurt company profits
linked to government spending. Oil revenue accounts for more than 70 percent of the kingdom’s
income.

Saudi Arabian Fertilizer Co. retreated 6.2 percent to the lowest level since November 2009 after
its fourth-quarter net income halved to 379 million riyals ($101 million). Yanbu National
Petrochemical Co. slumped 5.9 percent to the lowest level since May 2009. The company’s
fourth-quarter profit dropped 36 percent.
“Most companies are likely to report results this week and this can certainly influence short-term
direction," said Muhammad Faisal Potrik, the head of research at Riyad Capital. "However, if we
look at dividend yields and expectations of oil prices one year out, some of the stocks are very
attractively priced and long-term investors are unlikely to suffer losses if they start investing here."
The Tadawul’s 14-day relative strength index fell to 16 on Sunday, the lowest level since August.
A reading below 30 suggests to some analysts that a security may be oversold.
Gulf Slump
The Bloomberg GCC 200 Index plunged to the weakest level since March 2011 as every
benchmark gauge in the region fell.
“Oil breaking below $29 oil price has urged more investors to sell," said Talal Touqan, the head of
research at Abu Dhabi-based Al Ramz Securities.
Qatar’s QE Index tumbled 7.2 percent, the most since December 2009, and Abu Dhabi’s ADX
General Index slumped 4.2 percent to the lowest level since November 2013. It has declined 23
percent since a peak in July. Dubai’s DFM General Index lost 4.6 percent in the highest trading
volume this year.
Oman’s MSM 30 Index fell 3.2 percent, the most since December 2014, and Kuwaiti stocks also
dropped 3.2 percent to the lowest level since May 2004. Bahraini equities slipped 0.4 percent.
Oil Stability
While Saudi Oil Minister Ali al-Naimi is optimistic that market stability will return, it will take time,
he said at a news conference in Riyadh on Sunday.
Bonds across the Gulf region slumped on Friday. The yield on Saudi Electricity Co.’s April 2043
securities surged 32 basis points, the most on record, to 6.93 percent. In the absence of dollar-
denominated sovereign debt in Saudi Arabia, some investors use the company’s bonds as a proxy
because the state owns more than 70 percent of the energy operator.
The yield on Qatar government’s debt due January 2020 bond climbed 14 basis points to 2.97
percent, and the rate on Dubai’s notes due April 2029 increased 23 basis points, prices compiled
by Bloomberg show.
Iran Rises
Iranian shares rose to the highest level since August, according to data on its website. The nation
is seeking to attract at least $30 billion in foreign direct investment over the next five years,
President Hassan Rouhani said in a televised speech.
“Investors shouldn’t look at Iran to make a quick buck but rather invest with a long-term view to
benefit from the best-performing market of the next five years," Ramin Rabii, the chief executive
officer of Turquoise Partners, a Tehran-based investment company, said on Saturday. “We expect
the Iranian economy to grow at a rate of 6 to 8 percent for several years.”

Revenue from oil will act as a “supplementary income" for the country, Rouhani said.
Panicked Investors
Egyptian equities extended losses after their worst week since the Arab Spring. The EGX 30
Index fell 1.7 percent to the lowest level since October 2013.
“Local investors are panicking because of the selloff in Gulf markets after oil’s drop last week,"
said Tamer Ismail, the head of dealing at Cairo Capital Securities. "Low oil prices should be
positive for us, but people are ignoring that rationale and exiting the market while they still can.”
The most populous Arab country is a net importer of crude and stands to save on its fuel subsidies
bill with lower oil prices. Stock losses prompted the bourse to urge companies on Thursday to
expedite the release of their 2015 results to ease "unjustified panic."
Israeli Gas
The stock gauge tracking Israel’s oil and gas explorers rose as much as 5.1 percent after
companies reported potential for an additional 8.9 trillion cubic feet of gas at licenses offshore. If
gas is found, it would make it the third-largest discovery in the nation to date. That may help Israel
become a regional energy hub and generate billions of dollars for the state, according to the
nation’s largest investment house.
The TA Oil & Gas Index closed 0.6 percent lower, while the TA-25 Index declined 0.4 percent.
A major gas find would boost Israel’s “energy independence and increase the competition in the
market,” said Noam Pincu, an analyst at Psagot Investment House Ltd. in Tel Aviv.

Opec sees market rebalancing in 2016, but Iran to counter
fall January 18 2016 09:50 PMReuters + NewBase
Opec forecast yesterday that oil supply from non-member countries will post a larger-than-
expected decline this year due to the collapse in prices, boosting the need for crude from the
producer group.
Supply outside the Organisation of the Petroleum Exporting Countries (Opec) would decline by
660,000 bpd in 2016, led by the US, Opec said in a report. Last month, Opec predicted a drop of
380,000 bpd. “The analysis indicates that 2016 will be a supply-driven market. It will also be the
year when the rebalancing process starts,” Opec said.
“Non-Opec marginal barrel production in the next six months will be sensitive to sustained low oil
prices.”
A drop in non-Opec supply would reduce a supply glut which has prompted oil prices to collapse
to below $28 a barrel, the lowest since 2003. Opec’s 2014 strategy shift to defend market share
and not prices helped deepen the decline.
The price drop has started to slow the development of relatively expensive supply sources such
as US shale oil and forced companies to delay or cancel billions of dollars worth of projects,
putting some future supplies at risk.
US output will average 13.50mn bpd this year, the report said, down 380,000 bpd from 2015 and
the largest drop outside Opec. Output is also vulnerable in places such as the North Sea, Latin
America and Canada, Opec said.

But Opec’s report makes no mention of the supply impact of the lifting of Western sanctions on
member-country Iran, which yesterday said it was increasing output by 500,000 bpd - which would
fill most of the hole left by non-Opec members.
The UAE energy minister, in the first comment by a Gulf Opec member about Iran since most
sanctions were lifted on Tehran, said anyone increasing output during the current oversupply
would worsen the situation.
For now, Opec said it pumped less oil in December, reducing the excess in the market. Production
including returning Opec member Indonesia fell by 210,000 bpd to 32.18mn bpd in December, the
report said, citing secondary sources.
The report points to a 530,000-bpd supply surplus this year if the group keeps pumping at
December’s rate, down from 860,000 bpd implied in last month’s report.
Opec left its 2016 global oil demand growth forecast little changed, predicting global demand
would rise by 1.26mn bpd, marking a slowdown from 1.54mn bpd in 2015.

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 19 January 2016 K. Al Awadi

New base 768 special 19 january 2016

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (8)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base 768 special 19 january 2016