New base 825 special 07 april 2016

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NewBase 07 April 2016 - Issue No. 825 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: Masdar reaffirms that renewables are here to
stay at New York summit
(WAM) – "Despite low oil prices, the trend toward lower-cost renewable energy will continue in the
Middle East and North Africa (MENA) region as business confidence grows in the sector’s
potential and countries adopt increasingly favourable regulations," said Bader Al Lamki, Executive
Director of Masdar Clean Energy.
Al Lamki comments came during Masdar’s participation in the Bloomberg New Energy Finance
"The Future of Energy Summit." The two-day summit, themed ‘The Age of Plenty, the Age of
Competition,’ saw over 2000 executives and thought leaders discuss the opportunities and
challenges in the energy industry and the current trends that are reshaping the energy-mix across
all four corners of the world.
The conference
comes on the
back of a record
year for the
renewable
energy industry,
which saw over
USD 330bn
invested
globally.
This year’s
summit included
a keynote
speech
delivered by US
Secretary of
State John
Kerry. In his
remarks, Kerry
highlighted how the UAE is committed to diversifying its energy use and "in particular increasing
renewable energy in fuel mix at unprecedented rates."
As part of Masdar’s participation at the summit, Al Lamki spoke on the plenary session "After
Paris: How will things be different?" to discuss the momentum after Paris climate negotiations in
December 2015. The event touched on many of the themes that were debated during Global

Action Day, the first global event post-COP 21 held during Abu Dhabi Sustainability Week in
January.
Al Lamki said, "In 2015 we took a big step forward, not least with the way that both the public and
private sphere came together for the Paris climate change meetings. The economic and business
case for renewables is there, which was in part led by organisations such as Masdar pushing
smart collaboration and partnership models."
Al Lamki pointed to the Zayed Future Energy Prize for evidence of how businesses and other
organisations can help governments reach the targets set at COP21 and in the UN’s Sustainable
Development Goals by providing clean, affordable energy. The prize has been empowering
innovators in Africa to develop solutions in clean energy that transform the lives of hard to reach,
off-grid communities – improving health, creating jobs and boosting economic growth in the process.
Joining Al Lamki on the COP 21 panel were Delphine Eyraud, Senior Policy Advisor, Climate
Negotiations COP 21 Presidency, French Ministry of Environment; Zia Khan, VP for Initiatives and
Strategy, the Rockefeller Foundation; and Jeff McDermott, Managing Partner, Greentech Capital
Advisors. Moderating the panel was Michael Liebreich, Founder and Advisory Board member of
BNEF and Chair of the Advisory Board of WiSER (Women in Sustainability, Environment and
Renewable Energy), a UAE-founded initiative between Masdar and the Zayed Future Energy
Prize.
Al Lamki further reinforced the potential for growth in the renewables industry across MENA
during a Masdar-convened event "Wind and Solar in the Middle East and North Africa." He
discussed how the region has experienced record levels of clean energy investment in 2015.
Solar investment alone grew from about USD 160 million in 2010 to about USD 3.5 billion in 2015
according to the MESIA Outlook Report 2016.
During the course of the event,
panelists and leading experts in their
field discussed how wind and solar
are becoming increasingly viable and
competitive as forms of energy. This
surge has been driven by a cost
effective investment environment and
regulations that are providing the
confidence for alignment between
businesses and those shaping policy.
Mr Al Lamki continued "The market in
the MENA region is maturing, and
this is leading to greater business
opportunities. Masdar has been at the forefront of this trend, driving the development and
commercialisation of renewable energy and sustainable technologies across the globe."
Masdar has been at the forefront of the UAE’s efforts to deploy clean energy at home and abroad,
while driving sustainable economic growth, employment, innovation and prosperity. Masdar has
nearly 1.5 GW of renewable energy projects either in operation or under development globally.
The portfolio of projects underlines the operational excellence at the heart of Masdar’s experience
in the renewable energy industry

Kuwait: Qatargas in four-year deal to supply LNG to Kuwait
Gulf Times
Qatargas 2 and Kuwait Petroleum Corporation (KPC) have executed an agreement to supply half
a million tonnes of liquefied natural gas (LNG) to Kuwait over the next four years, from March
2016.
The LNG will be sourced from Qatargas 2, a joint venture among Qatar Petroleum, ExxonMobil
and Total which started production in 2009, and will be delivered onboard Q-Flex LNG Vessels,
chartered by Qatargas, to KPC’s Mina al-Ahmadi LNG receiving terminal in Kuwait.
Saad Sherida al-Kaabi, Qatargas chairman, said, “The agreement con solidates the position of
Qatargas as the LNG partner in the GCC region and the Middle East, and enhances its
established global position.”
Al-Kaabi said, “the conclusion of this agreement cements the positive and mutually beneficial
trade relations between the Qatari and Kuwaiti energy sectors, and enhances the position of Qatar
as a safe and reliable supplier of clean energy to all corners of the world.”
On the agreement, Qatargas chief executive officer Sheikh Khalid bin Khalifa al-Thani said, “The
signing of this agreement with KPC is another significant step in demonstrating Qatargas’
capability to reliably and efficiently lead the supply of LNG to the Middle Eastern emerging energy
markets. This deal demonstrates the eagerness to strengthen and expand our relationship, and
Qatargas’ readiness to meet KPC’s future demand for LNG.”
Kuwait’s LNG delivery season typically would start from March and extend to November of each
year to meet the growing demand for power during peak summer months. Qatargas has been
supplying Kuwait with the majority of its LNG requirements for the past five years through both
direct sales to KPC and through third parties who have made deals with both Qatargas and KPC.
As for other Middle Eastern markets, Qatargas has been supplying LNG to Dubai since 2008 and
has delivered a commissioning cargo to Jordan in May last year.
THE LNG TERMINAL OF MINA AL-AHMADI IN KUWAIT

Egypt: EGPC, EGAS, BP Sign Development of Atoll Discovery
Egypt oil portal + Ministry of Petroleum, Egypt
The Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding
Company (EGAS), and BP signed agreements on Tuesday regarding transportation and
processing of natural gas, according to a press release by Egypt’s petroleum ministry.
The agreements cover areas of construction, transportation and processing of gas produced from
Atoll field in offshore Damietta
concession. An investment of
$1 billion is envisioned for this
phase of development. Total $3
billion will be allocated towards
full development of the
discovery.
Petroleum minister Tareq Al-
Mulla witnessed the signing of
deals. Al Mulla stressed the
depth of strategic relations
binding Egypt's petroleum
sector with its foreign partners
is based on credibility and
mutual trust and that the
ongoing coordination and
consultation between both
parties aim at overcoming any obstacles facing work progress and developing discovered fields.
The minister also reviewed the development plan and hoped for early production at the Atoll
discovery. The Atoll
discovery (BP 100
percent) in the North
Damietta offshore
concession in the East
Nile Delta, offshore
Egypt was announced
in March 2015.
According to BP, full
field development of
Atoll is expected to
consist of two phases.
The first phase will
consist of two
development wells tied
back to existing
infrastructure, with production expected to start up in 2018. Success of this first phase is expected
to trigger additional investment and further wells to increase production.
Development of Atoll will be executed and operated by Pharaonic Petroleum Co. (PhPC), BP’s
joint venture with EGAS and Eni.

Denmark issues 16 oil and gas licences
Source: Reuters
Denmark on Wednesday issued 16 oil and gas exploration licences in the North Sea, just
days after A.P. Moller-Maersk threatened to shut down the country's main gas field.
The licences were awarded to Danish and international players including Dong Energy, Hess
Denmark, Wintershall Noordzee, Nordsofonden and Edison International, Denmark's
Ministry of Energy, Utilities and Climate said.
'With the low oil prices we currently are experiencing it is a great result,' Energy Minister Lars
Chr. Lilleholt said in the statement.
The oil subsidiary of Maersk, which was not among the winning bidders, said this week it will shut
the Tyra gas field in October 2018 if it cannot find a solution by the end of this year to make the
ageing site profitable in the long term.
Denmark's tax proceeds from the North Sea have fallen from 36 billion Danish crowns ($5.5 bln)
in 2008. In December the government said it expected tax revenues from oil and gas of just 4
billion crowns this year, but that was based on an oil price of almost $50 per barrel, well above
the current $38.60 level for Brent.
Other winners in the biding round for the North Sea exploration licences were PA Resources,
Ardent Oil, Dana Petroleum, Danoil Exploration, DEA Deutsche Erdoel, Dyas and Hansa
Hydrocarbons, the ministry said.

Norway: OMV announces successful drilling and testing of the
Wisting Central II appraisal well, offshore Norway..Source: OMV
OMV has successfully completed drilling and testing of theWisting Central II appraisal well.
The horizontal well was drilled in the Wisting field in the Barents Sea, about 310 km north of
Hammerfest. The Wisting field is the northernmost oil discovery in Norway. Wisting Central
II is the fifth well in the production license PL537, which was awarded in the 20th licensing round
in 2009.
The well objectives were to confirm the potential of the discovery by proving the presence of
hydrocarbons in the undrilled Wisting Central South and Central West segments, and to prove
the technical concept of long-reach horizontal wells in a shallow reservoir, about 250 meters
below seabed. The possibility to drill such wells is needed to establish the basis for a viable
development of the Wisting discovery. A well test was performed and flow rates reached just
above 5,000 boe/d.
The well results are expected to provide an increase of in-place volumes in the Central South
and Central West segments, and further reduce the overall uncertainty of contingent resources in
PL537.
The Wisting Central II well is the first horizontal appraisal well in the Barents Sea and sets a new
drilling record; it is the shallowest horizontal offshore well drilled from a floating drilling facility.
Water depth at Wisting is 402 meters. The well started vertically and was successfully steered
into a horizontal orientation within a 250 meters depth interval. The total well length is 2,354
meters and the horizontal section measures 1,402 meters. Advanced data collection and geo-
steering was conducted through the entire horizontal phase.
The well was spudded on January 15, 2016, by the semisubmersible rig Transocean
Spitsbergen. The well test was finalized end of March and the well will now be permanently
plugged and abandoned.
'OMV is very satisfied with the well test results, which are promising. This well is an important
milestone towards a future field development on Wisting' said Johann Pleininger, OMV Executive
Board member responsible for Upstream.
OMV (Norge) as operator has 25% share in the PL537 license. Joint venture partners
are Petoro (20%), Idemitsu (20%), Tullow(20%) and Statoil (15%).

UK: Coryton oil storage terminal opens in UK as glut grows
Source: Reuters
The Thames Oil port terminal near London opened on Wednesday after nearly four years of
development, at a time when a global oil glut and a collapse in fuel prices are making storage an
attractive investment.
A first tanker, the Seaconger, carrying 21,000 tonnes of diesel was discharging at the terminal,
built on the site of the Coryton refinery whose owner Petroplus went bankrupt in 2012,
operatorGreenergy said.
The terminal is due to be filled to its current capacity of 176,000 cubic metres with fuel,
predominantly to serve the London region and southeast England, Thames Oilport said in a
statement.
Thames Oilport is operated and partly owned by Britain's largest oil storage
company, Greenergy, while Royal Dutch Shell owns a third.
The companies plan to add 64,000 cubic metres of capacity by the end of September this year
and while the terminal will initially be used to hold diesel, other fuels will be added.
'Significant progress has been made over recent months, both on site and in the planning
process, and we now have a route map to turn Thames Oilport into a fully-fledged import
terminal,' Greenergy Chief Executive Andrew Owens said.

US: Gas Drillers Go Rigless as Price Collapse Heralds Austerity Era
Blooomberg - Christine Buurma
Explorers have idled drilling equipment at historic rates -- a drop in prices has resulted in the
fewest rigs in at least three decades searching for new output. Southwestern Energy Co., the
third-largest U.S. gas producer, has stopped drilling altogether, while Chesapeake Energy Corp.
has no rigs in the gas-rich U.S. East, down from an average of about 13 in 2014.
It’s part of a broader cost-cutting effort as companies aim to weather the downswing, betting that a
price recovery will begin this year. While some unfinished wells can be used to keep up output,
the industry is facing a sharp drop in future production without new drilling investment. The lack of
exploration is particularly troublesome given that output from gas wells tends to decline sharply
from initial production rates.
“Companies that do absolutely nothing are going to lose a quarter of their production this year,”
said Neal Dingmann, managing director for equity research at SunTrust Robinson Humphrey Inc.
in Houston. “How is that going to look for them in 2017?”
Rigless drillers are the companies hardest-hit by the crash in oil and gas prices. They borrowed
heavily at the height of the shale boom to snap up assets, only to see futures tumble. Since
October 2014, when Southwestern agreed to buy wells and drilling rights from Chesapeake
for $5.4 billion, gas prices have dropped almost 50 percent to below $2 per million British thermal
units. Oil is down 54 percent.
Gordon Pennoyer, a spokesman for Chesapeake, and Christina Fowler, a spokeswoman for
Southwestern, declined to comment. Drilling has plunged in the Marcellus formation in the
eastern U.S., the country’s biggest shale gas region. While production costs there are among the
lowest, a shortage of pipeline capacity has trapped supplies there, sending prices plummeting.

Producers need gas prices to rebound and fast. Credit rating downgrades to junk status mean
these companies will have limited access to bank financing, and loan agreements reached before
the plunge are set to expire. Southwestern, which plans to curtail spending by 80 percent this
year, has more than $1.7 billion of debt coming due in 2018.
‘Leverage Metrics’
“They’ve all gotten annihilated, and there’s going to be a lot of companies that end up in
bankruptcy," said Gabriele Sorbara, an analyst at Topeka Capital Markets Inc. in New York. “It all
comes down to leverage metrics at the end of the day."
So far, a sustained energy rally has proven elusive. Producers have become more efficient at
using a technique known as hydraulic fracturing to extract gas from deeply buried rock formations,
prolonging a supply glut. Output reached a fifth annual record last year, even as the number of
rigs drilling for the fuel dropped to the lowest in data going back to 1987. There are now 88 gas
rigs in the U.S., down from more than 1,600 in 2008.
“It’s hard to believe how low it is,” David Beard, managing principal at Coker & Palmer Inc. in Sag
Harbor, New York, said of the rig count. “Nobody really wants to drill at $2 gas.”
Some Options
Rigless drillers do have a few options to shore up their balance sheets. Some are eyeing asset
sales to help pay down debt, with Chesapeake announcing in February that it plans to offload
another $500 million to $1 billion in properties this year. Cash-starved companies are also turning
to private equity for funding, and some producers may be acquisition targets.
Another factor delaying a rebound is the “fracklog.” While the rig count is down, the number of
wells waiting to be hydraulically fractured has grown as producers wait for prices to climb. That
means output can expand even as explorers cut back on drilling, limiting price gains.
There are 3,870 idled oil and gas wells in the U.S., data from Bloomberg Intelligence show.“These
drilled but uncompleted wells do give producers a little bit of a buffer,” said Dingmann of SunTrust.
“It buys them some time.”

NewBase 07 April 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices up on US inventory draw, but traders warn on premature rally
Crude futures were lifted by a raft of supportive indicators in early trading on Thursday, although
some traders warned that physical supply and demand fundamentals did not warrant a strong
price recovery at this stage.
International Brent futures traded above $40 per barrel in early trading and stood at $40.07 at
0038 GMT, up 23 cents from the last close and almost 8 percent above lows reached earlier this
week.
Front month U.S. West Texas Intermediate (WTI) crude futures were trading at $38.09 per barrel,
up 34 cents from their last close and 8 percent above their April lows. U.S. crude prices were
supported by an unexpected fall in crude inventories, albeit from all-time record highs, last week
as refineries continued to hike output and imports fell.
"Oil prices spiked after the EIA data release," ANZ bank said in a morning note on Thursday.
U.S. crude inventories fell 4.9 million barrels in the week to April 1, compared with analysts'
expectations for an increase of 3.2 million barrels, according to data from the Energy Information
Administration on Wednesday.
In Europe, North Sea oil field maintenance expected next month lent support to Brent futures,
which are priced off North Sea supplies. And on the demand side, manufacturing seems to be
recovering from recent weakness, analysts said.
Oil price special
coverage

"Global manufacturing PMIs (Purchasing Managers' Index) saw their strongest MoM (month-on-
month) recovery in two and half years in March, according to our calculations," Macquarie bank
said.
Yet some traders warned that the rise in futures prices might be premature and not supported by
physical market fundamentals.
A planned meeting of major oil producers on April 17 to freeze output around current levels, which
in most cases remains at or near record highs, would do little to reduce an overhang in production
with at least a million barrels of crude pumped every day in excess of demand.
"Absent a tightening in global oil fundamentals we reiterate our recommendation to go long put
spread," BNP Paribas said. A put is a financial instrument that gives a trader the option right to
sell an asset like crude futures.

NewBase Special Coverage
News Agencies News Release 07 April 2016
Wind and Solar Are Crushing Fossil Fuel
Bloomberg - Tom Randall
Wind and solar have grown seemingly unstoppable.
While two years of crashing prices for oil, natural gas, and coal triggered dramatic downsizing in
those industries, renewables have been thriving. Clean energy investment broke new records in
2015 and is now seeing twice as much global funding as fossil fuels.
One reason is that renewable energy is becoming ever cheaper to produce. Recent solar and
wind auctions in Mexico and Morocco ended with winning bids from companies that promised
to produce electricity at the cheapest rate, from any source, anywhere in the world, said
Michael Liebreich, chairman of the advisory board for Bloomberg New Energy Finance (BNEF).
"We're in a low-cost-of-oil environment for the foreseeable future," Liebreich said during his
keynote address at the BNEF Summit in New York on Tuesday. "Did that stop renewable energy
investment? Not at all."
Here's what's shaping power markets, in six charts from BNEF:
Renewables are beating fossil fuels 2 to 1
Investment in Power Capacity, 2008-2015
Government subsidies have helped wind and solar get a foothold in global power markets, but
economies of scale are the true driver of falling prices: The cost of solar power has fallen to
1/150th of its level in the 1970s, while the total amount of installed solar has soared 115,000-fold.

As solar prices fall, installations boom
The reason solar-power generation will increasingly dominate: It’s a technology, not a fuel. As
such, efficiency increases and prices fall as time goes on. What's more, the price of batteries to
store solar power when the sun isn't shining is falling in a similarly stunning arc.
Just since 2000, the amount of global electricity produced by solar power has doubled seven
times over. Even wind power, which was already established, doubled four times over the same
period. For the first time, the two forms of renewable energy are beginning to compete head-to-
head on price and annual investment.
An industry that keeps doubling in size
Renewables’ share of power generation. Scale is shown in doublings.

Meanwhile, fossil fuels have been getting killed by falling prices and, more recently,
declining investment. It started with coal—it used to be that lower prices increased demand for
fossil fuels, but coal prices apparently can't fall fast enough.
Richer OECD (Organisation for Economic Co-operation and Development) countries have been
reducing demand for almost a decade. In China, coal power has also flattened. Only developing
countries with rapidly expanding energy demands are still adding coal, though at a slowing rate.
Coal phases out in wealthier countries first
What does that look like on a country-level basis? The world's first coal superpower, the U.K., now
produces less power from coal than it has since at least 1850.
Canary in the coal mine: U.K.

More recently it's the oil and gas industry that's been under attack. Prices have tumbled and
investments have started drying up. The number of oil rigs active in the U.S. fell last month to the
lowest since records began in the 1940s. Producers—from tiny frontier drillers to massive petrol-
producing nation-states—are creeping ever closer to insolvency.
"What we're talking about is miscalculation of risk," said BNEF's Liebreich. "We're talking about a
business model that is predicated on never-ending growth, a business model that is predicated on
being able to find unlimited supplies of capital."
The chart below shows independent oil producers and their ability to pay their debt.1
The pink
quadrant at the bottom right represents the greatest threat to a company's solvency. By 2015, that
quadrant starts to fill up, and Liebreich warned, "It's going to get uglier."
U.S. oil patch heads to the insolvency zone
Oil and gas woes are driven less by renewables than by a mismatch of too much supply and too
little demand. But with renewable energy expanding at record rates and with more efficient cars—
including all-electric vehicles—siphoning off oil profits at the margins, the fossil-fuel insolvency
zone is only going to get more crowded, according to BNEF. Natural gas will still be needed for
when the sun isn't shining and the wind isn't blowing, but even that will change as utility-scale
batteries grow cheaper.
The best minds in energy keep underestimating what solar and wind can do. Since 2000, the
International Energy Agency has raised its long-term solar forecast 14 times and its wind forecast
five times. Every time global wind power doubles, there's a 19 percent drop in cost, according to
BNEF, and every time solar poer doubles, costs fall 24 percent.
And while BNEF says the shift to renewable energy isn't happening fast enough to avoid the
catastrophic legacy of fossil-fuel dependence—climate change—it's definitely happening.

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 07 April 2016 K. Al Awadi

New base 825 special 07 april 2016

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