New base energy news 30 november 2020 issue no-1390 by senior editor khaled al awadi -_compressed

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NewBase Energy News 30 November 2020 - Issue No. 1390 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: ADNOC awards USD 519 million contract further
expanding world's largest 3D seismic survey
Source: ADNOC
The Abu Dhabi National Oil Company (ADNOC) has announced the award of a contract worth up
to $519 million (AED1.9 billion) to further expand the scope of the world’s largest combined three-
dimensional (3D) onshore and offshor e seismic survey, which is currently taking place in the
Emirate of Abu Dhabi.
The expansion underscores the important role seismic surveying plays in enabling ADNOC to
identify and explore new hydrocarbon resources as highlighted by the recent major discoveries of
recoverable unconventional oil resources and conventional oil reserves announced by Abu Dhabi’s
Supreme Petroleum Council (SPC) earlier this week.
In addition, this mega seismic survey also supported the discovery of the conventional oil and gas
reserves and the unconventional gas resources added to ADNOC’s portfolio in 2019.
www.linkedin.com/in/khaled-al-awadi-38b995b

The contract was awarded to BGP Inc., a subsidiary of China National Petroleum Company
(CNPC), represented in the United Arab Emirates (UAE) by Al Masaood Oil Industry Supplies &
Services Co. This new award brings the total area to be covered by the survey up to 85,000 km2
and reinforces ADNOC’s commitment to unlocking the full potential of Abu Dhabi’s vast hydrocarbon
resources.
50% of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value
(ICV) program, highlighting how ADNOC continues to prioritize ICV as it invests responsibly to
deliver its 2030 strategy.
Yaser Saeed Al Mazrouei, ADNOC Upstream Executive Director, said:
'This award builds on the solid progress we are making in executing the world’s largest combined
3D seismic survey which is an important part of our strategy to accelerate the exploration and
development of Abu Dhabi’s hydrocarbon resources.
It further demonstrates ADNOC’s commitment to realizing the full potential of our conventional and
unconventional oil and gas resources to ensure the UAE remains a long-term and reliable energy
provider to the world. The award follows a competitive tender process that ensures a significant
portion of the value will flow back into the UAE’s economy, supporting local businesses in line with
the leadership’s wise directives.'
This contract increases the scope of the ongoing seismic mega survey to capture coastal areas,
islands, and shallow water. It will utilize state-of-the-art technologies including cableless equipment
and a wide range of environmentally friendly seismic sources
The seismic acquisition will capture high-resolution 3D images of the complex subsurface structure
at ultra-deep locations and help to pinpoint potential hydrocarbon reservoirs by deploying industry-
leading technologies to provide high-density survey data which is analyzed at ADNOC’s Thamama
Subsurface Center.
This data is being leveraged by all of the successful exploration partners in Abu Dhabi’s first block
bid round and the data will also be available, for a cost, to the successful bidders in the second bid
round, which will begin to be awarded this year following the SPC’s recent approval.
In July 2018, ADNOC awarded the first set of contracts for the seismic survey and has so far
recorded almost 60% progress in executing the initial scope which includes onshore and offshore
areas. The entire survey, including the added coastal scope, is on track to be completed in 2024.

Earlier this week, the SPC announced the discovery of recoverable unconventional oil resources
estimated at 22 billion stock tank barrels (STB) and an increase in conventional oil reserves of 2
billion STB which boosted the UAE’s conventional reserves to 107 billion STB.
In November 2019, the SPC announced increases in hydrocarbon reserves of 7 billion STB of oil
and 58 trillion standard cubic feet (TSCF) of conventional gas, as well as the discovery of
unconventional recoverable gas resources totaling 160 TSCF.
As part of the selection criteria for contract awards, ADNOC carefully considers the extent to which
bidders would maximize ICV in the delivery of a project. This is a mechanism integrated into
ADNOC’s tender evaluation process, aimed at nurturing new local and international partnerships
and business opportunities, fostering socio-economic growth, and creating job opportunities for
Emiratis.
This award prioritized UAE sources for materials, local suppliers, and workforce as well as advanced
technologies.

UAE:MBR Solar Park's 4th phase to power 320,000 homes on completion
The National
The scheme will include the world’s largest energy storage capacity of 15 hours, allowing for energy
availability 24 hours a day
Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of
Dubai inaugurated Dubai Electricity and Water Authority’s, DEWA’s, Innovation Centre and the
800MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site
solar park in the world. Wam
The fourth phase of the Dh50 billion ($13.6bn) Mohammed bin Rashid Al Maktoum Solar Park will
power 320,000 homes and displace 1.6 million tonnes of carbon emissions a year, the Dubai Media
Office said on Saturday.
It will also include the world’s largest energy storage capacity of 15 hours, allowing for energy
availability 24 hours a day.
The 950-megawatt phase comprises the world’s largest concentrated solar power scheme, backed
by photovoltaic panels, which collectively drew an investment of Dh15.78bn and is being built on an
independent power producer model.
The fourth phase, which is being executed by a consortium led by Dubai Electricity and Water
Authority and Saudi Arabia’s Acwa Power, will use three hybrid technologies to produce clean
energy: a 600MW parabolic basin complex, which is made up of three 200MW units each, a 100MW
solar power tower that is based on molten technology and a 250MW array of solar panels.
Dubai aims to generate 25 per cent of its energy needs from renewable sources by 2030 and 75
per cent by 2050 as part of its clean energy drive.
State-utility Dewa is building the world’s largest solar energy park to reduce its reliance on natural
gas and diversify its power sources. The Mohammed bin Rashid Solar Park is expected to generate
5,000MW of electricity by 2030.
The fifth phase of the project is currently being implemented through Shuaa Energy 3, a firm in
which Dewa holds a 60 per cent stake, with the remainder held by a consortium including Acwa
Power and Gulf Investment Corporation.

Saudi Arabia: Sercel awarded seismic equipment contract for Saudi mega-crew
Source: Sercel
Sercel has won a major contract to supply land seismic equipment for a 3D mega-crew
survey recently awarded to ARGAS in Saudi Arabia.
The equipment selected includes a Sercel 508XT seismic acquisition system of over 60,000
channels equipped with strings of SG-10 geophones and a fleet of over 30 Nomad 65 Neo all-terrain
vibrator trucks with VE464 advanced vibrator electronics. ARGAS will acquire the long-term survey
in a harsh desert environment from the end of Q1 2021 onwards.
This award marks the fifth 508XT system to be deployed on a mega-crew survey in the Middle East
in the last five years, strengthening Sercel's already well-established base in the region.
With over 75 systems deployed worldwide, the 508XT is the industry's most field-proven acquisition
system for all types of challenging land surveys. When combined with Nomad 65 Neo vibrators and
the VE464's unique Smart LF function, it is the ideal choice for reaching the highest productivity
levels while recording the best broadband seismic data.
Sophie Zurquiyah, CEO, CGG, said:
'We are delighted that ARGAS has selected an extensive Sercel product portfolio to equip the mega-
crew survey it was recently awarded in Saudi Arabia.
As an experienced industrial manufacturer, Sercel is trusted by its customers for its reliability to
deliver large volumes of high-performance seismic equipment and for accompanying them on their
most challenging surveys with dedicated technical support.'

Oman:BP sees potential to boost gas output from Oman Block 61
Oman Observer- Conrad Prabhu
Energy major BP says its mega tight-gas project in Block 61 in central Oman has the potential to
yield an additional 400 million cubic feet per day of natural gas on top of the 1.5 billion cubic feet
(bcf) per day that the block’s Khazzan and Ghazeer fields are poised to deliver.
The revelation came in report published by Bloomberg News over the weekend. The international
news service quoted Stephen Willis, BP’s Senior Vice-President for the Middle East, as saying that
with further investment, output from the giant development could be ramped up by around 26 per
cent.
Last month, BP brought into production the Ghazeer field, representing Phase 2 of its multibillion
dollar investment in Block 61. Phase 1, centring on the prolific Khazzan tight gas field, came online
in September 2017 with an output of 1 bcf/day of natural gas.
Ghazeer, originally due to come into production in early 2021, began producing in October this year,
at least three month before schedule. At full capacity, it will generate a further 0.5 bcf/day of gas,
boosting the block’s total output to 1.5 bcf/day, representing as much as 35 per cent of the
Sultanate’s total gas demand.
The executive made the comments in the context of BP’s commitment to sustain investments in its
oil and natural-gas assets in the Middle East notwithstanding its ambitions to transition to renewable
energy and reduce its carbon footprint.

Besides Oman, the energy giant is a major producer in Iraq, where it operates the world’s third-
largest oil field of Rumaila. In the United Arab Emirates, BP is working with government-owned
producer Adnoc to boost the capacity of onshore oil fields in Abu Dhabi.
The company also aims to extract gas from the Bad field in the emirate, Willis was quoted as stating.
The news report noted that gas output from Oman’s Block 61, in which BP has a majority interest,
could be raised quickly depending upon market demand. BP has plans to develop about 10.5 trillion
cubic feet (TCF) of gas reserves from the Block. As many as 300 wells are planned for drilling over
the 15-year life Khazzan and Ghazeer developments.
As of June 2030, investments made by BP Oman in the block aggregated $9.3 billion out of a total
commitment of $16 billion planned during the life of the project. BP is the operator of Block 61 with
a 60-per cent stake, while the remainder is held by OQ (30 per cent) and Petronas (10 per cent).

U.S. shale firms amp up N.Gas output as futures signal more gains
Reuters - Jennifer Hiller, Scott DiSavino ( + NewBase )
Higher natural gas futures prices for 2021 and a continued glut of crude oil are prodding U.S. shale
firms to boost gas drilling and production.
Shale producers are increasing spending on natural gas, a change from the past, amid forecasts
for a 45% jump in gas prices next year compared to a 15% gain for Brent prices. The shift is a
reminder to the Organization of the Petroleum Exporting Countries meeting this week how shale
moves quickly in response to price. The OPEC group is considering whether to ease oil output curbs
from Jan. 1.
The largest U.S. shale oil producer, EOG Resources, this month said next year it will start selling
gas from 15 new wells from a newly discovered field holding 21 trillion cubic feet of gas. Continental
Resources recently shifted drilling rigs to gas from oil in Oklahoma. Apache Corp this month said it
plans to complete three Texas wells after lifting its third-quarter U.S. gas production by 15% over
the second quarter and 6% over the same period last year.
“Demand has remained pretty robust. Supply has been starved for capital,” said Christopher Kalnin,
chief executive of Denver-based Banpu Kalnin Ventures, which last month closed a deal to acquire
Devon Energy natural gas assets. Banpu Kalnin has hedged about 65% of its gas production for
next year.
The number of U.S. rigs drilling for natural gas, an indicator of future output, has climbed 13% to 77
since July. About a quarter of all active U.S. rigs are drilling for gas, up from 16% last year, according
to services firm Baker Hughes.

In the Haynesville gas field that spans Louisiana and Texas, the number of working rigs is up 25%
since July. Rigs also are up 8% in the Marcellus, the top U.S. gas field.
HIGHEST IN TWO YEARS
Gas prices could jump 45% to an average $2.94 per million British thermal units (mmBtu) in 2021,
from $2.03 this year, analysts predict. That would be the highest annual average since 2018.
[NGAS/POLL] Summer 2021 prices could hit $3.50 per mmBtu, according to Bank of America, from
$2.84 per mmBtu on Friday.
Helping drive the improved outlook is expanding U.S. liquefied natural gas (LNG) shipments. This
month, LNG exports rose above pre-COVID-19 levels and could average 8.4 billion cubic feet per
day in 2021, a 31% increase from 2020, according to the latest U.S. Energy Information
Administration forecast.
Producers have doubled their natural gas hedges since March, locking in prices for future output.
They have hedged 53% of next year’s gas volumes compared with 43% of their oil, according to
finance services firm Raymond James.
Natural gas “has not been hit as hard as crude,” by the COVID-19 pandemic, said Bernadette
Johnson, a vice president at data provider Enverus. “For those that have some diversity in their
assets, it can help them weather the storm.”
EOG’s gas wells at its new field are as profitable as its best oil wells. Future drilling there after 2021
will be “based on market conditions,” said Executive Vice President Ken Boedeker.
GAS SHARES CLIMB
Gas prices are benefiting in part from oil drilling cutbacks that reduced associated gas, or gas
produced as a byproduct of oil output. The decline in associated gas has led to the current gas-
price rally, said Eugene Kim, analyst at consultancy Wood Mackenzie.
The price rally has boosted shares of natural gas-focused shale producers. Range Resources is up
about 65% this year, EQT by 48% and Southwestern Energy Co has climbed more than third. In
contrast, the SPDR S&P Oil & Gas Exploration & Production ETF is down 39% through Friday.

NewBase November 30-2020 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Retreats on Signs of OPEC+ Discord Ahead of Key Meeting
Bloomberg + NewBase
Oil prices dropped as a consensus within OPEC+ to postpone an output hike planned for January
remained elusive ahead of a meeting of the cartel’s power brokers later on Monday.
January Brent crude futures, which will expire later on Monday, dropped 85 cents, or 1.76%, to
$47.33 a barrel by 0355 GMT. The more actively traded February Brent contract was at $47.83 a
barrel, down 42 cents. U.S. West Texas Intermediate crude futures for January fell 71 cents, or
1.56%, to $44.82 a barrel.
Futures in New York declined 1.8%. Most participants in an informal discussion of OPEC+ ministers
on Sunday supported keeping production curbs at current levels into the first quarter, said one
delegate, although there was opposition from the United Arab Emirates and Kazakhstan.
The Trump administration, meanwhile, is poised to add four Chinese companies including China
National Offshore Oil Corp. to a list of firms blocked from American investment due to military ties,
Oil price special
coverage

Reuters reported. Worsening relations between the world’s two largest economies may threaten
energy demand.
Oil is still set for the biggest monthly gain since May as Covid-19 vaccine breakthroughs raised
optimism for a long-term rebound in fuel consumption. Unless the existing OPEC+ agreement is
revised this week, however, producers will restart about 1.9 million barrels a day of halted output,
potentially pushing the global market back into surplus.
While a majority of OPEC-watchers are expecting a three-month delay to the planned output
increase, a recent price rally may complicate talks. Some producers such as Iraq -- which is seeking
an upfront payment for its crude -- are facing a cash squeeze and are keen to pump more.
“The argument that might be going on within OPEC centers around the big improvement in the
demand outlook for 2021,” said Michael McCarthy, chief market strategist at CMC Markets. “The
expectation is that Asian demand will lead the way and drive the improvement in the market,
particularly with Europe and the U.S. potentially facing further Covid containment measures.”
Vaccine optimism is also having an impact on oil’s forward curve. Brent’s prompt timespread flipped
into backwardation at the start of last week -- a sign that concerns about over-supply have eased -
- although it moved back into contango on Friday. It was 10 cents in contango on Monday.
“With the strong rally we have seen in the flat price and timespreads more recently, I am sure some
members would question: why roll over cuts?” said Warren Patterson, head of commodities strategy
at ING Group. “If Brent were still trading closer to $40, I think there would be less hesitation, as it
would be pretty clear that OPEC+ needs to do more.”
China is continuing its robust rebound from the virus-induced crash. An official gauge of
manufacturing activity rose faster that expected in November, while at least one fuel supplier is
gearing up for an expected surge in air travel ahead of the Lunar New Year holiday in February.
Saudi Aramco, meanwhile, may increase the official selling price of its crude to Asian customers for
January amid rising physical demand, according to a Bloomberg survey.

The blacklisting of explorer CNOOC comes as the Trump administration plans several new hard-
line moves against Beijing in the final weeks of its term. The company’s operations in the South
China Sea have run into controversy because China claims drilling rights in waters far from its
borders.
The Middle East, meanwhile, is once again seeing rising tension. An oil refinery in Iraq’s north was
hit by a rocket, causing a fire, according to al-Arabiya television. That comes after Iran accused
Israel and the U.S. of being behind the assassination of one of its top nuclear scientists Friday,
vowing revenge.
However, both benchmarks are still set for a rise of more than 20% in November, the strongest
monthly gains since May, boosted by hopes for three promising coronavirus vaccines to limit spread
of the disease and thus support fuel demand.
Analysts and traders also expect the Organization of the Petroleum Exporting Countries (OPEC)
and allies including Russia - the OPEC+ grouping - to delay next year’s planned increase in oil
output as a second COVID-19 wave has hit global fuel demand.
OPEC+ previously agreed to raise output by 2 million barrels per day (bpd) in January - or about
2% of global consumption - after record supply cuts this year.
The group held an initial round of talks on Sunday, but has yet to reach consensus on oil output
policy for 2021 ahead of key meetings on Monday and Tuesday, four OPEC+ sources told Reuters.
Monday’s meeting begins at 1300 GMT.
“While we base-case a 3-month delay to prevent a return to a global oil surplus through 1Q21, not
all producers appear onboard,” Goldman Sachs analysts said. A lack of extension, representing a
downside of $5 a barrel from current spot levels in the analysts’ modelling, would further contribute
to short-term price gyrations, they added.
The winter wave of infections is expected to crimp global oil demand by 3 million bpd, they said,
which would only partially be offset by heating and restocking demand in Asia. ANZ estimated that
the oil market surplus could run as high as 1.5 million to 3 million bpd in first half of 2021 if OPEC+
did not extend cuts.

Rising Middle East tension over the weekend, over events ranging from the assassination of Iran’s
top nuclear scientist to Islamic State’s rocket attack on an oil refinery in northern Iraq propped up
oil prices.
In the United States, the number of operating oil and natural gas rigs has risen for the fourth month
in a row as producers return to the wellpad with crude prices mostly trading over $40 a barrel since
mid-June.
China, the world’s second-largest economy and top oil importer, expanded factory activity at its
fastest in more than three years in November, keeping on track to be the first major economy to
fully recover from the coronavirus crisis.
OPEC alliance considers delay to its output hike
KEY POINTS
 The coalition known as OPEC+, which comprises some of the world’s largest crude
producers, will begin a two-day meeting Monday to discuss the next phase of its production
policy.
 It agreed to the largest single output cut in history back in April.
 But that reduction of 9.7 million barrels per day (bpd) was subsequently scaled back to 7.7
million in August.
Oil-producing group OPEC, and its allies, will likely delay an output hike at its meeting this week as
it weighs positive vaccine news against new coronavirus lockdowns and resurgent shale drilling in
the U.S.
The coalition known as OPEC+, which comprises some of the world’s largest crude producers, will
begin a two-day meeting Monday to discuss the next phase of its production policy.
It agreed to the largest single output cut in history back in April, but that reduction of 9.7 million
barrels per day was subsequently scaled back to 7.7 million in August. Taking oil off the market,
with OPEC kingpin Saudi Arabia often bearing the brunt, usually boosts crude prices and helps their
commodity-focused economies.
A planned 2 million bpd January production ramp-up looks set to be delayed, according to market
consensus, with analysts differing on whether that would be for three months or six months.
Price predictions
Caroline Bain, chief commodities economist at Capital Economics, believes the meetings on
Monday and Tuesday won’t spring any surprises, saying an extension of the production cut is largely
priced in.
“We now think that the oil price (Brent) will stand at $60 per barrel by end-2021,” she said in a
research note Friday, revising forecasts due to the encouraging vaccine trial data from pharma
giants that could help reopen economies after the coronavirus crisis.
Many market watchers see both oil benchmarks at, or around, $50 a barrel over the next year as
demand slowly builds after the shock seen in March and April. The price of U.S. oil plunged into
negative territory during the first wave of the pandemic as Saudi Arabia and Russia stuttered over

an output deal. But Brent crude futures now stand at $48.18 a barrel, with U.S. West Texas
Intermediate futures at $45.52.
Ron Smith, an oil and gas analyst at BCS Global Markets, believes there are reasons to be bullish
on prices, especially on a six-month view. In a research note emailed to CNBC last week, he said
that oil could go to the mid-$50s by the end of 2021.
Return of shale
But both Smith and Bain point out that OPEC+ will be keeping a keen eye on U.S. shale producers,
and would be loath to allow them to significantly re-ramp production without increases of its own.
The U.S. industry is now a key swing supplier in global markets, and has been a thorn in the side
of OPEC for the last decade — gradually taking on more market share at OPEC’s expense. The
recent rally in oil prices could supercharge a return in American rig counts — which have just seen
their 10th weekly increase in 11 weeks.
BCS Global Markets are therefore cautious on the recent price rally, despite their bullish outlook.
The investment bank says there is substantial supply waiting in the wings from OPEC+ and “hyper-
dynamic U.S. shale producers itching to drill again.”
″(Rig activity) was rising steadily this fall, even before oil began its most recent rally. We think that
as oil prices head towards $50/bbl, a key inflection point may be crossed, accelerating U.S. oil
drilling activity and, with a small lag, oil production,” Smith said.
“We are watching OPEC+, which in turn is likely watching for any reaction from U.S. shale
producers,” he added.
Bain also concluded that a gradual recovery in U.S. production, alongside the return of “some”
OPEC+ supply, will act as a ceiling on oil prices in the not too distant future.

NewBase Special Coverage
The Energy world – Nov. 30 -2020
The Energy Project Trump Can’t Stop Seeks Ways to Finish the Job
Bloomberg - Vanessa Dezem and Dina Khrennikova
Russia can probably get around the latest U.S. sanctions against Nord Stream 2 and complete the
controversial pipeline, according to industry executives and analysts.
Pipelaying on the project, which is owned by Gazprom PJSC and will bring natural gas from Russia
to Germany, will restart on Dec. 5, the pipeline company said on Sunday. And analysts
say Gazprom also has options to overcome a new round of sanctions the U.S. Congress is set to
approve in the next three weeks.
A crane moves sections of Nord Stream 2 pipes at the Mukran port June 5, 2019 near Sassnitz, Germany.
The 9.5 billion-euro ($11.2 billion) link under the Baltic Sea has become a major source of friction
in the trans-Atlantic relationship, with President Donald Trump urging Europe part back its
dependence on Russian energy supplies. German companies and Chancellor Angela Merkel are
bridling against America’s interference, and the western companies set to reap rewards once gas
starts flowing have vowed to move ahead.

“The pipeline company will restart pipe laying activities, and this pipeline will be finished,” said
Rainer Seele, chief executive officer of OMV AG, the Austrian oil company that’s among the western
backers of the link. “We are convinced this project is needed.”
The Nord Stream 2 undersea link to Germany.
Both Democrats and Republicans are pushing for legislation by the end of the year that would
tighten sanctions against Nord Stream 2. President-elect Joe Biden has joined Trump in opposing
Nord Stream 2, leaving little hope that his inauguration in January will defuse the issue.
Gazprom has three challenges to resolve to move forward: finding a ship to do the work, obtaining
insurance for the project, and getting certification that the work being done is safe and complies
with European Union standards. Gazprom and Russia are working on all three fronts.
“All in all, it is still possible for Nord Stream 2 to be built by summer 2021 and get all the necessary
certification to flow gas the following winter,” said Katja Yafimava, senior research fellow at the
Oxford Institute for Energy Studies and one of Europe’s foremost authorities on pipeline politics.

Further sanctions probably will lengthen that timeline, but she expects Gazprom eventually will find
solutions to each of the hurdles thrown up. The U.S., she says, “must realize it cannot stop it.”
Who’s Dependent on Russia’s Gas?
Fourteen countries get more than 50% of their gas from Russia
There are signs Merkel’s government will help. Ministers in Berlin are coordinating a response with
EU nations to the U.S. sanctions, and lawmakers joined industry groups in complaining that
American officials are overstepping their authority. Germany’s BDI industry lobby has lashed out at

U.S. intervention, saying it “will not only cause considerable economic damage, but will also
undermine the sovereignty of Germany and the European Union.”
Just a few weeks away from completion, work stopped on the 1,230-kilometer (764-mile) pipeline
last December when the U.S. targeted measures against companies working on the link. The Swiss
company Allseas Group SA pulled a vessel it had laying the pipeline off the project with all except
160 kilometers already in place on the floor of the Baltic Sea.
The biggest question mark has been whether Gazprom has found a ship to finish the work. There
was no word on Sunday from Nord Stream 2 about which vessel would be used.
Earlier this year, the company brought a ship called the Akademik Cherskiy into the region. It is
currently traveling through the Baltic Sea after spending time in Mukran, a key logistics port on the
Germany coast, Bloomberg ship-tracking data shows.
Russian pipe-laying vessel ‘Akademik Tscherski,’ at the Baltic port of Mukran on the island of
Ruegen in Sassnitz, Germany, on Wednesday, Nov. 4, 2020.
The next round of sanctions are aimed at preventing companies that access the U.S. financial
system from writing insurance for Nord Stream 2. That would hit the primary insurer Zurich
Insurance Group AG, according to people with knowledge of the pipeline’s arrangements on that
matter. Zurich Insurance said it never comments on specific customers and that it would comply
with any regulations that apply.
Because of the size of the project, it will probably require a reinsurer to help underwrite the costs.
The sanctions may force Nord Stream 2 to source all those services in Russia, perhaps from state-
backed entities. One possible solution is the Russian National Reinsurance Co., or RNRC, which

was created by Moscow to deal with sanctions risks. There’s no restriction on the nationality of the
company writing insurance for the project.
“Russia several years ago took care of creating additional domestic capacities for insurance and
reinsurance of sanctioned risks, the risks that cannot be ceded to the international markets,” said
Anastasia Litvinova, director for EMEA insurance at Fitch Ratings. She declined to comment on
specific proposals against Nord Stream 2.
Certification is another issue that will take time to solve. Det Norske Veritas Holding AS, the
Norwegian company verifying the pipeline’s safety and integrity, said it’s scaling back work for Nord
Stream 2 ahead of the decision on sanctions. Denmark’s energy agency says Nord Stream 2 can
hire any third party to fulfill legislation, which could allow a Russian company to step in.
Yafimava says Gazprom probably needs to find a state-owned entity to do certification if the U.S.
sanctions extend to that part of the business, “which is not impossible, but it takes time.”
So far, none of Nord Stream 2’s financial backers have pulled out despite escalating anger from the
U.S. OMV along with Royal Dutch Shell Plc, Uniper SE, Engie SA and Wintershall AG helped
finance the project. Engie’s Chief Financial Officer Judith Hartmann said he’s “still hopeful” that Nord
Stream 2 will be completed.

NewBase Energy News 30 November 2020 - Issue No. 1390 call on +971504822502, UAE
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Khaled Al Awadi is a UAE National with over 30 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 the UAE operations base. Khaled is the Founder
of NewBase Energy, and an international consultant, advisor, ecopreneur and
journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-
to-energy, renewable energy, environment protection and sustainable development.
His geographical areas of focus include Middle East, Africa and Asia. Khaled has
successfully accomplished a wide range of projects in the areas of Gas & Oil with
extensive works on Gas Pipeline Network Facilities & gas compressor stations.
Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
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New base energy news 30 november 2020 issue no-1390 by senior editor khaled al awadi -_compressed

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New base energy news 30 november 2020 issue no-1390 by senior editor khaled al awadi -_compressed