New base energy news issue 839 dated 27 april 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,
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NewBase Energy News 27 April 2016 - Issue No. 839 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
gas projectAl HosnUAE: Crown Prince inaugurates
The National - Anthony McAuley
Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of
the UAE Armed Forces, on Tuesday officially inaugurated the US$10 billion Al Hosn sour gas
project in Al Gharbia and was briefed on the possible expansion of the strategically important
energy sector development.
Sheikh Mohammed, accompanied by Sheikh Hamdan bin Zayed and Sheikh Mansour bin Zayed,
together with Sultan Al Jaber, chief executive of Adnoc and Vicki Hollub, incoming chief executive
of Occidental Petroleum, cut the ribbon on the project, which began ramping up production last
year.
Al Hosn, which is 60 per cent owned by Adnoc and 40 per cent by Occidental, is the world’s
largest ultra-sour gas development project, extracting 1 billion cubic feet per day of ultra-sour gas
from the Shah gasfield. About half of this volume ends up being fed into the UAE’s gas
transmission network to meet the country’s growing gas demand and reduce the need for imports.
Sheikh Mohammed bin Zayed, centre, Crown Prince of Abu Dhabi
and Deputy Supreme Commander of the UAE Armed Forces, with
Sultan Al Jaber, right, chief executive of Adnoc, and Vicki Hollub,
incoming chief executive of Occidental Petroleum. Ryan Carter .

Demand for natural gas in the UAE has been rising rapidly – about 6 per cent a year – and the
country has had to import an increasing amount since 2008.
“Occidental is looking forward to the possibility of expanding the Al Hosn gas project to help the
UAE meet its energy needs," Ms Hollub said. The project provides 10 per cent of the country’s
natural gas, contributing to producing energy that supplies more than 200,000 houses with water
and electricity, according to Al Hosn.
The Shah gasfields, which are in the desert about 210 kilometres south-west of Abu Dhabi city,
have very high levels of hydrogen sulphide, averaging 23 per cent, as well as high levels of
carbon dioxide.
The project is being closely watched by the industry worldwide for the manner in which it deals
with the technological and economic challenges, which includes recovery of sulphur on an
unprecedented scale.
After processing, about 10,000 tonnes per day of “pure granular sulphur" is harvested and
transported by rail to the facility at Ruwais for export for production of fertilizer and sulphuric acid.
The project produced about 2 million tonnes of sulphur last year and is forecast to produce 3.2
million tonnes this year.
Speaking during his tour of the project, Sheikh Mohammed praised Adnoc’s role in positioning the
UAE on the global energy map as a reliable and secure source of natural gas. He expressed his
support for Adnoc’s plans to ensure a sustainable supply of gas and its commitment to developing
the needed infrastructure and skills.
“The inauguration of the Al Hosn Shah sour gas development project is an important milestone for
Adnoc as we maximise the value of Abu Dhabi’s gas resources to meet the United Arab Emirates
and the world’s growing demand," Mr Al Jaber said. “It is a prime example of how Adnoc utilises
innovative solutions to deliver on our strategic objectives and maintain our competitive edge."
While Ms Hollub did not elaborate on what the expansion of Al Hosn might entail, the project
already is expected to be lucrative for her company. Stephen Chazen, the outgoing Occidental
chief executive, said he expects the company’s 40 per cent stake to generate between $300m and
$600m of “free cash flow" a year.

Qatar to let domestic fuel prices fluctuate in subsidy reform
Reuters + NewBase + gulf Times
Qatar will allow its domestic gasoline and diesel prices to fluctuate in response to changes in
global markets as it seeks to reduce waste of fuel and save money for the state budget.
Currently, local fuel prices are fixed at low levels, requiring the government to spend on subsidies
to keep them down. From next month, prices will fluctuate monthly, the official Qatar News
Agency (QNA) said on Tuesday.
Future prices will be based on a formula that includes global levels, production and distribution
costs within Qatar, and prices elsewhere in the region, QNA said without giving further details of
the formula.
Qatar's state budget has been strained as low international oil and gas prices have slashed its
export revenues, so it has been looking for ways to save money.
In January the government raised domestic prices of gasoline by 30 percent, but at 1.30 riyals
($0.357) per litre, the price of Super 97-Octane gasoline remained among the lowest in the world,
encouraging a preference among drivers for huge sports utility vehicles.
Sheikh Mishaal bin Jabor al-Thani, chairman of a government-led commission studying the issue,
told QNA on Tuesday that the new system would not necessarily mean higher domestic prices,
but that they could now rise and fall when global levels moved.
Other Gulf countries have implemented or are considering such a reform as low oil prices
pressure their finances; the United Arab Emirates moved to a similar formula for domestic fuel
prices last year.

UAE: Eight in race for 350MW Abu Dhabi solar park project
WAM
A total of eight major international engineering firms have been prequalified by Abu Dhabi Water
and Electricity Authority (Adwea) for a 350-megawatt (MW) solar park in the UAE capital.The
Abu Dhabi utility plans to build the project in Sweihan, about an hour’s drive east of the capital,
reported the state news agency Wam.
This will be Adwea’s first foray into the solar sector, and many companies are lining up to get a
chunk of the project, including regional firms such as Masdar and the Saudi company Acwa
Power, stated the report.
The pre-qualified bidders are :-
• Acciona/Swicorp (as consortium),
• Acme, Acwa Power, Adani, Alfanar / Building Energy (as consortium),
• Canadian Solar, China State Construction Engineering Corporation, EDF Energies
Nouvelles, Elecnor, Enel, Engie, Equis, First Solar, Fotowatio FRV, Golden Concord
Holdings / PAL Technology (as consortium),
• Hindustan Clean Energy, Intecsa / Cobra (as consortium);
• JGC, Jinko Solar, Kepco/GS Engineering & Construction/Hanwha Q Cells (as
consortium);
• Mainstream, Marubeni, Masdar, Mitsui, Phelan Energy Group, ReNew Solar Power/Japan
Renewable Energy (as consortium);
• RWE/Belectric (as consortium);
• Sojitz, Solar Reserve, Spectrum/Maessa/Leighton Contracting (as consortium);
• Stumpf/Mena Infrastructure Fund (as consortium),
• Tenaga, Total / Sunpower (as consortium),TSK.
The winning developer or developer consortium will get to own up to 40 per cent of the project
company, while the remaining 60 per cent equity will be held, directly or indirectly, by Adwea.
The scope of work includes development, financing, construction, operation, maintenance and
ownership of the greenfield renewable power generation plant with a 350 MW power generation
capacity, together with associated infrastructure.
Over 90 companies had originally responded to the Abu Dhabi utility’s request for an expression
of interest anf following a comprehensive review process, it got shrunk to 34 companies
(including local companies).
Out of these companies, eight have been pre-qualified on a sole stand-alone basis, or as part of
an already formed consortium, said the report. These companies are free to submit a proposal
on such basis without the need to form or join a consortium.
The remaining 26 companies have been pre-qualified on a conditional basis and have been
advised that within 28 days they are required to join, or form a consortium, subject to certain
specified conditions, before they are formally pre-qualified to submit a proposal, it added.
Based on the specific conditions governing the formation of consortia defined by the procurer a
maximum of 15 bids can be received. The deadline for bid submission has been set in the RFP
for September 19.

Saudis and Kuwait struggle to restart Khafji oilfield as glut persists
By Reuters
Kuwait and Saudi Arabia appear no closer to restarting their jointly operated Khafji oilfield, industry
sources said, despite Kuwait saying the sides had agreed to ramp up output after an 18-month
shutdown.
Any delay in the restart of the Neutral Zone field that produced 280,000 to 300,000 barrels per day
(bpd) before environmental problems forced its closure in October 2014 will be seen as a boost to
global oil markets struggling to shake off a glut that has sent prices diving over the past two years.
Kuwait's acting oil minister said on March 29 that Kuwait had agreed with neighbouring Saudi
Arabia to resume production at the field.
Riyadh has yet to confirm that announcement, and Saudi-based industry sources say there has
been no breakthrough in talks to resolve what has become a political sticking point between the
two Gulf OPEC allies.
"There has been no change in the situation so far in Khafji," one Saudi oil industry source said.
Another source said: "Talks are still going on to resolve the issue ... Hopefully it will be (resolved)
soon." A third industry source, who has visited Khafji, said: "There's nothing happening ... the
status quo is still the same."
Chevron, which operates the nearby Wafra field in the Neutral Zone on behalf of Saudi Arabia,
has told investors they should not expect oil to flow soon from either field as preparations have yet
to begin for a restart, sources said.
"We continue to monitor the situation and we are encouraged by efforts underway by all
appropriate parties to resolve the issue. Production will remain shut in until the situation is
resolved," the U.S. oil company said in a statement to Reuters.
Wafra, which has an output capacity of about 220,000 bpd of Arabian Heavy crude, has been shut
since May 2015 due to operational difficulties. Khafji and Wafra are part of a long-standing dispute
between Kuwait and Riyadh, mainly over operation rights.
Senior officials from both countries have been trying to resolve the issue for months. Even
Kuwait's ruler, Emir Sheikh Sabah al-Ahmed al-Sabah, was quoted by local media as talking in
January about the oilfields' closure.
Kuwait has limited spare production capacity and therefore been hit harder than Saudi Arabia by
the closures. Kuwait's production capacity is estimated at 3.2 million bpd, compared to Saudi
Arabia's 12 million bpd.
The Neutral Zone is the only place in Saudi Arabia and Kuwait where foreign oil firms have equity
in fields, which are otherwise owned and operated by state oil companies. Crude output is divided
equally between the two countries.

Uganda says Tanzania transit fees for its oil capped at $12.20/barrel
Source: Reuters
Uganda said on Tuesday the cost of pumping its crude oil via a pipeline through Tanzania will be
capped at $12.20 per barrel although the two had yet to agree a final levy in a project likely to be
a public private partnership.
On Saturday landlocked Uganda said it had picked a route through Tanzania to Tanga port for
the pipeline, rejecting one through Kenya, with which it had agreed last year to host the same
pipeline.
Uganda and Kenya have confirmed
commercial crude reserves and the
potential for substantial extra
discoveries, and oil firms in both
countries have been eager for an
agreement on the export pipeline to
make final investment decisions.
Kenya, which has discoveries in the
Lokichar basin in its northwest, had
pitched for the pipeline to link the two
countries' fields and onto its Lamu
port, earning it transit fees and
potentially cutting the cost of exporting
its own oil. Uganda's Energy and
Mineral Development Minister Irene
Muloni also told Reuters the pipeline
was expected to be ready by 2020.
When asked what key considerations
had gone into Uganda's decision to
pick Tanzania for the route, Muloni
said: 'A project cost of $3.55 billion and a (transit) tariff of not more than $12.2 per barrel ... those
were the considerations.'
French oil major Total, which had favoured the Tanzanian route, has said it is willing to fund the
project but has not stated whether it wanted to fully or partially own it. Total owns fields in
Uganda alongside China's CNOOC and London-listed Tullow Oil which also operates in Kenya.
'It's most likely to be a PPP (public private partnership) arrangement,' Muloni said in a telephone
interview, referring to the pipeline's ownership. In March, Tanzania's presidency said Total had
set aside $4 billion to build the pipeline and that Tanzania wanted the three-year construction
timetable shortened.
Emma Gordon, senior Africa analyst at UK-based risk consultancy Verisk Maplecroft, said in a
research note Tanzania offered Uganda incentives including a promise to waive transit fees for
an initial period to secure the deal.
Muloni did not confirm the fees waiver promise but a day before the pipeline decision was
announced she said Tanzania had agreed to take an 8 percent stake in Uganda's planned
refinery, a move seen as an extra sweetener for the pipeline deal.

UK motorists clamour for price cuts in a world awash with oil
The National - Angela Jameson
Even when oil prices are at record lows, motorist groups in the United Kingdom are still actively
demanding cuts to pump prices.
Since the supermarkets entered the petrol market, there has been intense competition in petrol in
the UK with motorists encouraged to shop around in their local area. Today, apps are also helping
drivers to find the best deals, day by day.
Petrol retailers are having to react daily to price changes but most will agree that motorists were
lucky in the first three months of this year.
The supermarkets led petrol prices below the £1 (Dh5) a litre mark just before Christmas and kept
it there until about the second week in March, despite the fact that the price of Brent crude has
recovered by about 30 per cent since January.
Pressure was also put on the
chancellor of the exchequer, or
finance minister, George
Osborne in March to freeze
fuel duty that would have
added 4 to 5 pence a litre at
the pumps. Mr Osborne caved
in to the campaign, even
though it cost the UK treasury
about £1.5 billion. Yet the
chancellor still takes more than
70 per cent of the cost of a litre
in tax.
In fact, record low oil prices
are only of limited help to
petrol retailers, who strike long
cost-plus contracts with their
fuel supplier.
Independent forecourt owners,
particularly, have to keep a
close watch on supermarket
prices in their area because if
they become too far out of step, they will lose customers for good. While margins on fuel sales
hover around 3 to 4 per cent, the successful retail businesses have margins of between 20 and 30
per cent, according to industry experts.
Now pump prices are rising again, for the first time in almost a year, with the average litre costing
107.8p last week (April 21), according to the RAC. These prices are still a long way from the all-
time high of 142p a litre in April 2012. Motorists may complain that prices are rising again, but they
can at least take comfort from the unsuccessful Opec meeting in Qatar this month.
Forecasts that oil prices will hit US$60 per barrel before the end of the year look some way off,
following the oil producers’ inability to agree to freeze output.

Canada expects lower natural gas exports to U.S., higher LNG
exports to other countries
EIA, based on Canada's National Energy Board,
In its recent publication, Canada's Energy Future (CEF), Canada's National Energy Board (NEB)
projects that both Canada's natural gas production and its domestic natural gas consumption will
increase through the next decade. Exports of natural gas by pipeline to the United States are
expected to continue to decline. The planned construction of liquefied natural gas (LNG) export
terminals on Canada's western coast, which would send LNG exports to Asian markets by 2019,
plays a key role in maintaining Canada's overall natural gas exports.
Highlights from Canada's outlook include:
Net natural gas exports to the United States. The NEB expects that Canadian natural gas net
exports to the United States will fall to 2.5 billion cubic feet per day (Bcf/d) by 2025, shrinking to a
negligible volume by 2040. Net exports to the United States have already decreased from a high
of 10.6 Bcf/d in 2007 to 7.4 Bcf/d in 2014.
With the continued development of U.S. shale resources, such as the Marcellus, the United States
now relies less on Canadian imports to meet demand. By 2040, CEF projects that U.S. natural
gas exports to eastern Canada will largely offset Canadian natural gas exports to the United
States.
Liquefied natural gas exports to other destinations. With the decline of natural gas exports to
the United States, LNG exports are expected to be the primary driver of Canadian natural gas

production growth, with production growing from 15 Bcf/d in 2015 to nearly 18 Bcf/d in 2025. The
NEB analyzes two additional cases in CEF to explore the impact of LNG exports on production.
In a low-LNG case, where no liquefaction facilities are constructed, production remains at the
2015 level of 15 Bcf/d through 2040. In a high-LNG case, where LNG exports reach 4.0 Bcf/d by
2023 and 6.0 Bcf/d by 2030, production increases to 22 Bcf/d by 2040. Based on these results,
CEF anticipates that future Canadian natural gas production growth will rely on the construction of
LNG export capacity.
Natural gas production. Recent technological advances in horizontal drilling and hydraulic
fracturing have led to increased development of tight gas and shale gas resources in the Western
Canadian Sedimentary Basin.
CEF expects this development to continue as Canada's domestic natural gas production grows to
nearly 18 Bcf/d by 2025. Tight natural gas accounts for 70% of projected production in 2025, and
most of this natural gas is from theMontney formation in British Columbia and Alberta, where
production is projected to triple from 3.0 Bcf/d to 9.6 Bcf/d between 2014 and 2040. Production
growth also occurs in the Alberta Deep Basin (tight) and the Horn River Basin (shale). These
increases offset the decline in production from other resources.
Source: U.S. Energy Information Administration, based on Canada's National Energy Board,
Canada's Energy Future 2016: Energy Supply and Demand Projections to 2040
Domestic natural gas consumption. Canadian natural gas consumption is also projected to rise,
reaching 16.4 Bcf/d by 2025 and 18.6 Bcf/d by 2040. The industrial sector, which includes refining
and oil exploration, is the primary driver of this growth, as well as the largest consumer of natural
gas.
Oil sands operations alone currently account for 20% of Canadian natural gas consumption. By
2040, CEF expects oil sands production to more than double to 4.8 million barrels per day,
consuming 3.4 Bcf/d of natural gas. Another source of natural gas demand growth is electricity
generation, whose consumption rises to more than 3.2 Bcf/d by the end of the projection period.

NewBase 20 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 jump on weak dollar, strong investor appetite
Reuters + NewBase
Crude oil futures rose half a dollar in early Asian trading on Wednesday and remained near 2016
highs on the back of strong investor sentiment and a weak dollar, although analysts warned this
month's bull-run could soon run out of steam.
International Brent crude futures were trading at $46.26 per barrel at 0023 GMT, up 52 cents, or
1.1 percent, from their last settlement. U.S. West Texas Intermediate (WTI) crude was also up 52
cents, or 1.2 percent, at $44.56 a barrel.
WTI was further lifted after the American Petroleum Institute (API) reported a drawdown of nearly
1.1 million barrels in U.S. crude inventories last week versus a 2.4 million-barrel build expected by
analysts in a Reuters poll. Both Brent and WTI were near 2016 highs of $46.49 and $44.83,
respectively reached the previous session.
Beyond strong investment appetite from financial traders, analysts said crude was receiving
support from a falling dollar, which has shed 5 percent in value against a basket of other leading
currencies since the beginning of the year. A weak dollar, in which crude is traded, makes fuel
imports cheaper for countries using other currencies at home, potentially spurring demand.
"A weaker U.S.-dollar and expectations of stronger fundamentals drove crude oil prices higher.
Sentiment continues to improve, with major producer BP suggesting the markets may rebalance
by the end of the year," ANZ bank said on Wednesday.
Oil price special
coverage

Oil's Magic Number Becomes $50 a Barrel for Promise of Recovery
Cloomberg - David Wethe
The new magic number in the oil industry is $50.
BP Plc, rig-owner Nabors Industries Ltd. and explorer Pioneer Natural Resources Co. all said in
the past 24 hours that prices above $50 will encourage more drilling or provide the needed boost
to cash flow. With oil bouncing close to $45 a barrel, an industry that has been shaving costs to
stay competitive is ready for signs of stability at a price level less than half of 2014’s average.
At an average price of $53 per barrel of oil means the world’s 50 biggest publicly traded
companies in the industry can stop bleeding cash, according to oilfield consultant Wood
Mackenzie Ltd. Nabors, which owns the world’s largest fleet of onshore drilling rigs, said it has
already been talking with several large customers about plans to boost work in the second half of
the year if prices rise "comfortably" above $50.
"It’s not just about touching $50," Fraser McKay, vice president of corporate analysis at Wood
Mackenzie in Houston, said Tuesday in a phone interview. "It’s about touching, maintaining and
having the perception of future prices above $50 a barrel before you start sanctioning projects that
are economic at $50 a barrel."

Spending Cuts
The global oil industry slashed more than $100 billion in spending last year and is in the midst of
further cuts this year to survive what Schlumberger Ltd. has called the industry’s worst-ever
financial crisis. In North America alone, spending is expected to drop by half from last year.
Prices have rebounded by about two-thirds from a 12-year low, with Brent, the international crude
benchmark, trading above $45 a barrel Tuesday. The rally has explorers from BP to Pioneer
looking ahead to an eventual recovery as they release first quarter earnings this week.
Next year, BP will be able to balance cash flow with shareholder payouts and capital spending at
an oil price of $50 to $55 a barrel, down from a previous estimate of $60, the London-based
explorer said. Pioneer expects to add as many as 10 horizontal drilling rigs when oil reaches $50
and the outlook for supply and demand of crude is positive, the company said Monday in its
earnings statement.
For every $5 that oil prices climb, above a baseline of $37, Continental Resources Inc. adds
another roughly $200 million in revenue, Chief Operating Officer Jack Stark said last month in an
interview in New Orleans. By the time oil prices reach $52, the Oklahoma City-based explorer
would probably look at adding more rigs, he said.
"We won’t chase price spikes," Stark said. "We’re committed to being patient."
Failed Rally
Yet even talk of ramping up again is bringing a stinging reminder of last year’s failed attempt to
restart activity too quickly after oil prices rose.
"We got out ahead of ourselves -- bit of a head fake there," Tony Petrello, chief executive at
Nabors, told analysts and investors Tuesday on a conference call. "We’re going to be a little more
guarded here."
Exactly when oil prices hit that level and how long they need to stay there is a question no one
can say for sure. Nabors said the activity could start up in the middle of the third quarter or into the
final three months of this year. Continental estimated that supply and demand could be nearing
balance later this year and be "absolutely in balance" or in need of more oil next year.
"The absolute timing may be off a bit," Stark said, "but ultimately it’s going to happen."

NewBase Special Coverage
News Agencies News Release 20 April 2016
Exxon Mobil Loses Top Credit Rating It Held Since Depression
Bloomberg - Joe Carroll
The worst oil crash in a generation has cost Exxon Mobil Corp. the gold-plated credit rating it had
held since the Great Depression.
Standard & Poor’s on Tuesday stripped Exxon of its highest AAA measure of credit-worthiness,
cutting it to AA+, the same as the U.S. government. It’s a defeat for Exxon, which sought to retain
the rating after S&P placed it on notice in February. Before the downgrade, Exxon shared the
distinction with just two other companies: Johnson & Johnson and Microsoft Corp.
"Nothing has changed in terms of the company’s financial philosophy or prudent management of
its balance sheet," Scott Silvestri, a company spokesman, said in an e-mail. "Exxon Mobil places
a high value on its strong credit position and continues to be focused on creating long-term
shareholder value despite near-term market volatility.”
The downgrade is another blow to Chairman and Chief Executive Officer Rex Tillerson’s legacy as
he approaches the company’s mandatory retirement age next year. In the decade he’s led the
world’s most valuable publicly traded oil explorer, he spearheaded a $35 billion bet on natural gas

right before the market collapsed. That was followed by a stillborn partnership with Russia’s state-
controlled crude driller that stranded $1 billion behind a wall of international sanctions.
S&P questioned Exxon’s decision to spend $54 billion on stock buybacks since 2012 even as its
debt load swelled. Exxon’s preference for returning cash to shareholders may be hurting its ability
to stockpile cash and pay down debt, the credit rating company said.
"The company’s debt level has more than doubled in recent years, reflecting high capital spending
on major projects in a high commodity price environment and dividends and share repurchases
that substantially exceeded internally generated cash flow," S&P wrote in the note.
Exxon also is facing challenges in finding enough new discoveries to replace the crude it’s
pumping from the ground, S&P said on Tuesday. The company only found enough new oil last
year to replace 67 percent of its production.
"In our view, the company’s greatest business challenge is replacing its ongoing production," S&P
said.
Oil prices have tumbled almost 60 percent since June 2014, trading today at about $44 a barrel.
The crash has choked crude-producing nations like Nigeria and Venezuela of cash, thrown
hundreds of thousands of employees out of work, stalled drilling and pipeline investments around
the world and even reverberated into ancillary industries such as steel-making and railroads.
Exxon was one of the last holdouts against the wave of credit downgrades that engulfed oil drillers
with diminishing prospects of paying debts, dividends and rig fees.
The downgrade will not only raise Exxon’s cost to borrow money but may also erode its status
among oil-rich governments as a premier partner with which to do business. As Exxon Vice
President of Investor Relations Jeffrey Woodbury said in February, the company’s AAA rating was
a key selling point when competing for drilling licenses.
BP prepares deeper spending cuts as profits fall 80%
Bloomberg - Angela Monaghan
Oil prices touched a near-13-year low in the first quarter of 2016 contributing to a sharp fall in BP’s
profits over the period BP’s net profit fell to $532m in the first quarter. BP has said it is prepared
to slash capital spending if oil prices continue to slide, as the company announced an 80% fall in
profits.
The oil and gas company said it had already cut spending in the first quarter of the year, and
expected to spend a total of $17bn (£11.7bn) in 2016. However, this could be cut to $15bn “in the
event of continued low oil prices”.
BP cut spending three times in 2015 to $19bn as it faced the worst downturn in the oil sector for at
least three decades.
Despite reporting record losses, cutting thousands of jobs, and freezing employees’ pay, the
company’s chief executive, Bob Dudley, was awarded a £14m pay package for last year.

Shareholders were left incensed by the decision, and staged a major revolt at BP’s annual
meeting two weeks ago, with almost 60% voting against Dudley’s pay.
Oil prices touched a near-13-year low in the first quarter of 2016 contributing to a sharp fall in BP’s
profits over the period. It said net profit fell to $532m from $2.6bn in the the first quarter of 2015.
However, the results were better than had been expected and BP shares rose just over 3% to
372p.
Announcing the first-quarter results, Dudley said he expected oil prices to start to recover by the
end of the year.
“Market fundamentals continue to suggest that the combination of robust demand and weak
supply growth will move global oil markets closer into balance by the end of the year,” Dudley
said.
Six years on from the Deepwater Horizon oil spill in the Gulf of Mexico, BP made $1.1bn (£756m)
of payments in the first quarter. Eleven people were killed in the disaster in April 2010, with 17
others injured.
BP left its first-quarter dividend unchanged at 10 cents per share.
E /

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
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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 20 April 2016 K. Al Awadi

New base energy news issue 839 dated 27 april 2016

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