UAE FANR hosts nuclear non-proliferation workshop

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NewBase Energy News 22 August 2016 - Issue No. 912 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: FANR hosts nuclear non-proliferation workshop
(WAM) -- The UAE’s Federal Authority for Nuclear Regulation, FANR, recently hosted a workshop
on nuclear non-proliferation, at which US nuclear nonproliferation experts provided FANR staff
with training in implementing export controls over commodities that can have either nuclear-
weapon or peaceful purposes.
Held at FANR headquarters in Abu Dhabi, the three-day workshop was conducted by the U.S.
Department of Energy’s International Nonproliferation and Export Control Programme.
The workshop aims to strengthen global efforts to prevent any unlicensed transfer of materials,
equipment, and technology related to weapons of mass destruction, WMD, including nuclear
weapons. It accomplishes this objective through partnerships with frontline enforcement and
regulatory officials who support national export control licensing, industry compliance, and
inspections-based enforcement practices designed to prevent the uncontrolled transfer of
sensitive items that could be used to build WMD.
The US experts met with more than a dozen FANR staff who are responsible for reviewing license
applications for the transfer of regulated items that are identified in FANR Regulation 9:

Regulation on the Export and Import Control of Nuclear Material, Nuclear Related Items and
Nuclear Related Dual-Use Items.
FANR is the agency responsible for ensuring the UAE’s compliance with its Comprehensive
Safeguards Agreement, CSA, with the International Atomic Energy Agency, IAEA, and with the
CSA’s Additional Protocol, which the UAE brought into force in 2010. The two agreements form
the basis of the UAE’s obligations to the Nuclear Non-proliferation Treaty.
The UAE has pledged to use nuclear energy, equipment and technology for exclusively peaceful
purposes only and to implement import and export control rules for nuclear and nuclear-related
equipment and technology in strict accordance with Nuclear Supplier Group, NSG, Guidelines for
Nuclear Transfers.
The NSG is a group of nuclear supplier countries that seeks to contribute to the non-proliferation
of nuclear weapons through the implementation of two sets of guidelines for nuclear exports and
nuclear-related exports.
The workshop focused on preventing the unlicensed transfer of nuclear-related, dual-use items;
materials, equipment and technology that can be used for both nuclear-weapon and peaceful
purposes.
"Effective trade controls are essential tools in international efforts to prevent the proliferation of
nuclear weapons," said FANR Director-General, Christer Viktorsson. "FANR is fully committed to
its leading role in the UAE to support these nonproliferation strategies."

Oman : 7 bid for Duqm Liquid Terminal Phase 1 in Oman
Oman Observer - Conrad Prabhu in Business
As many as seven international firms have submitted final offers for a contract linked to the
development of a major Bulk Liquid Terminal at the Port of Duqm.
The project, centring on the establishment of bulk liquid terminaling and storage capacity at
Duqm, is a key component of the infrastructure being developed by the Omani government to
support the growth of a liquids hub as part of the logistics offerings of the Duqm Special Economic
Zone (SEZ).
An extended deadline set by the Duqm SEZ Authority (SEZAD), which is overseeing the tendering
of all contracts linked to the zone’s infrastructure development, expired at the end of last month.
While the names of the seven bidders have not been disclosed, they are among nine international
firms that were originally prequalified by SEZAD to compete for Phase 1 of the Duqm Bulk Liquid
Terminal.
The nine prequalified firms in question were: Boskalis Westminster Middle East Oman, Hyundai
Engineering & Construction Co, Van Oord Oman; Dredging International, Tecnicas Reunidas,
Consolidated Contractors Co, China Harbour Engineering Co, Huta Marine Works, and Penta
Ocean Construction Co.

The successful bidder will secure a contract to execute Phase 1 of the project, covering dredging
and reclamation works, and the construction of quay walls and berths, among other works.
Execution of topside infrastructure, which includes the construction of storage tanks, warehouses,
pipeline corridors, loading arms, and so on, is covered in the Phase 2 package, bidders for which
are currently being prequalified.
The Duqm Bulk Liquid Terminal will come up along the Northern Lee Breakwater of the port.
While the Phase 1 package will be financed by the SEZ Authority, Phase 2 will be funded by
Duqm Petroleum Terminal Company (DPTC), a wholly owned subsidiary of Oman Oil Company
(OOC), the wholly government owned energy investment arm.
DPTC is initially looking at developing a roughly 70-hectare site dedicated to the handling and
storage of liquids emanating from the 230,000 barrels per day capacity Duqm Refinery currently
under construction at the SEZ.
Plans drawn up by DPTC envisage tankage capacity for the storage of jet oil, gas oil and naphtha,
as well as direct loading of pressured LPG and high sulphur fuel oil.
Facilities for the handling of dry bulk commodities, notably pet coke and sulphur, are envisioned
as well.
International engineering consultancy services firm Worley Parsons is undertaking the front-end
engineering design (FEED) of the Bulk Liquid Terminal project.

Turkey: Valeura executes definitive agreements for Statoil farm-
in on Banarli licences in Turkey… Source: Valeura Energy
Valeura Energy has announced that its wholly-owned affiliate,Corporate Resources B.V.
('CRBV') has executed the definitive transaction documents with Statoil Holding Netherlands, a
wholly-owned affiliate of Statoil, for a farm-in agreement for the exploration of the deeper
formations on Valeura's two 100% owned and operated Banarli exploration licences in the Thrace
Basin of northwest Turkey. The Definitive Agreements include a farm-in agreement, a joint
operating agreement to apply post-earning and a number of ancillary agreements.
'Completion of the Definitive Agreements is a key milestone and we now look forward to obtaining
the necessary Turkish government approvals to close the farm-in transaction,' said Jim McFarland
, President and Chief Executive Officer of Valeura.
'Valeura and Statoil have worked diligently to negotiate the Definitive Agreements and in parallel
have collaborated to advance the preparatory work to expeditiously launch the farm-in work
program, to be operated by Valeura, pending receipt of Turkish government approvals,' adds
McFarland.
Banarli farm-in
Under the terms of the Definitive Agreements, Statoil has the option to earn a 50% participating
interest in the deep formations on the Banarli licences by investing in an exploration program that
includes payments and carried costs of at least US$36 million .

The actual amount invested by Statoil to earn its 50% interest may be higher based on the actual
agreed costs of the three-phase work program to satisfy the commitments as described more fully
in Valeura's May 15, 2016 press release. The earning work program includes two deep
exploration wells and additional 3D seismic.
The next step in the transaction requires the parties to jointly submit applications to the General
Directorate of Petroleum Affairs ('GDPA') of the Republic of Turkey for approval of the associated
licence interest transfers whereby Statoil would hold a 50% participating interest in the deep
formations below approx.
2,500 metres and Valeura would retain a 100% interest in the shallow formations on the Banarli
Licences. These applications are expected to be submitted by the end of August 2016 . GDPA
approval of the licence interest transfers is a key condition to close the transaction and Valeura
will receive US$6.0 million at closing as a contribution to past exploration costs incurred on the
Banarli Licences.
In the meantime, preparatory work has continued to position the possible commencement of
drilling by year-end 2016 or early 2017, contingent on the timing of government approvals to close
the transaction.
The Statoil farm-in on the Banarli Licences has set the stage for the Corporation to more actively
pursue a joint venture partner to explore the deeper horizons below approx. 2,500 metres on
certain joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) Corporation ('TBNG')
and Pinnacle Turkey Inc. ('PTI') (the 'TBNG JV'), which also have potential for a potential basin-
centered gas play.
In concert, the Corporation is actively pursuing strategic acquisitions and exploring its options to
ramp-up exploration and development activities in the shallow formations on its 40% non-operated
interest in the TBNG JV.
A resumption of activity on the TBNG JV would expand the drilling and fracing opportunity
portfolio, balance risk and complement the 100% controlled shallow program on the Banarli
Licences, which is in the early exploration phase.
The objective of this strategy is to grow a more robust premium-priced, high netback conventional
shallow gas and unconventional tight gas business in Turkey , while retaining meaningful
exposure to a potentially high impact, deep basin-centered gas play in the Thrace Basin funded in
the early stages by joint venture partners.
Bati Gurgen-2 well
The Bati Gurgen-2 sidetrack well on the Banarli Licences has now been completed as a natural
gas producer from the Osmancik formation and is in the process of being tied-in with a very short
flowline to the existing gathering system from the Bati Gurgen-1 well. The well is expected to be
on-stream by early September 2016 .
Approx. 8.0 metres of conventional stacked sands were perforated in the Osmancik below a true
vertical depth of 1,640 metres. A short 12-hour well test was carried out at a restricted rate of
approximately 1.0 million cubic feet per day ('MMcf/d'). The gas will be sold to the TNBG JV under
the same sales contract currently in place for Banarli sales sourced from the Bati Gurgen-1 well.

China’s diesel exports rebound to record in July
Bloomberg + Oman Observer
China’s diesel exports rebounded to a record in July as severe flooding in some parts of the
country curbed domestic fuel demand.
The world’s largest energy consumer exported 1.53 million tons of diesel last month, a 39 per cent
jump from June and beating the previous record in May, according to data posted on Sunday on
the website of the General Administration of Customs. While outbound gasoline shipments in July
slipped from a record the previous month, they more than doubled from last year to 970,000
tonnes.
China’s worst flooding since 1998 will reduce the nation’s oil demand by as much as 10 per cent
in July and August, Morgan Stanley analysts including Adam Longson said in a report earlier this
month.
The floods caused about $33 billion in economic losses last month, according to London-based
insurance broker Aon Plc. “Heavier-than-usual flooding starting from June has markedly damped
road transportation and construction,” Lin Jiaxin, an analyst with ICIS China, said before the data
were released. “Refiners had to ship excess fuels overseas to lower stockpiles.”
Gasoline shipments slowed as the nation’s output growth in July was the weakest since February
2015. Production rose 1.6 per cent from a year ago to 10.54 million tons last month, compared
with June’s increase of 8.7 per cent, according to data released on Wednesday by the National
Bureau of Statistics.
Refineries may be slowing production as domestic demand for the motor fuel is weaker than
expected, which may put a lid on gasoline exports, Lin said. Kerosene exports rose to a seven-
month high of 1.09 million tons. Liquefied natural gas imports fell 16.4 per cent from the previous
year to 1.6 million tonnes.

NewBase 22 August 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices fall as analysts say August price rally has been
overblown
Oil prices fell this morning 08/22/2016 (Monday) as analysts doubted upcoming producer talks
would be able to rein in oversupply, saying that Brent would likely fall back below $50 a barrel as
August's over 20-percent crude rally looks overblown.
International benchmark Brent crude oil futures were trading at $50.43 per barrel at 0025 GMT, down
45 cents, or 0.88 percent. U.S. West Texas Intermediate (WTI) crude futures were down 27 cents, or
0.56 percent, at $48.25 a barrel.
Analysts cast doubt on a recent oil price rally, saying that much of it was a result of short-covering
and anticipation of upcoming oil producer talks in September to discuss means to curb ballooning
oversupply.
With no fundamental tightening of the market in sight, they said that prices would likely come
under downward pressure again soon.
"Positioning data seems to confirm our view that the latest oil bounce is more technical and
positioning-oriented than fundamental. In fact, new buyers have been mostly absent the past few
months," U.S. bank Morgan Stanley said.
Regarding the upcoming producer talks, the bank said that it viewed a meaningful "agreement as
highly unlikely" and that there were "too many headwinds and logistical challenges to a
meaningful deal".
Members of the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers
like Russia are set to meet in September to discuss a freeze in output levels or even a cutback in
Oil price special
coverage

order to rein in on oversupply, but analysts said animosity between OPEC-membersSaudi
Arabia and Iran made a deal unlikely.
"Though Iran now sits roughly 200,000 barrels per day away from its monthly pre-sanctions peak
in May 2011, we do not see it accepting restraints on its output, and without Iran's inclusion, Saudi
Arabia will not take part," Barclays bank said.
As a result, the British bank said that "the stars remain misaligned for an OPEC/non-OPEC freeze
agreement".
Because of the ongoing production and storage overhang in crude and refined products markets,
Barclays said that the 20-percent price rally since early August was unwarranted, and that oil
prices of $50 or higher were currently "unsustainable".
"Oil prices will likely experience another short-term dip in the coming weeks, in our view, before
more sustainably moving to average $50 in Q4," it added.
‘Well-Timed’ OPEC Talk Forces Oil Bears Into Record Reversal
Bloomberg - Mark Shenk ShenkMark
Talk of a potential deal to freeze output helped push oil close to $50 a barrel and prompted money
managers to cut bets on falling prices by the most ever. West Texas Intermediate, the U.S.
benchmark, went from a bull to a bear market in less than three weeks.
OPEC is on course to agree to a production freeze because its biggest members are pumping flat-
out, said Chakib Khelil, the group’s former president. Saudi Energy Minister Khalid Al-Falih said
that the talks may lead to action to stabilize the market.

"This is all courtesy of some very well-timed comments from the Saudi oil minister," said John
Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. "They’ve been
successful over the last year in jawboning the market, and this is the latest example."
Hedge funds trimmed their short position in WTI by 56,907 futures and options during the week
ended Aug. 16, the most in data going back to 2006, according to the Commodity Futures Trading
Commission. Futures rose 8.9 percent to $46.58 a barrel in the report week and closed at $48.52
a barrel on Aug. 19. WTI is up more than 20 percent from its Aug. 2 low, meeting the common
definition of a bull market.
"This was a very short market so we were bound to get some covering," said Stephen Schork,
president of the Schork Group Inc., a consulting company in Villanova, Pennsylvania. "You
probably won’t hear a lot from OPEC with prices up here, but if we get down to where we were a
few weeks ago we can expect to hear more."
Informal Talks
The Organization of Petroleum Exporting Countries plans to hold informal talks to discuss the
market at the International Energy Forum next month in Algiers. Russian Energy Minister
Alexander Novak said that the nation was open to discussing a freeze.
Talks to implement a production freeze
collapsed in April when Saudi Arabia
said it wouldn’t take part without
Iranian participation. Iran was restoring
exports after sanctions over its nuclear
program were lifted in January.
Saudi Arabia, Iran, Iraq and non-
member Russia are producing at, or
close to, maximum capacity, Khelil
said in a Bloomberg
Television interview on Aug. 17. Saudi
Arabia told OPEC that its production
rose to an all-time high of 10.67 million barrels a day in July, according to a report from the group.
Ample Stockpiles
Declining crude and gasoline stockpiles in the U.S. also bolstered the market last week. Crude
supplies dropped by 2.51 million barrels as of Aug. 12, Energy Information Administration data
show. Gasoline inventories slipped 2.72 million barrels during the period. Stockpiles of both crude
and gasoline remain at the highest seasonal levels in decades even after the declines.
"There’s a high level of uncertainty right now, so fairly small news can move the market a lot," said
Michael Lynch, president of Strategic Energy & Economic Research in Winchester,
Massachusetts. "It still remains the case that we have a huge surplus of supply and aren’t going to
see it disappear anytime soon."
Money managers’ short position in WTI dropped to 163,232 futures and options. Longs, or bets on
rising prices, increased 0.1 percent, while net longs advanced 56 percent, the most since July
2010.

In other markets, net-bearish bets on gasoline climbed 54 percent to 1,970 contracts. Gasoline
futures rose 5.7 percent in the report week. Net-long wagers on U.S. ultra low sulfur diesel
increased more than fivefold to 10,835 contracts. Futures advanced 9.8 percent.
More Rigs
A backlog of drilled but uncompleted wells, or DUCs, helps support the bearish case, said Ed
Morse, head of commodities research at Citigroup Inc. in New York. There’s also been an upsurge
in drilling as prices have climbed. U.S. producers added oil rigs for an eighth week, the longest run
since April 2014, according to Baker Hughes Inc. data on Aug. 19.
The EIA increased its domestic output forecast for 2017 to 8.31 million barrels a day from 8.2
million projected in July, according to its monthly Short-Term Energy Outlook released Aug. 10.
"In the U.S., DUC completion and the drilling of new wells are changing the production outlook,"
Morse said. "We might see U.S. production rise next year instead of falling."

NewBase Special Coverage
News Agencies News Release 07 August 2016
Russian stocks, boosted by stabilizing economy, may surprise: Analysts
Rebecca Ungarino | @ungarino
After being pinned down by the weight of international sanctions against Russia's economy, the
country's stocks are on a tear, a move that analysts say may have some legs.
Russian equities have enjoyed a major rally this year, with the Moscow Exchange index recently
hitting an all-time high, and the popular Russia-tracking exchange traded fund (ETF) RSX surging
over 27 percent.
However, even after a great few months, some say Russian stocks still have a ways to go to make
up for lost ground.
Sergey Aleksashenko of the Brookings Institute, formerly deputy chairman of the Central Bank of
Russia and former chairman of Merrill Lynch Russia, told CNBC that in 2015, the Russian market
was "oversold as many anticipated the collapse of the economy."
However, as the situation stabilized, the "market is looking to regain," he wrote in an email.
Russia's economy, which contracted by nearly 4 percent last year, is in the midst of a tentative
recovery, and the International Monetary Fund expects another recession this year.
However, oil—the linchpin of Russia's energy-reliant economy, has remained above $30, a factor
that Aleksashenko expects will be supportive of growth.
The Central Bank of Russia in June cut interest rates by 0.5 percentage points as inflation
remained steady despite an anticipated acceleration. In a June report, the central bank stated the
Russian economy was at that time facing a more favorable situation than was previously
anticipated, citing a slowing in gross domestic product decline and signs of economic recovery.
The cut in interest rates—from 11 percent to 10.50 percent—came as the central bank observed
more confidence in the economy, "allowing for further expectations of a sustainable inflation
reduction" to a 4 percent target next year.

For some, the central problem remains that Russia's growth is heavily reliant on its massive oil
and gas exports.
"Russia, still, like John McCain said, is basically a gas station masquerading as a country," said
Boris Schlossberg, managing director of FX Strategy at BK Asset Management. He referred to the
Arizona Republican senator's comments about Russia in a 2014 interview.
Schlossberg said overall the "tone" of the Russian economy is going to improve from fundamental
and currency perspectives, given that political relations with the West, though still problematic,
have thawed somewhat. That could help Russian industrial companies recover, he said.
"Now that they've come through the crisis, and now that you can sort of make an assumption that
oil prices are not going to go back down to $20, they have a floor against which they can operate,"
Schlossberg said. "Therefore they have some breathing room."
Though gains have been made, there may be a long road ahead, particularly headed into a 2018
election, when President Vladimir Putin's current term ends.
The Russian economy began to falter in the second half of 2014, and signs of recovery toward the
end of 2015 were not long lasting, according to Brookings' Aleksashenko
According to his February report, "Should
Vladimir Putin be concerned about the
Russian economy?," the analyst said the
quality of Russia's economy was "much
worse" than the crisis of 2008. That gives
pause to some other analysts.
"I don't think it's a runaway story; it's
obviously heavily hinged to oil prices,"
said Tim Seymour, managing partner at
Triogem Asset Management, who
believes the gains in Russia's stocks and
economy are sustainable.
And Seymour believes the recent interest rate cuts here will help strengthen the economy.
"I think you've seen some firming in the industrial numbers," Seymour told CNBC's "Trading
Nation" recently.
Seymour recommends buying Russian mobile
company Mobil'nye Telesistemy, noting its
attractive dividend yield (about 7 percent).
Technology company Yondex, is also a good
buy here, said Seymour, calling it the "Google
of Russia."
The Russian ruble has fallen nearly 23
percent from its highs in late January, first
dipping below the dollar in March and
continuing a general decline into August.
"I think the currency is actually cheap on a PPP basis," said Seymour, referring to the purchasing
power parity of the Russian ruble. The PPP is the amount that different countries' exchange rates
must adjust in order for the exchange rate to equal each currency's purchasing power.

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Khaled Al Awadi is a UAE National with a total of 26 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 22 August 2016 K. Al Awadi

UAE FANR hosts nuclear non-proliferation workshop

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UAE FANR hosts nuclear non-proliferation workshop