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NewBase Energy News 05 September 2016 - Issue No. 922 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
DEWA unveils five-point plan for cutting carbon emissions
Arabian business
Dubai Electricity and Water Authority (DEWA) on Saturday unveiled a five-point strategy as part of
a government commitment to cut carbon emissions by 16 percent by 2020. The Dubai Supreme
Council of Energy has launched the Carbon Abatement Strategy to cut the emirate’s carbon
footprint.
This in turn is part of the broader Dubai Clean Energy Strategy 2050, to develop production of
renewable energy over the coming decades. To support the strategy, DEWA plans to diversify its
energy mix so that ‘clean’ or renewable energy will generate seven percent of Dubai’s total power
output by 2020, 25 percent by 2030 and 75 percent by 2050, state news agency WAM reported.
DEWA’s five-point strategy comprises five strands: infrastructure, legislation, funding, building
capacities and skills, and developing an environmentally-friendly energy mix. Saeed Mohammed
Al Tayer, managing director and CEO of DEWA, set out various initiatives that the body has been
devised for each of the components of the plan.
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Infrastructure projects include the AED50 billion ($13.6 billion) Mohammed bin Rashid Al Maktoum
solar park, planned to be the largest single-site solar park in the world with a planned capacity to
produce 5,000MW by 2030 and reduce carbon emissions by around 6.5 million tonnes each year.
DEWA is also building a research and development (R&D) centre focussing on renewable energy,
including producing electricity using solar power, smart grids and water networks.
The R&D centre also includes infrastructure to produce water using solar energy, a collection of
laboratories, educational facilities, and a training centre. It is under construction at present and
scheduled to complete by 2020.
The infrastructure strand also includes the establishment of a new free zone called Dubai Green
Zone, dedicated to attracting R&D centres and emerging companies in the clean energy sector.
Under the legislative part of the strategy, DEWA said it plans to establish a regulatory structure to
support clean energy policies through the ‘Shams Dubai’ initiative, Dubai’s first smart initiative to
connect solar energy to buildings.
Meanwhile the planned AED100 billion
($27.2 billion) Dubai Green Fund aims to
provide financing solutions for
investment in R&D on clean energy and
its applications. DEWA is also working to
boost employees’ skills through training
programmes on clean energy in
collaboration with international
organisations, research institutes and
private sector companies.
Under the fifth pillar of the strategy, DEWA aims to create an environment-friendly energy mix with
solar energy generating 25 percent, nuclear power 7 percent, clean coal 7 percent, and gas 61
percent by 2030. This mix will gradually increase the employment of clean energy sources to 75
percent by 2050, WAM reported.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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Yemen's Aden oil refinery resumes op
Reuters
Yemen's 150,000 barrels per day Aden oil refinery resumed operations on Sunday after being
shut for over a year as the conflict in the country worsened, an industry official at the refinery told
Reuters.
"The refinery is back online and is refining 66,000 tonnes from the 1 million barrels it received from
the Dabbah port it had in storage from before," the source said, adding the refinery was now
operating at half of its processing capacity.
Power stations in the southern city of Aden have struggled to access fuel since exiled president
Abd-Rabbu Mansour Hadi's forces drove the Iran-allied Houthi group out in July last year.
"Now the refinery can begin supplying to the power stations, and be used for other domestic
purposes," the official added.
Yemen has been gripped by war pitting the Houthi group, backed by troops loyal to ex-President
Ali Abdullah Saleh, and the internationally recognised Hadi government, which is backed by Saudi
Arabia.
Hadi's government has regained control of large parts of the country's south and east in the past
year. Most foreign oil companies left the country after the war began in March 2015. - Reuters
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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UAE: Adnoc joins as host of SPE conference
SPE
The Society of Petroleum Engineers (SPE) has announced that the Abu Dhabi National Oil
Company (Adnoc) will be the host organisation of this year’s SPE Annual Technical Conference
and Exhibition (ATCE).
ATCE will take place in Dubai from September 26–28 under the patronage of the Vice President
and Prime Minister of the United Arab Emirates and Ruler of Dubai, His Highness Sheikh
Mohammed bin Rashid Al Maktoum.
Adnoc has a long-standing relationship with SPE, and hosting ATCE further extends Adnoc’s
contribution to the oil and gas technical community in the Middle East and beyond.
"Sharing knowledge and best practice amongst industry experts is core to the success and
progress of energy companies, particularly during this period when industry players are looking to
increase operational efficiency and maximise profitability”.
The welcome keynote address at ATCE will be given by Abdul Munim Saif Al Kindy, director,
exploration development and production at Adnoc, and the following representatives of Adnoc will
be taking part in plenary and panel sessions throughout the conference:
• Mohamed Al Marzouqi, manager, reservoir engineering, offshore – The Next Generation (YP 2.0)
• Mohamed Al Mutawa, manager, production and facilities engineering – Boosting Efficiency in E&P; and
• Omar Suwaina Al Suwaidi, director, gas management directorate – E&P 2.0: Shaping the Future.
Over 2,000 papers were submitted for this year’s event, of which 540 will be presented in 58
technical sessions, covering all phases of oil and gas exploration and production. ATCE is
expecting more than 8,000 attendees, who will also have the opportunity to visit a world-class
exhibition with more than 250 exhibitors showcasing state-of-the-art technologies.
Sponsoring and exhibiting at SPE events like ATCE helps to support the industry by funding
training courses, university scholarships, technical journals and many other services, a fact
highlighted by Qasem M. Al Kayoumi, manager, Technical Centre, Adnoc. “Adnoc’s support of
SPE is a good investment in our professionals, who benefit tremendously from the various
technical and educational programmes provided by SPE”.
Saudi Aramco and Shell are supporting the event as principal sponsors, alongside OiLServ and
Industrialisation & Energy Services Company (Taqa) as platinum sponsors.
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Saudi eyes price boost to drive Aramco IPO amid oil distress
Reuters
Two years after triggering an oil price race, Saudi Arabia has seemingly had enough of cheap
crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake
in state-owned producer Aramco.
The change in tone comes as Opec and other producers such as Russia may resume talks on
stabilising output when they meet in Algeria later this month, after a similar effort to boost oil
prices collapsed in April due to Saudi-Iranian tensions.
“The Saudis are going to Algeria for a freeze,” said a
source in the Organisation of the Petroleum Exporting
Countries who is familiar with the matter and declined to
be identified. “More and more ministers are now talking
among themselves to evaluate their production
position.”
Opec in November 2014 made a landmark policy shift,
led by Saudi Arabia, refusing to cut production by itself
in the hope that lower prices would discourage higher-
cost competitors that had eroded the group’s market
share.
Further cementing the impression of a production free-for-all, Opec ditched its last remaining
supply-management tool, an output ceiling, in December 2015.
From 2014 until earlier this year, Saudi Arabia’s then-minister for oil, Ali al-Naimi, offered little
verbal support for prices. The market determined them, al-Naimi said, but he gave no preferred
range or any indication of what levels could be sustained in the long term.
Since Khalid al-Falih took over as energy minister, the tone has visibly shifted. He says the world
needs oil above $50 per barrel to achieve a balanced market, and raised the prospect of Saudi
Arabia resuming its role of balancing supply and demand.
Outwardly, there is no sign yet of a definite change in policy. But behind the scenes, Saudi Arabia
has been working towards boosting prices, rather than leaving that job to market forces.
At Opec’s last meeting in June, held in Vienna, al-Falih surprised some of his counterparts by
proposing Opec set a new output ceiling, according to several people familiar with the matter.
In Vienna, al-Falih floated a number of ideas in private meetings on how best to manage the
supply glut, and questioned independent Opec analysts during separate meetings as to the
possible price impact of a production freeze or even a cut.
At private talks with the Nigerian oil minister before the June 2 Opec meeting, al-Falih was willing
to revive the idea of a production freeze while showing more tolerance towards Iran, which is
raising output post-sanctions, sources said.
“The Saudi minister met with the Nigerian minister and discussed a ceiling of 32mn bpd with
flexibility towards Iran,” one source said.
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More talks with Iran led by Qatar, which holds the Opec presidency in 2016, took place privately
but they failed to get Tehran on board because Iran argued it needed to regain market share lost
during years of Western sanctions, the sources
said.
On the day of the Opec meeting, Gulf members
proposed discussing a ceiling. “But Iran said no,
so the ministers moved quickly to discuss the
secretary-general nomination,” the source said.
Opec agreed to appoint Nigerian Mohammed
Barkindo to the position.
Saudi Arabia is by far the largest Opec producer,
pumping more than twice as much as the second-
biggest, Iraq. Even so, plunging oil prices since
mid-2014 have put stress on Saudi Arabia’s
finances, causing a big budget deficit last year
and forcing the kingdom to seek new sources of
income, including taxes and other fees and to cut
spending.
The government is trying to boost non-oil revenue
and modernise the economy through a reform
plan called “Vision 2030”, championed by Deputy
Crown Prince Mohammed bin Salman, of which
the centrepiece is the sale of a stake in Saudi
Aramco.
Sources in the oil industry say this partly explains
the shift in tone on prices.
Saudi “wants higher oil prices for a better Aramco
valuation,” one industry source said, adding that some think Aramco could be valued as high as
$4tn.
Prince Mohammed has said he expects the initial public offering (IPO) to value Aramco at at least
$2tn, but that the figure might end up being higher. Any valuation would account for oil price
expectations and the size of Saudi Arabia’s proven oil reserves.
Another industry source familiar with the matter agreed. “A stable oil price at a moderate level
would help an IPO. I don’t know if the IPO is the major factor, but it’s certainly a factor,” he said.
“Saudi Arabia does not want to crash the price. Their target indeed would be somewhere north of
$50 - $60 or so.”
Saudi officials have also discussed the possibility that too much future supply could be curtailed
by investment cutbacks if prices remain lower for longer, and are wary of the risk of a price spike,
the second industry source said.
Al-Falih has talked about the issue publicly, saying in June that even $50 oil would not create a
rush back to investment. “There’s a real fear,” the source said.”So many conventional oil projects
are being cancelled.”
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Saudi production stands near a record high of 10.7mn bpd, on a par with Russia and the US. But
some market insiders have suggested Saudi Arabia cannot afford to push output any further and
sustain it for a long period because despite official affirmation it can produce as much as 12.5mn
bpd if needed, Riyadh has never really tested such levels.
The change in Saudi tone has been welcomed by Opec delegates from non-Gulf nations. But
despite the behind-the-scenes talks, Opec delegates and industry sources are sceptical that the
tone shift will be backed with concrete action.
“I don’t think anything al-Falih says
means they are going to cut
production,” said the industry
source. “It means Saudi will be
cautious in doing things that might
flood the market.”
Al-Falih, in an interview with
Reuters in August, tempered
expectations of any production cut,
saying significant intervention in the
market was not necessary. But he
did not dismiss the idea of a
production freeze.
“If there is consensus that emerges between now and the Algiers meeting, Saudi Arabia as
always will be a constructive player in these discussions and we will be willing to participate,” he
said.
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NewBase 05 September 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Crude edges down on firm dollar, glut worries
Reuters + NewBase
Crude prices inched down on Monday, paring 3 percent gains in the previous session, as the
dollar firmed and traders eyed persistent concerns over a global oil glut despite some signs oil
producers may try to tackle weak oil prices.
The U.S. dollar held firm as Friday's disappointing U.S. jobs growth figures did little to change
investors' perception that the Federal Reserve is likely to raise interest rates in coming months.
"Crude is down now because they think there's going to be a hike in (U.S.) interest rates," Tony
Nunan, oil risk manager at Japan's Mitsubishi Corp in Tokyo said. "Probably the jobs report is
good enough that there is a chance
London Brent crude for November delivery was down 37 cents at $46.46 a barrel by 0353
GMT, after settling up $1.38 on Friday. NYMEX crude for October delivery was down 35
cents at $44.09 a barrel. Trading in U.S. crude is likely to be limited on Monday because of
the U.S. Labor Day holiday.
Brent rallied to above $50 a barrel in late August helped by growing talk of a coordinated
production freeze, but prices have since fallen as few believe OPEC will cut output.
Russian Energy Minister Alexander Novak said on Saturday that an oil production freeze would be
one of the issues discussed by crude producers later this month in Algeria.
But despite talk of a freeze, few actually believe any deal would be reached in Algeria.
"Even though there will be discussions in Algeria, there's no strong feeling that anything will be
done, so the supply remains high," Nunan said. "Saudi Arabia's position hasn't changed. They are
open to some kind of production freeze if Iran and other major producers join."
Oil price special
coverage
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Oil Slips as Saudi-Russia Agreement Stops Short of Output Plan
Oil fell as two of the world’s biggest producers stopped short of making concrete proposals to
coordinate output, pledging instead to cooperate to ensure market stability.
Futures lost as much as 0.9 percent in New York. Saudi Arabia and Russia agreed to work
together to stabilize prices, without offering details on joint action, after Deputy Crown
Prince Mohammed bin Salman and President Vladimir Putin met in China on Sunday. Crude rose
the most in two weeks on Friday as Putin said he’d like OPEC and Russia to agree to an output
freeze.
Oil rallied last month amid speculation members of the Organization of Petroleum Exporting
Countries and other producers would agree to a plan to limit output when they meet later this
month in Algiers. A similar proposal, originally put forward in February, was derailed in April after
Iran declined to cap its production.
“At this stage, markets are probably just going to take the view that it needs to see some
evidence, some tangible idea on what the agreement might actually amount to before responding
to it,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “We will get a lot of
statements about it but probably nothing really concrete until we get to the stage of the Algiers
meeting.”
OPEC Record
West Texas Intermediate for October delivery fell as much as 38 cents to $44.06 a barrel on the
New York Mercantile Exchange and traded at $44.19 at 1:34 p.m. Tokyo time. The contract rose
$1.28 to $44.44 on Friday, the biggest gain since Aug. 18. Total volume traded was about 49
percent below the 100-day average.
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Brent for November settlement lost as much as 43 cents, or 0.9 percent, to $46.40 a barrel on the
London-based ICE Futures Europe exchange. The contract added 3 percent to $46.83 a barrel on
Friday. The global benchmark crude traded at a $1.82 premium to November WTI.
Putin said in an interview last week in Vladivostok that other producing countries now recognize
Iran should be allowed to continue raising output since it was freed just months ago from
international sanctions. The Russian president said at the time that he may recommend such a
plan when he met with Prince Mohammed.
Saudi Arabia led OPEC’s decision in 2014 not to cut output amid a global glut in order to protect
market share and force out higher-cost producers. Group production rose to a record 33.69 million
barrels a day in August, just under a third of global demand, a Bloomberg survey showed last
week.
Oil Rally Fervor Cools as OPEC Output at Record Before Talks
Bloomberg - Meenal Vamburkar
Investors are realizing that OPEC’s talk of a production freeze may not be much of a restraint, as
output reached another record.
Ahead of informal talks to discuss a potential agreement with major exporters, OPEC’s crude
output rose to a new high last month as members from Saudi Arabia to Kuwait boosted
production. Money managers slashed bets on an oil rally by the most contracts in two years in the
week ended Aug. 30, according to the Commodity Futures Trading Commission.
"There’s basically tension in the market," said Tim Evans, an energy analyst at Citi Futures
Perspective in New York.
Supply from the Organization of Petroleum Exporting Countries rose by 120,000 barrels a day to
33.69 million last month, just as the group is set to hold informal talks about an output deal in
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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Algiers later this month, according to data compiled by Bloomberg. Meanwhile in the U.S., shale
producers added another 14 onshore oil and gas rigs last week, and have increased the total rig
count by 93 since the end of May, according to Baker Hughes data.
Iran’s Role
A previous attempt to reach a deal among major producers collapsed in April after Saudi Arabia
insisted on Iran’s participation. Iran is in the process of restoring exports after sanctions on its
nuclear program were lifted in January. Russian President Vladimir Putin said in an interview that
he’d like OPEC and Russia to reach a deal to freeze output -- but with an exemption for Iran. A
compromise is "the right decision for world energy," he said.
It’s unlikely the market is expecting much out of the freeze talks, said Michael Lynch, president of
Strategic Energy & Economic Research in Winchester, Massachusetts. Even with an agreement,
it would need to be honored and be effective in raising prices, he said.
In the U.S., onshore oil production is set to stop declining and even grow, according to a recent
report by consulting firm Rystad Energy. New drilling activity in the sought-after Permian Basin will
be enough to balance declines from other plays and “will restore the growth trend” in November
and December this year, the report said.
Speculators cut their long position in West Texas Intermediate, or bets prices will rise, by 25,364
futures and options in the week ended Aug. 30, according to the CFTC. That’s the biggest drop
since July 2014. Net longs fell for the first time in four weeks, dropping 9.7 percent. Shorts, or
wagers on a price decline, were reduced by 1,665 after a record 123,154 were undone in the
previous two weeks.
WTI, the U.S. benchmark, fell 3.6 percent to $46.35 a barrel in the report week. Futures lost 0.8
percent to $44.09 at 11:45 a.m. Singapore time on Monday.
In other markets, net-bullish bets on gasoline rose 8.3 percent to 16,336 contracts. Gasoline
futures declined 3.4 percent in the report week. Net-long wagers on U.S. ultra low sulfur diesel
climbed 0.9 percent to 22,242 contracts. Futures fell 2 percent.
As for U.S. crude supplies, while down from a peak in April, they’re at the highest seasonal level in
at least three decades, according to data from the Energy Information Administration. Inventories
rose by 2.28 million barrels in the week through Aug. 26, the fifth increase in six weeks.
The global glut may have eased, but the market is still dealing with a surplus, Evans said. The big
question, he said, is whether OPEC can agree on a deal that "would change the path of their own
production." And a freeze may not be enough.
"There’s risk there that it’s just too much to accomplish in one step," he said. "To go from no
quotas whatsoever to effective limits on output is an awful lot."
Stable Oil Requires Saudi, Russian Cooperation, Prince Says
Global oil-market stability is impossible without the cooperation of Russia and Saudi Arabia, the
world’s biggest crude producers, the kingdom’s influential deputy crown prince said, speaking with
Vladimir Putin ahead of an OPEC meeting later this month.
Saudi Arabia hopes to work with Russia for stability in oil markets, Prince Mohammed bin Salman
said Sunday in a meeting with the Russian president in Hangzhou, China. World leaders are
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gathering in China this week for a summit of Group of 20 nations. Russia and Saudi Arabia will
meet with other producers in Algeria this month to discuss oil markets.
“Our countries are the two biggest oil producers, that’s why there can’t be a stable policy in the
sphere of oil without the participation of Russia and Saudi Arabia,” said Prince Mohammed, a son
of the Saudi king. Putin said it is important for the two countries to “maintain a permanent
dialogue.”
Crude has gained about 6 percent since the Organization of Petroleum Exporting Countries said
last month it will hold informal talks on oil prices and supply during a meeting of the International
Energy Forum in Algiers. Producers have been discussing proposals to limit output and prop up
crude after a glut cut prices by more than half from their 2014 peak.
Record Output
Brent crude fell last week to $46.83 a barrel after a U.S. government report showed stockpiles in
the country increased. OPEC in 2014 adopted a Saudi-led policy allowing members to raise
output in an effort to protect market share from higher-cost producers like U.S. shale wells. Output
for the group rose to a record in August, a Bloomberg survey showed last week.
Talks in April about a Saudi-Russian proposal to freeze output ended without an agreement in
Doha, Qatar, after Iran, the group’s third-largest producer, declined to attend the meeting and
Saudi Arabia balked at any accord that didn’t include all OPEC members. Putin said Thursday in
an interview with Bloomberg that he’d like OPEC and Russia, producers of half of the world’s oil,
to reach a deal to freeze supply and he expects the differences over Iran’s participation can be
resolved.
“Russia and Saudi Arabia talking constructively about a production freeze is going to be bullish for
the market, whether or not they actually follow through with it,” Edward Bell, a commodities
analyst at Emirates NBD PJSC, said by phone from Dubai.
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NewBase Special Coverage
News Agencies News Release 05 September 2016
OPEC's Indonesia is ‘comfortable’ with crude oil prices at $40-
45 per barrel … Reuters - Katy Barnato | Sri Jegarajah
Indonesia's finance minister Sri Mulyani Indrawati told CNBC she was optimistic her country could
receive a ratings upgrade this year — despite oil being pinned below $50, levels at which she said
her country is generally "comfortable."
Despite the low price of crude walloping other OPEC nations, Indonesia, which is part of the G-20
group of the world's biggest economies, is managing to ride out the crisis. It has a coveted
investment grade credit rating from Moody's Investors Service and Fitch Ratings, but not yet from
Standard & Poor's.
Indrawati told CNBC she hoped Indonesia's rating might be upgraded in 2016, with the Indonesian
government engaged in programs to boost infrastructure spending, open up the private sector and
reform taxation.
"We are very much confident — this is very much the focus of all the reform of the fiscal (policies),
that we are going to have much more credible, coherent narrative (of) policy," Indrawati told CNBC
at the G-20 summit in China.
Oil at $45 likely to be 'sustained'
"It's a very strong package (of) macro prudent and the very ambitious structural reform. Not a
country in which growth is generated by a bubble activity but real, deep reform that can be
sustainable, so I'm
optimistic that it
could happen," she
added.
Crude oil futures will
likely remain at $40-
45 per barrel, the
finance minister of
Indonesia told
CNBC on Sunday,
adding that she was
"comfortable" with
prices at that level.
Indonesia is the
only OPEC member
country in Asia and
has the largest economy in the south east of the region. It exported $6.4 billion worth of petroleum
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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in 2015, according to OPEC data.
Indrawati forecast crude oil would remain at today's historically low levels between $40 and $45
per barrel, baring disruption from security problems or natural disasters.
"If we look at the purely supply and demand, I think that is going to be sustained," she told CNBC
at the G-20 summit in Hangzhou, China on Sunday.
"We already have put in a budget of around $40-$45 and (at) that level, we're looking at all the
situation in the supply side of the oil and gas, as well as the demand side, I'm comfortable with
that level," the minister added separately.
WTI crude futures for October fell back below $45 last week. Light crude has rallied by around 19
percent this year, but remains far below the levels above $100 traded at prior to the commodities
rout of July 2014 onward.
Petroleum and natural gas are major industries for Indonesia, but manufacturing, tourism,
agriculture and mining are also significant. The country exported 315,100 of barrels of crude oil
per day in 2015, according to statistics from OPEC, which Indonesia rejoined in July.
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Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
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 05 September 2016 K. Al Awadi
Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 16

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New base energy news issue 922 dated 05 september 2016

  • 1. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 05 September 2016 - Issue No. 922 Edited & Produced by: Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE DEWA unveils five-point plan for cutting carbon emissions Arabian business Dubai Electricity and Water Authority (DEWA) on Saturday unveiled a five-point strategy as part of a government commitment to cut carbon emissions by 16 percent by 2020. The Dubai Supreme Council of Energy has launched the Carbon Abatement Strategy to cut the emirate’s carbon footprint. This in turn is part of the broader Dubai Clean Energy Strategy 2050, to develop production of renewable energy over the coming decades. To support the strategy, DEWA plans to diversify its energy mix so that ‘clean’ or renewable energy will generate seven percent of Dubai’s total power output by 2020, 25 percent by 2030 and 75 percent by 2050, state news agency WAM reported. DEWA’s five-point strategy comprises five strands: infrastructure, legislation, funding, building capacities and skills, and developing an environmentally-friendly energy mix. Saeed Mohammed Al Tayer, managing director and CEO of DEWA, set out various initiatives that the body has been devised for each of the components of the plan.
  • 2. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 Infrastructure projects include the AED50 billion ($13.6 billion) Mohammed bin Rashid Al Maktoum solar park, planned to be the largest single-site solar park in the world with a planned capacity to produce 5,000MW by 2030 and reduce carbon emissions by around 6.5 million tonnes each year. DEWA is also building a research and development (R&D) centre focussing on renewable energy, including producing electricity using solar power, smart grids and water networks. The R&D centre also includes infrastructure to produce water using solar energy, a collection of laboratories, educational facilities, and a training centre. It is under construction at present and scheduled to complete by 2020. The infrastructure strand also includes the establishment of a new free zone called Dubai Green Zone, dedicated to attracting R&D centres and emerging companies in the clean energy sector. Under the legislative part of the strategy, DEWA said it plans to establish a regulatory structure to support clean energy policies through the ‘Shams Dubai’ initiative, Dubai’s first smart initiative to connect solar energy to buildings. Meanwhile the planned AED100 billion ($27.2 billion) Dubai Green Fund aims to provide financing solutions for investment in R&D on clean energy and its applications. DEWA is also working to boost employees’ skills through training programmes on clean energy in collaboration with international organisations, research institutes and private sector companies. Under the fifth pillar of the strategy, DEWA aims to create an environment-friendly energy mix with solar energy generating 25 percent, nuclear power 7 percent, clean coal 7 percent, and gas 61 percent by 2030. This mix will gradually increase the employment of clean energy sources to 75 percent by 2050, WAM reported.
  • 3. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 Yemen's Aden oil refinery resumes op Reuters Yemen's 150,000 barrels per day Aden oil refinery resumed operations on Sunday after being shut for over a year as the conflict in the country worsened, an industry official at the refinery told Reuters. "The refinery is back online and is refining 66,000 tonnes from the 1 million barrels it received from the Dabbah port it had in storage from before," the source said, adding the refinery was now operating at half of its processing capacity. Power stations in the southern city of Aden have struggled to access fuel since exiled president Abd-Rabbu Mansour Hadi's forces drove the Iran-allied Houthi group out in July last year. "Now the refinery can begin supplying to the power stations, and be used for other domestic purposes," the official added. Yemen has been gripped by war pitting the Houthi group, backed by troops loyal to ex-President Ali Abdullah Saleh, and the internationally recognised Hadi government, which is backed by Saudi Arabia. Hadi's government has regained control of large parts of the country's south and east in the past year. Most foreign oil companies left the country after the war began in March 2015. - Reuters
  • 4. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 UAE: Adnoc joins as host of SPE conference SPE The Society of Petroleum Engineers (SPE) has announced that the Abu Dhabi National Oil Company (Adnoc) will be the host organisation of this year’s SPE Annual Technical Conference and Exhibition (ATCE). ATCE will take place in Dubai from September 26–28 under the patronage of the Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. Adnoc has a long-standing relationship with SPE, and hosting ATCE further extends Adnoc’s contribution to the oil and gas technical community in the Middle East and beyond. "Sharing knowledge and best practice amongst industry experts is core to the success and progress of energy companies, particularly during this period when industry players are looking to increase operational efficiency and maximise profitability”. The welcome keynote address at ATCE will be given by Abdul Munim Saif Al Kindy, director, exploration development and production at Adnoc, and the following representatives of Adnoc will be taking part in plenary and panel sessions throughout the conference: • Mohamed Al Marzouqi, manager, reservoir engineering, offshore – The Next Generation (YP 2.0) • Mohamed Al Mutawa, manager, production and facilities engineering – Boosting Efficiency in E&P; and • Omar Suwaina Al Suwaidi, director, gas management directorate – E&P 2.0: Shaping the Future. Over 2,000 papers were submitted for this year’s event, of which 540 will be presented in 58 technical sessions, covering all phases of oil and gas exploration and production. ATCE is expecting more than 8,000 attendees, who will also have the opportunity to visit a world-class exhibition with more than 250 exhibitors showcasing state-of-the-art technologies. Sponsoring and exhibiting at SPE events like ATCE helps to support the industry by funding training courses, university scholarships, technical journals and many other services, a fact highlighted by Qasem M. Al Kayoumi, manager, Technical Centre, Adnoc. “Adnoc’s support of SPE is a good investment in our professionals, who benefit tremendously from the various technical and educational programmes provided by SPE”. Saudi Aramco and Shell are supporting the event as principal sponsors, alongside OiLServ and Industrialisation & Energy Services Company (Taqa) as platinum sponsors.
  • 5. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 Saudi eyes price boost to drive Aramco IPO amid oil distress Reuters Two years after triggering an oil price race, Saudi Arabia has seemingly had enough of cheap crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake in state-owned producer Aramco. The change in tone comes as Opec and other producers such as Russia may resume talks on stabilising output when they meet in Algeria later this month, after a similar effort to boost oil prices collapsed in April due to Saudi-Iranian tensions. “The Saudis are going to Algeria for a freeze,” said a source in the Organisation of the Petroleum Exporting Countries who is familiar with the matter and declined to be identified. “More and more ministers are now talking among themselves to evaluate their production position.” Opec in November 2014 made a landmark policy shift, led by Saudi Arabia, refusing to cut production by itself in the hope that lower prices would discourage higher- cost competitors that had eroded the group’s market share. Further cementing the impression of a production free-for-all, Opec ditched its last remaining supply-management tool, an output ceiling, in December 2015. From 2014 until earlier this year, Saudi Arabia’s then-minister for oil, Ali al-Naimi, offered little verbal support for prices. The market determined them, al-Naimi said, but he gave no preferred range or any indication of what levels could be sustained in the long term. Since Khalid al-Falih took over as energy minister, the tone has visibly shifted. He says the world needs oil above $50 per barrel to achieve a balanced market, and raised the prospect of Saudi Arabia resuming its role of balancing supply and demand. Outwardly, there is no sign yet of a definite change in policy. But behind the scenes, Saudi Arabia has been working towards boosting prices, rather than leaving that job to market forces. At Opec’s last meeting in June, held in Vienna, al-Falih surprised some of his counterparts by proposing Opec set a new output ceiling, according to several people familiar with the matter. In Vienna, al-Falih floated a number of ideas in private meetings on how best to manage the supply glut, and questioned independent Opec analysts during separate meetings as to the possible price impact of a production freeze or even a cut. At private talks with the Nigerian oil minister before the June 2 Opec meeting, al-Falih was willing to revive the idea of a production freeze while showing more tolerance towards Iran, which is raising output post-sanctions, sources said. “The Saudi minister met with the Nigerian minister and discussed a ceiling of 32mn bpd with flexibility towards Iran,” one source said.
  • 6. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 More talks with Iran led by Qatar, which holds the Opec presidency in 2016, took place privately but they failed to get Tehran on board because Iran argued it needed to regain market share lost during years of Western sanctions, the sources said. On the day of the Opec meeting, Gulf members proposed discussing a ceiling. “But Iran said no, so the ministers moved quickly to discuss the secretary-general nomination,” the source said. Opec agreed to appoint Nigerian Mohammed Barkindo to the position. Saudi Arabia is by far the largest Opec producer, pumping more than twice as much as the second- biggest, Iraq. Even so, plunging oil prices since mid-2014 have put stress on Saudi Arabia’s finances, causing a big budget deficit last year and forcing the kingdom to seek new sources of income, including taxes and other fees and to cut spending. The government is trying to boost non-oil revenue and modernise the economy through a reform plan called “Vision 2030”, championed by Deputy Crown Prince Mohammed bin Salman, of which the centrepiece is the sale of a stake in Saudi Aramco. Sources in the oil industry say this partly explains the shift in tone on prices. Saudi “wants higher oil prices for a better Aramco valuation,” one industry source said, adding that some think Aramco could be valued as high as $4tn. Prince Mohammed has said he expects the initial public offering (IPO) to value Aramco at at least $2tn, but that the figure might end up being higher. Any valuation would account for oil price expectations and the size of Saudi Arabia’s proven oil reserves. Another industry source familiar with the matter agreed. “A stable oil price at a moderate level would help an IPO. I don’t know if the IPO is the major factor, but it’s certainly a factor,” he said. “Saudi Arabia does not want to crash the price. Their target indeed would be somewhere north of $50 - $60 or so.” Saudi officials have also discussed the possibility that too much future supply could be curtailed by investment cutbacks if prices remain lower for longer, and are wary of the risk of a price spike, the second industry source said. Al-Falih has talked about the issue publicly, saying in June that even $50 oil would not create a rush back to investment. “There’s a real fear,” the source said.”So many conventional oil projects are being cancelled.”
  • 7. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 Saudi production stands near a record high of 10.7mn bpd, on a par with Russia and the US. But some market insiders have suggested Saudi Arabia cannot afford to push output any further and sustain it for a long period because despite official affirmation it can produce as much as 12.5mn bpd if needed, Riyadh has never really tested such levels. The change in Saudi tone has been welcomed by Opec delegates from non-Gulf nations. But despite the behind-the-scenes talks, Opec delegates and industry sources are sceptical that the tone shift will be backed with concrete action. “I don’t think anything al-Falih says means they are going to cut production,” said the industry source. “It means Saudi will be cautious in doing things that might flood the market.” Al-Falih, in an interview with Reuters in August, tempered expectations of any production cut, saying significant intervention in the market was not necessary. But he did not dismiss the idea of a production freeze. “If there is consensus that emerges between now and the Algiers meeting, Saudi Arabia as always will be a constructive player in these discussions and we will be willing to participate,” he said.
  • 8. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 NewBase 05 September 2016 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Crude edges down on firm dollar, glut worries Reuters + NewBase Crude prices inched down on Monday, paring 3 percent gains in the previous session, as the dollar firmed and traders eyed persistent concerns over a global oil glut despite some signs oil producers may try to tackle weak oil prices. The U.S. dollar held firm as Friday's disappointing U.S. jobs growth figures did little to change investors' perception that the Federal Reserve is likely to raise interest rates in coming months. "Crude is down now because they think there's going to be a hike in (U.S.) interest rates," Tony Nunan, oil risk manager at Japan's Mitsubishi Corp in Tokyo said. "Probably the jobs report is good enough that there is a chance London Brent crude for November delivery was down 37 cents at $46.46 a barrel by 0353 GMT, after settling up $1.38 on Friday. NYMEX crude for October delivery was down 35 cents at $44.09 a barrel. Trading in U.S. crude is likely to be limited on Monday because of the U.S. Labor Day holiday. Brent rallied to above $50 a barrel in late August helped by growing talk of a coordinated production freeze, but prices have since fallen as few believe OPEC will cut output. Russian Energy Minister Alexander Novak said on Saturday that an oil production freeze would be one of the issues discussed by crude producers later this month in Algeria. But despite talk of a freeze, few actually believe any deal would be reached in Algeria. "Even though there will be discussions in Algeria, there's no strong feeling that anything will be done, so the supply remains high," Nunan said. "Saudi Arabia's position hasn't changed. They are open to some kind of production freeze if Iran and other major producers join." Oil price special coverage
  • 9. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 Oil Slips as Saudi-Russia Agreement Stops Short of Output Plan Oil fell as two of the world’s biggest producers stopped short of making concrete proposals to coordinate output, pledging instead to cooperate to ensure market stability. Futures lost as much as 0.9 percent in New York. Saudi Arabia and Russia agreed to work together to stabilize prices, without offering details on joint action, after Deputy Crown Prince Mohammed bin Salman and President Vladimir Putin met in China on Sunday. Crude rose the most in two weeks on Friday as Putin said he’d like OPEC and Russia to agree to an output freeze. Oil rallied last month amid speculation members of the Organization of Petroleum Exporting Countries and other producers would agree to a plan to limit output when they meet later this month in Algiers. A similar proposal, originally put forward in February, was derailed in April after Iran declined to cap its production. “At this stage, markets are probably just going to take the view that it needs to see some evidence, some tangible idea on what the agreement might actually amount to before responding to it,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “We will get a lot of statements about it but probably nothing really concrete until we get to the stage of the Algiers meeting.” OPEC Record West Texas Intermediate for October delivery fell as much as 38 cents to $44.06 a barrel on the New York Mercantile Exchange and traded at $44.19 at 1:34 p.m. Tokyo time. The contract rose $1.28 to $44.44 on Friday, the biggest gain since Aug. 18. Total volume traded was about 49 percent below the 100-day average.
  • 10. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 Brent for November settlement lost as much as 43 cents, or 0.9 percent, to $46.40 a barrel on the London-based ICE Futures Europe exchange. The contract added 3 percent to $46.83 a barrel on Friday. The global benchmark crude traded at a $1.82 premium to November WTI. Putin said in an interview last week in Vladivostok that other producing countries now recognize Iran should be allowed to continue raising output since it was freed just months ago from international sanctions. The Russian president said at the time that he may recommend such a plan when he met with Prince Mohammed. Saudi Arabia led OPEC’s decision in 2014 not to cut output amid a global glut in order to protect market share and force out higher-cost producers. Group production rose to a record 33.69 million barrels a day in August, just under a third of global demand, a Bloomberg survey showed last week. Oil Rally Fervor Cools as OPEC Output at Record Before Talks Bloomberg - Meenal Vamburkar Investors are realizing that OPEC’s talk of a production freeze may not be much of a restraint, as output reached another record. Ahead of informal talks to discuss a potential agreement with major exporters, OPEC’s crude output rose to a new high last month as members from Saudi Arabia to Kuwait boosted production. Money managers slashed bets on an oil rally by the most contracts in two years in the week ended Aug. 30, according to the Commodity Futures Trading Commission. "There’s basically tension in the market," said Tim Evans, an energy analyst at Citi Futures Perspective in New York. Supply from the Organization of Petroleum Exporting Countries rose by 120,000 barrels a day to 33.69 million last month, just as the group is set to hold informal talks about an output deal in
  • 11. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 Algiers later this month, according to data compiled by Bloomberg. Meanwhile in the U.S., shale producers added another 14 onshore oil and gas rigs last week, and have increased the total rig count by 93 since the end of May, according to Baker Hughes data. Iran’s Role A previous attempt to reach a deal among major producers collapsed in April after Saudi Arabia insisted on Iran’s participation. Iran is in the process of restoring exports after sanctions on its nuclear program were lifted in January. Russian President Vladimir Putin said in an interview that he’d like OPEC and Russia to reach a deal to freeze output -- but with an exemption for Iran. A compromise is "the right decision for world energy," he said. It’s unlikely the market is expecting much out of the freeze talks, said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. Even with an agreement, it would need to be honored and be effective in raising prices, he said. In the U.S., onshore oil production is set to stop declining and even grow, according to a recent report by consulting firm Rystad Energy. New drilling activity in the sought-after Permian Basin will be enough to balance declines from other plays and “will restore the growth trend” in November and December this year, the report said. Speculators cut their long position in West Texas Intermediate, or bets prices will rise, by 25,364 futures and options in the week ended Aug. 30, according to the CFTC. That’s the biggest drop since July 2014. Net longs fell for the first time in four weeks, dropping 9.7 percent. Shorts, or wagers on a price decline, were reduced by 1,665 after a record 123,154 were undone in the previous two weeks. WTI, the U.S. benchmark, fell 3.6 percent to $46.35 a barrel in the report week. Futures lost 0.8 percent to $44.09 at 11:45 a.m. Singapore time on Monday. In other markets, net-bullish bets on gasoline rose 8.3 percent to 16,336 contracts. Gasoline futures declined 3.4 percent in the report week. Net-long wagers on U.S. ultra low sulfur diesel climbed 0.9 percent to 22,242 contracts. Futures fell 2 percent. As for U.S. crude supplies, while down from a peak in April, they’re at the highest seasonal level in at least three decades, according to data from the Energy Information Administration. Inventories rose by 2.28 million barrels in the week through Aug. 26, the fifth increase in six weeks. The global glut may have eased, but the market is still dealing with a surplus, Evans said. The big question, he said, is whether OPEC can agree on a deal that "would change the path of their own production." And a freeze may not be enough. "There’s risk there that it’s just too much to accomplish in one step," he said. "To go from no quotas whatsoever to effective limits on output is an awful lot." Stable Oil Requires Saudi, Russian Cooperation, Prince Says Global oil-market stability is impossible without the cooperation of Russia and Saudi Arabia, the world’s biggest crude producers, the kingdom’s influential deputy crown prince said, speaking with Vladimir Putin ahead of an OPEC meeting later this month. Saudi Arabia hopes to work with Russia for stability in oil markets, Prince Mohammed bin Salman said Sunday in a meeting with the Russian president in Hangzhou, China. World leaders are
  • 12. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 gathering in China this week for a summit of Group of 20 nations. Russia and Saudi Arabia will meet with other producers in Algeria this month to discuss oil markets. “Our countries are the two biggest oil producers, that’s why there can’t be a stable policy in the sphere of oil without the participation of Russia and Saudi Arabia,” said Prince Mohammed, a son of the Saudi king. Putin said it is important for the two countries to “maintain a permanent dialogue.” Crude has gained about 6 percent since the Organization of Petroleum Exporting Countries said last month it will hold informal talks on oil prices and supply during a meeting of the International Energy Forum in Algiers. Producers have been discussing proposals to limit output and prop up crude after a glut cut prices by more than half from their 2014 peak. Record Output Brent crude fell last week to $46.83 a barrel after a U.S. government report showed stockpiles in the country increased. OPEC in 2014 adopted a Saudi-led policy allowing members to raise output in an effort to protect market share from higher-cost producers like U.S. shale wells. Output for the group rose to a record in August, a Bloomberg survey showed last week. Talks in April about a Saudi-Russian proposal to freeze output ended without an agreement in Doha, Qatar, after Iran, the group’s third-largest producer, declined to attend the meeting and Saudi Arabia balked at any accord that didn’t include all OPEC members. Putin said Thursday in an interview with Bloomberg that he’d like OPEC and Russia, producers of half of the world’s oil, to reach a deal to freeze supply and he expects the differences over Iran’s participation can be resolved. “Russia and Saudi Arabia talking constructively about a production freeze is going to be bullish for the market, whether or not they actually follow through with it,” Edward Bell, a commodities analyst at Emirates NBD PJSC, said by phone from Dubai.
  • 13. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 NewBase Special Coverage News Agencies News Release 05 September 2016 OPEC's Indonesia is ‘comfortable’ with crude oil prices at $40- 45 per barrel … Reuters - Katy Barnato | Sri Jegarajah Indonesia's finance minister Sri Mulyani Indrawati told CNBC she was optimistic her country could receive a ratings upgrade this year — despite oil being pinned below $50, levels at which she said her country is generally "comfortable." Despite the low price of crude walloping other OPEC nations, Indonesia, which is part of the G-20 group of the world's biggest economies, is managing to ride out the crisis. It has a coveted investment grade credit rating from Moody's Investors Service and Fitch Ratings, but not yet from Standard & Poor's. Indrawati told CNBC she hoped Indonesia's rating might be upgraded in 2016, with the Indonesian government engaged in programs to boost infrastructure spending, open up the private sector and reform taxation. "We are very much confident — this is very much the focus of all the reform of the fiscal (policies), that we are going to have much more credible, coherent narrative (of) policy," Indrawati told CNBC at the G-20 summit in China. Oil at $45 likely to be 'sustained' "It's a very strong package (of) macro prudent and the very ambitious structural reform. Not a country in which growth is generated by a bubble activity but real, deep reform that can be sustainable, so I'm optimistic that it could happen," she added. Crude oil futures will likely remain at $40- 45 per barrel, the finance minister of Indonesia told CNBC on Sunday, adding that she was "comfortable" with prices at that level. Indonesia is the only OPEC member country in Asia and has the largest economy in the south east of the region. It exported $6.4 billion worth of petroleum
  • 14. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 in 2015, according to OPEC data. Indrawati forecast crude oil would remain at today's historically low levels between $40 and $45 per barrel, baring disruption from security problems or natural disasters. "If we look at the purely supply and demand, I think that is going to be sustained," she told CNBC at the G-20 summit in Hangzhou, China on Sunday. "We already have put in a budget of around $40-$45 and (at) that level, we're looking at all the situation in the supply side of the oil and gas, as well as the demand side, I'm comfortable with that level," the minister added separately. WTI crude futures for October fell back below $45 last week. Light crude has rallied by around 19 percent this year, but remains far below the levels above $100 traded at prior to the commodities rout of July 2014 onward. Petroleum and natural gas are major industries for Indonesia, but manufacturing, tourism, agriculture and mining are also significant. The country exported 315,100 of barrels of crude oil per day in 2015, according to statistics from OPEC, which Indonesia rejoined in July.
  • 15. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Your partner in Energy Services NewBase energy news is produced daily (Sunday to Thursday) and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscription emails please contact Hawk Energy Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 Mobile: +97150-4822502 khdmohd@hawkenergy.net khdmohd@hotmail.com Khaled Al Awadi is a UAE National with a total of 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 05 September 2016 K. Al Awadi
  • 16. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16