New base special 03 march 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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NewBase 03 March 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
UAE exports to Japan reach 20.5% of Japan’s oil needs in January
WAM
Japan’s imports of oil from the UAE reached 41 million barrels during January, which represents 20.5 per
cent of total Japanese oil imports.
The Agency of Energy and Natural Resources, affiliated to the Japanese Ministry of Trade and Industry and
Economy, said that the proportion of Middle East oil — from the Arab States and Iran — reached 83.2 per
cent of total oil imports in January.
Within this amount, the percentage of Arab oil was 77.9 per cent , which means that more than three-
quarters of Japan’s oil needs came from the countries of the Gulf Cooperation Council (GCC) states and
Iraq.
Oil storage facilities in Fujairah UAE

UAE hydrocarbon projects seen hitting $11bn
TradeArabia News Service
A total of $11 billion worth of hydrocarbon contracts across 27 projects will be awarded in the UAE over
the next 12 months – the same value of projects as 2013, a report has forecasted. Following the boom that
2013 saw, the UAE hydrocarbons projects market shows signs of continued vibrancy this year, explained a
report released by Meed projects, an online business development and market analysis tool.
This follows a four year cycle between 2009 and 2012 when 55 contracts with a value of $45 billion were
awarded in 2009 and 2010 followed by two years when only 35 contracts worth $8 billion were awarded,
the report said.
This reflected
financial
opportunism, as
clients took
advantage of the
global economic
crisis to negotiate
hard and award a
large amount of
work upfront at
prices
advantageous to
them. This year and
last sees a return to
stability and more
normally
distributed awards.
Meed Projects said that the majority of upcoming awards will be in the oil sector, followed gas, with the
emirate of Abu Dhabi naturally being the most active in terms of awarding contracts. The contractor
landscape witnessed a major shift in 2013. In each of the years 2009, 2010, 2011 and 2012, the ranking of
contractors by value of contracts won was dominated by South Korean companies.
While two of the top 10 positions were held by South Koreans (Daewoo and Hyundai E&C), in the
remaining 20 contracts, no South Korean company was represented. European and local companies, notably
Petrofac of the UK (ranked 1) and National Petroleum Construction Company from Abu Dhabi (ranked 3),
returned to favour, participating in 19 of 22 winning bids.
"The outlook for this year is positive with as much business scheduled for award as last year," said Julian
Herbert, director of Meed Projects.
"European, Indian and local UAE contractors have begun to win market share, after three years of South
Korean dominance. With a number of significant awards due this year such as ADCO’s North East Bab
Field phase 3 and ADMA-OPCO’s Nasr Phase 2 development, it will be interesting to see if this pattern can
be maintained.” –

Korean-led group bids lowest for Oman Rail PMC package
http://main.omanobserver.om
The consortium headed by Dohwa Engineering, a South Korean multi-disciplinary engineering
consulting firm, is a strong contender for the prestigious, but much delayed, Project Management
Consultancy (PMC) package of the Oman National Railway Project. Envelopes containing the
financial offers submitted by various international groups competing for the key PMC package
were opened at the Tender Board. The Dohwa Engineering-led consortium quoted a low bid of
RO 34.297 million (RO 106.803 million inclusion of construction supervision). The next lowest bid
came from the consortium headed by Spanish based international general contractor Técnicas
Reunidas which quoted a value of RO 59.539 million (RO 165.086 million with construction
supervision). In third place was the group led by Parsons International which quoted RO 78.772
million in its bid (RO 185.974 million with construction supervision).
The financial offers of two other consortiums – led by Hill International and Parsons Brinkerhoff
respectively – were not disclosed, effectively suggesting that they have been eliminated from
competition. They were among a total of five consortiums that had submitted firm technical and
financial offers for the keenly contested package last August. With the opening of the financial
offers, the race for the all-important Project Management Consultancy contract is effectively down
to a shortlist of three contenders. Dohwa Engineering, the lowest bidder, has joined hands with
National Engineering Office (NEO) of the Sultanate of Oman, Korea Rail Network Authority, First
China Railway, and Balaji Railroad Systems (India) in the submission of its bid.
The successful Project Management Consultant (PMC) will provide, among other things,
consultancy services for establishing Oman Railway Company. Further, in addition to reviewing
the design of the network, the PMC will also undertake a review of the activities of the Preliminary
Design Consultant. Besides, the selected firm will review the contract process, extend contract
management and construction supervision, and provide project management services.

Additionally, the PMC will oversee the procurement of rolling stock and procurement of the
services of a rail transport operator in coordination with the government. Equally, the company will
prepare a training programme for capacity building of Omani nationals.
The Ministry of Transport and Communications is overseeing the implementation of Oman Rail,
which envisions the construction of a 2,244 kilometre-long network extending from Buraimi in the
north to Salalah in the south. En route, the network will connect Khatmat Malaha, Sohar Port,
Duqm Port, Salalah Port and all major cities and towns in-between. (OEPPA Business
Development Dept)

South Sudan says in control of main oil fields, output steady
Source: Reuters
South Sudan's oil production is little changed since last month at 160,000 barrels per day, foreign workers
are back at work and the government is in control of the oil fields in the main producing area of Upper Nile
state, the oil minister said on Sunday. Petroleum Minister Stephen Dhieu Dau was speaking on a trip to
Paloch, site of an oil complex and key crude oil processing facility in the north of the country near the
border with Sudan, which hosts the sole pipeline export route.
'I'm here to assure that the
government is in full control of
the situation in Upper Nile and
in particular the oil fields,' he
told reporters invited to join
him on the visit to Paloch in
Upper Nile.
At 160,000 barrels per day
(bpd) output is still roughly
around the level reported
before a battle last month over
the nearby regional capital
Malakal, the worst fighting
since a Jan. 23 truce. The flare
up raised worries output could
be hit. In February, an oil
official said output was
167,000 to 168,000 bpd. But
production is still down a third
on the 245,000 bpd recorded
before the conflict first flared
in December between troops
backing President Salva Kiir
and soldiers loyal to his sacked
vice president, Riek Machar.
Production from neighbouring Unity state was halted earlier in the conflict, but Upper Nile has faced limited
disruption. Speaking from Paloch, Dau said: 'The situation is normal. The oil field is fully operating, the
employees are working normally - foreigners, nationals.' The minister said some non-essential staff had
been temporarily evacuated because of recent fighting in the region but said they had all since returned. He
did not give specifics.
Oil firms in South Sudan, a country the size of France, include China National Petroleum Corp, India's
ONGC Videsh and Malaysia's Petronas.
Dau's comments were echoed by Liang Jindong, the production facility superintendent at Paloch, which is
400 miles (640 miles) north of South Sudan's capital Juba and 90 miles (140 km) northeast of Malakal.
'Now we have more than 400 wells running, so that means our facility is working normally, and export is
normal,' the superintendent said.

Iran to Resume Development of Kish Gas Field
http://www.naturalgasasia.com
Iran’s Petroleum Engineering and Development Company (PEDEC) will soon resume
development of Kish gas field, company’s managing director Abdolreza Haji Hossainnejad said.
Hossainnejad said over the course of
development of Kish gas field, the
company will give priority to extraction
of gas condensate reserves stating
drilling operation will be complete in
near future, reports Shana news
agency.
Kish gas field development will be done
in three phases, the news agency adds.
Gas produced in Kish gas field will be
transferred to a gas processing plant in
Garzeh through beneath the surface as
well as offshore pipelines.
The gas processing plant will sweeten the sour gas which will be used either for domestic
consumption or will be exported to other countries,
NewBase Comments / research :
Kish Gas Field, located below Kish Island in the Gulf, Iran, has been under development since 2012. The field was
discovered in 2006 by the National Iranian Oil Company (NIOC). The Iranian Ministry of Petroleum for Planning and
Supervision on Hydrocarbon Reserves selected Petroleum Engineering and Development Company (PEDEC) in
October 2011 to perform development activities at the field.
PEDEC will develop the field in three phases. The first phase is expected to be operational by early 2014. Drilling
operations on this phase commenced in August 2012. The field is expected to produce about 85 million cubic metres
of gas and 30,000 barrels of gas condensates per day.
Financing the Kish gas field development
NIOC signed a $10bn deal with a domestic consortium for the development of the field in July 2010. The consortium,
led by Bank Mellat, will provide financing for the project.
Gas and condensate reserves at the Iranian field
Kish gas field is estimated to have reserves of about 66 trillion cubic feet (tcf) of in-situ natural gas and 946 million
barrels of condensate. Recoverable gas and condensate reserves are estimated at 45tcf and 331 million barrels
respectively.
Kish gas field development and infrastructure
"NIOC signed a $10bn deal with a domestic consortium for the development of the field in July 2010."

Phase one of the Kish gas field will include a development plan to enable production of one billion cubic feet of gas
from the reservoir.
It will include drilling of 12 production wells,
overhauling of one onshore well and construction
and installation of two drilling rigs. It will also
include construction of refinery facilities, gas
transmission pipelines, reservoirs and infrastructure
facilities, such as electric power plants, water
treatment plants, an industrial effluent treatment
plant and roads. Four delineation wells will be
drilled, with two of them six kilometres south-west
of Kish Island.
Geological studies on the reservoir, examination
and evaluation of surface facilities, and economic
feasibility studies for the field will be also
performed during phase one. Development phases
two and three of the field will produce one billion cubic feet of gas per day each when completed.
Pipelines will be constructed to allow transportation of up to three billion cubic feet of gas per day. The pipelines will
transport the sour gas to the mainland refineries for processing. The mainland refineries will have a processing
capacity to produce 2.7 billion cubic feet of light gas and 45,000 barrels of condensate.
Processing gas from Iran's Kish field
Gas produced by Kish will be transferred to gas refinery to further produce light gas and condensate.
"Development phases two and three of the field will produce one billion cubic feet of gas per day each
when completed."
A ten kilometre land pipeline will transfer the output gas to the Kish Island's coast. The gas will be transported to
mainland from coast via a 17km offshore pipeline. A three kilometre onshore pipeline will carry the gas further to the
mainland refinery.
The refinery will process the gas to produce light gas, which will be transmitted via a 94km long, 56in diameter
pipeline to the seventh cross-country (IGAT-7) pipeline of Iran. The condensate produced during gas processing will
be transmitted to the Single Buoy Mooring (SBM) in the Gulf via a five kilometre long offshore pipeline.
Sustainability measures at the Kish offshore project
The Kish gas refinery will be constructed at Garzeh region (mainland) near Aftab port to reduce environmental
impacts at Kish Island.
Contractors involved with the Iranian field development
Arya Petro Gas will provide engineering and procurement services for three gas turbine centrifugal compressors of
export unit, off-gas reciprocating compressors and API centrifugal pumps of the Kish gas refinery. The company will
also provide services for MEG injection reciprocating pumps, fire water pumps, fuel gas system and PDCS system for
the Kish gas refinery. Drilling operations have been contracted to National Iranian Drilling Company (NIDC).

PEDEC signed an agreement with Nardis, Farab and Namaran in April 2012 on behalf of NIOC. The agreement
includes construction of a refinery unit and gas transport lines. The $1.7bn contract includes procurement of
engineering support services for the project.
Tarh-O-Palayesh Engineering Company (TOP), RAMPCO, FARAFAN ZAGROS, Tavanshargh, Jahan Pars,
Khalkhal-Dasht, Sadr Sobhan, Varj, Hormozgan Electric Distribution, Khalkhal-Dasht and Boostan Rah will manage
the construction of refinery facilities and gas transmission pipelines.
Petro Pars Zagros Consulting and Kand-o-kav Energy Pars (KEP) will provide drilling services for the delineation
wells. Drilling services for the onshore wells will be provided by National Iranian Drilling, Kousha Metal Industry
(KMI) and Kish Oil.
He said PEDEC has planned to have 120 million cubic feet of gas per day from Cluster B in Kish Island and
it takes some 12 to 15 months for planning, supplying equipment and implementation of the project, on the
condition that the required equipment in the country could be supplied on time.
He also said that preparation of the transmission pipelines and other equipment for processing and
sweetening of gas is on the agenda. Adding that environmental studies (EBS/EIA), gaining of the required
land, bed sea study for drilling of new wells and project site, data gathering in drilling section, selecting an
appropriate drilling rig and installation of the rig are all among the initial activities that have to be done
before the project.
About Kish Gas Field :-
Kish gas Fied is a giant gas field close to Kish Island in the Gulf. It is one of the NIOC Recent Discoveries
which was discovered in 2006 and holds 66×1012
cu ft (1,900 km3
) of gas in place of which 50×1012
cu ft
(1,400 km3
) is recoverable. The field also holds at least 1 billion barrels (160,000,000 m3
) of condensate of
which at least 331 million barrels (52,600,000 m3
) are recoverable.
The field gas is sweet, it contains 50-80 PPM hydrogen sulphide. The field has the potential of producing
4000 million cubic meters of natural gas per day. In February 2010, an Iranian consortium headed by Bank
Mellat signed a $10-billion agreement with the National Iranian Oil Company (NIOC) to develop the Kish
gas field. The gas field will produce 85 million cubic meters of natural gas per day .
Kish structure is located in Gulf 30 km east of Lavan Island. OGIP (originally gas in place) of this field is
expected to be 48 TSCF in the preliminarily study of NIOC. Petroleum Engineering and Development
Company (PEDEC) has started to develop Kish gas field and in this regard an engineering and supervision
contract was awarded to Pars Petro Zagros Engineering and Services Company for 24 months.
The main objectives of the preliminary Kish gas field development project are as follows:
- Drilling one new well (KI-03) in offshore area of the Kish gas field
- Preparation tender document for rock and fluid sample analysis
during KI-03 drilling
- Supervision, Contractual / Legal and engineering services
- Performing a new full field reservoir study by using available data of
two old wells. The scope of work includes a review of geophysical,
geological ,petrophysical, production, and reservoir appraisal .

South Korea confirms S-Oil to invest $7.5 bln in refining, petrochemical units
(Reuters) –
South Korea's S-Oil Corp will invest 8 trillion won ($7.49 billion) to build heavy oil upgrading and
petrochemical production units, the energy ministry said on Monday.
S-Oil plans to spend 5 trillion won through to 2017 to
build heavy oil upgrading and petrochemical units,
and then 3 trillion won later to build additional
petrochemical units, the ministry said.
Last month, South Korea's third-largest refiner won a
tender to buy land in Ulsan from state-run Korea
National Oil Corp for the facilities. Sources told
Reuters on Friday S-Oil was expanding its heavy oil
upgrading unit to raise gasoline production by nearly 50 percent to up to 218,000 barrels per day.
The sources said S-Oil would build a 45,000 bpd atmospheric residue desulphurization unit and
an up to 70,000-bpd residue fluid catalytic cracker (RFCC), although Monday's ministry
statement did not elaborate. An S-Oil spokesman declined to comment on its investment plans. S-
Oil's largest shareholder is Aramco Overseas Co B.V., a unit of Saudi Arabian Oil Company,
with a 35 percent stake .

Oil jumps US$2 as war drums sound in Ukraine
Source : Reuters
Brent and US crude oil rallied more than US$2 per barrel to multi-month highs on Monday, lifted
by rising tension in Ukraine after Russian President Vladimir Putin declared he had the right to
invade his neighbour . Russia is the world's biggest oil producer and Ukrainian Prime Minister
Arseny Yatseniuk said Moscow's move to use military force
was a "declaration of war". Putin secured permission from
his parliament on Saturday to use military force to protect
Russian citizens in Ukraine and told US President Barack
Obama he had the right to defend Russian interests and nationals, spurning Western pleas not to
intervene.
US crude futures jumped as much as US$2.06 to US$104.65 a barrel, the highest since Sept 23.
Futures were up US$1.77 at US$104.36 by 0043 GMT. Brent crude hit a session high of
US$111.24 per barrel, its loftiest since Jan 2, and was last up US$1.90 at US$110.97.
President Barack Obama and the leaders of Britain, Germany and Poland expressed "grave
concern" on Sunday over Russia's intrusion into Ukraine, which they called a breach of
international law and a threat to international peace and security.
The tensions come at a nervous time for markets as activity in China's factory sector slowed to an
eight-month low in February, a government survey showed on Saturday, reinforcing signs of a
modest slowdown in the world's No 2 economy as demand weakens.
Escalating political tensions in Ukraine pressured Asian stocks on Monday, forcing anxious
investors to cut their exposure to riskier assets in favour of traditional safe haven bets such as the
Japanese yen and Swiss franc.

wBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Services
Khaled Malallah Al Awadi,
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Energy Services & Consultants
Mobile : +97150-4822502
khalid_malallah@emarat.ae
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil &Oil &Oil &Oil & Gas sector. Currently working asGas sector. Currently working asGas sector. Currently working asGas sector. Currently working as
Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical 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 sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationspent as the Gas Operationspent as the Gas Operationspent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedhas developedhas developedhas developed
great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulating stations and in the engineering of supplyating stations and in the engineering of supplyating stations and in the engineering of supplyating stations and in the engineering of supply
routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forOUs forOUs forOUs for
the local authorities. He has become a reference for many of the Oil & Gasthe local authorities. He has become a reference for many of the Oil & Gasthe local authorities. He has become a reference for many of the Oil & Gasthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andConferences held in the UAE andConferences held in the UAE andConferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 03 March 2014 K. Al Awadi

New base special 03 march 2014

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New base special 03 march 2014