New base special 04 august 2014

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NewBase 04 August 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Saudi Aramco, Sumitomo To Transfer Project Ownership To PetroRabigh
Reuters + NewBase
The new $8.5 billion project, known as Rabigh II, is to be built as an expansion of
PetroRabigh's existing petrochemical plant.
Saudi Aramco and Sumitomo Chemical will transfer ownership of a planned SAR32 billion
($8.5 billion) petrochemical facility to their joint venture PetroRabigh, the venture said on
Sunday.
The new facility, known as
Rabigh II, is to be built as
an expansion of
PetroRabigh’s existing
petrochemical plant,
increasing output and
introducing higher-margin
products. The project,
located on Saudi Arabia’s
Red Sea coast, received a
formal go-ahead from the
parent firms in 2012;
PetroRabigh has said
previously it is due to come
online in 2016, despite a
string of maintenance
problems at the existing
facility.
Ownership of the planned new facility will be transferred from Aramco and Sumitomo to
PetroRabigh in the fourth quarter of this year, the company said on Sunday.
However, it added that both Aramco and Sumitomo would continue to guarantee finance
needed to build the project. The two firms will each put in around 100 billion yen ($975
million), with the rest coming from project financing, Sumitomo President Masakazu Tokura
said last November.
Rabigh II will produce ethylene propylene rubber, thermoplastic polyolefin, methyl
methacrylate monomer and polymethyl methacrylate among other products. PetroRabigh’s
existing plant can produce an annual 18 million tonnes of refined products and 2.4 million
tonnes of petrochemical products.

Oman invites bids for 5 new onshore, offshore blocks
(OEPPA Business Development Dept) + NewBase
The Sultanate’s government has invited local and international oil and gas companies to
participate in a new bid round covering a total of five blocks onshore and offshore Oman.
Up for grabs as part of the Oman Bid Round 2014 are offshore Blocks 18 and 59 and onshore
Blocks 43A, 54 and 58.
“Interested companies having relevant technical and financial capabilities are welcomed to bid for
the blocks and thereby requested to follow and fulfil the bid process,” said the Ministry of Oil and
Gas in its invitation announcing the new licensing round. The deadline for the submission of
sealed bids against these blocks is October 31, 2014, the ministry added.
The latest bidding round underscores ongoing efforts by the Omani government, represented by
the Ministry of Oil and Gas, to unearth and commercialise the Sultanate’s hydrocarbon potential,
currently the mainstay of the country’s economic development. The hydrocarbon sector accounted
for around 50 per cent of nominal GDP during 2013.
Offshore Block 18 is located in the North Sohar Basin between the Batinah coast and the Makran
Accretionary Prism. Previously held by India’s Reliance Industries Limited until its relinquishment
in 2011, the concession covers an area of 21,140 sq kilometres with water depths ranging from 30
to 3,000 metres.
Around 10,000 kilometres of 2D and 2,048 sq km of 3D seismic have already been acquired from
the block. Three wells have been drilled by previous operators with a number of plays identified
so far, according to the ministry.

Also on offer is offshore Block 59 which, with an area of 40,488 sq kilometres, is one of the largest
concessions within the Sultanate’s upstream sector. This mammoth block is located off Oman’s
central east coast. Commenting on the characteristics of the concession, the Ministry said: “The

Block is an accommodate basin for deposition western clastic influx and delimited from the east by
its own Basin with water depths ranging 0-3600m. The Block is covered with about 8000 km of 2D
seismic. Several prospects and leads in the area have been mapped on high quality 2D-data.”
Among the most promising of the blocks on offer is onshore Block 54, which flanks the world-
class South Oman Salt Basin. The latter Basin has a stock tank original oil in place (STOIIP)
potential of 16.5 billion barrels with a daily production of 173,000 barrels.
Covering an area of 5,632 sq kilometres and located in the southeastern part of the country, the
block adjoins PDO’s Block 6 and Oxy’s Block 53 Mukhaizna field. Just south of the concession
are Blocks 3 and 4, where production averages in excess of 20,000 barrels per day of oil.
Underscoring the block’s potential is the recent discovery of new fields in adjoining blocks. “The
Block is covered with about 7,000 km of 2D and 400 sq kilometres of 3D seismic. Seven wells
been drilled within the block with hydrocarbon shows in some of the wells,” the Ministry said.
In contrast, however, onshore Block 43A, located north of the Oman Mountains, is under-explored
with only one well drilled and some 1,200 km of 2D seismic of various vintages acquired to date.
The concession covers an area of about 6,879 sq kilometres.
Rounding off the portfolio of open blocks on offer is onshore Block 58, which is situated on the
southern edge of the Western Flank and covers an area of 2,277 sq kilometres between the South
Oman Salt Basin and Rub Al Khali Basin.
“The block is considered as under-explored, giving it a unique setting to explore and develop its
deep (structures),” said the Ministry in a description of the concession. “The block is covered by
around 2500 km of multi-quality 2D. Only one exploration well penetrated the block with a (target
depth) of 4275m. The block is positioned along the Western Margin where the world class
hydrocarbon producing South Oman salt Basin is present,” it added.
As many as 16 local and international companies are currently exploring for hydrocarbons — and
in some cases producing as well — under production sharing agreements signed with the Ministry
of Oil and Gas.

Fifth tanker of Iraqi Kurdish oil loading in Turkey
(Reuters) – NewBase
The fifth cargo of crude oil from Iraqi Kurdistan was loading at Turkey's Mediterranean port of Ceyhan on
Thursday and was scheduled to set sail on Friday, Turkish energy officials said. The cargo was the first
loading of Iraqi Kurdish oil from Ceyhan in over a month, as the central government in Baghdad,
locked in a bitter dispute with the Kurds over oil exports, moved to block the unloading of Kurdish
oil-laden vessels in foreign ports.
The Suezmax tanker Kamari arrived at the port late on Wednesday, a shipping source said. It will
be carrying one million barrels of crude oil. "Initially
there was no programme for loading today. Then we
received a tanker and started to load swiftly," one
Turkish official said, adding that he had no knowledge
of the buyer. So far, most of the buyers of Kurdish oil
remain anonymous while as the intensifying legal and
political struggle with Baghdad could deter potential
buyers, analysts say.
Arguing all oil sales outside its control are illegal,
Baghdad this week tried to get a Texas court to seize 1
million barrels of oil aboard the United Kalavrvta
tanker, which has been anchored off the port of
Galveston since the weekend. But after a U.S. judge
on Tuesday said she lacked jurisdiction given the
ship's distance from the shore, the Kurdistan Regional
Government (KRG) hit back at Baghdad, filing a letter
with the Texas court arguing its sales are allowed under the Iraqi constitution.
Arbil has begun selling its oil via a new pipeline through Turkey in May, but so far has only
successfully sold and delivered one tanker filled with oil from the line. Unable to export its oil on a
routine basis, Iraqi Kurdistan was forced to halt pumping in its oil pipeline via Turkey, as the
storage tanks at Ceyhan have been backed up and at capacity.
Baghdad
has cut the
KRG's
budget
since the
start of the
year over
the oil
sales
dispute,
heaping
pressure
on the
semi-
autonomous enclave of 5 million that has enjoyed relative stability since the 2003 U.S.-led
invasion.

Taiwan Gas Blasts Likely Caused By Faulty Pipe
Initial Investigations Show Gas Pipe Owned by Local Chemical Producer LCY Chemical
The deadly explosions that rattled the southern Taiwanese city of Kaohsiung earlier this
producer LCY Chemical Corp., initial investigations by the city government showed Saturday.
Around midnight Thursday, a series of explosions shook Kaohsiung, Taiwan's second largest city
by population and a major petrochemical hub. The blasts—which were followed by fires reaching
as high as 10 stories according to some witnesses—destroyed homes, ripped off manhole covers
and tore open several roads. Television footage showed cars and a firetruck collapsing into
craters blown open by the explosions.
The latest tally shows the blasts killed at least 27 people, injured 286 and left two missing, making
it Taiwan's deadliest gas leak explosion. Four firefighters were among those who died. Many
streets were still littered with rubble on Saturday and thousands of homes remained without water
and electricity.
Underground explosions in Taiwan's second-largest city triggered fires that ripped through the
streets. The WSJ's Jake Lee speaks with Eva Dou about the situation on the ground. While an
investigation to pin down the source of the leak is still continuing, the Kaohsiung Environmental
Protection Bureau said its records indicate that on the night of the explosions, a LCY pipe was the
only one that was transmitting Propene in the area. Propene is a highly inflammable chemical
used to make polyester and the only type of gas detected at the explosion sites.
"Our inspection indicates that LCY's pipeline showed irregularities around 8 p.m. (local time). The
amount of flow in the pipe dropped from 22 tons per hour to 19 tons, and was even down to 1 ton
at one point," said Chen Chin-te, the head of the Kaohsiung Environmental Protection Bureau. He
said the sudden drop in the flow of gas meant that either the pipe was broken or that there was a
leakage.
Mr. Chen said the company failed to notify the proper authority when it detected the irregularities.
Without commenting on the government's initial findings, LCY Chairman Lee Bowei said the
authority should also look into other possible causes such as whether the disaster was caused by
a leakage of other types of gas or whether the pipe had been damaged earlier by construction
work nearby.

The chemical producer also in a terse statement said it would fully cooperate with the authorities
and shoulder any responsibility if necessary. This isn't the first time that the 49 year-old company
has been named in a major environmental disaster. In 1986, LCY's plant in Hsinchu City in central
Taiwan was forced to shut down after residents complained the factory was emitting hazardous
chemicals into the local water supply.
At a news conference earlier Saturday, LCY spokeswoman Abby Pan confirmed that at 8:49 p.m.
local time, the company detected irregularities, but an internal test at 9:40 p.m. showed the
pressure level of the transmission pipe was within the normal range. The company stopped short
of commenting on its actions during the hour between the detection of the unusual reading and
the pressure test. Ms. Pan also refused to disclose if the company had alerted authorities of the
initial irregularities.
In the wake of the tragedy, the Kaohsiung city government and the central government agreed to
conduct a comprehensive review of the underground petrochemical pipeline system in Kaohsiung
from Monday, as questions are raised on the condition and the layout of the gas lines buried
beneath the city.
The public reaction to the fatal explosions has been overwhelming. In less than a day, the combined
donation from the Taiwan's business community and the public reached over 600 million New Taiwan
dollars (US$20 million). Nearby hotels and restaurants are offering free accommodations and meals to the
victims and the rescue workers. Flags throughout the island have been ordered to fly at half-mast for three
days to honor the victims of the explosion, as well as the 48 lives lost in the TransAsia crash last week.
The city's underground gas supply has been also turned off since the blasts, affecting at least one major
petrochemical maker. China Petrochemical Development Corp. said it would reduce its capacity for one
week, which is expected to reduce income by 36 million New Taiwan dollars ($1.2 million). It said it is now
using trucks to transport the chemicals it needs. Other chemical makers, including USI Corp. and Asia
Polymer Corp. said their supply from government-owned CPC Corp. remains normal and their operations
haven't been impacted.

Myanmar allows foreign oil companies to operate
Reuters + NewBase
The Myanmar Investment Commission has granted licenses for six foreign companies to operate
petroleum business in oil and gas blocks located in Inndaw-Yanan area and Zeephyutaung-
Nantaw area, Sagaing Region; Taungoo-Pyinmana area, Thaekone-Shwetu area, Maraman area
and Pyay area, Bago Region; Myinthar area and MyanAung-Shwepyithar area, Ayeyarwady
Region and Kyautkyi-Mintone area, Magway Region.
The licenses
were issued
recently for
India-
registered
ONGC Videsh,
Brunei-
registered
Brunei National
Petroleum,
United Arab
Emirates-
registered
Pacific Hunt
Energy,
Luxembouarg-
registered
CAOGS,
Netherlands-
registered
Bashneft
International
and Liberia-
registered
PetronasCarigali Myanmar. The commission screened the companies based on reports and
recommendations from ministries, organizations and governments.
China and Thailand rank as two top investors in Myanmar. Energy sector attracts most foreign
investment and the construction sector is at the bottom list. Australia, British Virgin Islands,
Brunei, Canada, India, Indonesia, Italy, Luxembourg, Malaysia, Netherlands, Pakistan, Russia,
Singapore, Switzerland, Thailand, Vietnam and Azerbaijan are on the list of countries applying for
the operations.

Qatari Telecom Ooredoo Success in Myanmar Telecom market
AFP/Yangon + NewBase
Qatari telecoms firm Ooredoo began selling low-cost SIM cards in Myanmar yesterday, opening
up access to mobile services in one of the world’s last virtually untapped phone markets. Less
than 10% of the population are thought to have access to a telephone in Myanmar where the
exorbitant cost of a SIM under the former regime made mobile phones a luxury.
But last year the reformist government led by President Thein Sein awarded telecom licences to
Ooredoo as well as Norway’s Telenor, part of a wider move to open up markets previously
monopolised by state firms.
A woman shows off an Ooredoo SIM card after buying it from a shop in Yangon. Right: Models take a selfie during
the official launch of Ooredoo SIM card in Myanmar at the Sule-Shangri-La Hotel in Yangon.
“This is history that we made here today,” said Ooredoo Myanmar CEO Ross Cormack at a press
conference in Yangon, adding the firm was bringing the very latest technologies to the nation.
The SIM card was officially launched for sale yesterday in the major cities of Yangon, Mandalay
and Naypyidaw at a price of 1,500 kyat ($1.5), a fraction of the cost of ordinary cards in Myanmar
which retail at about $200. Under the former junta rule a SIM could go for more than $1,500.
Ooredoo billboards advertising traditionally-garbed women holding a parasol in one hand and a
mobile in the other have plastered downtown Yangon streets for weeks, helping to build a buzz
around the launch. Several million SIM cards will be on sale from 6,500 dealers, according to
Cormack, ahead of a wider rollout to cover 68 towns and cities, around and including the three
hubs launched yesterday, by mid-August.
Rival Telenor, which also plans to sell its SIM cards for 1,500 kyat, said it would launch in
Myanmar in September. “Healthy mobile competition in the mobile industry will benefit consumers
in Myanmar and we are confident that Telenor will become the most affordable offering in the
market,” firm spokeswoman Hanne Knudsen told AFP.
Myanmar has generated huge international investor interest since wide-ranging reforms
introduced under the current government saw most Western sanctions lifted. Actual investment
has been tempered by nervousness over the regulatory framework.But the telecoms tender
process eventually won by Telenor and Ooredoo last June saw some 90 firms compete for the 15-
year licences, the first to be awarded by Myanmar.

Egypt Gas Supplies to Jordan Halt Completely as of April
NewBase
Egyptian natural gas supplies to Jordan have stopped completely since April 20, leading to the
losses incurred by the National Electric Power Company (NEPO) to reach US$4.5 billion by the
end of last May, Secretary General of the Ministry of Energy and Mineral Resources Ghalib
Maabreh said.
Maabreh told Petra that gas supplies which have fluctuated since the end of 2009 and declined
from 250 Mscf until these stopped completely on April 20, forced electricity generating companies
to shift their dependence on heavy fuel and diesel. This, he added, raised the energy bill in 2013
to JD4.6 billion (US$6.50 billion).
On Iraqi fuel supplies to Jordan, the secretary general said these had also stopped with effect
from January 28, noting that Jordan currently depends of oil provided by the Saudi ARAMCO. The
security situation in western Iraq prevented the import of quantities agreed upon between Jordan
and Iraq which stand at 10,000 bpd out of 140,000 barrels which is the Kingdom's daily
consumption.

ONGC, Oil India Submit $1.5 Bn Joint Bid for Murphy's Malaysia Oil, Gas Assets
Reuters + NewBase
Indian public sector energy firms Oil & Natural Gas Corp (ONGC) and Oil India Ltd have submitted
a $1.5 billion joint bid for Murphy Oil Corp's Malaysian oil and gas assets, sources directly
involved in the process told Reuters.
Murphy, which has interests in oil and gas fields in Vietnam, Malaysia, Indonisia, Brunei and
Australia, has invited bids for a 30 percent stake in its Malaysian assets, the news agency had
earlier reported.
The US based company holds majority interests in seven separate production sharing contracts
(PSCs): Block K, Block H, Block P, SK 309, SK 311 and SK 314A, and three gas holding
agreements in PM 311. In 2013, Murphy's Malaysia net production was about 86,000 boepd, and
we booked total proved reserves 125 MMBO and 406 BCF, according to company's website.
Indian state owned oil and gas companies have been looking to acquire hydrocarbons assets
overseas to in order to secure country’s energy needs. Oil India last year bought stake
in Mozambique gas field. .

India's Modi heads to Nepal in regional Energy diplomacy push
(Reuters) – newBase
Indian Prime Minister Narendra Modi embarked on a visit to Nepal on Sunday to help speed up
negotiations on a power trade pact that is at the centre of a new effort to improve ties with a
neighbour that serves as a buffer with China.
Since becoming prime minister in May, Modi has sought to shore up support among smaller
countries in the region that have in recent years turned to China for quick implementation of
energy and transport projects.
His will be the first bilateral visit to Nepal by an Indian prime minister in 17 years, though Indian
leaders have routinely attended regional summits in Kathmandu. Negotiators were trying to
narrow down differences over the power pact aimed at harnessing Nepal's estimated 42,000 MW
hydro-electric potential to meet domestic needs and also supply India's giant energy-
starved economy.
The Himalayan nation currently has an installed capacity of 600 MW as its development has been
held back by years of political instability. It is still struggling with the transition to a constitutional
republic after the abolition of the monarchy in 2008.
Nepal's politicians are at odds over the proposed energy pact. Opponents say it would give Indian
firms a stranglehold over Nepal's energy resources and bar other countries, like China, from
investment in the sector.
Ahead of Modi's visit, Nepal's government urged political groups to put aside their differences,
saying it was a chance to rebuild the aid-dependent economy and revitalise ties with India. "Modi
is result-oriented and gives priority to economic prosperity. He wants to consolidate ties with
Nepal," Foreign Minister Mahendra Bahadur Pandey said.
During the two-day trip, Modi plans to meet politicians across the spectrum, including Maoists who
accuse India of meddling in Nepal's internal affairs. In a statement made before his departure,
Modi promised greater political engagement with Nepal.
"We will identify steps to strengthen our bilateral cooperation in key sectors, including trade and
investment, hydro power, agriculture and agro-processing, environment," he said. In June, Modi
chose Bhutan for his first foreign trip, vowing to ramp up economic ties with the tiny country, which
like Nepal shares a border with China.
There, Indian investment has faced less political resistance and the two countries are targeting to
produce 10,000 MW of power by 2020, most of which will be exported to India.

NewBase 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 ofofofof
experience in theexperience in theexperience in theexperience in the Oil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working as
Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntarTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntarTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntarTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation fory Energy consultation fory Energy consultation fory Energy consultation for
the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager inManager inManager inManager in
Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed greatrough the years , he has developed greatrough the years , he has developed greatrough the years , he has developed great
experiences in the designing & constructingexperiences in the designing & constructingexperiences in the designing & constructingexperiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes.of gas pipelines, gas metering & regulating stations and in the engineering of supply routes.of gas pipelines, gas metering & regulating stations and in the engineering of supply routes.of gas pipelines, gas metering & regulating stations and in the engineering of supply routes.
Many years were spent drafting, & compiling gas transportation , operation &Many years were spent drafting, & compiling gas transportation , operation &Many years were spent drafting, & compiling gas transportation , operation &Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the localmaintenance agreements along with many MOUs for the localmaintenance agreements along with many MOUs for the localmaintenance 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 andauthorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andauthorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andauthorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satellite Channels .internationally , via GCC leading satellite Channels .internationally , via GCC leading satellite Channels .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 04 August 2014 K. Al Awadi

New base special 04 august 2014

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