New base special 04 june 2014

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NewBase 04 June 2014 Khaled Al Awadi
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Bahrain:Key Tatweer Petroleum operations reviewed
TradeArabia News Service
Tatweer Petroleum, the ambitious new oil venture of Bahrain, continues to progress in increasing oil and gas
production in the Bahrain Field, the company's board was told yesterday.
Finance Minister and Minister in charge of Oil and Gas Affairs Shaikh Ahmed bin Mohammed Al Khalifa,
who's also chairman of the company, presided over the board meeting held at the company's main office in
Suefra.
The board reviewed operations and corporate matters.
The meeting was attended by UAE Energy Minister Suhail Al Mazroui, representing Mubadala Petroleum,
and other representatives of Tatweer shareholders nogaholding and Occidental Petroleum.
In December 2009, Tatweer Petroleum assumed responsibility for the stewardship and redevelopment of the
Bahrain Field.
The company's primary goals are to increase the production of oil and the availability of gas to meet
Bahrain's future energy demands, in line with the Economic Vision 2030.
The Bahrain Redevelopment Project is a joint venture between nogaholding, the business and investment
arm of the National Oil and Gas Authority, Occidental Petroleum Corporation and Mubadala Petroleum.-

NDC inaugurates its new jack-up rig, Marawwah, built in the U.A.E.
Emirates News Agency, WAM
The National Drilling Company, NDC, has announced the inauguration of its new jack-up rig,
Marawwah, at a ceremony held in Hamriyah Free Zone.
Marawwah is the fourth rig in a series of six similar drilling rigs being acquired by NDC and
manufactured by Lamprell in the U.A.E..
Commenting on the inauguration, NDC Chief Executive Officer, Abdalla Saeed Al Suwaidi, said,
"The inauguration of Marawwah represents a great addition to the NDC fleet of modern rigs, and
will help the company maintain the highest levels of reliability and efficiency, thus ensuring
complete preparedness to meet the clients present needs and future demands. We are proud that
such an advanced rig, similar to the previous 3 rigs, is built to international standards in the
U.A.E., for the U.A.E.." He expressed appreciation and gratitude to the Higher Management of
ADNOC, NDC Board of Directors and the Board Advisory Committee for their guidance and
continuous support.
Ali bin Harib Al Muhairy, Senior Vice President, Development, of ADMA-OPCO underscored that
the company works determinedly and actively to support ADNOC s oil production expansion
plans, therefore the expansion of NDC's offshore rig fleet will contribute significantly in
strengthening ADMA s role and
efforts in realising the vision of Abu
Dhabi to increase oil production.
Mr. Al Muhairy expressed his
appreciation of the strong
partnership with NDC and
congratulated the company for the
inauguration of this new advanced
rig.
Jim Moffat, Chief Executive Officer
of Lamprell, said, "I am pleased to
announce the completion and
delivery of rig Marawwah to NDC,
on time and within budget, to world
class standards of safety and
quality, and it's a source of pride that Lamprell spent 40 million man working hours in building this
modern rig without a single lost time incident." Mr. Moffat thanked NDC for their confidence and
trust, and hoped that this successful partnership will lead to more fruitful cooperation in the future

IDB unveils $180 million Renewable Energy for Poverty Reduction plan
Reuters
The Islamic Development Bank (IDB) has launched a program to release $180 million in financing to six
African countries for renewable energy projects as part of a broad strategy to deepen its involvement in the
region.
Islamic finance is growing in Africa as governments seek to develop large-scale infrastructure projects. Last
year Nigeria's Osun State began offering the country's first Islamic bond. Saudi Arabia-based IDB promotes
economic development in its 56 countries through Shariah-compliant loans and grants. Nearly half of the
bank's member countries are in Africa which is home to hundreds of millions of Muslims.
The new $180 million initiative, called Renewable Energy for Poverty Reduction, will target projects over
the next three years to improve access to electricity in Africa's rural areas where about 70 percent of
households lack power. "This is just seed money. The goal is to enlarge it and to build a pipeline of
projects," Sidi Mohamned Ould Taleb, regional director for IDB, told Reuters on the sidelines of a
conference in Dakar.
Around $125 million has been committed by the bank and initial talks with potential partners such as the
OPEC Fund for International Development have started to secure the rest. "Other partners have expressed a
readiness," said IDB Vice President Ahmet Tiktik.
The initiative will focus on West Africa and projects in Burkina Faso have already been approved. Projects
such as mini-grids and rooftop solar systems for Mali, Senegal, Niger and Nigeria are likely to follow and a
sixth African country not yet determined. The initiative follows the launch of a new IDB energy sector
policy called "Energy for Prosperity" which seeks to support sustainable energy solutions for the poor.
IDB began a Special Program for the Development in Africa in 2008 and is active in financing projects for
health, education and infrastructure. It committed around $5 billion in financing for sub-Saharan Africa
between 2008-2012, or around 23 percent of its budget. Taleb said that IDB planned to increase that to
around 33 percent or around $7 billion in the next five years.

Indonesia: Pertamina begins operating Siak Block
Source: Pertamina
Pertamina (Persero), through its subsidiary Pertamina Hulu Energi, has officially begun operating the Siak
Block, located in Riau Province, following the expiration of the contract between the government and
Chevron Siak Indonesia.
The change of the operator of the Siak Block was marked by the signing of a production sharing contract
(PSC) between PHE Siak,
represented by PHE Siak President
Director Bambang Kardono, and
SKK Migas, represented by SKK
Migas chief Johannes Widjonarko,
and was approved by Energy and
Mineral Resources (ESDM)
Minister Jero Wacik. Pertamina
Upstream Director M. Husen and
PHE President Director Ign.
Tenny Wibowo also witnessed the
signing on Monday (26/5).
PHE Siak officially begins
operation after the handover of
three fields which was done at
00.00 Western Indonesia Time
(WIB) on Wednesday (28/5). The
handover was started by a 'ticker handover', key handover and SOP guideline as well as the opening of the
new Lindai Collecter Station by PHE President Director.
'This is a very important moment. After being discussed for six months, finally, the Siak Block, located in
Riau Province, has been officially taken over by PHE Siak. The production of the block currently reaches
1,800 BOPD. By owning 100% share in the block, which comprises Lindai field, Batang field and South
Menggala field, we hope that the block can contribute in our effort to increase Pertamina and PHE’s
production,' said M. Husen on Monday (26/5).
Husen added, 'After the handover process, we will start working to understand the characteristic of the fields
and then focus on increasing production.'
Currently, PHE oil production as operator reaches 116,000 bopd (with PHE’s portion of 68,000 bopd). With
the entrance of the Siak Block, PHE is expected to boost production to 71,000 bopd.
M. Husen expressed his high appreciation to Chevron that had shown strong commitment in maintaining the
operation and production in the six month transition period since 27 November 2013 to 27 May 2014.
'Within that period, we have also built good cooperation between PHE and Chevron so that the Siak Block
handover process can be done smoothly.'
In the same occasion, Tenny Wibowo, PHE President director, said that his company was committed to
increase production in the Siak Block. In the first year, he targeted that oil production could hit 2,000 bopd.
'We’re also optimistic that we’re able to increase production and committed to continue looking for new
resources to support efforts to increase production,' he explained.

China-Russia gas deal likely to challenge Middle East’s grip over Beijing
Tom Arnold The National
China’s recent deal to secure gas from Russia is the latest step in its effort to diversify its energy
sources, a trend likely to challenge the Middle East’s dominance of the Chinese energy supply
chain.
Qatar may be the most immediate loser after the US$400 billion deal inked last month that
involves Russia’s energy giant Gazprom supplying China National Petroleum with 38 billion cubic
metres of natural gas over 30 years.

Qatar has been increasingly redirecting LNG exports from Europe to Asia, partly to achieve a
better price for its deliveries. An estimated 16.4 per cent of China’s gas came from Qatar in 2012,
according to BP, the energy company. Barclays estimates about 10 per cent of Qatar’s gas is
delivered to the world’s second biggest economy.
“With Russia’s aggressive stance to diversify markets, and
Australian supply coming online, the question is whether Qatar
will remain immune to the competition,” said Alia Moubayed,
the director and head of research for Mena at Barclays. “We
do not see any immediate risk as a large part of Qatar’s
contracts are long term and oil-linked. But in the medium-term
the changes in the global LNG markets could become a major
challenge to Qatar.”
China secured the gas at $10 per British thermal unit, a
standard industry measure, a 30 to 40 per cent discount on
long-term LNG contracts. The rate will give China more power
to bargain for lower prices in gas contracts with future
suppliers.
Still, the deal leaves the door open for other global suppliers
including Qatar and Yemen, another Middle East producer,
which supplied 2 per cent of China’s gas in 2012, according to
BP. By 2018 Qatar will still account for only about 10 per cent
of China’s total gas consumption, estimates Gordon Kwan, the
head of regional oil and gas research at Nomura, the Japanese bank, in Hong Kong.
“We believe there is plenty of room for China to secure other sources of gas through domestic
shale gas production in addition to LNG imports from Middle East, Australia, Indonesia, Malaysia
and recently Papua New Guinea,” he said.
The deal is regarded as important for Russia as it is for China. As relations have soured in recent
months with Europe – its primary gas consumer market – Russia has redoubled efforts to send a
third of its gas exports eastwards by 2035. But it also signals China’s eagerness to diversify its
energy sources – both in terms of geography and commodity.
China’s rapid economic emergence in recent years has been largely fuelled by oil from the Middle
East. According to a recent HSBC report, the Mena region delivered about half of China’s overall
oil imports last year, up by 10 percentage points from 2006. Saudi Arabia alone supplies almost
20 per cent of the Asian powerhouse’s imported crude, the bank estimated.
But the rise in the proportion of China’s energy imports from the Middle East may slow as the
country looks to providers elsewhere. That could cool the rapid growth in oil receipts trade with
China has brought the GCC in recent years.
“As a consequence of this China-driven surge in oil receipts, the energy exporters of the Gulf have
seen their aggregate GDP increase by $1 trillion in a decade to $1.7tn, lifting per capita GDP to an
average of $35,000 and close to $100,000 in Qatar and Abu Dhabi,” wrote the HSBC economist
Simon Williams in the bank’s recent report.

Kenya: Tower Resources completes farm-in to Block 2B
Source: Tower Resources
Tower Resources, the AIM-listed Africa-focussed oil and gas exploration company, has announced the
completion of its farm-in to Block 2B, onshore Kenya.
On 9 April 2014, the Company announced that Tower Resources (Kenya) Limited, a wholly owned
subsidiary of Tower, had agreed to acquire a 15% interest in Block 2B, Kenya, from Lion Petroleum Corp.,
a wholly owned subsidiary of Taipan Resources Inc., which holds 45% of the licence. Completion was
conditional on consent from Premier Oil group, which holds 55% of the licence, which was received last
week and also subject to the payment of US$4.5 million cash and the admission on the AIM market of the
first tranche of 4.5 million Ordinary Shares in Tower, both of which occurred on Monday 2 June 2014.
In total consideration for the farm-
in, Lion Petroleum Corp. receive
US$4.5 million cash and a total of
9.0 million Ordinary Shares in
Tower, of which the second
tranche, consisting of 4.5 million
shares, will be received in three
months' time. There is also a
contingent payment of US$1
million cash on the spudding of a
second well. In February 2014,
Taipan announced a 51-101
compliant independent assessment
of Block 2B, completed by
Sproule International Limited,
which estimated Block 2B, located
in the Anza Basin, to hold gross
mean unrisked prospective
resources of 1,593mmboe, based
on 19 exploration leads.
Activity in the Anza Basin has
also increased recently. In Block 9, adjacent to Block 2B, Africa Oil Corp and its partner, Marathon Oil
Corp, are currently drilling the Sala-1 exploration well which will test a large prospect in the Cretaceous
Anza rift system. The results of the Sala-1 well are expected this month and the well is targeting gross
risked (best estimate) prospective resources of 402mmboe (Africa Oil Corp. Corporate Presentation, May
2014).
The recently acquired 2D seismic data across Block 2B is being used to determine the drilling location of
the first potentially play-opening well, Badada-1, which is expected to spud at the end of 2014/early 2015
and will target gross mean unrisked prospective resources of 251mmboe (Sproule International Limited,
February 2014).
Graeme Thomson, CEO, stated: 'We are extremely pleased to conclude this exciting farm-in to Kenya at a
time when it is opening up as an oil province. The farm-in perfectly fits our strategy of securing material
positions in very high upside exploration assets coupled with near-term drilling which offers the potential to
materially add-value for shareholders. This licence is right at the forefront of new plays and we look
forward to drilling in the coming months.'

Morocco: Tangiers Petroleum provides TAO-1 drilling update
Source: Tangiers Petroleum
Tangiers Petroleum has provided an update related to progress of its Moroccan operations. Spudding of the
TAO-1 well on the Tarfaya Block offshore Morocco is imminent.
Fully Funded for Drilling of TAO-1 (dry hole case, trouble free)
Tangiers is pleased to confirm that the dry hole cost for the drilling of TAO-1, on a trouble free basis, is
~US$73m and in line with the previous estimate released to market. On this basis, Tangiers is fully covered
for the drilling by existing cash and receivables, including headroom for material cost overruns. Given the
weather conditions, shallow water depth and well control in the region, the Company does not expect
overruns but cannot guarantee that these will not occur and cautions investors that operational risk can never
be fully mitigated.
Spud Date Imminent
The Company can confirm that the Ralph Coffman jack-up rig was successfully loaded onto the heavy lift
vessel MV Transshelf on the 25th May 2014 and is on track to deliver the rig nearby to the spud location on
or about the 4th June 2014. The rig will undergo final checks and kitting out before being towed to site,
where drilling is scheduled to commence on or about the 15th of June, in line with previous guidance for a
mid-late June spud.

The TAO-1 well is a potential company-maker for Tangiers with 190 million barrels of net best estimate
unrisked prospective resource (gross unrisked best estimate 758 million barrels).
Tangiers has a 25 per cent participating interest in the Tarfaya Offshore Block, which is being operated by
Galp Energia which has a 50 per cent interest. The remaining 25 per cent interest is held by ONHYM
(Morocco's National Office of Hydrocarbons and Mines), who are carried through the exploration phase.
The TAO-1 well is located within a proven petroleum system, adjacent to the Cap Juby oil discovery, and is
targeting three stacked objectives.
Release of Bank Guarantee and Past Cost Reimbursement
The Company would like to thank ONHYM and Galp for speedy release of the US$3m bank guarantee,
which was secured against the work program but has been replaced by Galp. Tangiers can confirm that final
preparations are underway for transfer of both the US$3m bank guarantee and US$7.5m in back costs that
formed part of the farm-in deal executed with Galp in December 2012.
Tangiers' Managing Director Dave Wall said 'Tangiers would also like to thank investors for their support,
through what has been a fast changing environment that has presented unique challenges, particularly in
relation to funding. The Company is excited by the imminent drilling of the TAO-1 exploration prospect'.
Note: According to information on the Tangiers Petroleum web site, the TAO-1 exploration well will
optimally test the Trident Prospect and tag the Assaka and TMA objectives within structural closure (see
map).

Jordan: BAM Completes New Port in Aqaba
Press Release, BAM International
BAM International, the operating company of Royal BAM Group active outside of Europe, and its
local partner MAG have successfully completed the construction of the new port in Aqaba, Jordan,
for Aqaba Development Corporation (ADC), a second port in line with the country’s economic master
plan.
Together with its Jordanian joint venture partner MAG, BAM was responsible for the design and
construction of four new berths (in total approximately 800 metres quay wall), revetment works, a
breakwater, marine services, pontoons and a slip way. Furthermore land reclamation and
dredging works (800,000 m3) as well as the construction of two intake pipes and one outfall pipe
was included in this €65 million contract.
Last year BAM completed the container terminal for ADC en APMT in Aqaba and the company is
currently building the Aqaba New Liquefied Natural Gas (LNG) terminal, eighteen kilometres south
of Aqaba for ADC. The LNG Terminal forms part of ADC’s plan for developing Aqaba’s Energy
Ports. The Government has tasked ADC to develop Jordan’s energy intake capabilities to ensure
a consistent supply of energy fuels such as oil, LNG and LPG.

Azerbaijan: Wood Group Kenny awarded major subsea contract for
stage 2 of Shah Deniz development . Source: Wood Group
Wood Group Kenny (WGK) has been awarded a £36 million call-off contract, for
2014, with BP Azerbaijan under their 2007 Global Agreement. The contract will
cover engineering and project management services for the Shah Deniz 2 Subsea
Execute phase.
WGK has worked with BP on the Shah Deniz project since 2008 to provide engineering support
through the Appraise, Select and Define phases of this major project. The award of this contract is
in addition to the subsea engineering work currently being carried out under the BP Global
Agreement covering engineering and project management services in the North Sea, Angola and
Gulf of Mexico.
Wood Group Kenny CEO, Steve Wayman said: 'We have worked with BP Azerbaijan for a number
of years and the award of this contract enables us to extend and reinforce that long-standing
relationship. We are proud to continue our work with BP in this key region and look forward to
using the knowledge we have built up in the previous project phases, and applying it to BP
Azerbaijan’s benefit during the production phase'.

Wood Mackenzie: FPSO a cheaper solution for Johan Castberg
Press Release, June 03, 2014 .
Wood Mackenzie’s latest analysis of the Johan Castberg area in the Barents Sea
considers the alternative development concepts under consideration by Statoil and
partners Eni SpA (ENI) and Petoro AS.
Wood Mackenzie says the Norwegian project could achieve an internal rate of return (IRR) of 15.9% and
breakeven of less than US$60/barrel, by opting for a Floating Production, Storage and Offloading (FPSO)
solution in favour of the proposed pipeline, and additionally by benefitting from Government tax-incentives.
The estimated IRR of the original concept is 10.4% – which is considered marginal for the operators.
However, Wood Mackenzie
believes the Norwegian
Government is likely to favour the
construction of the pipeline to
create much needed infrastructure
and unlock the development of
smaller fields in the Barents Sea.
Wood Mackenzie’s latest
upstream analysis considers
alternative development concepts
and potential tax-incentives that
could help boost economics and
increase the probability of the
Johan Castberg project being
sanctioned.
Ross Cassidy, Head of North
West Europe Upstream research
for Wood Mackenzie asserts: “We
have modelled three scenarios for
the development of the Johan
Castberg area, the original concept announced in early 2014; a reduced cost concept; and an FPSO
solution with no pipeline or terminal. The analysis shows that the Johan Castberg area could achieve a
post-tax IRR of 15% and breakeven of US$60/barrel, by discarding the 280km pipeline and onshore
terminal, in favour of an FPSO development. In addition we found applying the same tax-incentive
introduced for the Barents’ Snohvit LNG project further increases the project’s IRR to 15.9%”
Related: Statoil: Johan Castberg Development Put Off
Cassidy explains: “The original development concept is under review following poor exploration results
from the latest drilling campaign, an increase in tax, and rising costs. As it stands the estimated IRR of the
original concept – the construction of a pipeline and onshore terminal – is 10.4% which is considered
extremely marginal for the operator, with 15% considered the standard industry benchmark for a robust
project.”
“Exploration activity has been increasing in the frontier Barents Sea in recent years, but an inability to
commercialise Johan Castberg’s estimated 580 million barrels of oil could be detrimental to future activity.
This is why we believe the Norwegian Government – Statoil’s largest shareholder – is likely to favour the

construction of a pipeline as it is expected to create much needed infrastructure and could be instrumental
in enabling the development of smaller fields in the area,” Cassidy adds.
Wood Mackenzie says while the development will provide both Statoil and Eni with a strategic hub for
future exploration in the prospective acreage, it comes at a higher cost and tax breaks will need to be
introduced to incentivise the operators to select this concept over an FPSO.
James Webb, North West Europe Upstream Analyst for Wood Mackenzie explains: “We estimate the cost
of the pipeline to shore and onshore terminal at over NOK 12.5 Billion (US$2.1 Billion), so the FPSO
option coupled with government tax incentives really is the best case scenario in terms of reducing overall
costs. However, even at 15.9% the project would still remain below average in terms of IRR for both Statoil
and Eni – who typically average a rate of 17% and 16% for probable developments respectively. As a result
tax-incentives, beyond those received by the Snøhvit development, could be required to incentivise the field
partners to select a development concept incorporating the pipeline and terminal. We believe the current
project economics could cause the field partners to consider farming down to reduce exposure.”
The Johan Castberg
area is widely
regarded as the next
major development
in the Norwegian
Barents sea,
although so far,
marginal economics
have stalled project
sanction – which
was due mid-2014.
Statoil is due to
announce the
preferred
development
concept in June
2014 and Wood
Mackenzie asserts
that key discussions
between
stakeholders are
crucial to attain a
desirable outcome
for all parties.
Johan Castberg (PL
532) is located 240
kilometres north-
west of Hammerfest
in Norway. The field consists of the Skrugard discovery from 2011 and Havis, which was discovered in
2012.

MidEast oil investment shortfall could push up prices
By Reuters
A potential shortfall in investment in production in the Middle East could create a $15 spike in the oil price
by 2025, the energy arm of the
Organisation for Economic Co-
operation and Development (OECD)
said.
The world will need to invest $40
trillion in energy supply and $8 trillion
on energy efficiency by 2035 to meet
growing demand and falling output
from mature sources of energy, the
International Energy Agency (IEA) said
in a report.
A large proportion of this will need to
come from the Middle East, as a rise in
non-OPEC production such as US shale
oil starts to lose steam in the mid 2020s.
But the IEA was wary on prospects for
a large enough increase in investment
from the region.
"The prospects for a timely increase in
oil investment in the Middle East are
uncertain: there are competing
government priorities for spending, as
well as political, security and logistical
hurdles that could constrain
production," the report said.
If production does not increase as
needed, it will raise oil prices, the report
said. "If investment fails to pick up in
time, the resulting shortfall in supply
would create tighter and more volatile oil markets, with prices that are $15 per barrel higher on average in
2025."
Brent crude oil is currently trading at around $109 per barrel, and has been in a relatively tight range since
November. It reached as high as $117 per barrel in 2013 and $128 per barrel in 2012. The IEA said that
investment in energy production was over $1.6 trillion in 2013, more than double in real terms than 2000,
and that $130 billion was spent to improve energy efficiency.
Investment in renewable sources of energy rose to a peak of $300 billion in 2011 from $60 billion in 2000,
but has since fallen to $250 billion for 2013. More than four times this, $1.1 trillion per year was spent on
the extraction and transport of fossil fuels, oil refining and the construction of fossil fuel-fired power
stations, the report said.

Of the $40 trillion that will need to be spent by 2035, less than half will be spent on meeting growth in
demand. "The larger share is required to offset declining production from existing oil and gas fields and to
replace power plants and other assets that reach the end of their productive life," the report said.
Of the total investment in upstream oil and gas spending of more than $850 billion per year by 2035, gas
will account for most of the increase. Over $700 billion is expected to be invested in the liquefied natural
gas (LNG) sector alone during this period. The IEA warned that more gas might not lead to much lower
prices.
"The expectation that a surge in new LNG supplies will totally transform gas markets needs to be tempered
by recognition of the high capital cost of LNG infrastructure, with transportation typically accounting for at
least half of the cost of gas delivered over long distances," the report said. For Europe's power markets, the
IEA warned that a shortfall of investment could threaten reliability of electricity supplies.
"The investment required to maintain the reliability of Europe's electricity system is unlikely to materialise
with the current design of power markets," the report said, adding that wholesale prices were around 20
percent too low to make investment attractive.
"Europe requires more than $2 trillion in power sector investment to 2035... If this situation persists, the
reliability of European electricity supply will be put at risk," the IEA said.
Spending on renewable sources of energy and energy efficiency will not be enough to meet targets on
climate change stabilisation goals, the report said.

"Today's policies and market signals are not strong enough to switch investment to low-carbon sources and
energy efficiency at the necessary scale and speed," the report said.
Energy Supply Requires $40 Trillion
Investment to 2035, IEA Says
Spending on extracting oil and gas worldwide will climb by 25 percent to $850 billion a year by
2035, with most of this concentrated in natural gas, according to the report.
Meeting the world’s energy supply needs by 2035 will require $40 trillion of investment, as
demand grows and production and processing facilities have to be replaced, the International
Energy Agency said.

More than half of that amount will be needed to compensate for declining output at mature oil and
gas fields, and the remainder on finding new supplies to meet rising demand, the Paris-based
agency said in a report today. The world will increasingly rely on countries that restrict foreign
companies’ access to their oil reserves, as North American shale output tails off from the middle of
next decade, it predicted.
“Declines and retirements set a major reinvestment challenge for policy makers and the industry,”
said the IEA, which advises 29 of the most industrialized nations on energy policy. “In the case of
oil, the focus for meeting incremental demand shifts towards the main conventional resource-
holders in the Middle East as the rise in non-OPEC supply starts to run out of steam in the
2020s.”
While a boom in shale oil is pushing U.S. production to its highest level in almost 30 years,
diminishing the biggest crude consumer’s reliance on imports, this output surge is forecast to fade,
Worldwide

restoring the importance of supplies from the Middle East and the Organization of Petroleum
Exporting Countries.
Upstream Spending
Spending on extracting oil and gas worldwide will climb by 25 percent to $850 billion a year by
2035, with most of this concentrated in natural gas, according to the report. Global markets will
tighten if investments in the resource-rich Middle East are too slow, pushing oil prices $15 a
barrel higher on average in 2025, it warned. Brent futures averaged $108.70 a barrel last year.
“The prospects for a timely increase in oil investment in the Middle East are uncertain,” according
to the agency, which estimates that more than 70 percent of global oil and gas reserves are under
the ownership of state-controlled entities. OPEC, whose largest producer is Saudi Arabia,
currently accounts for 40 percent of global oil supplies.
“Decisions to commit capital to the energy sector are increasingly shaped by government policy
measures and incentives, rather than by signals coming from competitive markets,” according to
the IEA.
About half of the $40 trillion spent on energy through to 2035 will be on extraction, refining and
transporting fossil fuels, the report indicated. Two-thirds of the total will be spent in emerging
economies, according to the agency. Investment needed in renewable energy will total $6 trillion,
with another $1 trillion in nuclear power.
Annual spending on satisfying global energy requirements will increase to $2 trillion by 2035, up
from $1.6 trillion last year, the agency projected.
Spending on energy efficiency through 2035 pushes the total required investment to $48 trillion,
according to the IEA.

Middle East

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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 & 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 CoTechnical Affairs Specialist for Emirates General Petroleum CoTechnical Affairs Specialist for Emirates General Petroleum CoTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forrp. “Emarat“ with external voluntary Energy consultation forrp. “Emarat“ with external voluntary Energy consultation forrp. “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 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 in Emarat , responsible for Emarat Gas Pipeline Network FaciManager in Emarat , responsible for Emarat Gas Pipeline Network FaciManager in Emarat , responsible for Emarat Gas Pipeline Network FaciManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedlity & gas compressor stations . Through the years , he has developedlity & gas compressor stations . Through the years , he has developedlity & gas compressor stations . Through the years , he has 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 & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supply
routes. Many years were spent drafting, & compilroutes. Many years were spent drafting, & compilroutes. Many years were spent drafting, & compilroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs foring gas transportation , operation & maintenance agreements along with many MOUs foring gas transportation , operation & maintenance agreements along with many MOUs foring 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 andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. 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 leadinginternationally , via GCC leadinginternationally , via GCC leadinginternationally , via GCC leading satellitesatellitesatellitesatellite ChannelsChannelsChannelsChannels ....
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NewBase 04 June 2014 K. Al Awadi

New base special 04 june 2014

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New base special 04 june 2014