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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 05 May 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Spain's Tecnicas wins $1.7bn Saudi power deal
Arabian Business - Andy Sambidge
Spanish energy contractor Tecnicas Reunidas said on Sunday it had been awarded a contract worth close to
$1.7 billion to build a large power complex in Saudi Arabia's Jazan Province.
In a statement, Tecnicas Reunidas said it had been hired by Saudi Aramco, the state-owned oil company, to
execute the Jazan IGCC (Integrated Gasification Combined Cycle) complex in the south western region of
Saudi Arabia.
The Jazan IGCC complex, which is to become the largest gasifier-based power facility in the world, will
convert vacuum residue to be produced in the adjacent Jazan refinery into synthesis gas.
The company said the contract has a value of approximately $1.7 billion, adding that the facilities will be
operational in 2017. This new contract is the second one for the power generation business of Techicas with
Saudi Aramco after the successful completion of the Manifa cogeneration plant.
The scope of the project awarded includes the development of the utilities and off-sites facilities for the
IGCC complex under a contract covering the services for engineering, procurement, construction,
precommissioning and commissioning support for the facilities.
Copyright © 2014 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
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TĂ©cnicas Reunidas said it has designed and constructed over 1,000 industrial plants, spanning more than 50
countries in the six continents.
TR is currently executing two large projects in the 400,000 bpd Jazan Refinery.
The gasification unit will have a capacity of 2,110,000 Nm3/h of syngas that will be evenly used to produce
purified hydrogen for the refinery and to fuel a combined cycle facility producing utilities and power for the
refinery and export to the national grid. Total output of the plant will be of approximately 2,400 MW.
About Tecnicas Reunidas SA ( TR ) :-
TR is an outgrowth of the former
Spanish subsidiary of The Lummus
Company, Lummus Española, S.A.,
founded in 1960. In 1972, a Spanish
group of investors acquired 100 % of
the shares of Lummus Española and
renamed the company to TĂ©cnicas
Reunidas.
Since 1960 the TR group of companies
has designed and built more than 1000
industrial plants worldwide.
TR's multinational clients and licensors
include the world's leading companies.
The projects have been developed in
over 50 countries covering the six
continents.
The international projection of the TR
group of companies and the keen specialization in the execution of turnkey projects, have been the bases
of TR's expansion since the 80's. International projects account for 78% of the company's annual turnover.
TR has incorporated the most advanced systems and technologies based on the latest generation of data
processing tools to manage and design the projects. More than 5.500 professionals have been trained and
posses practical experience necessary to manage these projects.
TR develops all designs with 3D systems, and as such is able to produce "three dimensional virtual plant
models" which eliminate potential problems derived from the integration of the various disciplines. This
approach generates a highly accurate and quality product with a greater added value and is able to detect
potential problems early in the design phase.
Copyright © 2014 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
Omani Block 4 heavy oil play is promising: Tethys Oil
(OEPPA Business Development Dept), Written by Conrad Prabhu
Swedish based international upstream energy firm Tethys Oil says a major heavy oil play
discovered in its Block 4 concession onshore Oman is potentially promising, yet technically
challenging. The field, located in the Saiwan East area of Block 4, is estimated to hold over 1
billion barrels of heavy oil in place, said Tethys Oil in a newly released report of its upstream
investments in the Sultanate.
Following tests of the field, the company concluded that any potential production from the heavy
oil in Saiwan East, while “cautiously encouraging”, would require enhanced oil recovery (EOR)
techniques. “No additional tests on the heavy oil are planned for the near future, with plenty of
other possibilities on the blocks that have a higher chance of resulting in an immediate cash flow.
But the heavy oil of the area is a challenge and big opportunity,” Tethys Oil stated in its report.
The Saiwan East area of Block 4 has been something of a mixed bag for Tethys Oil. Near the
same area that heavy oil was discovered, the company’s Saiwan East 3 well tested over 10,000
barrels of oil per day (bopd). But the natural decline of the Saiwan East oil field wells has been
substantial, and the field is now producing at a modest rate, the company said.
Any move to bring the nearby heavy oil to the surface would require EOR techniques, it said.
What came as a surprise for Tethys Oil was the discovery of light crude at depths far greater than
those of the heavy oil formations within the Saiwan East field. “The various densities in different
areas of the field seem to have a big impact on where conventional oil has been found”, the
company said, noting that its SE-4 well encountered unexpectedly large quantities of oil with
different gravities and viscosities than previously believed possible.
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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“Both the light sweet crude and the heavy oil constitute large possibilities for the future. In light of
the strategy, to priority drilling of wells with high chance of success that could be put on stream
fast, no near time activity is planned at the Saiwan East oil field,” Tethys Oil said.
With interests in three onshore blocks, Tethys Oil is one of the largest concession holders in
Oman’s upstream energy sector. Blocks 3 and 4 are located in the eastern part of Oman and
covers an area of 34,610 sq km. Tethys has a 30 per cent interest in the Blocks. Partners are
Mitsui (20 per cent) and the operator CC Energy Development SAL Oman branch (50 per cent).
Block 15 is situated in the north western part of central Oman and covers an area of about 1,400
square kilometres. Tethys Oil has a 40 per cent interest in the licence and Odin Energi the other
60 per cent.
Output from Blocks 3 and 4 have accounted for much of Tethys Oil revenues. Total production
from these blocks increased 24 per cent to 1.7 million barrels of oil in 2013, corresponding to
4,556 barrels of oil per day (bopd). “With the discovery of the Lower Buah as reservoir in area 4,
production at year-end reached new heights,” said Magnus Nordin, Managing Director. “In 2014,
we have reported record production three months in a row. We are now close to bringing our
average daily production above 7,000 bopd,” he stated.
In addition to boosting its
exploration/appraisal programme
in 2014, the company plans to drill
a number of wells in many areas
of the blocks, including the South
Farha South area and the Lower
Buah prospects, the Managing
Director added.
Copyright © 2014 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
RWE Dea Egypt reaches initial production targets at natural gas project Disouq
Source: RWE
RWE Dea successfully connected development well North West Khilala-1-4 (NWK-1-4) to production.
With this well the company reached its initial production target for the natural gas project Disouq in the
Egyptian Nile Delta. Several additional wells and the start-up of the Central Treatment Plant later this year
will further boost the ouput.
RWE Dea has confirmed the recent tie-in and production start of development well NWK-1-4. In March, the
well was successfully drilled to delimit the northwestern part of the North West Khilala (NWK) Field. The
well was flowed at a rate of 17 million standard cubic feet gas per day during clean-up testing. It’s RWE
Dea’s fourth well on stream at the natural gas project Disouq in the Egyptian Nile Delta.
'We are pleased, that the NWK Field has now reached its production target of 60 million standard cubic feet
gas per day in line with our initial expectations', said Maximilian Fellner, General Manager RWE Dea
Egypt. 'RWE Dea remains committed to supplying natural gas to meet the needs of Egypt's growing energy
demand. The current NWK production along with planned production from the main Disouq Central
Treatment Plant later this year, will form an important contribution to Egypt's domestic gas production',
Fellner explained.
RWE Dea’s operated Disouq project encompasses the development of seven gas fields in the Nile Delta and
NWK is the first field brought into production last September. Together with the Egyptian Natural Gas
Holding Company (EGAS) and the Suez Oil Company (SUCO), RWE Dea plans to produce a total of
approximately 430 billion standard cubic feet of gas from the seven gas fields in the first phase of the
Disouq Development Project.
Copyright © 2014 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
NPD to map MĂžrerand High and Gjallar Ridge South in the Norwegian Sea
Source: NPD
This summer, the Norwegian Petroleum Directorate (NPD) will map the subsurface on the MĂžrerand High
and Gjallar Ridge South in the Norwegian Sea, which is in the western part of the continental shelf. The
objective is to acquire knowledge about unexplored acreage.
The so-called shallow drilling will reach up to 200 metres down into the subsurface, to rocks that were
formed about 55-65 million years ago in the geological Cretaceous and Paleocene periods. 'Geologically
speaking, this is a blank spot on the map,' says
project manager Nils Rune SandstÄ of the
Norwegian Petroleum Directorate. 'The objective of
the drilling is to learn what kind of rocks can be
found there, and how old they are'.
'The drilling target on the MĂžrerand High is
located near the area where the continental plates
separate from the oceanic crust to the west.
Material from this area is therefore scientifically
interesting. It will also increase understanding of
the MĂžre basin as exploration acreage for future
petroleum activities,' says SandstÄ. On the Gjallar
Ridge South, the objective is to take samples from
the geological layer above those examined by the
Norwegian Petroleum Directorate last summer
using a remotely operated underwater vehicle
(ROV). This year’s surveys will therefore provide a
more complete picture of the geology in the area.
The drilling operation in the Norwegian Sea is part
of the mapping of the sea area between Norway and
Greenland – a project that has been ongoing for
many years. This year’s fieldwork will provide the
answer to questions such as whether some of the
rocks are sedimentary or volcanic. The MĂžrerand
High is located 49 miles west of MosjĂžen. There is
no fishing in the area, and according to the NPD’s
project manager, the drilling will not result in any discharge of chemicals harmful to the environment.
'The Directorate has carried out shallow drilling in the Barents Sea before, at water depths between 300 and
400 metres. The drilling operations in the Norwegian Sea will be technically challenging due to the vast
water depths. This places extensive demands on the vessel doing the job,' says Jan StenlĂžkk, operative
supervisor for the fieldwork.
Following several tender rounds, the contract was awarded to the British company Fugro Seacore, which
will use the specially equipped supply vessel Greatship Manisha. One of the Norwegian Petroleum
Directorate’s geologists will join the ship’s crew, which will set sail from Kristiansund in early May. The
work is expected to last three to four weeks.
The NPD has previously acquired seismic in parts of the area, and has been granted NOK 55 million from
the fiscal budget for this year’s mapping.
Copyright © 2014 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
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Russia sanctions have 'little effect' on UK oil and gas jobs
The Telegraph
Increased sanctions on beleaguered Russia would have little effect on Britain’s oil and gas
consultancy industry, according to new research.
Just 4pc of all oil and gas jobs advertised to UK applicants are based in the troubled country,
meaning that if the EU or US were to impose wider economic sanctions there would be a “limited
impact” on the industry, consultants Procorre said.
However, high-earners would more likely be hit, as 9pc of oil and gas jobs advertised with salaries
over ÂŁ100,000 are based in Russia.
While asset freezes and travel bans have already been imposed on members of Russian
president Vladimir Putin’s inner circle, who have been accused of supporting the country’s efforts
against Ukraine, the EU and US have threatened to widen restrictions to include industries such
as banking or energy.
On Friday, Barack Obama, US president, and Angela Merkel, German chancellor, warned that
wide-ranging “sectoral sanctions” on parts of Russia’s economy are likely to be imposed if the
country refuses to de-escalate the situation in Ukraine before elections are held later this month to
choose a successor to Viktor Yanukovych, who was ousted as president in February.
Several Western oil and gas companies employ UK consultants in Russia, including Exxon, Shell
and Total. Lisa Mangan, relationship manager at Procorre, said: “The situation on the ground is
changing by the day and at this stage it is unclear what the outcome will be.
"However, if the situation continues, UK consultants that have developed a particular Russian
focus will have plenty of scope to explore opportunities in other high demand regions.”
Copyright © 2014 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
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British Lords call for speeding fracking
http://voiceofrussia.com/news
Britain’s fracking industry is being held back by environmental regulations drawn up in Brussels, a
senior committee of the UK House of Lords plans to say this week, NYT reports. In a major report,
the Lords are expected to call for permits to be granted more quickly to drilling companies to allow
them to test the potential of newly drilled shale gas wells.
Government experts believe that Britain's shale
gas and oil reserves, buried deep underground,
could generate billions of pounds worth of fuel in
future as well as more jobs. Hydraulic fracturing,
or "fracking", involves pumping water, sand and
chemicals at high pressure into shale rock deep
underground, which then fractures, releasing its
reserves of gas and oil. This controversial
process has raised environmental concerns over
the potential risks to drinking water supplies from
contamination by fracking waste chemicals, and
the danger of causing earth tremors.
Ministers fear landowners and anti-fracking protesters would use existing laws to block shale gas
extraction in the UK, as it suggests prior permission is needed to run pipelines thousands of feet
below private land. The officials instead pledge all seismic activity will be closely monitored and
any significant changes will result in the process being slowed or stopped. The companies will still
need planning permission to drill for shale gas, they say.
Ministers also hope that exploiting the shale gas and oil reserves could help secure a home-grown
energy supply and reduce household gas and electricity bills in future.
David Cameron also believes that fracking could help Britain and the rest of the European Union
reduce its reliance on imported gas from Russia, thus, the process should be boosted. Speaking
at the World Economic Forum in Davos earlier this year, Mr. Cameron warned Europe against
imposing "burdensome" red tape on the fracking industry. Industry groups warned the committee
that Britain's onshore oil and gas businesses were governed by 14 separate EU directives,
ranging from water directives to minor waste regulations.
He said businesses wanting to relocate in Europe needed "cheap and predictable sources of
energy." "If the European Union or its member states impose burdensome, unjustified or
premature regulatory burdens on shale gas exploration in Europe, investors will quickly head
elsewhere," he said.
George Osborne, the Chancellor, on his part, has said that shale gas could bring "thousands of
jobs, billions of pounds of business investment, and lower energy bills."
But the House of Lords Economic Affairs Committee, whose members include the former
Conservative chancellor, Lord Lawson of Blaby, is expected to conclude that it is impossible to
know what the UK's shale reserves will be worth without more widespread fracking.
The Lords committee has been investigating the potential impact of shale gas and oil on the UK
economy and energy policy since October 2013, NYT says.
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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They are expected to conclude that the potential benefits to Britain from fracking are huge but that
progress in the exploration of new wells, and testing the "flow rate" of gas and oil from these wells,
should be accelerated.
However, only a relatively small proportion of Britain – about 7,300 sq miles – has so far been
licensed for oil and gas drilling. Last year, ministers commissioned consultants to identify which
other areas are suitable for drilling. Greenpeace, which opposes fracking, says the areas being
assessed cover some 32,000 sq miles.
A government report is expected to be published soon setting out the next wave of potential
fracking opportunities in southern England. The Committee, chaired by Lord MacGregor of
Pulham Market, a Cabinet minister in the governments of Baroness Thatcher and Sir John Major,
will publish its report on the economic impact of shale gas on Thursday.
The prime minister's official spokesman confirmed the government was looking at ways of making
test drilling easier and to ensure there was not "an overburden of red tape and regulation".
He added: "Fracking is something that is very new, certainly in this country, which is why we are
looking to see whether there are particular obstacles to the test drilling."
Copyright © 2014 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
Philippines: Otto Energy withdraws from Service Contract 51 due to safety issues
Source: Otto Energy
Otto Energy has announced that following extensive post-well analysis of the Duhat-2 well drilled in July
2013, its wholly owned subsidiary Otto Energy Investments Limited (OEIL) has elected to withdraw from
Service Contract 51 ('SC51').
Duhat-2 was drilled in July 2013.
The well was drilling ahead at
approx. 200 metres when the well
started to flow high pressure water
at high flow rates. Upon analysis,
the flow was comprised of brackish
water with very low trace gas
readings. Standard industry safety
practice was followed to shut-in the
well using heavy weight mud and,
subsequently, a cement plug.OEIL
undertook a detailed analysis of the
well results (including drill cutting
analysis and seismic pressure
reviews) to determine if the
unexpected Duhat-2 results could
be understood.
Based on these reviews, OEIL has
concluded a well cannot be safely
drilled at the Duhat-2 well location
given the shallow overpressures
experienced and the indications of
low rock strength above the zone of
overpressure. In addition, OEIL has
formed the view that a well cannot
with confidence be drilled in
accordance with good industry
practice elsewhere on the San
Isidro anticline given the results
observed at the Duhat-2 location.
No other drillable prospects have
been identified on existing seismic
data available in the northern
Service Contract area.
Otto’s Chief Executive Officer, Matthew Allen, said 'Safety and environment are Otto's top priorities and it
has been concluded that it is not safe to proceed with drilling in the SC51 area. The Duhat-2 well presented
a series of very unexpected and potentially dangerous challenges to our drilling team, which were
successfully and safely addressed as a result of comprehensive pre-drill planning and preparation. These
potentially dangerous challenges could be expected during future drilling activities in the block. In addition
to safety concerns, OEIL has also further reviewed the prospectivity of the SC51 North block and elected to
withdraw. OEIL sees no further defined exploration targets within this licence.
Copyright © 2014 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
Hess and Petronas at final decision on Malaysia Bergading CPP
The New York- based Hess Coporation (Hess) and the Malaysia national oil company (NOC)
Petronas are reaching the final investment decision (FID) stage with the Bergading project to
develop the natural gas and condensate in the North Malay Basin offshore the Malaysia
Peninsula.
As part of the Block PM 325, Bergading has been ranked as the largest discovery in the North
Malay Basin.
Owned through their 50/50 joint venture CH Mutiara, Hess and Petronas estimate the North Malay
Basin reserves to 1.3 trillion cubic feet (tcf).
Because of its large size and the
number of different fields,
Hess and Petronas intend to
develop the North Malay Basin in
phases.
For this second phase, Hess and
Petronas has decided to include
the Zetung, Angerik and
Kazumba (ZAK) fields together
with Bergading.
The ZAK fields will be equipped
with eight slot unmanned
wellhead platforms, one per field.
These three wellhead platforms
will then be connected to the
Bergading central processing
platform (CPP).
From Bergading, the
condensate will be exported by a
floating storage and offloading
(FSO) vessel while the gas will be
exported through the 230
kilometers pipeline system
identified as the Thai-Malaysia
Joint Development Area Gas Balancing Evacuation (JDA-GBE) project.
This JDA-GBE pipeline system is already in construction under the operatorship of the Trans Thai-
Malaysia (TTM) company.
Owned 50/50 by PTTEP from Thailand and Petronas from Malaysia, the TTM joint venture has
been established by the two countries to unlock the exploration and production of the oil and
gas in their disputed territorial waters called Joint Development Area (JDA).
Copyright © 2014 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
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Hess and Petronas to award Bergading EPCIC contract
With the critical infrastructures taking place, Hess and Petronas are willing to proceed with the
execution phase of the Bergading project in awarding its engineering, procurement, construction,
installation and commissioning (EPCIC) contract.
Malaysia is racing to develop its natural gas resources to remain a net gas exporter despite the
development of its own consumption for the power generation and newborn petrochemical
industry.
In this context, Hess and Petronas qualified last year teams of international companies with local
contractors and shipyards to perform a competitive front end engineering and design (FEED) on
Bergading.
In conclusion of this competitive
FEED the qualified companies were
expeted to submit their best offer to
execute the Bergading EPCIC
contract.
In the case of Bergading, Hess and
Petronas evaluate the not only the
technical and commercial offers as
usual, but also the propositions to
maximize the local content in
Malaysia.
Based on this competitive FEED, the Bergading gas and condensate project should include:
- A wellhead platform
- A gas central processing platform (CPP)
- A bridge between the two platforms
- The connection to the JDA-GBE export pipeline system
The Bergading central processing platform is designed for a capacity of 450 million cubic feet per
day (cf/d) of gas.
This CPP will be equipped with specific modules for the separation of the carbon dioxide and the
mercury from the natural gas.
The topsides should weight 20,000 tonnes supported by a jacket estimated to 8,000 tonnes.
From the seven teams pre-qualified, Hess and Petronas has kept only two to reach the final stage
of the competitive FEED process and submit an EPCIC offer for Bergading.
Hess and Petronas are planning to make the final investment decision in May 2014 and sanction
the Bergading CPP EPCIC contract in following for a first production expected in 2017.
Copyright © 2014 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
Gabon expects output boost
By News wires
Gabon's oil production is expected to rise by at least 9% 2014 from 210,000 bpd produced last
year, according to reports.
"Oil production in 2014 should reach
230,000 bpd or even 250,000 bpd,"
Reuters quoted Oil Minister Etienne
Ngoubou telling journalists at an industry
event, without providing further details.
The central African oil producer was once
an Opec member but production has
dipped from a peak of about 370,000 bpd
in 1997 due to maturing fields.
Gabon is seeking to encourage investment in the sector and has ambitions to boost production to
500,000 bpd as new offshore fields become operational.
Total and Shell are among the companies operating in the former French colony.
Gabon expects output to increase 9% in 2014
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Advancing China-Africa ties
By He Wenping (China Daily)
Premier Li Keqiang is paying official visits to Ethiopia, Nigeria, Angola and Kenya from May 4 to
11, during which he will deliver a speech at the headquarters of the African Union in the Ethiopian
capital Addis Ababas and attend the 2014 World Economic Forum on Africa in Abuja, the capital
of Nigeria. During his visit, Li is expected to sign about 60 deals in sectors such as energy, trade,
culture, health, agriculture and personnel training.
This is Li's first visit to Africa since he took office in 2013, and it
comes within a year of President Xi Jinping's visit to the continent
as part of his first trip abroad after taking office. In addition to the
visits by Xi and Li, Foreign Minister Wang Yi visited Ethiopia,
Djibouti, Ghana and Senegal in January 2014, continuing the long-
held tradition that Africa is the first destination of the year for
China's foreign ministers, who have made the continent their first
port of call each year since 1991. This highlights that the Chinese
leadership continues to attach great importance to the development of China-Africa relations and
the enhancement of South-South cooperation.
There is no doubt that frequent high-level reciprocal visits are the necessary guarantee for China
and Africa to strengthen mutual political trust and establish a new type of strategic partnership, as
well as an important pillar ensuring the smooth development of their traditional friendship in the
future. When there is a leadership change in a country it is particularly important for exchange
visits to be conducted in the shortest possible time so as to maintain communication and
understanding and reassure each other of the continuity of friendly relations.
State-to-state relations thrive when there is friendship between the peoples and such friendship
grows out of close interactions. In order to maintain the healthy and sustainable development of
China-Africa friendly relations, there should be people-to-people exchanges as well as frequent
exchange visits by high-level officials. Over the past decade, more and more Chinese have come
to Africa and vice versa, and now the frequency and scale of bilateral people-to-people contacts
and exchanges are unprecedented.
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in this publication. However, no warranty is given to the accuracy of its content . Page 15
Africans' favorable views of China are the result of the ordinary Chinese working in or visiting the
continent with whom they come into contact and the China-made products they use, as well as the
"China story" they see and hear. Therefore, if businessmen, academics, tourists, and workers in
Africa can show Chinese people's genuineness, real results, affinity and sincerity, then the healthy
and sustainable development of bilateral relations will gain inexhaustible momentum and there will
be no market for those allegations of neocolonialism that aim to sow discord between China and
African countries.
Li's visit also coincides with the 50th anniversary of former Chinese premier Zhou Enlai's first visit
to Africa. Over the past half a century, China-Africa relations have continued to develop no matter
how the international situation has changed. Today, China has been Africa's largest trade partner
for five years in a row and Africa is China's third-largest market for overseas investment and
second-largest market for overseas contract projects. China's direct investment in Africa had
reached $25 billion by the end of 2013 and there are more than 2,500 Chinese companies now
investing in Africa.
At the same time, people-to-people exchanges are becoming increasingly frequent. By the end of
2013, China had trained a total of 54,000 officials and technicians for African countries and sent to
Africa technical personnel, young volunteers and agricultural experts more than 360,000 person-
times. In all, 37 Confucius institutes and 10 Confucius classrooms have been set up in 31 African
countries. At present, there are also 43 Chinese medical teams serving in 42 African countries
and regions.
And according to a conservative estimate, there are now more than 1 million Chinese in Africa and
the number of Africans that come to China for study, doing business and exchanges is also
increasing rapidly. It is said that there are about 200,000 Africans living in Guangzhou, with an
annual growth rate of 30 to 40 percent. In 2013, there are about 33,000 African students in China.
All in all, to enhance the traditional friendship between China and Africa and achieve sustainable
development of relations, efforts must be made through both official and people-to-people
channels to enhance communication and mutual trust between Africa and China from the higher
levels to the grassroots. Only in this way can the foundation of public opinion required for the
common development of
China and Africa be mutual
and stable.
The author is a senior fellow
with the Chahar Institute
and a researcher with the
Institute of West Asian and
African Studies at the
Chinese Academy of Social
Sciences.
Copyright © 2014 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
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 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 forTechnical Affairs Specialist forTechnical Affairs Specialist forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forEmirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forEmirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forEmirates 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 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 EmaManager in Emarat , responsible for EmaManager in Emarat , responsible for EmaManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedrat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedrat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedrat Gas Pipeline Network Facility & 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 yearsroutes. Many yearsroutes. Many yearsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forwere spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forwere spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forwere 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 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
inteinteinteinternationally , via GCC leading satelliternationally , via GCC leading satelliternationally , via GCC leading satelliternationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 05 May 2014 K. Al Awadi

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New base special 05 may 2014

  • 1. Copyright © 2014 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 05 May 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Spain's Tecnicas wins $1.7bn Saudi power deal Arabian Business - Andy Sambidge Spanish energy contractor Tecnicas Reunidas said on Sunday it had been awarded a contract worth close to $1.7 billion to build a large power complex in Saudi Arabia's Jazan Province. In a statement, Tecnicas Reunidas said it had been hired by Saudi Aramco, the state-owned oil company, to execute the Jazan IGCC (Integrated Gasification Combined Cycle) complex in the south western region of Saudi Arabia. The Jazan IGCC complex, which is to become the largest gasifier-based power facility in the world, will convert vacuum residue to be produced in the adjacent Jazan refinery into synthesis gas. The company said the contract has a value of approximately $1.7 billion, adding that the facilities will be operational in 2017. This new contract is the second one for the power generation business of Techicas with Saudi Aramco after the successful completion of the Manifa cogeneration plant. The scope of the project awarded includes the development of the utilities and off-sites facilities for the IGCC complex under a contract covering the services for engineering, procurement, construction, precommissioning and commissioning support for the facilities.
  • 2. Copyright © 2014 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 TĂ©cnicas Reunidas said it has designed and constructed over 1,000 industrial plants, spanning more than 50 countries in the six continents. TR is currently executing two large projects in the 400,000 bpd Jazan Refinery. The gasification unit will have a capacity of 2,110,000 Nm3/h of syngas that will be evenly used to produce purified hydrogen for the refinery and to fuel a combined cycle facility producing utilities and power for the refinery and export to the national grid. Total output of the plant will be of approximately 2,400 MW. About Tecnicas Reunidas SA ( TR ) :- TR is an outgrowth of the former Spanish subsidiary of The Lummus Company, Lummus Española, S.A., founded in 1960. In 1972, a Spanish group of investors acquired 100 % of the shares of Lummus Española and renamed the company to TĂ©cnicas Reunidas. Since 1960 the TR group of companies has designed and built more than 1000 industrial plants worldwide. TR's multinational clients and licensors include the world's leading companies. The projects have been developed in over 50 countries covering the six continents. The international projection of the TR group of companies and the keen specialization in the execution of turnkey projects, have been the bases of TR's expansion since the 80's. International projects account for 78% of the company's annual turnover. TR has incorporated the most advanced systems and technologies based on the latest generation of data processing tools to manage and design the projects. More than 5.500 professionals have been trained and posses practical experience necessary to manage these projects. TR develops all designs with 3D systems, and as such is able to produce "three dimensional virtual plant models" which eliminate potential problems derived from the integration of the various disciplines. This approach generates a highly accurate and quality product with a greater added value and is able to detect potential problems early in the design phase.
  • 3. Copyright © 2014 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 Omani Block 4 heavy oil play is promising: Tethys Oil (OEPPA Business Development Dept), Written by Conrad Prabhu Swedish based international upstream energy firm Tethys Oil says a major heavy oil play discovered in its Block 4 concession onshore Oman is potentially promising, yet technically challenging. The field, located in the Saiwan East area of Block 4, is estimated to hold over 1 billion barrels of heavy oil in place, said Tethys Oil in a newly released report of its upstream investments in the Sultanate. Following tests of the field, the company concluded that any potential production from the heavy oil in Saiwan East, while “cautiously encouraging”, would require enhanced oil recovery (EOR) techniques. “No additional tests on the heavy oil are planned for the near future, with plenty of other possibilities on the blocks that have a higher chance of resulting in an immediate cash flow. But the heavy oil of the area is a challenge and big opportunity,” Tethys Oil stated in its report. The Saiwan East area of Block 4 has been something of a mixed bag for Tethys Oil. Near the same area that heavy oil was discovered, the company’s Saiwan East 3 well tested over 10,000 barrels of oil per day (bopd). But the natural decline of the Saiwan East oil field wells has been substantial, and the field is now producing at a modest rate, the company said. Any move to bring the nearby heavy oil to the surface would require EOR techniques, it said. What came as a surprise for Tethys Oil was the discovery of light crude at depths far greater than those of the heavy oil formations within the Saiwan East field. “The various densities in different areas of the field seem to have a big impact on where conventional oil has been found”, the company said, noting that its SE-4 well encountered unexpectedly large quantities of oil with different gravities and viscosities than previously believed possible.
  • 4. Copyright © 2014 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 “Both the light sweet crude and the heavy oil constitute large possibilities for the future. In light of the strategy, to priority drilling of wells with high chance of success that could be put on stream fast, no near time activity is planned at the Saiwan East oil field,” Tethys Oil said. With interests in three onshore blocks, Tethys Oil is one of the largest concession holders in Oman’s upstream energy sector. Blocks 3 and 4 are located in the eastern part of Oman and covers an area of 34,610 sq km. Tethys has a 30 per cent interest in the Blocks. Partners are Mitsui (20 per cent) and the operator CC Energy Development SAL Oman branch (50 per cent). Block 15 is situated in the north western part of central Oman and covers an area of about 1,400 square kilometres. Tethys Oil has a 40 per cent interest in the licence and Odin Energi the other 60 per cent. Output from Blocks 3 and 4 have accounted for much of Tethys Oil revenues. Total production from these blocks increased 24 per cent to 1.7 million barrels of oil in 2013, corresponding to 4,556 barrels of oil per day (bopd). “With the discovery of the Lower Buah as reservoir in area 4, production at year-end reached new heights,” said Magnus Nordin, Managing Director. “In 2014, we have reported record production three months in a row. We are now close to bringing our average daily production above 7,000 bopd,” he stated. In addition to boosting its exploration/appraisal programme in 2014, the company plans to drill a number of wells in many areas of the blocks, including the South Farha South area and the Lower Buah prospects, the Managing Director added.
  • 5. Copyright © 2014 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 RWE Dea Egypt reaches initial production targets at natural gas project Disouq Source: RWE RWE Dea successfully connected development well North West Khilala-1-4 (NWK-1-4) to production. With this well the company reached its initial production target for the natural gas project Disouq in the Egyptian Nile Delta. Several additional wells and the start-up of the Central Treatment Plant later this year will further boost the ouput. RWE Dea has confirmed the recent tie-in and production start of development well NWK-1-4. In March, the well was successfully drilled to delimit the northwestern part of the North West Khilala (NWK) Field. The well was flowed at a rate of 17 million standard cubic feet gas per day during clean-up testing. It’s RWE Dea’s fourth well on stream at the natural gas project Disouq in the Egyptian Nile Delta. 'We are pleased, that the NWK Field has now reached its production target of 60 million standard cubic feet gas per day in line with our initial expectations', said Maximilian Fellner, General Manager RWE Dea Egypt. 'RWE Dea remains committed to supplying natural gas to meet the needs of Egypt's growing energy demand. The current NWK production along with planned production from the main Disouq Central Treatment Plant later this year, will form an important contribution to Egypt's domestic gas production', Fellner explained. RWE Dea’s operated Disouq project encompasses the development of seven gas fields in the Nile Delta and NWK is the first field brought into production last September. Together with the Egyptian Natural Gas Holding Company (EGAS) and the Suez Oil Company (SUCO), RWE Dea plans to produce a total of approximately 430 billion standard cubic feet of gas from the seven gas fields in the first phase of the Disouq Development Project.
  • 6. Copyright © 2014 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 NPD to map MĂžrerand High and Gjallar Ridge South in the Norwegian Sea Source: NPD This summer, the Norwegian Petroleum Directorate (NPD) will map the subsurface on the MĂžrerand High and Gjallar Ridge South in the Norwegian Sea, which is in the western part of the continental shelf. The objective is to acquire knowledge about unexplored acreage. The so-called shallow drilling will reach up to 200 metres down into the subsurface, to rocks that were formed about 55-65 million years ago in the geological Cretaceous and Paleocene periods. 'Geologically speaking, this is a blank spot on the map,' says project manager Nils Rune SandstĂ„ of the Norwegian Petroleum Directorate. 'The objective of the drilling is to learn what kind of rocks can be found there, and how old they are'. 'The drilling target on the MĂžrerand High is located near the area where the continental plates separate from the oceanic crust to the west. Material from this area is therefore scientifically interesting. It will also increase understanding of the MĂžre basin as exploration acreage for future petroleum activities,' says SandstĂ„. On the Gjallar Ridge South, the objective is to take samples from the geological layer above those examined by the Norwegian Petroleum Directorate last summer using a remotely operated underwater vehicle (ROV). This year’s surveys will therefore provide a more complete picture of the geology in the area. The drilling operation in the Norwegian Sea is part of the mapping of the sea area between Norway and Greenland – a project that has been ongoing for many years. This year’s fieldwork will provide the answer to questions such as whether some of the rocks are sedimentary or volcanic. The MĂžrerand High is located 49 miles west of MosjĂžen. There is no fishing in the area, and according to the NPD’s project manager, the drilling will not result in any discharge of chemicals harmful to the environment. 'The Directorate has carried out shallow drilling in the Barents Sea before, at water depths between 300 and 400 metres. The drilling operations in the Norwegian Sea will be technically challenging due to the vast water depths. This places extensive demands on the vessel doing the job,' says Jan StenlĂžkk, operative supervisor for the fieldwork. Following several tender rounds, the contract was awarded to the British company Fugro Seacore, which will use the specially equipped supply vessel Greatship Manisha. One of the Norwegian Petroleum Directorate’s geologists will join the ship’s crew, which will set sail from Kristiansund in early May. The work is expected to last three to four weeks. The NPD has previously acquired seismic in parts of the area, and has been granted NOK 55 million from the fiscal budget for this year’s mapping.
  • 7. Copyright © 2014 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 Russia sanctions have 'little effect' on UK oil and gas jobs The Telegraph Increased sanctions on beleaguered Russia would have little effect on Britain’s oil and gas consultancy industry, according to new research. Just 4pc of all oil and gas jobs advertised to UK applicants are based in the troubled country, meaning that if the EU or US were to impose wider economic sanctions there would be a “limited impact” on the industry, consultants Procorre said. However, high-earners would more likely be hit, as 9pc of oil and gas jobs advertised with salaries over ÂŁ100,000 are based in Russia. While asset freezes and travel bans have already been imposed on members of Russian president Vladimir Putin’s inner circle, who have been accused of supporting the country’s efforts against Ukraine, the EU and US have threatened to widen restrictions to include industries such as banking or energy. On Friday, Barack Obama, US president, and Angela Merkel, German chancellor, warned that wide-ranging “sectoral sanctions” on parts of Russia’s economy are likely to be imposed if the country refuses to de-escalate the situation in Ukraine before elections are held later this month to choose a successor to Viktor Yanukovych, who was ousted as president in February. Several Western oil and gas companies employ UK consultants in Russia, including Exxon, Shell and Total. Lisa Mangan, relationship manager at Procorre, said: “The situation on the ground is changing by the day and at this stage it is unclear what the outcome will be. "However, if the situation continues, UK consultants that have developed a particular Russian focus will have plenty of scope to explore opportunities in other high demand regions.”
  • 8. Copyright © 2014 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 British Lords call for speeding fracking http://voiceofrussia.com/news Britain’s fracking industry is being held back by environmental regulations drawn up in Brussels, a senior committee of the UK House of Lords plans to say this week, NYT reports. In a major report, the Lords are expected to call for permits to be granted more quickly to drilling companies to allow them to test the potential of newly drilled shale gas wells. Government experts believe that Britain's shale gas and oil reserves, buried deep underground, could generate billions of pounds worth of fuel in future as well as more jobs. Hydraulic fracturing, or "fracking", involves pumping water, sand and chemicals at high pressure into shale rock deep underground, which then fractures, releasing its reserves of gas and oil. This controversial process has raised environmental concerns over the potential risks to drinking water supplies from contamination by fracking waste chemicals, and the danger of causing earth tremors. Ministers fear landowners and anti-fracking protesters would use existing laws to block shale gas extraction in the UK, as it suggests prior permission is needed to run pipelines thousands of feet below private land. The officials instead pledge all seismic activity will be closely monitored and any significant changes will result in the process being slowed or stopped. The companies will still need planning permission to drill for shale gas, they say. Ministers also hope that exploiting the shale gas and oil reserves could help secure a home-grown energy supply and reduce household gas and electricity bills in future. David Cameron also believes that fracking could help Britain and the rest of the European Union reduce its reliance on imported gas from Russia, thus, the process should be boosted. Speaking at the World Economic Forum in Davos earlier this year, Mr. Cameron warned Europe against imposing "burdensome" red tape on the fracking industry. Industry groups warned the committee that Britain's onshore oil and gas businesses were governed by 14 separate EU directives, ranging from water directives to minor waste regulations. He said businesses wanting to relocate in Europe needed "cheap and predictable sources of energy." "If the European Union or its member states impose burdensome, unjustified or premature regulatory burdens on shale gas exploration in Europe, investors will quickly head elsewhere," he said. George Osborne, the Chancellor, on his part, has said that shale gas could bring "thousands of jobs, billions of pounds of business investment, and lower energy bills." But the House of Lords Economic Affairs Committee, whose members include the former Conservative chancellor, Lord Lawson of Blaby, is expected to conclude that it is impossible to know what the UK's shale reserves will be worth without more widespread fracking. The Lords committee has been investigating the potential impact of shale gas and oil on the UK economy and energy policy since October 2013, NYT says.
  • 9. Copyright © 2014 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 They are expected to conclude that the potential benefits to Britain from fracking are huge but that progress in the exploration of new wells, and testing the "flow rate" of gas and oil from these wells, should be accelerated. However, only a relatively small proportion of Britain – about 7,300 sq miles – has so far been licensed for oil and gas drilling. Last year, ministers commissioned consultants to identify which other areas are suitable for drilling. Greenpeace, which opposes fracking, says the areas being assessed cover some 32,000 sq miles. A government report is expected to be published soon setting out the next wave of potential fracking opportunities in southern England. The Committee, chaired by Lord MacGregor of Pulham Market, a Cabinet minister in the governments of Baroness Thatcher and Sir John Major, will publish its report on the economic impact of shale gas on Thursday. The prime minister's official spokesman confirmed the government was looking at ways of making test drilling easier and to ensure there was not "an overburden of red tape and regulation". He added: "Fracking is something that is very new, certainly in this country, which is why we are looking to see whether there are particular obstacles to the test drilling."
  • 10. Copyright © 2014 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 Philippines: Otto Energy withdraws from Service Contract 51 due to safety issues Source: Otto Energy Otto Energy has announced that following extensive post-well analysis of the Duhat-2 well drilled in July 2013, its wholly owned subsidiary Otto Energy Investments Limited (OEIL) has elected to withdraw from Service Contract 51 ('SC51'). Duhat-2 was drilled in July 2013. The well was drilling ahead at approx. 200 metres when the well started to flow high pressure water at high flow rates. Upon analysis, the flow was comprised of brackish water with very low trace gas readings. Standard industry safety practice was followed to shut-in the well using heavy weight mud and, subsequently, a cement plug.OEIL undertook a detailed analysis of the well results (including drill cutting analysis and seismic pressure reviews) to determine if the unexpected Duhat-2 results could be understood. Based on these reviews, OEIL has concluded a well cannot be safely drilled at the Duhat-2 well location given the shallow overpressures experienced and the indications of low rock strength above the zone of overpressure. In addition, OEIL has formed the view that a well cannot with confidence be drilled in accordance with good industry practice elsewhere on the San Isidro anticline given the results observed at the Duhat-2 location. No other drillable prospects have been identified on existing seismic data available in the northern Service Contract area. Otto’s Chief Executive Officer, Matthew Allen, said 'Safety and environment are Otto's top priorities and it has been concluded that it is not safe to proceed with drilling in the SC51 area. The Duhat-2 well presented a series of very unexpected and potentially dangerous challenges to our drilling team, which were successfully and safely addressed as a result of comprehensive pre-drill planning and preparation. These potentially dangerous challenges could be expected during future drilling activities in the block. In addition to safety concerns, OEIL has also further reviewed the prospectivity of the SC51 North block and elected to withdraw. OEIL sees no further defined exploration targets within this licence.
  • 11. Copyright © 2014 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 Hess and Petronas at final decision on Malaysia Bergading CPP The New York- based Hess Coporation (Hess) and the Malaysia national oil company (NOC) Petronas are reaching the final investment decision (FID) stage with the Bergading project to develop the natural gas and condensate in the North Malay Basin offshore the Malaysia Peninsula. As part of the Block PM 325, Bergading has been ranked as the largest discovery in the North Malay Basin. Owned through their 50/50 joint venture CH Mutiara, Hess and Petronas estimate the North Malay Basin reserves to 1.3 trillion cubic feet (tcf). Because of its large size and the number of different fields, Hess and Petronas intend to develop the North Malay Basin in phases. For this second phase, Hess and Petronas has decided to include the Zetung, Angerik and Kazumba (ZAK) fields together with Bergading. The ZAK fields will be equipped with eight slot unmanned wellhead platforms, one per field. These three wellhead platforms will then be connected to the Bergading central processing platform (CPP). From Bergading, the condensate will be exported by a floating storage and offloading (FSO) vessel while the gas will be exported through the 230 kilometers pipeline system identified as the Thai-Malaysia Joint Development Area Gas Balancing Evacuation (JDA-GBE) project. This JDA-GBE pipeline system is already in construction under the operatorship of the Trans Thai- Malaysia (TTM) company. Owned 50/50 by PTTEP from Thailand and Petronas from Malaysia, the TTM joint venture has been established by the two countries to unlock the exploration and production of the oil and gas in their disputed territorial waters called Joint Development Area (JDA).
  • 12. Copyright © 2014 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 Hess and Petronas to award Bergading EPCIC contract With the critical infrastructures taking place, Hess and Petronas are willing to proceed with the execution phase of the Bergading project in awarding its engineering, procurement, construction, installation and commissioning (EPCIC) contract. Malaysia is racing to develop its natural gas resources to remain a net gas exporter despite the development of its own consumption for the power generation and newborn petrochemical industry. In this context, Hess and Petronas qualified last year teams of international companies with local contractors and shipyards to perform a competitive front end engineering and design (FEED) on Bergading. In conclusion of this competitive FEED the qualified companies were expeted to submit their best offer to execute the Bergading EPCIC contract. In the case of Bergading, Hess and Petronas evaluate the not only the technical and commercial offers as usual, but also the propositions to maximize the local content in Malaysia. Based on this competitive FEED, the Bergading gas and condensate project should include: - A wellhead platform - A gas central processing platform (CPP) - A bridge between the two platforms - The connection to the JDA-GBE export pipeline system The Bergading central processing platform is designed for a capacity of 450 million cubic feet per day (cf/d) of gas. This CPP will be equipped with specific modules for the separation of the carbon dioxide and the mercury from the natural gas. The topsides should weight 20,000 tonnes supported by a jacket estimated to 8,000 tonnes. From the seven teams pre-qualified, Hess and Petronas has kept only two to reach the final stage of the competitive FEED process and submit an EPCIC offer for Bergading. Hess and Petronas are planning to make the final investment decision in May 2014 and sanction the Bergading CPP EPCIC contract in following for a first production expected in 2017.
  • 13. Copyright © 2014 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 Gabon expects output boost By News wires Gabon's oil production is expected to rise by at least 9% 2014 from 210,000 bpd produced last year, according to reports. "Oil production in 2014 should reach 230,000 bpd or even 250,000 bpd," Reuters quoted Oil Minister Etienne Ngoubou telling journalists at an industry event, without providing further details. The central African oil producer was once an Opec member but production has dipped from a peak of about 370,000 bpd in 1997 due to maturing fields. Gabon is seeking to encourage investment in the sector and has ambitions to boost production to 500,000 bpd as new offshore fields become operational. Total and Shell are among the companies operating in the former French colony. Gabon expects output to increase 9% in 2014
  • 14. Copyright © 2014 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 Advancing China-Africa ties By He Wenping (China Daily) Premier Li Keqiang is paying official visits to Ethiopia, Nigeria, Angola and Kenya from May 4 to 11, during which he will deliver a speech at the headquarters of the African Union in the Ethiopian capital Addis Ababas and attend the 2014 World Economic Forum on Africa in Abuja, the capital of Nigeria. During his visit, Li is expected to sign about 60 deals in sectors such as energy, trade, culture, health, agriculture and personnel training. This is Li's first visit to Africa since he took office in 2013, and it comes within a year of President Xi Jinping's visit to the continent as part of his first trip abroad after taking office. In addition to the visits by Xi and Li, Foreign Minister Wang Yi visited Ethiopia, Djibouti, Ghana and Senegal in January 2014, continuing the long- held tradition that Africa is the first destination of the year for China's foreign ministers, who have made the continent their first port of call each year since 1991. This highlights that the Chinese leadership continues to attach great importance to the development of China-Africa relations and the enhancement of South-South cooperation. There is no doubt that frequent high-level reciprocal visits are the necessary guarantee for China and Africa to strengthen mutual political trust and establish a new type of strategic partnership, as well as an important pillar ensuring the smooth development of their traditional friendship in the future. When there is a leadership change in a country it is particularly important for exchange visits to be conducted in the shortest possible time so as to maintain communication and understanding and reassure each other of the continuity of friendly relations. State-to-state relations thrive when there is friendship between the peoples and such friendship grows out of close interactions. In order to maintain the healthy and sustainable development of China-Africa friendly relations, there should be people-to-people exchanges as well as frequent exchange visits by high-level officials. Over the past decade, more and more Chinese have come to Africa and vice versa, and now the frequency and scale of bilateral people-to-people contacts and exchanges are unprecedented.
  • 15. Copyright © 2014 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 Africans' favorable views of China are the result of the ordinary Chinese working in or visiting the continent with whom they come into contact and the China-made products they use, as well as the "China story" they see and hear. Therefore, if businessmen, academics, tourists, and workers in Africa can show Chinese people's genuineness, real results, affinity and sincerity, then the healthy and sustainable development of bilateral relations will gain inexhaustible momentum and there will be no market for those allegations of neocolonialism that aim to sow discord between China and African countries. Li's visit also coincides with the 50th anniversary of former Chinese premier Zhou Enlai's first visit to Africa. Over the past half a century, China-Africa relations have continued to develop no matter how the international situation has changed. Today, China has been Africa's largest trade partner for five years in a row and Africa is China's third-largest market for overseas investment and second-largest market for overseas contract projects. China's direct investment in Africa had reached $25 billion by the end of 2013 and there are more than 2,500 Chinese companies now investing in Africa. At the same time, people-to-people exchanges are becoming increasingly frequent. By the end of 2013, China had trained a total of 54,000 officials and technicians for African countries and sent to Africa technical personnel, young volunteers and agricultural experts more than 360,000 person- times. In all, 37 Confucius institutes and 10 Confucius classrooms have been set up in 31 African countries. At present, there are also 43 Chinese medical teams serving in 42 African countries and regions. And according to a conservative estimate, there are now more than 1 million Chinese in Africa and the number of Africans that come to China for study, doing business and exchanges is also increasing rapidly. It is said that there are about 200,000 Africans living in Guangzhou, with an annual growth rate of 30 to 40 percent. In 2013, there are about 33,000 African students in China. All in all, to enhance the traditional friendship between China and Africa and achieve sustainable development of relations, efforts must be made through both official and people-to-people channels to enhance communication and mutual trust between Africa and China from the higher levels to the grassroots. Only in this way can the foundation of public opinion required for the common development of China and Africa be mutual and stable. The author is a senior fellow with the Chahar Institute and a researcher with the Institute of West Asian and African Studies at the Chinese Academy of Social Sciences.
  • 16. Copyright © 2014 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 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 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 forTechnical Affairs Specialist forTechnical Affairs Specialist forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forEmirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forEmirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forEmirates 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 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 EmaManager in Emarat , responsible for EmaManager in Emarat , responsible for EmaManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedrat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedrat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedrat Gas Pipeline Network Facility & 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 yearsroutes. Many yearsroutes. Many yearsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forwere spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forwere spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forwere 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 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 inteinteinteinternationally , via GCC leading satelliternationally , via GCC leading satelliternationally , via GCC leading satelliternationally , via GCC leading satellite ChannelsChannelsChannelsChannels .... NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE NewBase 05 May 2014 K. Al Awadi