ATIC to invest $10bn in chip plant expansion

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NewBase 06 January 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Abu Dhabi ATIC to invest up to $10 billion in GlobalFoundries chip plant
(Reuters)
Abu Dhabi's Advanced Technology Investment Company (ATIC) plans to invest up to $10 billion over
the next two years in GlobalFoundries' New York semiconductor factory, its CEO said on Friday.
ATIC owns unlisted GlobalFoundries, which has chip manufacturing facilities in New York, Singapore and
Germany. ATIC is controlled by Abu Dhabi state investment fund Mubadala.
"We have received commitments from Mubadala for an additional $9-10 billion for expansion of our facility
in New York," ATIC Chief Executive Ibrahim Ajami told Reuters by telephone.
WWW.ATIC.ae
ATIC is a catalyst for the successful evolution of an advanced technology industry in Abu Dhabi. Our role is to identify
and implement strategic transformational investments in the technology sector, create a local R&D ecosystem and develop
a technology talent base in support of the overarching national goal to become a knowledge-based economy.
Founded in 2008, ATIC (Advanced Technology Investment Company) is a wholly-owned subsidiary of the Mubadala
Development Company. Mubadala, which is the Arabic word for exchange, is mandated by the Abu Dhabi Government to
facilitate economic diversification. Its focus is on managing long-term investments that deliver strong financial returns and
tangible social benefits for the Emirate.

Limited production resumes at south Libya oilfield
AFP
Limited production has resumed in Libya’s Al Sharara oilfield, blockaded since October 28 by residents of
the southern region of Ubari, a National Oil Company (NOC) official said on Sunday.
The southern oilfield is now producing some 60,000 barrels per day compared with its pre-October output
of some 330,000 bpd, the official said. “Production at the Al Sharara well has restarted progressively since
Saturday with production of 60,000 bpd pending the resumption of its normal capacity in two or three
days,” said NOC spokesman Mohammad Al Harairi.
The government on Thursday convinced Ubari residents to end their blockade, in which they had been
protesting against their “marginalisation” and demanding oil revenues be distributed more evenly. Al
Sharara is run by Akakus, a joint venture between Libya’s NOC, Spanish company Repsol, France’s Total
and Austria’s OMV. The operation of two other oilfields in eastern Libya, Msala and Sarir, resumed late last
month after being suspended for several months following the shutdown of the Al Harriga terminal. Oil
installation guards calling for autonomy for the eastern region of Cyrenaica sparked the crisis when they
shut down key sites in the east.
Mediation
The crisis is ongoing, and on Thursday the guards reiterated their conditions for lifting the blockade,
including a bigger share of oil revenues for Cyrenaica. An attempt to mediate launched by lawmakers and
civil society groups has failed to reach any concrete results. On Saturday, state-owned NOC decided to keep
in place the force majeure it declared in August at its main oil terminals. “Force majeure will be kept in
place in the oil ports or Ras Lanouf, Al Sedra and Zueitina,” a statement said, warning clients against
sending ships to load or unload cargos. The crisis has seen output plunge to about 250,000 bpd from nearly
1.5 million bpd before. Oil Minister Abdul Bari Al Arusi said in early December that lost production
because of the blockades had cost Libya around $9.0 billion (Dh33 billion, €6.6 billion) in revenues.

World oil demand to grow in 2014: Opec
By: IANS/WAM http://gulfnews.com/business/oil-gas/world-oil-demand-to-grow-in-2014-opec-1.1274061
Abu Dhabi: With global economic growth in 2014 projected to increase to 3.5 per cent from 2.9 per cent in
2013, world oil demand is forecast to rise by one million barrels per day, according to the latest monthly
bulletin of the Organisation of Petroleum Exporting Countries (Opec).
World oil demand is expected to grow by one million barrels a day (bpd) in 2014 compared with 900,000
b/d last year, supported by improved performances by the emerging economies and as the global economy
continues to recover in general, it said.
“Oil demand growth continues to come mainly from non-OECD (Organisation for Economic Cooperation
and Development) countries, while OECD oil demand is expected to show a further contraction, albeit at a
slower rate,” Opec’s Monthly Oil Market Report (MOMR) observed.
However, an MOMR article pointed out that the latest forecast is associated with uncertainties related to the
pace of economic growth in the OECD region, China and India, as well as to policy reforms in oil product
retail prices in some emerging economies. The improving picture is backed by a strengthening of the global
economy in 2014, which is slated to expand by 3.5 per cent against 2.9 per cent in 2013, mainly as a result
of momentum in the OECD economies.
Emerging economies
“However, many challenges remain, ranging from the outcome of postponed fiscal negotiations in the
United States, the future monetary policy of major central banks, the resilience of the Eurozone recovery,
and continued reforms in the emerging economies to improve structural issues,” the report commented.
It stressed that the signs of a recovery are already visible in rising global industrial production.
According to the MOMR, on the oil supply side, non-Opec supply growth in 2014 is expected at almost the
same level as last year at 1.2 million bpd with some risks in both directions, given possible early start-ups or
delays, as well as political, technical and meteorological factors.
Output of Opec natural gas liquids (NGLs) is expected to rise by 100,000 bpd in 2014, following an increase
of 200,000 bpd last year. The report noted that non-Opec supply growth in 2013 has performed better than
initially expected, supported mainly by the US and Canada, which added around 1 million bpd.

Other contributions to 2013 growth have come from the Sudans, Russia and China, while output disruptions
in Syria, along with the decline in North Sea production, partially offset the growth.
Market equilibrium
“While the above forecasts indicate that incremental non-Opec oil supply and Opec NGL growth will
outpace projected world oil demand growth, the 164th Opec Ministerial Conference (held in Vienna on
December 4) decided to maintain current production of 30 million bpd in the interest of maintaining market
equilibrium.
“In taking this decision, the Organisation’s Member Countries re-confirmed their readiness to promptly
respond to unforeseen developments that could have an adverse impact on an orderly and balanced oil
market,” the report said.
Looking at 2013, the MOMR said the price of the Opec Reference Basket experienced significant quarterly
swings. After reaching close to $115 per barrel in the first quarter, the basket price came down steeply to
around $96 per barrel in the second quarter, before regaining strength to rebound sharply in the third
quarter.

Oman to review fuel subsidiesBy Beatrice Thomas http://www.arabianbusiness.com/oman-review-fuel-subsidies-533543.html
Oman is the latest Gulf state to review its fuel subsidy scheme as the sultanate tries to claw back its budget
deficit, it was reported.
According to official figures, the subsidy for petroleum products, mainly petrol and diesel, is projected to
reach OMR860m ($2.23bn) in the 2014 budget, up from OMR740m last year. It accounts for 53 percent of
the total OMR1.61bn appropriation for subsidies and constitutes 10 percent of budget expenditure in 2014,
the Times of Oman reported.
Financial affairs minister Darwish bin Ismail Al Balushi foreshadowed the fuel subsidy would be reduced
greatly to improve the budget bottom line. “The government will take a decision once the studies that take
into account all aspects of the issue are complete," he was quoted by the Times as saying.
“The negative aspects of subsidy are many. It leads to overconsumption or misuse of petroleum products,
overcrowding of roads and the growing number of vehicles on the roads.” Al Balushi also noted that fuel
subsidies in the country were growing in line with a surge in crude oil price in the global markets.
However, a committee of Majlis Al Shura last year said that it would not recommend a repeal of fuel
subsidies. The Oman debate comes as Bahraini MPs in November said they would seek a guarantee from
the government that revenues raised from higher petrol prices will directly benefit citizens after it was
announced subsidies would be lifted for the commodity.
Diesel is the only commodity to be affected by the government’s subsidy plan, with discounts on other
essential items including food to remain in place despite warnings the cheaper prices led to excessive use
and put unnecessary strain on the state budget. MPs argue the decision was taken without consultation with
elected members and will have a detrimental impact on citizens, Gulf Daily News reported.
Mohammed bin Hamad Al Rumhy, minister of oil and gas, has said subsidised petrol and electricity
programmes were causing a huge waste of energy across the Gulf and threatening economies.

UAE has most diversified GCC economy
http://www.emirates247.com/business/economy-finance/uae-has-most-diversified-gcc-economy-2014-01-06-1.533612
Massive investments in the non-hydrocarbon sector by Dubai and ongoing reforms in Abu Dhabi
have turned the UAE into the most diversified economy in the oil-rich Gulf, an official Arab report
said on Sunday.
The report by the Saudi-based Arab Petroleum Investment Corp (Apicorp) based its findings on
three main categories—the oil sector’s contribution to gross domestic product (GDP), its share of
total exports and share of government fiscal revenue.The report found that the UAE is the most
diversified economy in the six-nation Gulf Cooperation Council (GCC) while Saudi Arabia’s
economy is the least diversified.
Measuring reliance of the economy on the oil sector by those categories, the study found that the
UAE has the lowest ratio of 0.52 points. Bahrain emerged with the second diversified economy,
with 0.54 points followed by Oman with 0.69 point, Qatar with 0.73 points, Kuwait with 0.76 points
and Saudi Arabia with 0.77 points, according to Apicorp, an affiliate of the Kuwaiti-based
Organization of Arab Petroleum Exporting Countries (OAPEC).
“Saudi Arabia appears to be the least diversified economy within the region….as in the
relationship between mass and inertia, it seems that the more an economy relies on oil, the more
difficult progress becomes,” it said. “However, the UAE provides an exception to this rule, since it
emerges as the relatively most diversified country. Part of the reason stems from the ever-
enterprising Dubai and from Abu Dhabi’s relatively steady structural transformation.”

Kenya: BG Group preparing to drill offshore Kenya in 2014
Pancontinental Oil & Gas NL (ASX: PCL) is pleased to advise that the exploration well Sunbird-1
has commenced drilling in Licence area L10A offshore Kenya. The well is managed by the L10A
Joint Venture operator BG Group, using the drillship Deepsea Metro 1.The Sunbird-1 well is
planned to take 50 to 60 days to drill to 3,000m below sea level, with an option to extend to
3,700m. Extensive wireline logging and both pressure and fluid sampling are planned.
The Joint Venture intends to plug and abandon the well in accordance with normal good oilfield
practice regardless of the drilling outcome, however it is planned to leave the well in a condition
that would allow re-entry at a later date. Water depth is 721m. Sunbird-1 is the first-ever test of a
Miocene Pinnacle Reef offshore East Africa and the first-ever exploration well in L10A in the Lamu
Basin offshore Kenya. An extensive trend of Miocene Reefs is evident in Pancontinental’s four
licence areas offshore southern Kenya.
Sunbird-1 is regarded as a “tight hole” exploration well and results will be announced after
completion of the drilling and assessment and integration of the gathered data.
Further details to this article :-
• Sunbird Prospect approved for the first exploration well by the Kenya L10A Joint Venture, led by BG Group
• Sunbird-1 drilling planned to commence mid-January 2014 using drillship Deepsea Metro-1
• Sunbird-1 will be a play-opening first-ever test of a Miocene Pinnacle Reef offshore East Africa

• Numerous other Prospects and Leads have been high-graded for a second L10A / L10B well, potentially
mid-late 2014
JV partner Pancontinental Oil & Gas has announced that final preparations are under way for the Sunbird-1
exploration well in licence area L10A offshore Kenya, with a best-estimate commencement date between 9
to 12 January 2014. Sunbird-1 will be the first-ever test of a Miocene Pinnacle Reef offshore East Africa
and the first-ever exploration well within L10A in the Lamu Basin offshore southern Kenya. L10A operator
BG Group intends to use the drillship Deepsea Metro 1 to drill Sunbird-1. The drillship is on contract to BG
Group and is currently drilling offshore Tanzania.
Barry Rushworth, CEO and Executive Director of Pancontinental commented - 'We are very pleased to have
been allocated the Deepsea Metro 1 for drilling next month. The Sunbird Prospect is one of a number of
Miocene Reefs that have never before been properly tested offshore East Africa. Miocene Reefs globally
have a high record of success for oil and gas and they are often highly productive, due to high porosity and
permeability.
Commercial oil has not yet been discovered offshore East Africa, however oil shows in reservoir-quality
sands (Kubwa-1), the discovery of gas from a possible mixed gas/oil source rock (Mbawa-1) offshore
Kenya, the nearby Pemba Island oil seep and oil slicks on satellite imagery, all lead us to believe that
Pancontinental and its partners are pursuing an important oil play offshore Kenya.
Pancontinental believes the inboard area of L10A is ‘oily’ and the Joint Venture is targeting a significant oil
opportunity in Sunbird-1. The Joint Venture is looking to be the first group to make a first commercial oil
discovery in a region that continues to have increasing attention from the industry majors.'
The Sunbird Prospect is a buried Miocene Pinnacle Reef build-up, straddling the western sector boundary
of the L10A / L10B areas. The licence areas together cover 10,547 sq km in water depths from 200m to
1,800m offshore from the port of Mombasa.

The Sunbird well is planned to take 50 to 60 days to drill to 3,000m below sea level, with an option to
extend to 3,700m. It is intended to plug and abandon the well regardless of the drilling outcome. Water
depth is 721m. The Sunbird Prospect is a 'textbook' Miocene Reef, with a prominent central reef core and a
detrital skirt of talus material. It is interpreted that the reef was 'drowned' by rising sea levels and then
buried and sealed by fine grained hemipelagic sediment. In a number of regions around the globe buried
Miocene Reefs host large oil and gas
reserves, such as the extensive reefs of Southeast Asia and the pinnacle reefs of Libya.
Miocene Reefs are often relatively shallow (700 to 2,000m burial depth), and are noted for their high
porosity, permeability, and high flow rates of oil and /or gas. The Sunbird Prospect covers an area of 73 sq
km, including the flanking areas, with vertical relief of approximately 700m.
While not all Miocene Reefs globally contain oil or gas and it will not be known if the Sunbird Prospect

contains any oil or gas until drilling has been undertaken, some examples of successful discoveries in
Miocene Reefs and related carbonate plays are-
• Intisar ‘D’ Oil Field, Libya, Area approx 13 sq km, 291m oil column, approx. 1.6 Billion Stock Tank Barrels Oil
Initially In Place (STBOIIP) (1)
• Nido Oil Field, Philippines, Area 1.5 sq km, Oil Column 200m, approx. 26.3 Million STBOIIP (3P) (2)
• Central Luconia Field, Indonesia, Area 90.5 sq km approx. 7 Tcf Gas Initially In Place (3)
Pancontinental holds licences over approx. 4/5ths of what it interprets to be the Miocene reef trend offshore
Kenya. In the event of a Sunbird-1 discovery, Pancontinental has access to approx. 20 other buried reefs and
reef-like features it believes to be present over its four licence areas; a portion of these are in the L10 licence
areas. Considerable further seismic and mapping is required to verify and define these features.
Additional Drilling
The L10 Operator, BG Group, is continuing to map Prospects and Leads using the 4,800 sq km of 3D
seismic data acquired in two surveys over the last two years. A number of other Prospects have been
mapped for possible drilling after Sunbird-1. In the western sector the very large Crombec Lead continues
to be mapped. Crombec is a large faulted anticline covering 550 sq km, with vertical relief of about 400m. It
is one of number of Prospects and Leads that are being considered for drilling mid-late 2014.
Barry Rushworth, CEO and Executive Director of Pancontinental further commented - 'Through its four
licences Pancontinental has access to approximately 4/5 ths of the Miocene Reef trend offshore southern
Kenya. In L10A and L10B, our inboard reefs are about 50km from the port of Mombasa and are in
relatively shallow water. In the event of a discovery there are multiple follow-ups for drilling in both the
L10 licences and our two other licences. Elsewhere in the L10 areas the clastic channel and other sandstone
prospects that are still being mapped form a spectrum of other opportunities for a second well that is
tentatively planned for mid-late 2014'.
L10A Joint Venture
Premier Oil has elected not to participate in the Sunbird-1 well and has withdrawn from the L10A Joint
Venture. Ministerial approval has been given for the withdrawal and the Premier interest has been taken up
pro-rata by the other participants. The Kenya L10A consortium now consists of – BG Group (Operator)
50%; PTTEP 31.25%; Pancontinental 18.75%.

Leviathan partners sign $1.2 billion Palestinian gas deal
http://world.einnews.com/article/183965447
The Leviathan partners - Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), and
Ratio Oil Exploration (1992) LP (TASE:RATI.L) - have signed the first export contract for the
offshore natural gas field: a $1.2 billion contract with the Palestine Power Generation Company
plc for the export of 4.75 billion cubic meters of gas over 20 years,
Trading in Leviathan's Israeli partners was suspended just before the market closed. The
announcement of the contract by the Leviathan partners was made shortly after the market
closed. The contract was signed in the American Colony Hotel in Jerusalem between Minister of
the Palestinian Energy Authority Dr. Omar Kittaneh, Delek Group controlling shareholder Yitzhak
Tshuva and senior company officers, and representatives of Noble Energy and Ratio.
"I believe that a strong and stable economy between the parties will bring peace and stability to
the whole region, and everyone will benefit from a prosperous economy and growth," said Tshuva.
"Peace, economic cooperation, and mutual respect and trust are a joint endeavor. Economic
cooperation, such as the agreement signed today, will help bring the countries closer and will
contribute to building a basis for peace. It will be possible to create many new jobs and
cooperation between businesses and enterprises. Together, these will link the common wish of all
the parties to reach understandings and peace."

TER: Compared to Continental, does a company like Sanchez have more upward room to grow?
MB: Yes, it's a scale thing. Continental is a $19 billion (B) company. It takes a lot of new oil production to
generate material growth for Continental. Sanchez, on the other hand, is fairly small. It just had its initial
public offering. It's a $1B company, so it has lots of room to run. It doesn't take anywhere near as much oil
production for a company like Sanchez to grow. Companies like Sanchez that are hungry, smart and run by
great operators will really benefit as production increases.
TER: You mentioned the Eagle Ford Shale. I've heard that production targets estimate tripling production
there in 20 years. Who is going to be the beneficiary of all of that growth?
MB: A lot of companies are down there nowadays. When Eagle Ford initially opened up, nobody thought it
extended more than a couple of counties in southeastern Texas. Now, it extends under the border of Mexico
and it's moving north toward Houston. This play just continues to get bigger. The problem is none of the
companies there are cheap anymore. I do like the companies that are going to be transporting that oil out of
the Eagle Ford, the pipeline plays. There are some interesting plays in logistics.
TER: Any other insights for investors preparing for 2014?
MB: I'm going to give you an insider tip. The secret to investing in commodities is to look at what people
hate. Go to the places where people think you are nuts.
For instance, I like coal because it's cheap. Coal mines are going out of business left and right, but there are
companies in the space making a lot of money. I told my readers to buy Peabody Energy Corp.
(BTU:NYSE). Peabody is basically the Exxon Mobil of the coal space. It has operations in the least
expensive district in the U.S., the Powder River basin. It owns the world's largest coal mine and it produces
coal in Australia that gets sent to Asia.
In the U.S., coal was just destroyed by low natural gas prices. But in the rest of the world, coal is in high
demand. Japan is shifting to coal from nuclear. Germany is doing the same. China burns an enormous
amount of coal. The Chinese government is shutting down several coal mines a week because they aren't
safe.
That means investors who are willing to hold their nose and invest where other people aren't investing can
buy the biggest player in the space for really cheap. Then you can send me a thank you note next year.
TER: Thank you.
Matt Badiali is the editor of the S&A Resource Report, a monthly investment advisory that focuses on natural resources,
including silver, uranium, copper, natural gas, oil, water and gold. He is a regular contributor to Growth
Stock Wire, a free pre-market briefing on the day's most profitable trading opportunities. Badiali has
experience as a hydrologist, geologist and consultant to the oil industry. He holds a Master's degree in
geology from Florida Atlantic University.

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Service
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.Oil & Gas sector.Oil & Gas sector.Oil & Gas sector.
CurrentlCurrentlCurrentlCurrently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ withy working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ withy working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ withy working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with
external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal 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 Operaof the experience were spent as the Gas Operaof the experience were spent as the Gas Operaof the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipelinetions Manager in Emarat , responsible for Emarat Gas Pipelinetions Manager in Emarat , responsible for Emarat Gas Pipelinetions Manager in Emarat , responsible for Emarat Gas Pipeline
Network Facility & gas compressor stations . Through the years , he has developed great experiences in theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in the
designing & constructingdesigning & constructingdesigning & constructingdesigning & constructing of gas pipelines, gas metering & regulating stations and inof gas pipelines, gas metering & regulating stations and inof gas pipelines, gas metering & regulating stations and inof gas pipelines, gas metering & regulating stations and in the engineering of supplythe engineering of supplythe engineering of supplythe engineering of supply
routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements
along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferencesalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferencesalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferencesalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences
held inheld inheld inheld in the UAE andthe UAE andthe UAE andthe UAE and Energy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
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ATIC to invest $10bn in chip plant expansion

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ATIC to invest $10bn in chip plant expansion