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NewBase June 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Qatar Petroleum is 40 with profits surge 300 times
© Gulf Times 2014
Qatar Petroleum , which is currently the top 14th global energy company, has seen its
"total unified assets" increasing 85-fold in the last 40 years, according to HE the Minister of
Energy and Industry Dr Mohamed bin Saleh al-Sada.
QP 's total revenue has gone up 40 times while net profit climbed more than 300 times, al-Sada
said while addressing a gathering at Qatar Petroleum 's 40th anniversary celebrations at the
Katara on Friday night.
" Qatar Petroleum has contributed in building the national economy and in forming one of the
fastest growing economies in the world, and that the contribution of the oil sector in the GDP last
year exceeded 54%," al-Sada said.
We owe this to the Almighty and to the rulers of Qatar who have drawn a clear path for Qatar's
future and its people and who wanted this corporation to be the foundation stone in modern Qatar.
We are also indebted to those Qatari forebears who never got tired or despaired in their quest for
the present and future of this good land, which was evidenced by the Dukhan mountains and the
Mesaieed dunes."
"This year also marks the 75th anniversary of the discovery of oil in Qatar. During the period,
Qatar Petroleum , under its various names over the years, has sought to place the Qatari citizen
at the top of its priorities, bestowing on him special consideration in its decision-making process.
The human person was, and still is, the first focus in all our operations, giving emphasis in his
education, qualification, training and welfare and providing him with all means for a decent life," al-
Sada said.
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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The minister said Qatar Petroleum had never merely been an oil and gas company, but had
served since its establishment as a factory for building capabilities, as a catalyst for progress and
development, and as a partner in all development fields,
mainly human development.
"Therefore, the corporation has always considered Qatari
human resources as a true national wealth. It has sought
to educate and train Qatari youths and develop their
skills, thus enabling them to reach top positions and
achieve great success, with many of them now serving as
diplomats, army officers, businessmen, high officials and
ministers."
Al-Sada also expressed Qatar Petroleum 's pride in its
role to implement the comprehensive development
programmes led by HH the Father Emir Sheikh Hamad
bin Khalifa al-Thani, which are being completed by HH
the Emir Sheikh Tamim bin Hamad al-Thani.
"During the last two decades, Qatar oil production has
doubled, and the real value of the North Field was proven
by the direct support and guidance of HH the Father
Emir. HH the Emir himself has acknowledged the efforts of HH the Father Emir in this respect
when he said, 'Without such courage, Qatar would not have been able to make all these
achievements which have laid the infrastructure of the oil and gas industry.'
"And by virtue of the policy of our wise leadership, Qatar has become top producer and supplier of
liquefied natural gas, has the largest fleet of LNG ships, and is the global capital of gas-to-liquids
(GTL). Qatar also hosts the largest single site for the production of ammonia and urea, and is the
largest producer of helium in the whole world," al-Sada said.
"Qatar is moving forward with steady and confident steps under the leadership of HH the Emir
Sheikh Tamim bin Hamad al-Thani, racing with time on the path of renaissance and prosperity as
well as setting the foundation for the future of the next generations. HH the Emir, since he came to
power, stressed that 'the lesson remains in the results' and that is what we do with all our efforts to
achieve day by day."
And in this regard, al-Sada said: " Qatar Petroleum will not stop waiting for the future; it will move
forward, supporting our country and its establishments and in setting the climate for a sustainable
economic development and in promoting our national wealth."
The celebrations that marked the 40th anniversary of the issuance of Emiri Decree No 10 in July
4, 1974, establishing what was then known as the "Qatar General Petroleum Corporation", were
held under the patronage of HE the Prime Minister and Minister of the Interior Sheikh Abdullah bin
Nasser bin Khalifa al-Thani.
The high-profile event was attended by HE the Minister of Culture, Arts and Heritage Dr Hamad
bin Abdul Aziz al-Kuwari, HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim
bin Mohamed al-Thani, HE the Minister of Administrative Development Dr Issa Saad al-Jafali al-
Nuaimi, HE the Minister of Labour and Social Affairs Dr Abdullah Saleh Mubarak al-Khulaifi, HE
the Minister of Environment Ahmad Amer Mohamed al-Humaidi and HE the Minister of Transport
Jassim Seif Ahmed al-Sulaiti.
Diplomats, senior officials, QP directors and top executives of oil and gas companies operating in
Qatar were also among the dignitaries present.
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
UAE fuel retailer Enoc granted permission to run Saudi
roadside fuel stations . The National
Emirates National Oil Company (Enoc) has won the right to operate additional fuel stations in
Saudi Arabia, this time along highways and roads amid the kingdom’s ambitious infrastructure
upgrade plans.
Enoc’s push into Saudi Arabia comes as UAE fuel providers, whose bottom lines are crimped by
subsidised prices at home, expand beyond their borders to seek greater profits. Enoc is one of
only three companies in the kingdom to win the qualification certification from the Saudi municipal
and rural affairs ministry, which is seeking to improve the quality of service stations in the country,
the Dubai-based company said in an emailed statement.
Saudi Arabia has spent billions of dollars on infrastructure in the past four years to boost
economic growth and create jobs as part of a pledge in 2010 to spend US$500 billion by 2020.
This is not Enoc’s first foray into Saudi Arabia. It recently opened a service station in Dammam,
which boasts a convenience store, Costa Coffee, Burger King and an ATM. This is the first of
many such service stations that Enoc plans to open in Saudi Arabia after getting the green light to
build more, it said.
“We are committed to deliver on the ministry’s goals to provide the highest quality service
standards as well as invest in new stations that offer the full breadth of services,” said Saeed
Khoory, the chief executive of Enoc. “This is a true milestone in our geographic expansion
strategy to Saudi Arabia, one of the fastest growing economies in the region.”
Enoc, which has closed down its stations outside of Dubai in the UAE, is looking to expand into
foreign markets to overcome its losses from fuel subsidies. As well as the stations in Saudi Arabia,
it is considering moving into Morocco either by acquiring existing companies or constructing its
own stations. UAE’s federal legislation mandates that Enoc, which is owned by the Dubai
Government, and its subsidiary Emirates Petroleum Products Company (Eppco), sell petrol at
subsidised prices.
.
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in this publication. However, no warranty is given to the accuracy of its content . Page 4
GE to train Saudi women engineers
Saudi Gazette
Following GE’s organized visits to Effat University in Jeddah and its participation at the
King Abdullah University of Science & Technology (KAUST) Career Fair, the company has
offered on-the-job training opportunities to five Saudi women engineers who will be trained
across diverse businesses of the company in the Kingdom.
Hisham Albahkali, GE’s
President & CEO for Saudi
Arabia and Bahrain, said:
“We participate in career
fairs and organize student
outreach initiatives to
identify Saudi youth talent,
and to strengthen
awareness among students,
particularly females, on the
array of diverse job
opportunities offered by GE
in the Kingdom. Providing
coop training opportunities
highlights our commitment
to diversity and empowering
Saudi women in the
workplace, which reflects the vision of the government.”
As part of GE’s partnership with different universities in the Kingdom to offer co-op
programs to their students, GE has hired four fresh graduate students from Effat
University, as co-ops with the GE Power & Water business. Three of them will join the GE
Manufacturing Technology Center in Dammam, and another will join the Power Generation
Services business in Jeddah. One Saudi female engineer was hired through GE’s
participation at the KAUST Career Fair, who will be training with the GE Oil & Gas
business at the GE Saudi Innovation Center for three months.
GE has invested SR22 million over three years to provide annual scholarships that will
benefit 60 Saudi university students. Educational scholarships are provided to 30 students
of the King Fahd University of Petroleum & Minerals (KFUPM), while 30 scholarships are
provided exclusively to female students from various universities in the Kingdom.
With three offices and six facilities, Saudi Arabia accounts for the largest GE workforce in
the Middle East with over 1,400 employees driving the healthcare, transportation, power,
oil & gas, water, and aviation businesses. More than 500 GE turbines currently generate
over 50 percent of Saudi’s electricity, and the company’s advanced technology supports
the production of 150 million liters clean water daily, delivered to the country’s remotest
corners.
Jumana Almuzel, Planner – Global Repair Services, GE
Manufacturing Technology Center HR
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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
Algeria says to start production from six gas fields
Source: Reuters + NewBase Editorials
Algerian state energy group Sonatrach expects to start production from six gas fields with a total capacity
of 74 million cubic metres per day in the next three years, the official APS news agency reported on
Sunday.
Oil and gas exporter Algeria, a major supplier to European gas markets, has been struggling to increase its
energy output, on which it relies heavily for state spending to finance development and social programmes.
Energy output has been declining since 2010 due to a fall in exploration activities and a lack of investment
from foreign companies which have been wary of Algeria's contract terms and also security since a 2013
militant attack on a gas plant.
But Algeria expects production to grow when gas flows start from the Tinhert field with an output of 14
million cubic metres per day before reaching 24 million cubic metres in 2017, APS said in the report, citing
an unnamed source at Sonatrach.
The fields of Hassi Bahamou and Hassi Mena will start production in 2017 with a capacity totalling 21
million cubic metres, according to the report. The Reggane project, to be developed with Spain's Repsol,
Germany's RWE-DEA and Italy's Edison, is also expected to start production in 2017 with 12 million cubic
metres per day.
Sonatrach and partner France's GDF plan to start pumping from the Touat field in the next three years with
a capacity of 12 million cubic metres.
Sonatrach is also developing the Timimoun project in partnership with French group Total, and production
will start between now and 2018 with 5 million cubic metres, the report said.
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
Statoil at FEED on Snorre C in perspective of Norway Snorre 2040
The Norwegian State-owned company Statoil and its partners, Petoro from Norway,
ExxonMobil from USA, Idemitsu Petroleum (Idemitsu) from Japan, RWE from Germany, Core
Energy from Norway preferred the tension leg platform (TLP) concept over a simple tie-back to
develop Snorre C, the third phase of this giant oil and gas field offshore Norway.
Located approximately 200 kilometers northwest of Bergen in the Norwegian North Sea, Snorre field
straddles across the Blocks 34/4 and 34/7.
Discovered in 1979, the production started only in 1992 because of the size and complexity of the field if we
consider all the marginal fields that could be associated sooner or later to Snorre.
At that time the perspective is to maintain the production from Snorre until 2020.
In Snorre, Statoil and its partners share the working interests as following:
- Statoil 33.3% is the operator
- Petoro 30%
- ExxonMobil 17.45%
- Idemitsu 9.6%
- RWE 8.57%
- Core Energy 1.11%
With recoverable reserves firstly
estimated to 830 million barrels of
oil and then revised up to 1,400
million barrels of oil Statoil and its
partners decided to develop Snorre in
phases.
In addition Snorre holds 210 billion
cubic feet (bcf) of natural gas and 5.4 million tonnes of natural gas liquids (NGLs).
Statoil to develop Snorre C TLP in view of Snorre 2040
In the previous plan to develop Snorre in the 2020 perspective, the Snorre C project was thought to be based
on tie-backs to link different subsea wells to Snorre A and Snorre B.
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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in this publication. However, no warranty is given to the accuracy of its content . Page 7
But in revising plans to shoot for Snorre 2040, it appeared that the existing hub made of the Snorre A
TLP and Snorre B semi-submersible platform would have hard to support the corresponding expansion.
Therefore Statoil and its partners decided to go straight for another TLP in Snorre C where future tie-backs
will be possible to link in.
In addition to the future tie-backs to connect more fields, Statoil and its partners are also targeting to
increase the recovery rate of the crude oil in the existing fields up to 60%.
To do so, Statoil, as operator, is mobilizing all its enhanced oil recovery (EOR) solutions. These solutions
use water injections, gas injections, water alternating gas (WAG) injections, and foam- assisted injections.
This Snorre C TLP will be equipped with 140 cabins.
In Snorre C, Statoil and its partners will invest $4.8 billion capital expenditure to cover the TLP, the
infrastructures and the drilling activities.
Statoil and its partners Petoro, ExxonMobil, Idemitsu, Core Energy are expecting to complete the front end
engineering and design (FEED) work by at the end of 2014 in order to make the final investment decision
(FID) about the Snorre C TLP project on early 2015 with first production on 2021.
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
Petrol prices ( Gas / Gasoline ) go up in US - Gas Prices Wallop Wallets
wsj.com/articles/gas-prices + NewBase Editorial
With gas prices expected to rise, as usual, in time for the summer driving season, what are the best ways to
save some money through maintenance of your car? Robert Sinclair of AAA joins MoneyBeat. Photo: Getty
Images.
As Americans drive to barbecues and the beach in coming days, they will be paying more for gas than on
any Independence Day weekend since the record highs of 2008.
A gallon of unleaded gasoline cost an average of $3.67 Wednesday, almost 20 cents above last year's price,
according to automobile club AAA. In California, drivers have been paying well over $4 a gallon for weeks.
Prices at the pump are tracking a
sharp rise in oil prices over the past
month, after Islamist militants took
control of several cities in Iraq.
Investors and traders have worried
that the spreading insurgency poses a
threat to the country's oil production.
Oil prices have given up some of
their gains in recent days, but it will
take some time for those declines to
be reflected in the cost of gasoline.
The recent run-up in gasoline prices is a reminder that the U.S. still depends on imported oil, despite a rapid
increase in domestic production. Global crude supplies are tight, and many analysts think drivers could be in
for more pain in the coming months if violence worsens in Iraq or another major oil exporter. Higher fuel
prices come at a delicate time for the U.S. economy, potentially stretching consumer budgets and weighing
on growth as the Federal Reserve is rolling back stimulus.
Drivers "might cut back on other things, like shopping or dining or going out," said Michael Green, a AAA
spokesman. The high cost of gas "really just affects their budget, and the amount they can spend on
everything else when they're traveling."
Carla Coleman, an unemployed social worker from Los Angeles, said higher gasoline prices have cut
sharply into her budget this summer as she drives to and from job interviews.
"Last night, I drove to Hollywood for a free jazz concert, and my mom told me not to go because I'm using
her gas card. I'm more aware of where I'm going and how much I'm spending," said Ms. Coleman, 47, who
had just filled her Toyota 7203.TO -0.16% Camry at a 76 station in Sherman Oaks, Calif., where regular
gasoline costs $4.17 a gallon. "I hope the prices go down."
On Wednesday, U.S. oil futures fell 86 cents, or 0.8%, to $104.48 a barrel after Libya's government reached
a deal with rebels to restart some exports. Crude-oil prices account for about 65% of the cost of retail
gasoline.
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
The U.S., the biggest consumer of oil and gasoline, is better-equipped to handle uncertainties about global
supply than it was six years ago. In July 2008, oil prices soared to nearly $150 a barrel and gasoline prices
topped $5 a gallon in many locations, contributing to the country's worst recession in decades.
The nation's production has surged by more than three million barrels a day since then, bringing supplies to
records. Government data released Wednesday showed oil inventories fell more than expected last week but
remain near the peak of almost 400 million barrels reached in April.
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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
Trinidad LNG Heads for Kuwait
LNG World News + NewBase
Trinidad shipped an LNG cargo from the Point Fortin terminal to Kuwait on 2nd
July 2014 ,
according to shipping data.
The cargo is being carried by the 138,000 cbm Bilbao Knutsen, and it is due to arrive at the Mina Al-
Ahmadi LNG terminal on July 27.
Excelerate Energy designed and constructed the Mina Al-Ahmadi GasPort (MAAGP). Located
approximately 20 miles south of Kuwait City, MAAGP was Kuwait’s first LNG import terminal.
It delivers regasified LNG at a baseload rate of up to 500 million cubic feet per day (MMcf/d) through high-
pressure gas arm.
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
Shell sails ahead without UK shale
By Andrew Critchlow | Telegraph
Shale gas is likely to play an increasingly important role in powering Britain’s growth but don’t expect the
country’s largest oil and gas company, Royal Dutch Shell , to help create a fracking-led energy revolution.
Andrew Brown, director of upstream international business and the man responsible for
the main revenue-generating side of Britain’s most valuable company, is sceptical about
the potential for shale oil and gas development in Britain. “At the moment the UK
position, you know, is not ranking for us,” Brown tells The Sunday Telegraph in an
interview in his office overlooking the Thames. “This is a matter of just being disciplined
about where we expect to get returns if our exploration is successful.
“It’s a matter of geology, costs, access, you know, it’s a combination of factors that would
mean it’s not yet somewhere we would focus on. “Capital is tight and we need to be very clear about where
we want to spend that discretional dollar.”
Outside North America, Shell’s main focus on what Brown calls “unconventional” oil and gas is in China
and Russia. The company is also looking at Ukraine and drilling in Turkey, but using North America as a
benchmark, the UK is nowhere near the Anglo-Dutch company’s list of viable prospects.
Brown’s comments will come as a blow to Michael Fallon, the energy minister, as he prepares to open the
data rooms on the latest round of licences to explore for and extract oil and gas locked in shale rocks
through the controversial technique of hydraulic fracturing, or fracking.
Although Shell executives have previously stated that the company has no current plans to allocate capital to
shale projects in the UK in the current financial cycle, Brown goes further by effectively questioning the
underlying geology compared with other areas.
His remarks follow the recent discovery by the British Geological Survey of potentially billions of barrels of
shale oil in parts of the South East and Scotland. However, the findings of the surveys have failed to live up
to many expectations and may not deliver the potential “Klondike”-style rush by top oil companies into
shale across the country that Fallon is hoping for.
So far the Government has failed to entice the large international oil companies such as Shell — known as
super majors — to take up drilling opportunities for shale gas in Britain. From this exclusive club of
companies, only France’s Total has signed up so far for fracking in the UK.
Despite Brown’s downbeat assessment of Britain’s prospects for shale he is bullish overall on the global
outlook for natural gas, especially the type that is chilled to a liquid and then shipped to markets on giant
tankers a technology that Shell has invested into
heavily.
Shell currently controls 10pc of the world’s liquefied
natural gas (LNG) supply, equal to about 26m tons per
year of the fuel. The company has a further 7.5m tons
per year of LNG capacity in the pipeline in various
stages of development in Australia and the option to
build a further 21m tons per year of capacity with a
“funnel of projects” stretching from North America to
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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in this publication. However, no warranty is given to the accuracy of its content . Page 12
Indonesia.
“The most important thing for our energy futures is the role of gas,” says Brown. “What North America has
shown is the potential gas has of providing a cost-effective, low carbon dioxide energy source to help
economies grow.”
Shale oil and gas has provided abundant cheap energy in the US and weaned the world’s largest economy
off its reliance on foreign resources from unstable regions such as the Middle East and North Africa.
However, the rise of a so-called “fracking” revolution in North America caught many in the industry off
guard and raised questions over billions of dollars’ worth of new LNG projects that were intended to supply
demand in North America.
“The whole unconventional tight oil [shale oil], tight gas and shale gas was, I think, a big surprise for the
whole industry and has clearly reversed the flow of gas in North America but it is quite interesting how the
market has responded,” says Brown. “Despite that we have seen really strong LNG growth still longer
term.”
Asia has generally continued to soak up demand for LNG, which in many cases had been originally destined
for North America when projects which can take almost a decade to deliver were first envisaged. According
to the International Energy Agency (IEA), Asia is the fastest growing region for natural gas consumption in
the world and by 2015 it will become the second-largest market overall with demand expected to surpass
790bn cubic metres of natural gas.
“We don’t see a complete sea change in the value proposition of LNG, and actually we see a lot of new
LNG markets appearing,” says Brown, citing Kuwait, Jordan, Vietnam and the Philippines as examples.
“There is quite a large increase in countries wanting to take LNG, which in a way will offset some of the
supply growth.”
A major part of Brown’s job as upstream
director is to keep a lid on costs and
balance the need to spend billions of
dollars on infrastructure and exploration
against the estimated price of oil and gas
when projects finally come to fruition. In
Qatar, he previously managed the
development, at a cost of $19bn (ÂŁ11bn),
of the world’s largest gas-to-liquids plant,
Pearl.
Although the basic technology to convert
natural gas to liquid fuel had existed since the Second World War nothing had been attempted on such a
grand scale until Shell committed to the Pearl project. Lessons learned in reining in costs on such schemes
have helped Shell to manage its latest mega-project, the Prelude floating LNG platform in Australia.
The project is the world’s first and depends on Prelude, the largest such vessel currently afloat. By cutting
out the construction of separate offshore and onshore processing facilities, Shell believes it can reduce
capital expenditure and set a precedent for the industry operating in similar areas.
“I think we need to be sure when we start an LNG project, we need to be very sure that we can predict the
cost of the project and we also need to be very clear about the LNG prices we can achieve in the market,”
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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
says Brown. “The exciting thing is how we bring gas to market — LNG pipelines. How do we bring gas
into transport in a more effective way?”
The need to control costs was brought into sharper focus in January when Shell said it would trim capital
expenditure to $37bn this year from $46bn in 2013 and raise a further $15bn from assets sales, including
offloading some of its facilities in the North Sea.
Shell is continuing to review the status of its older facilities in the waters off Scotland. Initiatives announced
in the Budget were broadly positive for the offshore industry in Aberdeen but Brown stresses the need for
continued dialogue with
Government for the sector to
remain competitive.
“This is an industry [the North
Sea] where costs have escalated,
where the availability or
production potential of the assets
has diminished and where an
active partnership between
Government and industry is crucial
to ensure a sustainable way
forward,” says Brown.
Controversial Arctic drilling is
another upstream area where Shell
has drawn back recently to save
costs. In January the company
suspended operations in north-west
Alaska but Brown doesn’t rule out
a return to the Arctic Circle’s cold
and deep waters in the future.
“We still see the Arctic holding a significant amount of undiscovered resources. That is why we continue to
look at it, not only in Alaska but also the Russian Arctic and the waters around Greenland.
“We continue to look at those areas and take acreage when opportunities arise that are attractive to us.”
Although the possibility of Scotland breaking away from the UK after September’s referendum something
Shell has publicly opposed doesn’t present a significant political risk, elsewhere the company has to closely
monitor events on the ground to safeguard its facilities and staff. The violence in Iraq that has seen Islamist
militants push close to Baghdad has prompted a number of oil companies to withdraw workers and Shell, as
the operator of the giant Majnoon field in southern Iraq, is watching the situation closely.
“We still are operating. The situation in the south of Iraq is relatively calm actually,” Brown says. “I am not
saying the situation has stabilised but I think we are in the south in a Shia-dominated area and we are able to
operate.
“It’s too early to say what’s going to happen in the future.” Elsewhere in the Persian Gulf, Shell has a
significant presence in Qatar and the United Arab Emirates where it is bidding to extend the historic
concession to operate some of Abu Dhabi’s largest onshore oilfields.
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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In Saudi Arabia, where the company has invested heavily over the past decade in the search for natural gas,
Shell is reviewing its joint-venture with Saudi Aramco in the Rub al-Khali desert.
“We aren’t conducting any operations there at the moment,” says Brown.
However, he remains “pretty optimistic” about Shell’s overall position in the Gulf, a key region for energy
producers, which could soon be transformed by the possible ending of economic sanctions against Iran later
this month. Shell had been actively involved in the Islamic Republic before sanctions were raised and would
be open to returning.
“We will have to wait for sanctions to be lifted,” says Brown.
But despite Tehran sitting on around 100bn barrels of oil reserves and abundant natural gas beneath its side
of the Persian Gulf, he says that a return of international oil companies isn’t essential to meet global demand
for crude. According to the Organisation of Petroleum Exporting Countries, primary world energy demand
will grow by 54pc through to 2035. “Is it essential for our future that Iran opens up? Absolutely not, we
have options,” explains Brown.
In Russia, Shell was forced to defend its position recently as the US locked horns with president Vladimir
Putin over the Kremlin’s activities in Ukraine. “Clearly the political situation is tense but we continue to
work with our joint-venture partners,” says Brown.
Shell is a joint investor in the gigantic Sakhalin LNG scheme alongside Russia’s Gazprom. According to the
company, about 4.5pc of the world’s supply of LNG comes from the Sakhalin project. Japan is especially
dependent on the scheme, relying on it for about 10pc of its LNG. “It’s an important part of our business,”
Development cost: $18 billion-$19 billion
Peak:
Production:
1,6 bcf/d of gas resulting in:
- 140 kbo/d of gas-to-liquids products (2 trains)
- 120 kbo/d of natural gas liquids and ethane
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
Cyber Security in Oil and Gas Conference is coming to Abu Dhabi
NewBase Editorial
“Cyber Security in Oil and Gas 2014”, which is scheduled to take place from 8th
to 10th
September
2014 in Abu Dhabi, UAE. This Global event is focusing on the main theme of Cyber Security
against the backdrop of the recent cyber-attacks on the oil and gas establishments especially in
the Middle East.
As spending on oil and gas cyber security
expected to reach $1.9 bn by 2018, it has now
become inevitable for the industry leaders to
optimally and aggressively strategize on cyber
risks on the lines of other business risks as
the possibility of cyber-attacks cannot be
ignored at any point of time.
The best way to counter these threats is to
have a robust defense mechanism. The
“Cyber Security in Oil & Gas 2014” with
interactive discussions, industry–focused case
studies and presentations by industry leaders
will focus on the critical subject of defense
against the cyber-attacks on the energy
establishments and how they can impede and
proactively prevent external cyber threats.
The 3 day event will focus on the IT Security Infrastructure, Defense Robustness, improving
security awareness and the steps taken by the industry to tackle cyber security threats. This
platform will help you learn about various technologies/systems adopted by industry experts in
their respective organizations to deal with cyber-attacks.
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 for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for
the GCC area via Hawk Energy Service as a UAE operations base , Mthe GCC area via Hawk Energy Service as a UAE operations base , Mthe GCC area via Hawk Energy Service as a UAE operations base , Mthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsost of the experience were spent as the Gas Operationsost of the experience were spent as the Gas Operationsost of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedhas developedhas developedhas developed
great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pof gas pof gas pof gas pipelines, gas metering & regulating stations and in the engineering of supplyipelines, gas metering & regulating stations and in the engineering of supplyipelines, gas metering & regulating stations and in the engineering of supplyipelines, gas metering & regulating stations and in the engineering of supply
routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forOUs forOUs forOUs for
the local authorities. He has become a referthe local authorities. He has become a referthe local authorities. He has become a referthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andence for many of the Oil & Gas Conferences held in the UAE andence for many of the Oil & Gas Conferences held in the UAE andence for many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 19 June 2014 K. Al Awadi

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New base special 07 july 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 June 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Qatar Petroleum is 40 with profits surge 300 times © Gulf Times 2014 Qatar Petroleum , which is currently the top 14th global energy company, has seen its "total unified assets" increasing 85-fold in the last 40 years, according to HE the Minister of Energy and Industry Dr Mohamed bin Saleh al-Sada. QP 's total revenue has gone up 40 times while net profit climbed more than 300 times, al-Sada said while addressing a gathering at Qatar Petroleum 's 40th anniversary celebrations at the Katara on Friday night. " Qatar Petroleum has contributed in building the national economy and in forming one of the fastest growing economies in the world, and that the contribution of the oil sector in the GDP last year exceeded 54%," al-Sada said. We owe this to the Almighty and to the rulers of Qatar who have drawn a clear path for Qatar's future and its people and who wanted this corporation to be the foundation stone in modern Qatar. We are also indebted to those Qatari forebears who never got tired or despaired in their quest for the present and future of this good land, which was evidenced by the Dukhan mountains and the Mesaieed dunes." "This year also marks the 75th anniversary of the discovery of oil in Qatar. During the period, Qatar Petroleum , under its various names over the years, has sought to place the Qatari citizen at the top of its priorities, bestowing on him special consideration in its decision-making process. The human person was, and still is, the first focus in all our operations, giving emphasis in his education, qualification, training and welfare and providing him with all means for a decent life," al- Sada said.
  • 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 The minister said Qatar Petroleum had never merely been an oil and gas company, but had served since its establishment as a factory for building capabilities, as a catalyst for progress and development, and as a partner in all development fields, mainly human development. "Therefore, the corporation has always considered Qatari human resources as a true national wealth. It has sought to educate and train Qatari youths and develop their skills, thus enabling them to reach top positions and achieve great success, with many of them now serving as diplomats, army officers, businessmen, high officials and ministers." Al-Sada also expressed Qatar Petroleum 's pride in its role to implement the comprehensive development programmes led by HH the Father Emir Sheikh Hamad bin Khalifa al-Thani, which are being completed by HH the Emir Sheikh Tamim bin Hamad al-Thani. "During the last two decades, Qatar oil production has doubled, and the real value of the North Field was proven by the direct support and guidance of HH the Father Emir. HH the Emir himself has acknowledged the efforts of HH the Father Emir in this respect when he said, 'Without such courage, Qatar would not have been able to make all these achievements which have laid the infrastructure of the oil and gas industry.' "And by virtue of the policy of our wise leadership, Qatar has become top producer and supplier of liquefied natural gas, has the largest fleet of LNG ships, and is the global capital of gas-to-liquids (GTL). Qatar also hosts the largest single site for the production of ammonia and urea, and is the largest producer of helium in the whole world," al-Sada said. "Qatar is moving forward with steady and confident steps under the leadership of HH the Emir Sheikh Tamim bin Hamad al-Thani, racing with time on the path of renaissance and prosperity as well as setting the foundation for the future of the next generations. HH the Emir, since he came to power, stressed that 'the lesson remains in the results' and that is what we do with all our efforts to achieve day by day." And in this regard, al-Sada said: " Qatar Petroleum will not stop waiting for the future; it will move forward, supporting our country and its establishments and in setting the climate for a sustainable economic development and in promoting our national wealth." The celebrations that marked the 40th anniversary of the issuance of Emiri Decree No 10 in July 4, 1974, establishing what was then known as the "Qatar General Petroleum Corporation", were held under the patronage of HE the Prime Minister and Minister of the Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani. The high-profile event was attended by HE the Minister of Culture, Arts and Heritage Dr Hamad bin Abdul Aziz al-Kuwari, HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohamed al-Thani, HE the Minister of Administrative Development Dr Issa Saad al-Jafali al- Nuaimi, HE the Minister of Labour and Social Affairs Dr Abdullah Saleh Mubarak al-Khulaifi, HE the Minister of Environment Ahmad Amer Mohamed al-Humaidi and HE the Minister of Transport Jassim Seif Ahmed al-Sulaiti. Diplomats, senior officials, QP directors and top executives of oil and gas companies operating in Qatar were also among the dignitaries present.
  • 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 UAE fuel retailer Enoc granted permission to run Saudi roadside fuel stations . The National Emirates National Oil Company (Enoc) has won the right to operate additional fuel stations in Saudi Arabia, this time along highways and roads amid the kingdom’s ambitious infrastructure upgrade plans. Enoc’s push into Saudi Arabia comes as UAE fuel providers, whose bottom lines are crimped by subsidised prices at home, expand beyond their borders to seek greater profits. Enoc is one of only three companies in the kingdom to win the qualification certification from the Saudi municipal and rural affairs ministry, which is seeking to improve the quality of service stations in the country, the Dubai-based company said in an emailed statement. Saudi Arabia has spent billions of dollars on infrastructure in the past four years to boost economic growth and create jobs as part of a pledge in 2010 to spend US$500 billion by 2020. This is not Enoc’s first foray into Saudi Arabia. It recently opened a service station in Dammam, which boasts a convenience store, Costa Coffee, Burger King and an ATM. This is the first of many such service stations that Enoc plans to open in Saudi Arabia after getting the green light to build more, it said. “We are committed to deliver on the ministry’s goals to provide the highest quality service standards as well as invest in new stations that offer the full breadth of services,” said Saeed Khoory, the chief executive of Enoc. “This is a true milestone in our geographic expansion strategy to Saudi Arabia, one of the fastest growing economies in the region.” Enoc, which has closed down its stations outside of Dubai in the UAE, is looking to expand into foreign markets to overcome its losses from fuel subsidies. As well as the stations in Saudi Arabia, it is considering moving into Morocco either by acquiring existing companies or constructing its own stations. UAE’s federal legislation mandates that Enoc, which is owned by the Dubai Government, and its subsidiary Emirates Petroleum Products Company (Eppco), sell petrol at subsidised prices. .
  • 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 GE to train Saudi women engineers Saudi Gazette Following GE’s organized visits to Effat University in Jeddah and its participation at the King Abdullah University of Science & Technology (KAUST) Career Fair, the company has offered on-the-job training opportunities to five Saudi women engineers who will be trained across diverse businesses of the company in the Kingdom. Hisham Albahkali, GE’s President & CEO for Saudi Arabia and Bahrain, said: “We participate in career fairs and organize student outreach initiatives to identify Saudi youth talent, and to strengthen awareness among students, particularly females, on the array of diverse job opportunities offered by GE in the Kingdom. Providing coop training opportunities highlights our commitment to diversity and empowering Saudi women in the workplace, which reflects the vision of the government.” As part of GE’s partnership with different universities in the Kingdom to offer co-op programs to their students, GE has hired four fresh graduate students from Effat University, as co-ops with the GE Power & Water business. Three of them will join the GE Manufacturing Technology Center in Dammam, and another will join the Power Generation Services business in Jeddah. One Saudi female engineer was hired through GE’s participation at the KAUST Career Fair, who will be training with the GE Oil & Gas business at the GE Saudi Innovation Center for three months. GE has invested SR22 million over three years to provide annual scholarships that will benefit 60 Saudi university students. Educational scholarships are provided to 30 students of the King Fahd University of Petroleum & Minerals (KFUPM), while 30 scholarships are provided exclusively to female students from various universities in the Kingdom. With three offices and six facilities, Saudi Arabia accounts for the largest GE workforce in the Middle East with over 1,400 employees driving the healthcare, transportation, power, oil & gas, water, and aviation businesses. More than 500 GE turbines currently generate over 50 percent of Saudi’s electricity, and the company’s advanced technology supports the production of 150 million liters clean water daily, delivered to the country’s remotest corners. Jumana Almuzel, Planner – Global Repair Services, GE Manufacturing Technology Center HR
  • 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 Algeria says to start production from six gas fields Source: Reuters + NewBase Editorials Algerian state energy group Sonatrach expects to start production from six gas fields with a total capacity of 74 million cubic metres per day in the next three years, the official APS news agency reported on Sunday. Oil and gas exporter Algeria, a major supplier to European gas markets, has been struggling to increase its energy output, on which it relies heavily for state spending to finance development and social programmes. Energy output has been declining since 2010 due to a fall in exploration activities and a lack of investment from foreign companies which have been wary of Algeria's contract terms and also security since a 2013 militant attack on a gas plant. But Algeria expects production to grow when gas flows start from the Tinhert field with an output of 14 million cubic metres per day before reaching 24 million cubic metres in 2017, APS said in the report, citing an unnamed source at Sonatrach. The fields of Hassi Bahamou and Hassi Mena will start production in 2017 with a capacity totalling 21 million cubic metres, according to the report. The Reggane project, to be developed with Spain's Repsol, Germany's RWE-DEA and Italy's Edison, is also expected to start production in 2017 with 12 million cubic metres per day. Sonatrach and partner France's GDF plan to start pumping from the Touat field in the next three years with a capacity of 12 million cubic metres. Sonatrach is also developing the Timimoun project in partnership with French group Total, and production will start between now and 2018 with 5 million cubic metres, the report said.
  • 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 Statoil at FEED on Snorre C in perspective of Norway Snorre 2040 The Norwegian State-owned company Statoil and its partners, Petoro from Norway, ExxonMobil from USA, Idemitsu Petroleum (Idemitsu) from Japan, RWE from Germany, Core Energy from Norway preferred the tension leg platform (TLP) concept over a simple tie-back to develop Snorre C, the third phase of this giant oil and gas field offshore Norway. Located approximately 200 kilometers northwest of Bergen in the Norwegian North Sea, Snorre field straddles across the Blocks 34/4 and 34/7. Discovered in 1979, the production started only in 1992 because of the size and complexity of the field if we consider all the marginal fields that could be associated sooner or later to Snorre. At that time the perspective is to maintain the production from Snorre until 2020. In Snorre, Statoil and its partners share the working interests as following: - Statoil 33.3% is the operator - Petoro 30% - ExxonMobil 17.45% - Idemitsu 9.6% - RWE 8.57% - Core Energy 1.11% With recoverable reserves firstly estimated to 830 million barrels of oil and then revised up to 1,400 million barrels of oil Statoil and its partners decided to develop Snorre in phases. In addition Snorre holds 210 billion cubic feet (bcf) of natural gas and 5.4 million tonnes of natural gas liquids (NGLs). Statoil to develop Snorre C TLP in view of Snorre 2040 In the previous plan to develop Snorre in the 2020 perspective, the Snorre C project was thought to be based on tie-backs to link different subsea wells to Snorre A and Snorre B.
  • 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 But in revising plans to shoot for Snorre 2040, it appeared that the existing hub made of the Snorre A TLP and Snorre B semi-submersible platform would have hard to support the corresponding expansion. Therefore Statoil and its partners decided to go straight for another TLP in Snorre C where future tie-backs will be possible to link in. In addition to the future tie-backs to connect more fields, Statoil and its partners are also targeting to increase the recovery rate of the crude oil in the existing fields up to 60%. To do so, Statoil, as operator, is mobilizing all its enhanced oil recovery (EOR) solutions. These solutions use water injections, gas injections, water alternating gas (WAG) injections, and foam- assisted injections. This Snorre C TLP will be equipped with 140 cabins. In Snorre C, Statoil and its partners will invest $4.8 billion capital expenditure to cover the TLP, the infrastructures and the drilling activities. Statoil and its partners Petoro, ExxonMobil, Idemitsu, Core Energy are expecting to complete the front end engineering and design (FEED) work by at the end of 2014 in order to make the final investment decision (FID) about the Snorre C TLP project on early 2015 with first production on 2021.
  • 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 Petrol prices ( Gas / Gasoline ) go up in US - Gas Prices Wallop Wallets wsj.com/articles/gas-prices + NewBase Editorial With gas prices expected to rise, as usual, in time for the summer driving season, what are the best ways to save some money through maintenance of your car? Robert Sinclair of AAA joins MoneyBeat. Photo: Getty Images. As Americans drive to barbecues and the beach in coming days, they will be paying more for gas than on any Independence Day weekend since the record highs of 2008. A gallon of unleaded gasoline cost an average of $3.67 Wednesday, almost 20 cents above last year's price, according to automobile club AAA. In California, drivers have been paying well over $4 a gallon for weeks. Prices at the pump are tracking a sharp rise in oil prices over the past month, after Islamist militants took control of several cities in Iraq. Investors and traders have worried that the spreading insurgency poses a threat to the country's oil production. Oil prices have given up some of their gains in recent days, but it will take some time for those declines to be reflected in the cost of gasoline. The recent run-up in gasoline prices is a reminder that the U.S. still depends on imported oil, despite a rapid increase in domestic production. Global crude supplies are tight, and many analysts think drivers could be in for more pain in the coming months if violence worsens in Iraq or another major oil exporter. Higher fuel prices come at a delicate time for the U.S. economy, potentially stretching consumer budgets and weighing on growth as the Federal Reserve is rolling back stimulus. Drivers "might cut back on other things, like shopping or dining or going out," said Michael Green, a AAA spokesman. The high cost of gas "really just affects their budget, and the amount they can spend on everything else when they're traveling." Carla Coleman, an unemployed social worker from Los Angeles, said higher gasoline prices have cut sharply into her budget this summer as she drives to and from job interviews. "Last night, I drove to Hollywood for a free jazz concert, and my mom told me not to go because I'm using her gas card. I'm more aware of where I'm going and how much I'm spending," said Ms. Coleman, 47, who had just filled her Toyota 7203.TO -0.16% Camry at a 76 station in Sherman Oaks, Calif., where regular gasoline costs $4.17 a gallon. "I hope the prices go down." On Wednesday, U.S. oil futures fell 86 cents, or 0.8%, to $104.48 a barrel after Libya's government reached a deal with rebels to restart some exports. Crude-oil prices account for about 65% of the cost of retail gasoline.
  • 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 The U.S., the biggest consumer of oil and gasoline, is better-equipped to handle uncertainties about global supply than it was six years ago. In July 2008, oil prices soared to nearly $150 a barrel and gasoline prices topped $5 a gallon in many locations, contributing to the country's worst recession in decades. The nation's production has surged by more than three million barrels a day since then, bringing supplies to records. Government data released Wednesday showed oil inventories fell more than expected last week but remain near the peak of almost 400 million barrels reached in April.
  • 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 Trinidad LNG Heads for Kuwait LNG World News + NewBase Trinidad shipped an LNG cargo from the Point Fortin terminal to Kuwait on 2nd July 2014 , according to shipping data. The cargo is being carried by the 138,000 cbm Bilbao Knutsen, and it is due to arrive at the Mina Al- Ahmadi LNG terminal on July 27. Excelerate Energy designed and constructed the Mina Al-Ahmadi GasPort (MAAGP). Located approximately 20 miles south of Kuwait City, MAAGP was Kuwait’s first LNG import terminal. It delivers regasified LNG at a baseload rate of up to 500 million cubic feet per day (MMcf/d) through high- pressure gas arm.
  • 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 Shell sails ahead without UK shale By Andrew Critchlow | Telegraph Shale gas is likely to play an increasingly important role in powering Britain’s growth but don’t expect the country’s largest oil and gas company, Royal Dutch Shell , to help create a fracking-led energy revolution. Andrew Brown, director of upstream international business and the man responsible for the main revenue-generating side of Britain’s most valuable company, is sceptical about the potential for shale oil and gas development in Britain. “At the moment the UK position, you know, is not ranking for us,” Brown tells The Sunday Telegraph in an interview in his office overlooking the Thames. “This is a matter of just being disciplined about where we expect to get returns if our exploration is successful. “It’s a matter of geology, costs, access, you know, it’s a combination of factors that would mean it’s not yet somewhere we would focus on. “Capital is tight and we need to be very clear about where we want to spend that discretional dollar.” Outside North America, Shell’s main focus on what Brown calls “unconventional” oil and gas is in China and Russia. The company is also looking at Ukraine and drilling in Turkey, but using North America as a benchmark, the UK is nowhere near the Anglo-Dutch company’s list of viable prospects. Brown’s comments will come as a blow to Michael Fallon, the energy minister, as he prepares to open the data rooms on the latest round of licences to explore for and extract oil and gas locked in shale rocks through the controversial technique of hydraulic fracturing, or fracking. Although Shell executives have previously stated that the company has no current plans to allocate capital to shale projects in the UK in the current financial cycle, Brown goes further by effectively questioning the underlying geology compared with other areas. His remarks follow the recent discovery by the British Geological Survey of potentially billions of barrels of shale oil in parts of the South East and Scotland. However, the findings of the surveys have failed to live up to many expectations and may not deliver the potential “Klondike”-style rush by top oil companies into shale across the country that Fallon is hoping for. So far the Government has failed to entice the large international oil companies such as Shell — known as super majors — to take up drilling opportunities for shale gas in Britain. From this exclusive club of companies, only France’s Total has signed up so far for fracking in the UK. Despite Brown’s downbeat assessment of Britain’s prospects for shale he is bullish overall on the global outlook for natural gas, especially the type that is chilled to a liquid and then shipped to markets on giant tankers a technology that Shell has invested into heavily. Shell currently controls 10pc of the world’s liquefied natural gas (LNG) supply, equal to about 26m tons per year of the fuel. The company has a further 7.5m tons per year of LNG capacity in the pipeline in various stages of development in Australia and the option to build a further 21m tons per year of capacity with a “funnel of projects” stretching from North America to
  • 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 Indonesia. “The most important thing for our energy futures is the role of gas,” says Brown. “What North America has shown is the potential gas has of providing a cost-effective, low carbon dioxide energy source to help economies grow.” Shale oil and gas has provided abundant cheap energy in the US and weaned the world’s largest economy off its reliance on foreign resources from unstable regions such as the Middle East and North Africa. However, the rise of a so-called “fracking” revolution in North America caught many in the industry off guard and raised questions over billions of dollars’ worth of new LNG projects that were intended to supply demand in North America. “The whole unconventional tight oil [shale oil], tight gas and shale gas was, I think, a big surprise for the whole industry and has clearly reversed the flow of gas in North America but it is quite interesting how the market has responded,” says Brown. “Despite that we have seen really strong LNG growth still longer term.” Asia has generally continued to soak up demand for LNG, which in many cases had been originally destined for North America when projects which can take almost a decade to deliver were first envisaged. According to the International Energy Agency (IEA), Asia is the fastest growing region for natural gas consumption in the world and by 2015 it will become the second-largest market overall with demand expected to surpass 790bn cubic metres of natural gas. “We don’t see a complete sea change in the value proposition of LNG, and actually we see a lot of new LNG markets appearing,” says Brown, citing Kuwait, Jordan, Vietnam and the Philippines as examples. “There is quite a large increase in countries wanting to take LNG, which in a way will offset some of the supply growth.” A major part of Brown’s job as upstream director is to keep a lid on costs and balance the need to spend billions of dollars on infrastructure and exploration against the estimated price of oil and gas when projects finally come to fruition. In Qatar, he previously managed the development, at a cost of $19bn (ÂŁ11bn), of the world’s largest gas-to-liquids plant, Pearl. Although the basic technology to convert natural gas to liquid fuel had existed since the Second World War nothing had been attempted on such a grand scale until Shell committed to the Pearl project. Lessons learned in reining in costs on such schemes have helped Shell to manage its latest mega-project, the Prelude floating LNG platform in Australia. The project is the world’s first and depends on Prelude, the largest such vessel currently afloat. By cutting out the construction of separate offshore and onshore processing facilities, Shell believes it can reduce capital expenditure and set a precedent for the industry operating in similar areas. “I think we need to be sure when we start an LNG project, we need to be very sure that we can predict the cost of the project and we also need to be very clear about the LNG prices we can achieve in the market,”
  • 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 says Brown. “The exciting thing is how we bring gas to market — LNG pipelines. How do we bring gas into transport in a more effective way?” The need to control costs was brought into sharper focus in January when Shell said it would trim capital expenditure to $37bn this year from $46bn in 2013 and raise a further $15bn from assets sales, including offloading some of its facilities in the North Sea. Shell is continuing to review the status of its older facilities in the waters off Scotland. Initiatives announced in the Budget were broadly positive for the offshore industry in Aberdeen but Brown stresses the need for continued dialogue with Government for the sector to remain competitive. “This is an industry [the North Sea] where costs have escalated, where the availability or production potential of the assets has diminished and where an active partnership between Government and industry is crucial to ensure a sustainable way forward,” says Brown. Controversial Arctic drilling is another upstream area where Shell has drawn back recently to save costs. In January the company suspended operations in north-west Alaska but Brown doesn’t rule out a return to the Arctic Circle’s cold and deep waters in the future. “We still see the Arctic holding a significant amount of undiscovered resources. That is why we continue to look at it, not only in Alaska but also the Russian Arctic and the waters around Greenland. “We continue to look at those areas and take acreage when opportunities arise that are attractive to us.” Although the possibility of Scotland breaking away from the UK after September’s referendum something Shell has publicly opposed doesn’t present a significant political risk, elsewhere the company has to closely monitor events on the ground to safeguard its facilities and staff. The violence in Iraq that has seen Islamist militants push close to Baghdad has prompted a number of oil companies to withdraw workers and Shell, as the operator of the giant Majnoon field in southern Iraq, is watching the situation closely. “We still are operating. The situation in the south of Iraq is relatively calm actually,” Brown says. “I am not saying the situation has stabilised but I think we are in the south in a Shia-dominated area and we are able to operate. “It’s too early to say what’s going to happen in the future.” Elsewhere in the Persian Gulf, Shell has a significant presence in Qatar and the United Arab Emirates where it is bidding to extend the historic concession to operate some of Abu Dhabi’s largest onshore oilfields.
  • 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 In Saudi Arabia, where the company has invested heavily over the past decade in the search for natural gas, Shell is reviewing its joint-venture with Saudi Aramco in the Rub al-Khali desert. “We aren’t conducting any operations there at the moment,” says Brown. However, he remains “pretty optimistic” about Shell’s overall position in the Gulf, a key region for energy producers, which could soon be transformed by the possible ending of economic sanctions against Iran later this month. Shell had been actively involved in the Islamic Republic before sanctions were raised and would be open to returning. “We will have to wait for sanctions to be lifted,” says Brown. But despite Tehran sitting on around 100bn barrels of oil reserves and abundant natural gas beneath its side of the Persian Gulf, he says that a return of international oil companies isn’t essential to meet global demand for crude. According to the Organisation of Petroleum Exporting Countries, primary world energy demand will grow by 54pc through to 2035. “Is it essential for our future that Iran opens up? Absolutely not, we have options,” explains Brown. In Russia, Shell was forced to defend its position recently as the US locked horns with president Vladimir Putin over the Kremlin’s activities in Ukraine. “Clearly the political situation is tense but we continue to work with our joint-venture partners,” says Brown. Shell is a joint investor in the gigantic Sakhalin LNG scheme alongside Russia’s Gazprom. According to the company, about 4.5pc of the world’s supply of LNG comes from the Sakhalin project. Japan is especially dependent on the scheme, relying on it for about 10pc of its LNG. “It’s an important part of our business,” Development cost: $18 billion-$19 billion Peak: Production: 1,6 bcf/d of gas resulting in: - 140 kbo/d of gas-to-liquids products (2 trains) - 120 kbo/d of natural gas liquids and ethane
  • 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 Cyber Security in Oil and Gas Conference is coming to Abu Dhabi NewBase Editorial “Cyber Security in Oil and Gas 2014”, which is scheduled to take place from 8th to 10th September 2014 in Abu Dhabi, UAE. This Global event is focusing on the main theme of Cyber Security against the backdrop of the recent cyber-attacks on the oil and gas establishments especially in the Middle East. As spending on oil and gas cyber security expected to reach $1.9 bn by 2018, it has now become inevitable for the industry leaders to optimally and aggressively strategize on cyber risks on the lines of other business risks as the possibility of cyber-attacks cannot be ignored at any point of time. The best way to counter these threats is to have a robust defense mechanism. The “Cyber Security in Oil & Gas 2014” with interactive discussions, industry–focused case studies and presentations by industry leaders will focus on the critical subject of defense against the cyber-attacks on the energy establishments and how they can impede and proactively prevent external cyber threats. The 3 day event will focus on the IT Security Infrastructure, Defense Robustness, improving security awareness and the steps taken by the industry to tackle cyber security threats. This platform will help you learn about various technologies/systems adopted by industry experts in their respective organizations to deal with cyber-attacks.
  • 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 for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mthe GCC area via Hawk Energy Service as a UAE operations base , Mthe GCC area via Hawk Energy Service as a UAE operations base , Mthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsost of the experience were spent as the Gas Operationsost of the experience were spent as the Gas Operationsost of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedhas developedhas developedhas developed great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pof gas pof gas pof gas pipelines, gas metering & regulating stations and in the engineering of supplyipelines, gas metering & regulating stations and in the engineering of supplyipelines, gas metering & regulating stations and in the engineering of supplyipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forOUs forOUs forOUs for the local authorities. He has become a referthe local authorities. He has become a referthe local authorities. He has become a referthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andence for many of the Oil & Gas Conferences held in the UAE andence for many of the Oil & Gas Conferences held in the UAE andence for many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels .... NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE NewBase 19 June 2014 K. Al Awadi