New base special 07 october 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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NewBase 07 October Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
RAK Petroleum plans to launch IPO on Norway's bourse
By Reuters + NewBase
RAK Petroleum, an energy investment company based in the United Arab Emirates, plans to
launch an initial public offering (IPO) and apply for a listing on Norway's Oslo Bors, the company
said on Monday.
The firm said it would offer shares to
institutional and retail investors in
Norway and a private placement to
certain international institutions.
It aims to raise $25 million by
issuing new shares, while current
shareholders have also been offered
the opportunity to place their shares
in the offer, the company said in an
emailed statement.
RAK Petroleum said its assets
included a 42.8 percent stake in
DNO ASA, an Oslo-listed oil and gas
company with operations in the
Middle East, and a 100 percent stake
in Mondoil Enterprises, which holds
an indirect 33.3 percent stake in
Foxtrot International, owner of oil
and gas interests in Ivory Coast.

Dubai's Dragon Oil eyes $785m deal for Irish firm
Press Release + NewBase
Dubai-based Dragon Oil, an energy exploration, development and production company, on
Monday confirmed that it is in discussions regarding a possible offer for Petroceltic.
Dragon Oil, which has Emirates National Oil Company (ENOC) as its majority shareholder and
produces in Turkmenistan, said in a statement that the offer is of the order of 230 pence sterling
per share in cash, or £492 million ($785 million) in total.
The offer is subject to the approval of Dragon Oil shareholders, a statement by Irish-based
Petroceltic added.
"With the support of the Board and management team of Petroceltic, Dragon Oil has completed an
extensive confirmatory due diligence exercise and has submitted to the Board of Petroceltic
proposed offer terms of 230 pence sterling in cash per Petroceltic share," its statement said.
The completion of any offer by Dragon Oil would be subject to customary conditions for an offer
for an Irish public company, as well as appropriate approvals from the Algerian Government in
relation to the Algerian assets of Petroceltic, it added.
Petroceltic International is an oil and gas exploration and production company. Based in Dublin, it
has operations in North Africa, the Mediterranean Basin and the Black Sea.

Hybrid power plant work set to start in Bahrain
Gulf Daily News + NewBase
Work on a hybrid power plant for solar and wind energy in southern Bahrain is expected to start in
the next three months.
The five megawatt pilot station will be built on land covering 120,000-sq-m near Al Dur Power and
Water Plant, said a report in theGulf Daily News (GDN), our sister publication.
It is part of efforts by the Electricity and Water Authority (EWA) to develop renewable energy
sources and will be linked to Bahrain's power-distribution grid by the first quarter of 2015. A tender
has already been issued and a company specialising in renewable energy plants will be awarded
the project before the end of the year, said Minister of State for Electricity and Water Affairs Dr
Abdulhussain Mirza.
"The project is well underway to build a combined solar and wind electricity production pilot plant
with an installed capacity of around five megawatts," he told the GDN.
"This initiative was derived based on detailed technical studies which was carried out by a
consultancy firm from Germany (Fichtner) over the past one year to assess the viability of solar
and wind power applications in Bahrain.
"The solar portion will be based on PV (photovoltaic) and will be rated at around 3MW, while the
wind portion will be around 2MW. "A tender for this project was issued to pre-qualified contractors
that have the prerequisite expertise in solar and wind combination, and the tender evaluation is
underway and expected to be completed soon.
"Hence the project is expected to be awarded before the end of this year. "A land has been
allocated south of Al Dur plant with an area of around 120,000-sq-m to build the pilot plant."

Dr Mirza said that the National Oil and Gas Authority (NOGA) in conjunction with the Bahrain
Petroleum Company (Bapco) have also been working on their own solar initiatives.
"NOGA in conjunction with Bapco also have their own initiative for solar power generation using
PV solar panels," he explained."This is distributed in three locations; Awali, Bahrain Refinery and
Bahrain University.
"This project is almost 100 per cent complete and is connected to the high voltage distribution
network at the three locations. "EWA had a major role in ensuring that the distribution locations
are available for the connection of the solar power generation and also in agreeing the framework
for the energy generation."
The three locations have energy metering systems and have been fully integrated into a smart
grid, which gives dynamic feedback on the power generation using remote Supervisory Control
and Data Acquisition (Scada).
Solar panels have already been installed in nine locations across Bahrain which are connected to
six feeding points with an estimated capacity of around 1,600 kilowatts.
The GDN reported last month that solar-powered streetlights could soon be rolled out across
Bahrain if a pilot project in Muharraq proves successful.
The EWA is currently monitoring a test phase, involving 20 solar panel-equipped lights in Hidd, to
evaluate the project's feasibility. Designed to operate independently from each other and the
national power grid, each streetlight is a stand-alone unit that derives its power entirely from the
sun.
Renewable Energy Targets in the GCC by 2020

Saudi oil exports fetch SR830bn in 9 months
Arab News + NewBase
Saudi Arabia’s oil exports reached 2.06 billion barrels in the first nine months of 2014 with
proceeds amounting to SR830 billion, local media said quoting an economic expert.
Domestic consumption during the same period reached nearly 621.5 million barrels, or 23 percent
of the total output, Fahad bin Jumaa was quoted as saying by Al-Riyadh daily.
The above figures come at a time when Petroleum and Mineral Resources Minister Ali Al-Naimi
has calmed fears over the impact of drop of crude oil prices on the Kingdom’s crude production
and the possible production cuts by the OPEC (Organization of Petroleum Exporting Countries)
later in the year, the paper said.
A top Saudi Aramco official, meanwhile, was quoted as saying that his company is planning to
invest $40 billion (SR150 billion) in the next 10 years to keep stability of oil production and double
gas production, the daily said.
Jumaa said oil prices and Kingdom’s exports have dropped since the beginning of Q3 in July
where prices of Brent remained below $100 per barrel since Sep 5 to reach $ 94.13, which is
considered the lowest in more than two years.
The economic expert
attributed price fall to a
number of factors
including volatility of
OPEC supplies,
production increase of the
US, slowdown of global
demand outside the US,
resumption of Libyan oil
production by 900,000
barrels per day, and
improvement of Nigerian
production to 1.9 million
barrels a day.
Based on the supply and
demand indications,
Jumaa said Brent prices
are expected to drop by
$5-$10 per barrel to $80 in
the next period.
The Kingdom, however, is expected to keep its current export levels regardless of production cut
due to drop in local consumption as summer season is over, he said.

Saudi Aramco already at work on Manifa Expansion project
The state-owned Saudi Aramco company is already considering the Manifa Expansion project as
part of the Kingdom of Saudi Arabia (KSA) strategy to maintain its full production capacity of crude
oil in respect with the Organization of the Petroleum Exporting Countries (OPEC) quotas.
With a production capacity of 12.5 million barrels per day (b/d) of crude oil Saudi Arabia is the
largest contributor to the OPEC production.
Since it was established in September 1960, OPEC countries are keen to represent at least 40%
of the crude oil global production in order to control market prices and maintain them at a rather
stable level that can preserve the demand from consuming countries and substantial revenues to
the exporting countries.
In this strategy, Saudi Arabia is taking the leading role as the biggest player and because of the
minimum revenues it requires to sustain its economical development.
In parallel, the uncertainties lasting in Libya, Syria, Iraq combined with the sanctions against
Russia may alter the capabilities of these countries to ramp up or even maintain their crude oil
production at today level.
In addition the experience of the US shale gas development has been rich of learning for Saudi
Arabia and its future capability to weight on the crude oil market in case the US shale oil should
repeat the shale gas evolution.

In this particular context where major events can influence significantly future crude oil prices up
and down, Saudi Arabia pays attention to keep its leading role, thus to maintain its production
capacity beyond its actual production.
Manifa Phase-2 to exceed Aramco onshore expansions, In that perspective Saudi Aramco has
identified number of opportunities to increase crude oil production.
Saudi Aramco will add light crude oil capacity of 300,000 b/d with the Khurais Expansion project
and 250,000 b/d with the Shaybah Expansion project.
These Saudi Aramco Khurais and Shaybah Expansion projects should start commercial
operations in 2016 and 2017. Saudi Aramco is ramping up the production at the Manifa offshore
project.
Investing $10 billion capital expenditure to build 27 artificial islands in the shallow water of the
Arabic-Persian Gulf along the shore of the Eastern Province of Saudi Arabia, Saudi Aramco is
targeting 900,000 b/d production of heavy crude oil and 120 million cubic feet per day (cf/d) of
natural gas.
This Saudi Aramco Manifa first phase started production in 2013. Considering that the new Al-
Jubail refinery has been designed to treat heavy crude oil, Saudi Aramco is already working on
the Manifa Expansion project.
In increasing the capacity by 600,000 b/d, Saudi Aramco could take a leap from the 900,000 b/d
expected from the first phase to 1.5 million b/d that Manifa could reach with this second phase.
With a front end engineering and design (FEED) work to last two years, Saudi Aramco is targeting
to make the final investment decision (FID) on Manifa Expansion project by 2017.

Turkey opposes to Cyprus gas exploration
Reuters + Newbase
Cyprus said on Monday peace talks for the ethnically divided island could suffer if Turkey
kept on opposing attempts by Nicosia to explore for gas off its southern coast. The
internationally recognised Greek Cypriot government has licensed multinationals to
explore for hydrocarbons in the area and Italy's ENI currently has a platform drill at one
site.
Greek Cypriot officials said Ankara had issued a maritime advisory that a Turkish seismic vessel
would be carrying out work in the same area as ENI's platform from Oct. 20. Turkey, which backs
a breakaway Turkish Cypriot enclave in northern Cyprus, does not recognise the jurisdiction of the
Nicosia government in the exploration area.
"We consider this development particularly serious," Cypriot foreign minister Ioannis Kasoulides
told a news conference in Nicosia. The area where ENI is carrying out the drill falls within Cyprus's
exclusive economic zone, an area internationally recognised, except by Turkey, as being Cypriot
waters, he said.
Cyprus, a member of the European Union, has become particularly keen to develop offshore gas
reserves as a potential source of revenue since it was compelled to seek an international financial

bailout in early 2013. Cypriot President Nicos Anastasiades has previously said challenges to the
gas drills could trigger an interruption in the peace talks for the island.
Kasoulides said diplomatic and legal responses were being considered, but he declined to give
details. Cyprus was split along ethnic lines after a Turkish invasion in 1974 which followed a brief
Greek-inspired coup. Inconclusive peace talks have been held intermittently over the decades and
a new round of consultations started in February 2014.
Asked if there was a risk of the peace talks being derailed, Kasoulides said: "What I can say is
that for talks to yield results they cannot be conducted under such provocative circumstances."
Kasoulides added that the Greek Cypriots were committed to seeing the talks progress.
A U.S. company, Noble , found an estimated 5 trillion cubic metres of gas south of Cyprus in late
2011, straddling a median line with Israel where major discoveries have been made in the past
decade. France's Total has also signed a concession to drill for gas with Cyprus. Greek Cypriots
say any hydrocarbon wealth discovered will be shared with the Turkish Cypriots in the event of a
peace deal.

U.S. coal exports fall on lower European demand, increased global supply
Source: U.S. Energy Information Administration, based on U.S. Census Bureau data
U.S. coal exports have continued to decline from their record volumes in 2012. During the first half of 2014,
coal exports totaled 52.3 million short tons (MMst), 16% below the same period in 2013. Most of these
exports go to countries in Europe and Asia. Export declines reflect both lower European demand for steam
coal and increased steam coal supply from Australia and Indonesia. Metallurgical coal supply from
Australia, Canada, and Russia has also increased. These factors have led to a cumulative decline of 9.0
MMst in coal exports to Europe and Asia during the first half of 2014.
Coal exports fall into two categories: metallurgical coal, which is used in the production of steel, and steam
coal, which is commonly used to fuel boilers that generate steam used to produce electricity. With relatively
minor coal imports, the United States has been a net exporter of coal since 1949, the earliest year of data
collection.
Metallurgical coal production, primarily from the Illinois and Appalachian coal basins, represented less than
8% of production but 56% of total U.S. coal exports in 2013. Europe is the leading destination for
metallurgical coal exports, followed by Asia. Together, these two regions accounted for nearly 80% of U.S.
metallurgical coal exports in the first half of 2014.
Steam coal is mainly used to generate electricity, but also has applications at combined heat and power
plants to produce steam used in industrial processes. Steam coal generally has lower heat content than
metallurgical coal and can be found at most coal-producing basins in the United States. In recent years,
steam coal accounted for more than 90% of domestic coal production. During the first half of 2014, Europe
received 8.8 MMst of U.S. steam coal exports, a drop of 7.4 MMst from the same period in 2013. Asia's
share of U.S. steam coal exports increased in 2014, but export tonnage to Asia decreased 2.4% from the first
half of 2013.

Source: U.S. Energy Information Administration, based on U.S. Census Bureau data
In 2013, six U.S. ports shipped 89% of U.S. coal exports. Among them, eastern ports Baltimore and Norfolk
represent 55%; and southern ports Houston, Mobile, and New Orleans make up 30%. Seattle accounted for
5 MMst, or 4%, all of which was steam coal exports. Eastern and southern ports are used to export
metallurgical coal because it is produced in the Illinois and Appalachian Basins.

Senegal: Cairn Energy announces oil discovery offshore
Source:Cairn Energy
Cairn Energy, together with its joint venture partners, has announced that the FAN-1 exploration
well, offshore Senegal, has discovered oil. The well, located in 1,427 metres (m) water depth and approx.
100 kms offshore in the Sangomar Deep block, has reached a Target Depth (TD) of 4,927 m and was
targeting multiple stacked deepwater fans.
Preliminary analysis indicates:
• 29m of net oil bearing
reservoir in Cretaceous
sandstones
• No water contact was
encountered in a gross oil
bearing interval of more than
500m
• Distinct oils types ranging
from 28° API up to 41° API
indicated so far from a
number of oil samples
recovered to surface
• Initial gross STOIIP estimates
for the FAN-1 well range
from P90, 250 mmbbls, P50,
950 mmbbls to P10, 2,500
mmbbls and are broadly in
line with pre-drill STOIIP
estimates
As stated prior to the
commencement of operations
there are no plans for immediate
well testing. Further evaluation
will now be required to calibrate
the well with the existing
3D seismic in order to determine
future plans and optimal follow
up locations to determine the
extent of the discovered resource.
Once operations are completed on
the FAN-1 well, the rig will move
to complete the second well, SNE-
1 where the top hole has been drilled pending re-entry. This Shelf Edge Prospect targeting a dual objective
in 1,100m water depth is in the Sangomar Deep block.
The FAN-1 well was drilled using the semi-submersible drilling unit 'Cajun Express'. It is the third well in
Cairn's North West Africa programme and first in Senegal. Cairn has a 40% Working Interest (WI) in three
blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rusifique) ConocoPhillips has 35%
WI, FAR Ltd 15% WI and Petrosen, the national oil company of Senegal 10% WI. The three blocks cover
7,490 km2.

South Africa: Sunbird Energy secures major strategic partner for Ibhubesi Gas Project
Source: Sunbird Energy
Southern African gas explorer and developer Sunbird Energy has announced the completion of the Stage 1,
USD$5,000,000, Vandasia Transaction, previously announced on 9 September 2014. The USD$5,000,000
Stage 1 investment by the Pan-African investment company Vandasia Investments for subscription of
20,367,127 fully paid shares, equates to AUD$0.277 per share which is a premium of 45.6% to the
Company’s closing share price on 8
September prior to announcement of the
Transaction.
On completion of Stage 2 of the transaction,
Sunbird will have received over
AUD$25,000,000 in capital (subject to
exchange rates) and will secure a major
strategic partner in Vandasia to help
advance development of the Ibhubesi Gas
Project in South Africa. Stage 2 of the
investment, which is subject to shareholder
approval and execution of a Gas Sales Term
Sheet with a potential customer, is due for
completion by 30 November 2014.
The Transaction involves two capital
raisings at the equivalent weighted average
price of approx. AUD$0.37 per share
(subject to exchange rates) and the
acquisition and conversion of 47,750,000
existing AUD$0.20 options, providing
Vandasia a 43.9% interest in the Company.
Overall, the transaction is priced at a
premium of approximately 80% to
Sunbird's closing share price on 8
September prior to announcement of the
Transaction.
The Transaction will deliver the funding
required to advance the Ibhubesi Gas
Project to commercialisation and provides
Sunbird with a highly capable strategic
shareholder with extensive industry
experience in Africa. Sunbird is pleased to
welcome Vandasia as a strategic partner
and major new shareholder. The investment
by Vandasia demonstrates the value
proposition of the Ibhubesi Gas Project as
South Africa’s largest undeveloped gas
field and the advanced nature of Sunbird’s
gas supply negotiations.

Oil falls to near $92 on strong dollar, surplus
Brent crude futures fell to near $92 a barrel on Monday, extending this year's rout that saw the
international benchmark hit a 27-month low in the previous session due to a strong US dollar and
ample oil supply.
"My feeling is the fall in Brent has gone far enough - $90 is the breakeven point for Saudi Arabia to
maintain current levels of public spending,"
The last time Brent dropped below $90 was in June 2012, Brent for November delivery was down
33 cents at $91.98 a barrel by 0421 GMT. The benchmark touched $91.48 on Friday, its lowest
since June 2012.
US November crude slipped 7 cents to $89.67 a barrel. The dollar hovered near a four-year peak
against a basket of currencies after a strong US jobs report on Friday bolstered expectations that
the Federal Reserve would raise interest rates by mid-2015 or earlier.
A cut in output by the Organization of the Petroleum Exporting Countries (Opec) could support oil
prices, but the group is not due to meet until Nov. 27 and there have been no signals that it will
take action before then.
The question now is what happens next year when additional supply, especially from North
America, is due on the market.
Looking forward, there appears to be a higher probability of downside than upside price risk, The
Opec Secretariat itself is indicating that the call on Opec for 2015 is a good 1.5 million barrels per
day lower than current group output. In this context, Saudi Arabia and other [GCC] countries show
no willingness to cut production and Saudi officials indicate that the market supply balancer might
be US shale if prices fall too low.”
In other words, the best bet for the market might be that lower prices discourage higher-cost
producers, thus keeping extra supply – a million barrels from the US alone next year – off an
already glutted market.
An unexpected boost to economic growth would be less painful for all concerned.

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,
Energy Consultant
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Mobile : +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a total
of 24 yearsof 24 yearsof 24 yearsof 24 years of experience in theof experience in theof experience in theof experience in the Oil & GasOil & GasOil & GasOil & Gas
sector. Currently working as Technical Affairs Specialist forsector. Currently working as Technical Affairs Specialist forsector. Currently working as Technical Affairs Specialist forsector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with exterEmirates General Petroleum Corp. “Emarat“ with exterEmirates General Petroleum Corp. “Emarat“ with exterEmirates General Petroleum Corp. “Emarat“ with externalnalnalnal
voluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawk
Energy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of the
experience were spent as the Gas Operations Manager inexperience were spent as the Gas Operations Manager inexperience were spent as the Gas Operations Manager inexperience were spent as the Gas Operations Manager in
Emarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network Facility
& gas compressor s& gas compressor s& gas compressor s& gas compressor stations . Through the years , he hastations . Through the years , he hastations . Through the years , he hastations . Through the years , he has
developed great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in the
engineering of supply routes. Many years were spent drafting, & compiling gas transportation ,engineering of supply routes. Many years were spent drafting, & compiling gas transportation ,engineering of supply routes. Many years were spent drafting, & compiling gas transportation ,engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceoperation & maintenanceoperation & maintenanceoperation & maintenance
agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas
Conferences held in the UAE andConferences held in the UAE andConferences held in the UAE andConferences held in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 07 October 2014 K. Al Awadi

New base special 07 october 2014

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