Newbase energy news covering the MENA by Energy expert Khaled Al Awadi

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,
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NewBase 09 January 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Tabreed's energy savings in 2013 surpass 1 billion kWh
The National Central Cooling Company PJSC, Tabreed, yesterday announced that its annual energy savings in
2013 reached 1.2 billion kilowatt hours (kWh). This significant reduction in energy consumption translates into
the elimination of approximately 570,000 tons of carbon dioxide (CO2) emissions, equivalent to the removal of
over 110,000 cars from the streets. In the UAE alone, Tabreed's 60 district cooling plants achieved a total
energy saving of approximately 1 billion kWh, with the remaining 200 million kWh savings produced in the
company's six plants located in Saudi Arabia, Qatar, Oman and Bahrain.
Jasim Husain Thabet, Tabreed's Chief Executive Officer, said, "In the GCC region, cooling accounts for
approximately 50% of total energy consumption, and approximately 70% during the peak summer months. With
an expanding population, economic growth and diversification underway, as well as continued industrialisation, it
is becoming increasingly vital that reliable, energy-efficient and environmentally-friendlier cooling solutions are
utilised in order to meet our growing cooling requirements." "As a key infrastructure partner, Tabreed is proud of
the role it plays in enabling the region's, and in particular the United Arab Emirates', economic and social
development.
By decreasing the energy consumed for cooling, we are simultaneously able to protect the environment, lower
our carbon footprint, and play a modest role in helping the UAE realise its vision of a sustainable economy."
Tabreed's district cooling services are delivered to many of the UAE's iconic projects and landmarks, including
the Sheikh Zayed Grand Mosque, Ferrari World Abu Dhabi, Yas Marina Circuit, Dubai Metro, and Etihad
Towers. In the GCC, Tabreed provides cooling to key projects such as The Pearl - Qatar, and ARAMCO
establishments in eastern Saudi Arabia. - Emirates News Agency, WAM (http://www.uaeinteract.com/docs/)

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Keel lay for Petronas FLNGhttp://www.upstreamonline.com/live/article1348327.ece
Keel laying for the Petronas floating liquefied natural gas facility has started at the Daewoo Shipbuilding &
Marine Engineering shipyard in South Korea. The first block of the keel has been laid in the presence of
the project team made up of Petronas, Technip and DSME staff.
FLNG keel laying: Petronas' PFLNG-1 keel has been laid in Korea
Petronas vice president and venture director of LNG projects Datuk Abdullah Karim said this was a
significant achievement for the construction phase of the project. The construction of the entire facility is
expected to finish by the end of 2015, making it the world’s first to be in operation beating Shell's FLNG
maiden Prelude.
It will sit in Malaysia’s Kanowit gas field off the coast of Sarawak. The PFLNG-1 will produce about 1.2
million tonnes of LNG per year and will play a role in unlocking the potential of Petronas’ fields in
Malaysia. It is expected that gas from PFLNG-1 will be used for both domestic and export markets. The
company is developing two FLNG projects are the same time, with the second unit expected to be deployed
at Murphy Oil’s Rotan field off Sabah.

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in this publication. However, no warranty is given to the accuracy of its content . Page 3
India's power plants coal imports from Indonisia rise
(Reuters) –
India's coal imports rose 20 percent to 105.8 million tonnes in April-October from a year earlier as
power producers turned to Indonesia to help feed new plants, according to data from mjunction
services, an online market operator.
Regulatory and bureaucratic delays in adding new mines and expanding existing ones have made India the
No. 3 importer of coal, even though it sits on what BP ranks as the world's fifth-largest reserves. Imports
leaped 34 percent to 137.56 million tonnes in 2012/13.
April-October shipments of thermal coal, used in power generation, jumped 28 percent to 81.6 million
tonnes, according to mjunction services, which is jointly owned by Tata Steel Ltd and SAIL. India's
generation capacity increased in the seven months with the addition of new plants, while benchmark thermal
coal prices fell, reaching their lowest levels in almost four years in September.
Imports of coking coal for making steel, the second-biggest contributor to total shipments, were nearly flat
at 19.35 million tonnes. The Indian government does not regularly release data on coal imports. Its domestic
production, 81 percent of which is from state-owned Coal India Ltd, could fall short of demand by 155
million tonnes this fiscal year, according to the Coal Ministry. That could lead to a 13 percent rise in
imports.
Coal India has fallen short of its production target for at least the past six years due to difficulties in
obtaining environmental approvals, lack of railway access and other issues. Its April-December output of
319.2 million was 4 percent less than its target for the period. The world's largest coal mining company
launched its first tender in November, seeking to import 5 million tonnes of coal to supply power producers
until March 2015.
The need for reform of the coal mining sector means India is expected to remain a big importer, with Coal
India estimating a shortage of 350 million tonnes for 2016-17. Indonesia could be the biggest beneficiary. It
already accounts for more than 50 percent of India's coal imports, ahead of Australia and South Africa.
Several coal blocks allocated to companies from 1998 to 2009 for development are yet to start production.
Recent court-mandated investigations into the allocations by the Central Bureau of Investigation (CBI) have
further delayed mining. The CBI said last week it had registered two cases regarding the alleged supply of
low quality Indonesian coal by a private company to fuel power plants operated by National Thermal Power
Corp.

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75 years of oil-fuelled progresshttp://www.thenational.ae
At midnight on Friday an era in the modern history of the emirate of Abu Dhabi will come quietly to
an end. January 10 marks the expiry of the 75-year concession that covers the oilfields run by the
Abu Dhabi Company for Onshore Oil Operations (Adco).
The company will continue to operate, but for the first time the oil being pumped from its 11 fields
and the reserves will belong wholly, through the Abu Dhabi National Oil Company (Adnoc), to the
Government. There will no longer be any foreign shareholding. That may change later, once
decisions are made about which foreign companies are invited to enter new joint-venture
partnership agreements with Adnoc. For now, Abu Dhabi’s oil industry takes on a new shape.

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It is an appropriate moment to cast an eye back over the developments of the past 75 years,
during which Abu Dhabi and, since its formation in 1971, the UAE, have joined the ranks of the
world’s major oil producers. The search for oil began in the 1920s with the first visits by geologists
from the Anglo-Persian Oil Company, which later became British Petroleum and then BP.
More surveys took place in the mid-1930s, with the oil company teams accompanied around the
desert by a young man who later played a crucial role in the country’s development, first as the
Ruler’s Representative in the Eastern Region of Abu Dhabi, then as Ruler of Abu Dhabi and
President, the late Sheikh Zayed.
The results of those surveys were promising and a consortium of foreign oil companies
approached the then Ruler, Sheikh Shakhbut, to negotiate a concession agreement. Valid for 75
years, it was signed on January 11, 1939. The consortium, which included companies that after
mergers and changes of name are now known as BP, Shell, ExxonMobil, Total and Partex, was
already working further up the Arabian Gulf, under the name of Iraq Petroleum.
They established a subsidiary, Petroleum Concessions, which set up another subsidiary,
Petroleum Development (Trucial Coast), which took on the concession. The outbreak of the
Second World War a few months later delayed exploration. It was not until after the end of the war
that work began to determine where the first oil well could be drilled. It was eventually spudded in
1950 at Ras Sadr, north-east of Abu Dhabi town.
It reached a depth of 13,001 feet – the deepest well that had ever been drilled in the Middle East,
in the first of many technical records that were set – but was a dry hole with no trace of oil and
gas. Over the next few years, more wells were drilled, some of which were dry. But the Murban-1
well on a geological structure about 100 kilometres west of Abu Dhabi, drilled in 1953, found
traces of hydrocarbons. Initial hopes of quick discoveries faded.
In 1958, however, work on a second well on the Murban structure confirmed the presence of oil
and gas, and in December 1959 work on the Murban-3 well began. Completed in May 1960, it
produced crude oil at a rate of 3,764 barrels a day from the Thamama Formation. On October 27,
1960, Petroleum Development formally advised Sheikh Shakhbut that the discovery, renamed the
Bab field, was commercially viable.
The era of oil production was about to begin. It took another three years of drilling more wells,
laying a 112km pipeline across tough terrain and construction of an export terminal at Jebel
Dhanna before exports could begin. The first tanker to carry a cargo of crude oil from Abu Dhabi’s
onshore fields was eventually loaded on December 14, 1963.

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By that time, Petroleum Development had changed its name to the Abu Dhabi Petroleum
Company (ADPC) and two more fields had been found – the giant Bu Hasa, west of Bab, which
commenced production in 1965, and Bida Al Qemzan, a smaller field that began production early
last year.
More fields quickly followed, including Asab in 1965, Shah in 1966 and Sahil in 1967, all of which
were later developed. Government revenues from oil production grew rapidly, providing the
revenues that enabled Sheikh Zayed, who became Ruler of Abu Dhabi in August 1966, to set in
motion the programme of rapid development that has continued ever since.
For years, though, the development company had been providing training and employment
opportunities to young Emiratis in the what was the beginning of today’s Emiratisation programme.
Many were sent abroad for further studies after passing through the ADPC Training School. A
good number of senior Adco employees began their careers this way, with some having spent 30
or 40 years with the company.
As Abu Dhabi’s oil production grew, the time came for ownership of the oil reserves to be
reviewed. Adnoc was established in 1971, and over the next few years agreements were signed
with ADPC shareholders that gave Adnoc first a 25 per cent, then a 60 per cent share in
ownership of the reserves. The original concession agreement covered only oil, so all gas
reserves that were discovered belonged to the Government.
In early 1979, the responsibility for operating the onshore oilfields was transferred from ADPC to a
new company, Adco, which was 60 per cent owned by Adnoc and 40 per cent by ADPC
shareholders. It is that successful partnership, operating at first under the directions of Abu
Dhabi’s Department of Petroleum, and since 1988 the Supreme Petroleum Council, that has
overseen the emergence of the world-class company of today.
The council has been chaired since its inception by Sheikh Khalifa, first as Crown Prince of Abu
Dhabi and then as President and the emirate’s Ruler. New fields have been brought into
production, including the North-East Bab group of Dabb’iya, Rumaitha and Shanayel, while full-
field development schemes have been implemented in the older fields at a cost of billions of
dollars.
When Bab commenced production in 1963, ADPC was producing about 120,000 barrels a day.
Now, the production capacity from Adco’s 11 fields is about 1.6 million barrels a day, with further
expansion projects under way, and Adco is one of the world’s top 10 oil-producing companies.

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As has been the case since that first well at Ras Sadr was drilled in 1950, technical innovation and
expertise has been at the forefront of Adco’s achievements. Horizontal drilling has become
common – sometimes for as much as 10,000 feet – thousands of feet underground.
The introduction of a “smart” field system allows for individual wells to be controlled by computer
from head office. Groundbreaking initiatives, such as the pilot scheme for carbon-dioxide injection
in the Rumaitha field, are being developed that will not only increase total production but will allow
for a greater percentage of the reserves to be recovered.
The workforce has risen from a few dozen at the time the Ras Sadr well was drilled, to surpass
7,000, more than half of whom are Emirati. Among those are a growing number of Emirati women,
many in head office but some of whom can be found working alongside the men in the oilfields.
As one would expect, a history that stretches back 75 years is full of achievements and impressive
statistics. More than 20,000 tankers have sailed from Jebel Dhanna, with others now leaving from
the Adco-operated Fujairah terminal that came into service in mid-2012. Hundreds of millions of
man-hours have been expended. Billions of barrels of oil have been produced. Tens of billions of
dollars have been spent, and hundreds of billions of dollars in revenues have been earned.
Emiratis and expatriates of many nationalities, government officials and their Adnoc colleagues,
and foreign shareholders who first took the risk of drilling for oil in the harsh and unpromising
deserts of Abu Dhabi – all of these have played their part in the Adco story over the decades. It is
a crucial part, too, of the story of the development of the modern UAE.

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NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Service
Khaled Malallah Al Awadi,
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Energy Services & Consultants
Mobile : +97150-4822502
khalid_malallah@emarat.ae
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil &Oil &Oil &Oil & Gas sector.Gas sector.Gas sector.Gas sector.
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external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most
of the experience were sof the experience were sof the experience were sof the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipelinepent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipelinepent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipelinepent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline
Network Facility & gas compressor stations . Through the years , he has developed great experiences in theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in the
designing & constructingdesigning & constructingdesigning & constructingdesigning & constructing of gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulating stations and in the engineering of supplyating stations and in the engineering of supplyating stations and in the engineering of supplyating stations and in the engineering of supply
routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements
along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas ConferencesConferencesConferencesConferences
held in the UAE andheld in the UAE andheld in the UAE andheld in the UAE and Energy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
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