New base special 09 march 2014

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NewBase 09 March 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
UAE Ministry of Energy to participate in 11th Middle East Geosciences
Conference and Exhibition
http://gulfnews.com/business/oil-gas/
Ministry of Energy and a number of national oil companies operating in the UAE will participate in 11th
Middle East Geosciences Conference and Exhibition in Manama, Bahrain. The four-day event will be held
at Bahrain International Exhibition and Convention Centre under the patronage of Prince Khalifa Bin
Salman Al Khalifa, Prime Minister
of the Kingdom of Bahrain.Dr Mattar Hamed Al Neyadi,
Undersecretary at the Ministry of Energy will lead the UAE delegation,
which includes a number of officials from the Department of Geology
and Mineral Resources at the Ministry and other national oil companies
operating in the country.Started in 1994, the GEO exhibition is the
premier showcase of oil and gas exploration technology and services in
the Middle East, attracting NOCs, IOCs and major operating
companies.
Regular high profile international exhibitors include super majors
Chevron, ExxonMobil, Shell and Total and service industry giants
BGP, CGGVeritas, Halliburton, Occidental Petroleum Corporation,
Schlumberger and Weatherford. A host of specialist suppliers and
distributors, numerous new entries to the Middle East market and large
national groups from North America and the UK complement this line
up.

Oil rig builders face a lean outlookApril Yee , http://www.thenational.ae/business/energy
Rig builders may be in for a tough few years as oil producers slow the growth of their offshore
operations. Spending on offshore exploration and production by the majors grew by 10 per cent
last year compared to 17 per cent in 2012, said DNB, a German transport finance bank. This year,
growth is projected to slow to 4 per cent.
“It’s because the oil majors have a significantly reduced profitability for their business,” said Geir
Sjurseth, the managing director and head of offshore finance at DVB Group Merchant Bank Asia,
the bank’s Singapore-based unit. “They are reining in spending because the oil price is not high
enough. They need the oil price to go to US$130 or $140.”
Global vessel suppliers have continued to expand their fleets faster than the growth of oil
production, which will eventually lead to a glut of supply, said Mr. Sjurseth at a ship finance
conference in Dubai yesterday. Since 2005, the world’s offshore rig fleet has grown by 53 per cent
but offshore oil production has actually declined from 24 million barrels per day to 22.5 million
today.
Although companies such as Lamprell can boast full order books, day rates are being pushed
down and the next few years will bring a “massive oversupply in jackup rigs”, said Mr. Sjurseth.
The rise of shale in the United States has also drawn resources from offshore to onshore
exploration and taken away some of the lustre of technically challenging Arctic exploration.

Genel: Oil presence confirmed at Cap Juby well, offshore Morocco
http://www.offshoreenergytoday.com/genel-oil-presence-confirmed-at-cap-juby-well-offshore-morocco/
Genel Energy has informed that the JM-1 well on the Cap Juby prospect offshore
Morocco has encountered oil shows.
The company said that the Cairn Energy-operated well has confirmed the presence of oil in the Upper
Jurassic, as originally tested by the
1968 MO-2 well, some 2km from
the JM-1 location. The well, located
in the Juby Maritime III block in
100m of water where the primary
objective is some 1,000m below the
1969 Cap Juby oil discovery in the
Upper Jurassic, continues to drill
ahead to the primary Middle
Jurassic target . The well is currently
at 3,100 metres, with 600 metres left to
drill to the prognosed Middle Jurassic
primary target.
Genel said that exploration wells are
planned on both the Sidi Moussa and Mir Left licences during 2014 using the Noble Paul Romano semi-
submersible rig. On the Sidi Moussa licence, the most likely target is the Nour prospect. On Mir Left,
prospect maturation is currently ongoing.
Tony Hayward, Genel CEO said: “In Africa we have begun a high-impact exploration programme targeting
over 900 mmboe of prospective resource this year, with the first well underway in Morocco and a further
three to follow in Malta and Morocco. Each well has the potential to make a material impact on our already
significant reserve and resource base.”

ExxonMobil hires Welltec for well intervention in Angola
Welltec Corporation, a Danish based, oil and gas services company, has been awarded a
three year, direct contract from an ExxonMobil subsidiary in Angola.
Esso Exploration Angola (Block 15) Limited (Esso Angola), Operator of Angola Block 15, has hired Welltec
for the provision of conveyance and well intervention services including clean-out and mechanical
manipulation.
Welltec® technologies and services increase flexibility and reduce the mobilization time for key
intervention operations compared to conventional intervention methods utilizing coiled tubing or jointed
pipe. Other benefits include a reduction in the number of lifting operations, personnel and footprint, all
contributing to improved risk management; particularly in environmentally sensitive environments.
Gbenga Onadeko, Welltec Senior Vice President, Africa explains that “Welltec®, a pioneer and market
leader of robotic conveyance and intervention technologies, is extremely pleased by this award from Esso
Angola. We have provided services to Esso Angola since 2005.”
Welltec® is the largest provider of tractor technology for conveyance solutions as well as the foremost
provider of milling, clean-out and mechanical solutions globally. These technologies have been successfully
developed and applied by Welltec® for nearly two decades.

Vallourec to deliver $100M worth of pipes to Total in Brunei
Vallourec, a provider of tubular solutions, has been awarded a $100 million contract for the supply of
premium pipes with VAM® 21 connections for the offshore ML-South Project, operated by Total’s affiliate
Total E&P Borneo in Brunei.
After a successful exploration campaign
started in 2007, Total has a drilling
program starting with 6 development
wells from 2015. ML-South is located in
Block B offshore Brunei and is an
extension of the producing Maharaja
Lela Jamalulalam field with water depth
of approximately 65 meters, and is
expected to hold important gas
and condensate reserves.
The development wells will be producing
at depth greater than 5,000m, in a highly
corrosive environment and sustaining
High Pressure/ High Temperature
(HP/HT). These conditions position the
project at a new field development
frontier. It highlights Total’s expertise in
operating in very complex environments
and consolidates Vallourec’s leadership
position in supplying premium OCTG
(Oil Country Tubular Goods) solutions to
the oil & gas industry.
Vallourec is a major player in the profitable oil and gas market, which requires highly reliable
products, Vallourec offers cutting-edge technology for finding and exploiting new hydrocarbon
reserves. The Group is world-renowned for its expertise in designing and developing products
adapted to the most extreme conditions, be it offshore drilling, deep wells, corrosive environments,
deviated or horizontal wells, or High Pressure/High Temperature (HP/HT). The deposits which are
currently being exploited by oil companies are increasingly difficult to access and therefore require
increasingly sophisticated tubular solutions.
2. Features of VAM®21
(1) VAM®21 threaded connections have an
unprecedented high sealing performance.
VAM®21 features an extended lip called
VAM Stabilizer™ at the tip of the seal face,
an area to prevent leakage by firmly
attaching an internal thread with an external
thread at the edge of the OCTG.

Heerema starts construction of Marathon Oil’s Alba Platform
Press release
Today the ceremonial first cut of steel for the Alba field B3 compression platform project was
celebrated by operator Marathon E.G. Production Limited (MEGPL), a wholly-owned subsidiary
of Marathon Oil Corporation and Heerema Fabrication Group (HFG) together with its project
partner Iv-Oil & Gas (Iv) at HFG’s Poland fabrication facility in Opole.
HFG performed the first cut of the steel, which will be used to build the 4,500 ton Alba B3 compression
topside destined for the Alba gas and condensate field. The Alba field is located approximately 20 miles
offshore north of Bioko Island in Equatorial Guinea.
HFG as main contractor will
manage the overall project
and jointly execute the EPC
scope from Iv-AGA’s (a
subsidiary of Iv-Groep)
offices in Houston, United
States. Immediately after the
project was awarded in April
2013, the design and
engineering started. The T&I
of the platform has been
subcontracted to HFG’s sister
division Heerema Marine
Contractors in Leiden, the
Netherlands.The Alba B3
compression platform will
consist of a 4,500 ton topside
and a 4-legged 2,000 ton jacket which will be fabricated at the Heerema Zwijndrecht and Heerema
Vlissingen yard, respectively. At HFG Polska, one of the HFG fabrication yards and specialised in
fabrication of complex small steel structures, the nodes and plate girders of the Alba B3 compression
topside will be fabricated. The nodes and plate girders will be delivered to Heerema Zwijndrecht where they
will be fitted in the topside. Koos-Jan van Brouwershaven, CEO of Heerema Fabrication Group
said:
“The first cut of steel today at our brand
new facility in Poland, HFG Polska,
represents an important milestone in the
fabrication process of the Alba B3
compression platform, where we physically
commence construction of the topside. By
using our own facility in Poland we are able
to offer our client, MEGPL, delivery of the
same high-quality and safety standards as
clients are used to expect from a Heerema
company.”

About Equatorial Guinea Oil & Gashttp://www.eia.gov/countries/cab.cfm?fips=ek
Equatorial Guinea became a significant oil and natural gas exporter with the discovery and
development of large offshore oil reserves in the
1990s. As production increased, the country grew
by an average real annual growth rate of 26.2
percent from 2001 to 2005, according to the
World Bank. Hydrocarbon production is the basis
of the country's economy and consists of crude
oil, condensate, natural gas plant liquids (NGPLs),
and dry natural gas. According to the International
Monetary Fund's latest data, the hydrocarbon
sector represented over 90 percent of government
revenue and about 98 percent of export earnings.
Equatorial Guinea's hydrocarbon production is
concentrated offshore its main island of Bioko,
which is also home to the capital city, Malabo.
Hydrocarbon production also occurs offshore the
country's mainland, Rio Muni, which is nestled
between Cameroon and Gabon. Production of the country's dominant hydrocarbon, crude oil, has
been declining as a result of maturing oil fields. However, the recent start-up of the Aseng oil and
gas-condensate field and the anticipated start-up
of the Alen gas-condensate field in late-2013 are
projected to revive liquids production in the near
term.
Oil Sector :
According to the Oil & Gas Journal, Equatorial
Guinea had proved oil reserves of 1.1 billion
barrels as of January 2012. Latest EIA estimates
show that Equatorial Guinea's total liquids
supply was about 320,000 barrels per day (bbl/d) in 2011. Equatoguinean oil production originates
almost entirely from the Zafiro, Ceiba, and Okume fields, while condensate production comes from
the Alba field. A detailed map of oil and gas licenses and activities is available through the Ministry
of Mines and Energy Website.
Since the 1995 discovery of the Zafiro field, Equatorial Guinea's oil supply increased dramatically,
peaking at 376,000 bbl/d in 2005. At peak, roughly 65 percent of total output came from the Zafiro
field. However, over the last decade, the Zafiro field has gradually matured and output at the field
has nearly halved. In turn, liquids production in Equatorial Guinea has steadily declined for the last
few years.

Production
Equatorial Guinea's declining output is expected to reverse in 2012, driven by new production from the
Aseng field that came on-stream November 2011. Shortly after its start, the field reached around 50,000
bbl/d as four subsea wells were brought online. According to the country's Ministry of Mines, Industry and
Energy, production at
Aseng, situated in Block
1 offshore Bioko Island,
started seven months
ahead of schedule and
was 13 percent under
budget. U.S.-based
Noble Energy is the
field's main operator and
estimates a recovery of
about 120 million
barrels of liquids over
the project's lifespan.
New production is also
expected in late-2013
from the Alen gas-
condensate field, with an
initial output of about
37,000 bbl/d. Alen is
located in the Douala Basin and extends from Block O (95 percent) to the northern part of Block I
(5 percent). The new projects are expected to offset dwindling oil production from existing fields:
Zafiro, Ceiba, Okume, and Alba.
Natural Gas :
According to the Oil & Gas Journal, Equatorial Guinea had 1.3 trillion cubic feet (Tcf) of proven
natural gas reserves as
of January 1, 2012. The
majority of the reserves
are located offshore
Bioko Island, primarily in
the Alba and Zafiro
associated natural gas
fields. From 2001-2010,
Equatoguinean natural
gas production
increased rapidly from 1
billion cubic feet (Bcf) to
238 Bcf as new projects
came online. Domestic
consumption over the
same period went from 1
to 56 Bcf and was
increasing alongside of production until 2007, when the completion of the Punta Europa liquefied
natural gas (LNG) facility on Bioko Island allowed for greater exports.

Liquefied Natural Gas (LNG) :
Most of Equatorial Guinea's natural gas production is exported in the form of LNG. Marathon Oil
Corporation and its partners completed Train 1 of the $1.4 billion Punta Europa LNG facility on
Bioko Island in May 2007. Train 1 has a capacity of 3.7 million tons of LNG per annum and
processes dry gas from the Alba Field.
The Equatoguinean government signed an agreement on January 17, 2012 to develop a second
LNG Train at a cost of $4 billion to double LNG output. The agreement was signed by the Ministry
of Mines, Industry and Energy and state-owned companies (Sonagas and GEPetrol), along with a
consortium of international companies that are invested in Blocks I, O, and R along with those
involved in the first LNG train. The next phase for the LNG Train II Integrate Project is to define
project scope and timing; signatories anticipate Train II to start operation in 2016. Feedstock is
expected to come from associated gas from Blocks I, O, and R.
Exports
In 2010, Equatorial Guinea exported approximately 179 Bcf of LNG, of which nearly two-thirds
went to Asia, namely Korea (33 percent) and Japan (15 percent), while most of the remainder
went to Chile (30 percent). Equatorial Guinea's LNG exports to Japan reportedly increased in
2011 after the earthquake hit Japan in March 2011 and left much of the country's nuclear power
offline, prompting Japan to increase LNG imports from suppliers further afield.

India: Oilex spuds Cambay-77H horizontal production well
Source: Oilex
Oilex has announced that Cambay-77H horizontal production well drilling operations commenced on 07
March 2014 with the successful completion of a six (6) hour commissioning period at 1230 hours IST. The
rig is currently drilling ahead at 76m Measured Depth (MD). Refer to the attached figures.
Cambay-77H is located adjacent to the Cambay-76H horizontal well that underwent a successful multiple
staged fracture stimulation programme along its 633m lateral section in 2012 but was suspended prior to
testing due to downhole mechanical problems. The Cambay-77H well design incorporates all of the key
operational and technical learnings that have arisen from a forensic engineering analysis of Cambay-76H by
multiple expert parties.
A shorter lateral section (350m) coupled with a conventional 'plug and perf' method for fracture stimulation
is expected to facilitate the primary goal of the well - recording hydrocarbon flow information at surface
during a production test. Oilex intends to inform the market about progress during drilling operations on a
milestone basis as indicated below.
• Setting and cementing of the 13 3/8" casing at approximately 615mMD
• Setting and cementing of the 9 5/8" casing at approximately 1,650mMD
• Completion of drilling operations at well TD, approximately 2,357mMD
• Setting and cementing of the 4 ½ " production casing
• Completion of mobilisation of the fracture stimulation spread to site
• Completion of the fracture stimulation programme
• An announcement in relation to flow back and production testing will be dictated by the well response to
the stimulation programme
A time gap between setting and cementing the 4 ½ inch production casing and completion of mobilisation of
the fracture stimulation spread is anticipated to minimise potential standby charges associated with
demobilisation of the drill rig from site.
Managing Director of Oilex, Ron Miller, said:
'Drilling operations have commenced
within the anticipated window and I
have the utmost confidence in the Oilex
Well Construction Team in India. All
procedures and techniques to minimise
operational risks for the drilling and
completion of Cambay-77H have been
reviewed and implemented, although
drilling operations are never without
risk. We look forward to measuring a
sustained hydrocarbon flow test from
this well and validating not only our
own expectations of this reservoir but
numerous third party analyses for the
potential resource base of our Cambay
asset.'

Libya: BP shelves onshore exploration in Libya as instability grows
Source: Reuters
Oil and gas major BP said it had mothballed plans to explore in Libya's Ghadames basin because of
security concerns, the latest in a series of companies to rethink their projects amid growing instability. Three
years of turmoil since the Arab Spring and tough contract terms have prompted oil firms to reassess their
role in Libya, and several have said they would postpone their plans or scrap them altogether.
BP's exploration and
production sharing
agreement with Libya
covers onshore acreage in
Ghadames, near the
border between Libya,
Algeria and Tunisia, and
offshore acreage in the
central Sirte basin. 'With
respect to the onshore
exploration drilling
programme, a security
review in June concluded
that this could not be
safely and securely
delivered by BP at this
time. Alternative
approaches are being
considered,' BP said on
Thursday in its annual
report.
The British company was continuing with its offshore plans, where safety risks are much lower. 'Preparation
work towards our offshore exploration drilling programme is continuing,' it said.
BP signed the agreement with Libya in 2007, when it was seen as a landmark deal that sealed former
dictator Muammar Gaddafi's return to the international fold after years of sanctions. BP is still at the
exploration stage and does not produce oil in Libya. Its assets there were worth $472 million at the end of
2013, according to its annual report.
Since Gaddafi's overthrow in 2011, instability in Libya has been rising, with attacks on foreigners becoming
increasingly frequent. A mix of disgruntled workers, separatists and militias have blocked much of its oil
exports for months at a time. In September, Exxon Mobil, the world's largest publicly traded energy firm,
said it would cut its staff and operations in Libya due to growing insecurity. Royal Dutch Shell abandoned
exploration on two blocks in 2012 due to disappointing results. Last year Marathon Oil attempted to sell its
stake in one of Libya's top oil ventures, but Libya blocked the deal.
BP was one of several oil companies that scrambled to return to Libya after 2003. In bidding rounds
opening up territory that had been off limits for years, companies accepted some of the industry's tightest
exploration and production terms.

Bahrain 'producing 850MW of surplus power'
TradeArabia News Service
Bahrain is now producing 850MW of surplus power, according to a top government official.
Minister of State for Electricity and Water Affairs Dr Abdulhussain Mirza ( photo in image )
said it is sufficient to take care of the kingdom’s needs, taking into consideration a five per cent
annual increase in power consumption, reported the Gulf Daily News (GDN), our sister
publication.
Total power generation is expected to reach 3,923MW this summer, he told our sister paper
Akhbar Al Khaleej , adding that the Electricity and Water Authority may resort to GCC Power Grid,
if required. Meanwhile, consumption this summer is expected to reach 3,080MW and the 850MW
surplus will ensure a safe network performance, Dr Mirza said. –
Al Hidd (Bahrain) KA13E2 combined cycle power plant

Qatar LPG exports will stay unchanged till 2018
. - Reuters
Qatar is expected to export around 10 to 11 million tonnes per year of liquefied petroleum gas
(LPG) between 2014 and 2017 before domestic petrochemical consumption reduces exports in
2018, state marketer Tasweeq said on Thursday.
"We are now consistently exporting almost around 11 million tonnes per annum," Tasweeq's CEO
Saad Al Kuwari told the International LP Gas Seminar in Tokyo. Proposed domestic petrochemical
projects such as Al Sejeel, Al Karaana, and Qapco project expansion will consume some Qatari
LPG volumes, hurting its exports, he said.
LPG exports are projected to drop to around 8 to 9 million tonnes per year in 2018, Tasweeq's
presentation material indicated. Qatar, the world's biggest LPG exporter, has more than doubled
its LPG exports to Asia in 2013 from 2008 levels, the CEO added.
Saudi Arabia's state-run Saudi Aramco, meanwhile, has been exporting a little below 8 million
tonnes per year of LPG and the exports would continue around the level for the future, a Saudi
Aramco official also told the seminar .
By 2020, if we look at the Middle East’s export availability taking away domestic demand
compared to the import requirement from Asia-Pac, we see that there is an excess of ~21
MTPA of LPG coming out of the Middle East that can be further utilized for other purposes.

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 SpTechnical Affairs SpTechnical Affairs SpTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for
the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsManager in Emarat , responsManager in Emarat , responsManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed
great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supply
routesroutesroutesroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs fo. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs fo. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs fo. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forrrr
the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broEnergy program broEnergy program broEnergy program broadcastedadcastedadcastedadcasted
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
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New base special 09 march 2014

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