New base special 10 july 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,
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 01 July 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Drydocks World repeats its success with major refurbishment of
NDC’s rig Al Ghallan. Press Release DPW
Drydocks World, the international service provider to the shipping, maritime, offshore, oil, gas and energy
sectors, announced the completion of a major refurbishment carried out on National Drilling Company’s
(NDC) Offshore Drilling Rig Al Ghallan. The
project is part of a series of four rig repair and
refurbishment projects signed with NDC in
2013. Before that, eight projects were
completed. The numbers of projects carried
out for NDC have progressively increased
over the years.
Drydocks World has a well-established
reputation in the rig repair, refit and
refurbishment segment. The company has
successfully dry-docked, repaired and
refurbished 125 Offshore Platform Vessels
(OPV) belonging to major companies. The
shipyard has extensive experience on drilling
rigs and jack-up drilling units. There are instances where a basic hull structure was transformed into a
complete OPV with newly fabricated bracing legs, columns, spud cans, accommodation structures and jack
up & drilling systems.
His Excellency Khamis Juma Buamim, Chairman of Drydocks World & Maritime World is a staunch
advocate of offering quality services to the offshore oil & gas and energy sectors as he foresees growing
opportunity in these rapidly evolving sectors. According to him, “We are grateful to NDC for their
continued faith in our services. We offer services that are suited to the company’s requirements related to rig
refurbishment and refit. We have the capability to meet all the requirements of NDC and plan to develop the
rig business further by joining hands with major suppliers and certified subcontractors. As a regional service
provider we are delighted to work with prominent companies in the region and make effective contributions
to the growth of the offshore oil & gas sector. Deep water exploration and the increased requirements for
specialized vessels for offshore exploration & production; accommodation rigs or offshore support vessels
has been one of our priority targets for future business. We have a dedicated team of highly skilled
employees dedicated to address the repair, refit and refurbishment needs of offshore drilling rigs. Our
facility has three large graving docks and well-equipped workshops that provide us the flexibility of
addressing assignments that are of a highly challenging nature.”
Mr. Abdalla Saeed Al Suwaidi, Chief Executive Officer of NDC underlined the importance of the
modernization projects of the existing rigs in maintaining the best fit-for-service condition while extending

its remaining life in the most reliable, safe, and cost-effective way possible.
“These major refurbishment projects performed in parallel with the fleet expansion plans to obtain new and
advanced offshore and onshore rigs are contributing considerably in strengthening NDC’s operational
excellence and sustaining the maximum levels of safety, environment protection and effective performance.
This will certainly enable NDC to serve its clients competently and always meet their operational
requirements and achieve their satisfaction”, he commented. NDC's CEO expressed his appreciation for
Drydocks World for their efforts and commitment to HSE and Quality.
Rig Al Ghallan is a Self-Elevating Cantilever Type Mobile Offshore Drilling Unit with three triangular
lattice type legs, which are 234 ft long. The work carried out on the rigs include modification of three spud
cans of 160 tonnes each, including replacement of cathodic protection, painting, placing height markings,
carrying out an inclining experiment and updating the rig’s operating manuals. Nearly 55 tonnes of steel
were replaced in the tanks.
Major refurbishment was carried out in the Accommodation. The rig’s three cranes were dismantled and
overhauled. High pressure Koomey lines were replaced. Pipes around the rig were revamped. An
engineering study was carried out based on which the ventilation in the Sewage Treatment Plant and
transformer room were improved. Cantilever skidding gears, air hoists, air tuggers, raw water tower
elevation system, gears and bearings and dump and equalizing valves were overhauled. Other work included
MPI inspection of legs, painting of the derrick and blasting and painting of hull, tanks and mud
pits.Drydocks World has now developed its capabilities to build highly sophisticated drilling rigs.

Middle East crude oil importers shift focus to Asia
Oman Observer + NewBase
The ripple effects of the North American energy boom from major importer to soon-to-be exporter
are being felt across the Middle East, Russia and China. This trend will result in new sources of
supply, increase competition, reshape the global geopolitical landscape and create greater
interdependencies among nations, according to the Deloitte’s 2014 Oil and Gas Reality Check
report.
The report focuses on expansion and contraction on a number of fronts: the waxing and waning of
dominance among suppliers; the progression into globalisation from regionalisation in energy
markets; the growing shares of some fuels and the declining roles of others in the global energy
mix; and, the opening and closing of borders in response to geopolitical concerns.
This year, energy markets have been marked by geopolitical motivations and pragmatism to an
extent never seen before.
For the Middle East, crude cargoes are anticipating a shift as exports are increasingly being
directed eastward towards Asia rather than westward towards the US and Europe,” said Kenneth
McKellar, Energy and Resources leader at Deloitte Middle East. “However, we believe that
predictions of US disengagement from the Middle East are over stated”.
The Deloitte report states that given the fungibility of world oil markets, a disruption in Middle East
oil supplies will reverberate back to the US domestic market regardless of whether the region
remains a major source of crude imports or not. In addition, the region’s volatility continues as the
‘new normal’ since the “Arab Spring.”

The Deloitte report finds that if the US is now less dependent on Middle Eastern supplies, Asia
and China have grown more so. China adopted a ‘go out’ energy policy after 1992, when the
country became a net importer of oil. Sluggish domestic supply growth and poor pipeline
economics left China with few options but to search out new supplies overseas, and it found them
to a great extent in the Middle East.
“Today China is dependent on the Middle East for a large percent of its crude imports and Middle
East exports to China are expected to rise,” explains McKellar. The report outlines five key areas:
North American revolution: The US is currently positioned to be a net exporter of natural gas by
the end of this decade according to projections from the US Energy Information Administration
(EIA).
“Some fear this growing feeling of self-
sufficiency will translate into greater
isolationism and a reluctance to remain
engaged in international affairs. However, I
believe that this scenario is unlikely as we
begin to see new sources of supply and
greater competition for demand, particularly in
Asia Pacific. A simultaneous shift toward
cleaner fuels in the global energy mix bodes
well for natural gas, and consequently for LNG
as natural gas globalises,” said McKellar.
New sources, new geopolitics: The
Organization of Petroleum Exporting Countries (OPEC) and Russia have dominated the oil and
gas export environment for over half
a century. Today, new suppliers are
challenging their dominance, and in
the process, altering the geopolitical
landscape.
“New sources of supply will shake
up the global hydrocarbon markets
in the next decade. Increased US
domestic output, as well as
production growth in Canada,
Mexico, Brazil and Kazakhstan, will
re-shape global oil and gas markets
and the geopolitical landscape.
“We are likely to see decreased
dominance of traditional producers,
mainly Opec countries and Russia,
that will be challenged, and they will
be forced to compete more aggressively to maintain their market share and influence,” said
McKellar. A change in the global order: The global energy mix is shifting towards cleaner fuels
such as natural gas. In North America, natural gas is increasingly being used in power generation,
manufacturing, and transportation. Japan also plans to increase the share of natural gas in its
power mix, continuing a course that was set after the Fukushima Daiichi accident forced a pause
in its use of nuclear power. In Europe, the desire to adopt cleaner fuels will continue despite some
recent backtracking on more costly renewable sources, which has temporarily driven the region
towards greater consumption of coal.

Shale boom confounds forecasts as US set to pass Russia and Saudi
Reuters + NewBase
Four years into the shale revolution, the US is on track to pass Russia and Saudi Arabia as the
world’s largest producer of crude oil, most analysts agree. When that happens and by how much,
though, has produced disparate estimates that depend on
uncertain factors ranging from progress in drilling technology to
the availability of financing and the price of oil itself.
Forecasts for US shale oil production vary from an increase of
7.5 million barrels per day by 2020 — almost doubling current
domestic output of 8.5 bpd — to a gain of 1.5 million bpd, or
less than half of what Iraq now produces.
The disparities are a function of the novelty of the shale boom,
which has consistently confounded forecasts. In 2012, the US Energy Information Administration
(EIA) estimated that production from eight selected shale oil fields would range from 700,000 bpd
of so-called tight oil to 2.8 million bpd by 2035. A year later, those predictions had been
surpassed.
“The key issue is not whether production grows, it’s by how much,” said Ed Morse, global head of
commodities research at Citigroup in New York. “We’re only at the beginning of the first inning and
this is a nine-inning game.”
The stakes couldn’t be bigger, ranging from the multibillion-dollar investments needed to explore
and drill to oil supply issues that go to the heart of US foreign policy. Relations with countries
ranging from Iraq and Iran to Russia, Ukraine, Libya and Venezuela are coloured to one degree or
another by the question of energy.
The US, a nation transformed by the 1973 Arab oil embargo, could become energy independent
by 2035, according to bullish forecasts from BP Plc and the International Energy Agency. Coupled
with growing output from oil-rich neighbours, the continent has a growing shield from supply
shocks.
“Looking at North America, including Canada and Mexico, we’re much more politically stable,”
said Lisa Viscidi, Programme Director of the Inter-American Dialogue in Washington.
Still, many drillers have found that healthy forecasts of oil in the ground don’t guarantee it can be
economically extracted. For example, based on the promise of free-flowing oil, Chesapeake
Energy’s then-top executive Aubrey McClendon bought up land in Ohio’s Utica shale oil field and
touted it in 2011 as a $500 billion opportunity. State geologists estimated the shale play could hold
as much as 5.5 billion barrels of reserves.
But last year, after months of drilling, Chesapeake’s average output per well per day was just 80
barrels. Competitor BP wrote off $521 million and exited the Utica just two years after leasing
85,000 acres.
Shale production from the oldest shale patch, the Bakken of Montana and North Dakota, alone
may rise to as much as 1.74 million barrels per day in the second half of this decade, according to
the highest of six estimates compiled by Reuters. The lowest was 1 million bpd. Even that range
belies disagreement over just how fast output will grow — and when it may peak.
The EIA, the US agency responsible for energy forecasts, predicts that tight oil output will rise 37
per cent from about 3.5 million bpd in 2013 to 4.79 million barrels per day by 2020. The forecast

includes the Bakken, Three Forks and Sanish, Eagle Ford, Woodford, Austin Chalk, Spraberry,
Niobrara, Avalon/Bone Springs and Monterey.
“There are other forecasts that are much more optimistic than this one,” said agency administrator
Adam Sieminski, speaking at a conference in New York. “We’re still a little concerned about what
the geology looks like for crude oil production. As technology moves, these numbers could grow.”
The agency has already made some big adjustments to previous estimates.
It recently slashed its forecast recoverable reserves for California’s Monterey shale to just 600
million barrels, 96 per cent less than the total amount of oil in place, citing the difficulty in pumping
it out economically. IHS Energy’s projections are higher, with an estimated 6 million bpd from the
Bakken, Eagle Ford and sections of the Permian and Niobrara by the end of 2020.
At the low end, Energy Aspects Ltd sees production of 3.5 million barrels a day from shale by
2017, a 1.5 million bpd increase from its current output estimate of 2 million bpd.
“In order to keep production going, you have to maintain your drilling and therefore, capex
investments need to be in a continuous cycle,” said Virendra Chauhan, an oil analyst at Energy
Aspects in London.

QPI, Shell sign memorandum of co-operation on partnership in Brazil
Gulf-Times , Qatar
Qatar Petroleum International (QPI) and Shell yesterday signed a memorandum of co-operation in
support of their new international upstream partnership in Brazil. The agreement follows QPI’s
$1bn purchase in April 2014 of a 23% stake in a major oil production asset, offshore Brazil
operated by Shell known as BC-10 or Parque das Conchas.
The deal was signed in the presence of HE the Minister of Energy and Industry and Chairman of
Qatar Petroleum, Dr Mohamed bin Saleh al-Sada and Chief Executive Officer of Royal Dutch
Shell, Ben van Beurden. The agreement was signed by Nasser al-Jaidah, QPI chief executive
officer and Wael Sawan, managing director and chairman of Qatar Shell Companies. BC-10 is
currently producing approximately 50,000 barrels of oil equivalent a day (boe/d). Since coming
on-stream in 2009, BC-10 has produced more than 80mn boe.
Phase 2 of the project, to tie-in the Argonauta O-North field, came online on October 1st 2013,
with an expected peak production of 35,000boe a day. A final investment decision for a Phase 3 of
the BC-10 project was taken in July 2013 and once online is expected to reach a peak production
of 28,000boe a day. Pictured is a vessel involved in BC-10 offshore field development.

Honeywell signed up for UAE refinery project
Source – Honeywell
Honeywell, a leading diversified technology and manufacturing leader, said the green fuels
process technology of its company UOP has been selected by Petrixo Oil & Gas to produce
renewable jet and diesel at a new refinery to be built in Fujairah.
UOP is a leading international supplier and licensor of process technology, catalysts, adsorbents,
equipment, and consulting services to the petroleum refining, petrochemical, and gas processing
industries.
Petrixo will use UOP Renewable Jet Fuel process technology to process approximately 500,000
metric tons per year of renewable feedstocks into renewable jet fuel and renewable diesel, also
known as Honeywell Green Jet Fuel and Honeywell Green Diesel.The process technology is
capable of processing a variety of renewable feedstocks.
Petrixo announced earlier this year that it will invest $800 million to build the new refinery, which
will have a design capacity of 1 million tons per year of biofuel products, and will be the first
commercial-scale renewable jet fuel production facility outside of North America.
Petrixo Oil & Gas CEO Dr. Eid Al Olayyan said the company believes that new energy solutions
were immensely important for scalable, environmental and renewable solutions. “UOP’s green
fuels technologies are proven refining solutions that produce high-quality products compatible with
petroleum-based fuels,” he noted.
According to him, the UOP technology is designed to provide flexibility to adjust the feedstock mix
depending on parameters such as cost and availability, as well as to enable adoption of newer-
generation feedstocks such as oils derived from algae and halophytes as scalable supply chains
for these lipids develop.
“UOP’s renewable process technologies produce real fuels, rather than fuel additives like
biodiesel, that fit seamlessly into existing fuel supply chains,” remarked Veronica May, the VP and
general manager of UOP’s Renewable Energy and Chemicals business unit.
“The renewable fuels produced by our technology also offer lower greenhouse gas emissions
relative to traditional petroleum-based fuels,” she observed. "Blended up to 50 percent with
petroleum-based jet fuel, Honeywell Green Jet Fuel requires no changes to aircraft technology,
meets all critical specifications for flight, and can reduce greenhouse gas emissions by 65 to 85
percent compared to petroleum-based fuels," she added.

Forum Energy gets SC72 extension
Forum Energy, the UK incorporated oil and gas exploration and production company
with a focus on the Philippines, today confirms that the Philippine Department of
Energy has granted the Company’s request for an extension to the second sub-phase of
Service Contract 72 (“SC72″).
The deadline for completion of the second sub-phase, comprising the drilling of two appraisal wells, has
now been extended by one year to 15 August 2016.
The company has said that further details regarding the Company’s plans for SC72 will be made in due
course, as and when appropriate.
During 2011, 2,202 line-km of 2D seismic, gravity and magnetic data was acquired over SC72 in order to
further define additional leads already identified, while 565 sq km of 3D seismic data were acquired over
the Sampaguita Gas Field.
Seismic data interpretation of these surveys was carried out by Weatherford Petroleum Consultants
(“Weatherford”) in 2012. The results have indicated the Sampaguita Gas Field to contain contingent
resources of 2.6 TCF Gas in Place (GIP) and potential upside of 5.5 TCF of contingent and prospective Gas
in Place (GIP) resources.

Indonesia: Technip secures onshore contract for the Matindok
Gas Development project. PR – Technip + NewBase
Technip, in a consortium with Wijaya Karya (Persero) (WIKA), has been awarded an onshore lump-sum
contract by Pertamina EP for the Matindok Gas Development project located in Central Sulawesi,
Indonesia.
The contract covers the engineering, procurement, construction and installation of gas well pads, flowlines,
pipelines; a central processing plant (672 million cubic meters per year of gas) with gas treatment facilities
such as acid gas removal as well as sulphur removal, and related infrastructure. Sweet gas from Matindok
central processing plant will be sent to the Donggi Senoro liquefied natural gas (LNG) plant.
Technip’s operating centre in Jakarta, Indonesia, will carry out the detailed engineering, procurement of
critical process equipment, while WIKA will carry out the construction activities along with the
procurement of major items. The project is scheduled for completion in the first half of 2016.
KK Lim, President of Technip in Asia Pacific, stated: 'We are delighted to be renewing our ties with our
client Pertamina and supporting them in bringing the Matindok field onstream. Technip’s proven track
record in delivering EPC contracts will ensure that the project is delivered to the highest standards of safety
and quality.'
The Matindok Gas Development project:
The Matindok field, solely own by Pertamina, has about 1 billion cubic meters per year of gas and consists
of the Donggi, Matindok, Maleoraja and Minahaki fields.

UK: ConocoPhillips confirms Jade gas condensate field extension
Source: BBC News
US energy giant ConocoPhillips has confirmed that first production has been achieved from an appraisal
well, extending the Jade gas condensate field in the UK Central North Sea. The Jade field is tied back to
the Judy platform, which is located about 150 miles south-east of Aberdeen. ConocoPhillips is operator and
holds a 32.5% stake in the field.
Its co-venturers are BG Group (35%), Chevron North Sea (19.93%) Eni UK (7%) and OMV (UK) (5.57%).
The appraisal well was drilled by the Maersk Resilient rig from the Jade platform and went online
last month.
David Chenier, UK president for ConocoPhillips, said: 'This discovery adds to our company
portfolio of commercial discoveries in the Central North Sea and it will help to ensure continuity of
production from the J-Area. The achievement of
production from this well means that another
structure to the south has also now been de-risked
for targeting as a potential development opportunity
for the future.'

Russia: Japan's Mitsui OSK Lines to launch Arctic Ocean LNG
route from Russia's Yamal in 2018 Source: Reuters + NewBase
Japan's Mitsui OSK Lines (MOL) said on Wednesday that it will start transporting liquefied natural gas
(LNG) through the Arctic Ocean in 2018 using icebreaker LNG tankers.
MOL, with its joint
venture partner China
Shipping, has ordered
three icebreaker LNG
carriers from South
Korea's Daewoo
Shipbuilding & Marine
Engineering Co. The new
tankers will deliver LNG
to Europe and Asia from a
gas plant to be built on the
Yamal Peninsula in
northern Russia by
Russia's second-largest
gas producer Novatek,
France's Total and China
National Petroleum
Corporation.
With the melting of sea
ice due to global warming
effects, the Arctic Ocean
route, the shortest
shipping route linking
Europe and Asia, has
opened up in the past few
years, a MOL spokesman
said. The icebreaker
tankers are expected to
deliver LNG to Europe
via the route all year
while they will likely
transport the gas to Asia
only between July and
November, the spokesman
said.
The new route through the
Arctic Ocean will enable the gas to arrive from the Yamal plant to Europe in about 11 days, and Northeast
Asia including Japan in about 18 days, according to the spokesman.

South Stream Offshore Pipeline ESIA Report released
Source: South Stream Transport
South Stream Transport has published the findings of the Environmental and Social Impact
Assessment (ESIA) for the Russian Sector of the South Stream Offshore Pipeline.
The ESIA Report contains
information about the
potential impact of the
Project on the
environment and people
living in the area. The
assessment was made by
international experts and
shows that construction
and operation of the four
pipelines and landfall
facilities in Russia is not
expected to have
significant environmental
or social impacts.
ESIA and EIA ensure responsible Project development
In order to develop the Project in an environmentally and socially responsible manner, South Stream
Transport has conducted an impact assessment consisting of two parallel processes: an Environmental
Impact Assessment (EIA) in accordance with national Russian legislation; and an Environmental and Social
Impact Assessment (ESIA) based on guidelines of international finance institutions, such as those of the
World Bank’s International Finance Corporation (IFC).
The EIA Process according to Russian legislation has been finalized, and the Russian Ministry of
Construction, Housing and Utilities issued an onshore construction permit in June 2014. The ESIA process
following international guidelines is expected to last until early autumn.
The ESIA Report was prepared by independent specialists at URS Infrastructure and Environment UK
Limited and provides additional information on environmental, cultural heritage and socio-economic
aspects. For example, it includes more detailed information on biodiversity, intangible cultural heritage,
social matters and the Company’s ongoing efforts to engage with stakeholders on the Project. It also
provides an assessment of potential cumulative impacts, taking into account both the planned South Stream
Offshore Pipeline and other planned or known developments in the area.
According to South Stream Transport, the ESIA Report contains numerous mitigation and environmental
protection measures to reduce any negative impacts that may otherwise result from the Project. The experts
responsible for this ESIA Report are confident that as a result, the Project will not have a significant social
or environmental impact.
The ESIA Report is available online at http://www.south-stream-offshore.com/esia/esia-russia/

Statoil gets approval to drill Ensis well in Barents Sea
Source :Statoil
Norwegian oil giant Statoil has been given approval to carry out exploration drilling of
the well 7125 4-3 (Ensis) in production licence 393 in the Barents Sea using the
Transocean Spitsbergen semi-submersible drilling rig.
Water depth at the site is approximately 294 metres and it is around 42 kilometres to the nearest mainland at
Knivskjelodden in Nordkapp municipality in Norway.
Drilling is planned to begin 1th of September 2014, with a duration of approximately 30 days, depending on
whether a discovery is made.
Transocean Spitsbergen is a semi-submersible drilling facility of the Aker H-6e type. It was built at the Aker
Stord yard in 2009.

US: Six formations are responsible for surge in Permian Basin
crude oil production . Source: U.S. Energy Information Administration
The Permian Basin in Texas and New Mexico is the nation's most prolific oil producing area. Six
formations within the basin have provided the bulk of Permian's 60% increase in oil output since 2007.
Crude oil production in the Permian Basin has increased from a low point of 850,000 barrels per day (bbl/d)
in 2007 to 1,350,000 bbl/d in 2013.
Largely as a result of this growth, crude oil production from Permian Basin counties has exceeded
production from the federal offshore Gulf of Mexico region since March 2013, making the Permian the
largest crude oil producing region in the United States. In 2013, the Permian Basin accounted for 18% of
total U.S. crude oil production.
The recent increase in Permian crude oil production is largely concentrated in six low-permeability
formations that include the Spraberry, Wolfcamp, Bone Spring, Glorieta, Yeso, and Delaware formations.
Production from these formations has helped drive the increase in Permian oil production—particularly
since 2009—despite declining production from legacy wells.
Almost three-quarters of the increase in Permian crude oil production came from the Spraberry, Wolfcamp,
and Bone Spring formations. Counties in these three formations have driven the increase in the Permian
Basin's horizontal, oil-directed rig activity in recent months.
Production from these three formations collectively increased from about 140,000 bbl/d in 2007 to an
estimated 600,000 bbl/d in 2013, increasing their share of total Permian oil production from 16% to 44%.

Three other formations—the Delaware formation and the adjacent Glorieta and Yeso formations—also
increased production from 2007 to 2013, but to a lesser extent. Production from these three formations rose
from 61,000 bbl/d in 2007 to an estimated 112,000 bbl/d in 2013.
Source: U.S. Energy Information Administration, U.S. Geological Survey, University of Texas Bureau of Economic
Geology, and Drillinginfo Note: Wolfcamp is found throughout
The Permian Basin region encompasses an area approximately 250 miles wide and 300 miles long, and it
contains many potentially productive low-permeability oil formations. Although oil production has
previously come from the more permeable portions of the Permian formations, the application of horizontal
drilling and hydraulic fracturing has opened up large and less-permeable portions of these formations to
commercial production. This is especially true for the Spraberry, Wolfcamp, and Bone Spring formations,
which have initial well production rates comparable to those found in the Bakken and Eagle Ford shale
formations.

Mozambique Gas-To-Liquid projects to queue behind LNG
Plants
The Royal Dutch Shell (Shell) on one side and the tandem Sasol-Eni on another side signed these last weeks
agreement with the national oil company (NOC) Empresa Nacional de Hidrocarbonetos (ENH) to start
feasibility studies on Gas-To-liquid (GTL) projects in Mozambique.
During the last two years Mozambique emerged as one of the potential key players of the natural gas market
with the discoveries performed in the Rovuma Basin, offshore Mozambique on the east of coast of Africa.
Pioneered by Anadarko on the
Area 1 and Eni on the Area 4,
the Rovuma basin exploration
has proven to be one of the
most prolific opportunity in
the world for non-associated
gas over the last ten years.
Although Anadarko and
Eni have not completed yet the
evaluation of the reserves in
their respective Area, their
estimations of recoverable
reserves in the Rovuma Basin
fluctuate between 70 trillion
and 100 trillion cubic feet
(tcf).
With these gigantic reserves,
the Mozambique Government
required Anadarko and Eni to
align on onshore development
in order to optimize the
infrastructures required to
support the production and
exportation of liquefied
natural gas (LNG) while both
operators will develop the
offshore part of their projects in the Area 1 and Area 4 on their own.
At this stage Anadarko and Eni consider conventional concept, based on offshore platform and export
pipeline to shore, as well as floating LNG vessels.
Anyway in both cases, exporting LNG from Mozambique will face tougher competition in coming years
because of similar export projects in Tanzania, Australia, Russia and North America.
After the spiraling costs experiences in Australia, all the companies such as Anadarko, Shell or Eni are
assessing carefully all multi-$billion LNG projects and investigate solutions to mitigate risks.

Mozambique GTL projects to leverage LNG projects
Among the solutions, the conversion of natural
gas into liquids has proven to be pertinent in a
context of wide spread between the low
gas prices and the high crude oil prices.
From the evidences accumulated these last years,
this wide spread between energy prices appears
sustainable enough to consider GTL projects in
Mozambique.
In Mozambique these GTL projects would
provide all parties with solid benefits for all
parties.
For the Government, the Mozambique GTL projects should reduce the import of expensive crude oil for the
distribution of transportation fuels.
Through ENH they should also
increase the local monetization of the
Rovuma Basin resources.
For the companies such as Shell,
Sasol, Anadarko and Eni, the
integration of GTL projects in the
development of large non-associated
gas projects will leverage their added
value while mitigating reliance on
gas markets.
Because of their experience in world-
scale GTL projects in Africa, Asia
and Middle-East, Shell and
Sasol appear as the best partners for
Eni and ENH to develop these
Mozambique GTL projects.
In starting feasibility studies now, the Shell GTL and Sasol GTL projects in Mozambique with ENH and
Eni should run into commercial operations by 2021 – 2022.

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 workingOil & Gas sector. Currently workingOil & Gas sector. Currently workingOil & Gas sector. Currently working asasasas
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 , 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
ManaManaManaManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he hasger in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he hasger in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he hasger in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developeddevelopeddevelopeddeveloped
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 enginof gas pipelines, gas metering & regulating stations and in the enginof gas pipelines, gas metering & regulating stations and in the enginof gas pipelines, gas metering & regulating stations and in the engineering of supplyeering of supplyeering of supplyeering 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 reference for many of the Oil & Gas Conferences held in the UAE anthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE anthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE anthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andddd 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 01 July 2014 K. Al Awadi

New base special 10 july 2014

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Viewers also liked

Viewers also liked (18)

Similar to New base special 10 july 2014

Similar to New base special 10 july 2014 (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base special 10 july 2014