New base special 10 november 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 10 November 2014 - Issue No. 476 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
EmiratesLNG import terminal tender due by early 2015
Reuters + NewBase
The result of a tender to build a liquefied natural gas (LNG) import facility at the busy oil port of
Fujairah will be announced in late 2014 or early 2015, the UAE energy minister said yesterday.
In an interview with state news agency WAM, Suhail bin Mohammed al-Mazroui said the project
would have a capacity of 9mn tonnes a year. EmiratesLNG, a joint venture between state-
controlled International Petroleum Investment Co (IPIC) and Mubadala Petroleum, won approval
for the venture in November 2013.
The company has said the new terminal will be able to accommodate the largest LNG tankers,
with most of the gas destined for the UAE’S power sector. Front-end engineering design (FEED)
has been done by France’s Technip.
Dubai already imports LNG through ports in the Gulf, and the UAE gets Qatari gas by pipeline,
which helps feed power and desalination plants at Fujairah. Building an LNG import terminal
outside the Strait of Hormuz reduces the risk that the UAE’s supplies could be affected by
problems in the vital oil and gas shipping lane, which neighbouring Iran threatened to block two
years ago.

Safe startup for $1bn JBOG project at Ras Laffan Saves
100MMSCFD of gas.( source Qatar Pet )
The $1bn Jetty Boil-off Gas Recovery (JBOG) Project has had a safe startup at Ras Laffan,
Qatargas said on Sunday. The key pro-environment project has been designed to eliminate flaring
at the LNG terminals.
The main shareholders of the JBOG Project are Qatar Petroleum, ExxonMobil, Total,
ConocoPhillips and Shell, while the facilities are operated by Qatargas and RasGas, the two
largest LNG producers in the world.
The JBOG facilities started up successfully during the first week of October, and have been
performing safely and reliably. Around 100mn standard cubic feet per day of natural gas, which
used to be burnt and wasted during LNG ship loading is now being recovered and utilised in the
LNG production plants as fuel. Over a period of 30 years, the JBOG Project will save nearly 1tn cu
ft of gas for Qatar.
The operation of these facilities reduces the greenhouse gas emissions to the atmosphere, and
helps in maintaining a clean environment for Qatari residents. Qatar Petroleum managing director
Saad Sherida al-Kaabi, also Qatargas chairman, highlighted the significance of the project as not
only one of the largest environmental investments but also the largest LNG boil-off recovery
project in the world.
He said, “The development of the Jetty Boil-off Gas Recovery Project was initiated by Qatar
Petroleum nearly a decade ago. JBOG is set to become a landmark project for Qatar, underlining
the country’s commitment to balance industrial development with care for the environment.
This huge investment by Qatar Petroleum and its partners will reduce the carbon footprint of the
77mn tonnes per year of LNG production facilities to the minimum practically possible contributing
to the environmental development pillar of the Qatar National Vision 2030.”
Qatargas chief executive officer Sheikh Khalid bin Khalifa al-Thani expressed delight at the safe
startup of the JBOG facilities, and said, “The completion and operation of the JBOG Project is a
great achievement by the JBOG Project Management Team, its contractors and Qatargas
Operating Company. The excellent result achieved by everyone associated with this
environmental project is a matter of great pride for Qatar and its people.”

The engineering, procurement and construction management (EPCM) contract for the project was
awarded to the US-based Fluor in February 2010. The detailed design and procurement services
were carried out at Fluor’s offices in Sugar Land, Texas, and New Delhi, India. The main
equipment on the project was supplied by General Electric, Emerson and ABB.
The construction of the project started in Ras Laffan City in mid-2011, with the bulk of the site
work executed by some of the leading construction contractors in Qatar, namely Ammico, STFA,
Qcon, Qatar Kentz and Medgulf. The work site saw a peak of around 3,000 people working hard
to finish the project.
Qatargas chief operating officer (engineering and ventures) Sheikh Khalid bin Abdulla al-Thani
thanked the people who made this project a reality, and was especially happy about the safety
record of the project.
Sheikh Khalid said, “Qatargas prides itself on its high safety standards. It is a matter of immense
satisfaction for us that the JBOG Project Team completed the project with zero lost time incident
(LTI).
Considering that the project spent three years in construction and spent over 22mn man-hours,
the zero LTI is a fantastic record. I would also like to congratulate the JBOG Project Team,
Qatargas Operations Development Department and all the relevant contractors for producing a
facility, which has started up safely and smoothly”.
The project design is based on the collection of the LNG boil-off gas from the LNG carriers and
the transfer of this gas to a Central Compression Area via large diameter stainless steel pipelines.
At the Central Compression Area, the gas is compressed and sent to the LNG trains for use as
fuel gas or for conversion into LNG.
A significant part of the JBOG Project was devoted to upgrading nearly 85 LNG carrier ships to
make them ready for recovering the boil-off gas. Ships ranging from Qmax, Qflex, conventional
Membrane and Moss type were covered successfully. This complicated work is largely complete,
resulting in the achievement of the gas recovery target of 90%.

Libya's El Feel oil field shut down, third site within days
By Ayman al-Warfalli and Ulf Laessing
Nov 9 (Reuters) - An oil field in southwest Libya has closed down, officials said on Sunday,
becoming the third oil facility in the chaotic country to shut within a week. The El Feel field,
operated by Libya's National Oil Corporation (NOC) and Italy's ENI, shut down due to a power
outage after armed men forced the closure of the major El Sharara field in south Libya last
Wednesday, an NOC spokesman said.
OPEC member Libya is in turmoil as two governments and parliaments vie for legitimacy three
years after the ouster of strongman Muammar Gaddafi. The internationally-recognised
government works from Tobruk in the east since an armed group seized the capital Tripoli in
August.
Libya hopes both closed fields, which share one power supplier, will resume work by Monday, said
an NOC spokesman, which would gradually bring back up to 300,000 barrels a day.
"We expect El Feel and El Sharara to return to work on Sunday or Monday," Harari said.
The El Sharara field, co-run by NOC and Spain's Repsol , closed when gunmen stormed it, stealing
vehicles and equipment. It has a capacity of 340,000 bpd but recently produced less as wells were
lost due to two previous closures by protesters, according to previous Libyan comments.
The El Feel used to pump 80,000 bpd in the past but NOC has not provided any update recently.

Libyan state security guards have also blocked all exports from the eastern Hariga port, located in
Tobruk near the Egyptian border, an oil official said on Saturday.
The protesters at Hariga are part of a state security oil force that has gone on strike over pay
several times this year.
BOMB EXPLOSION
Libya is grappling with a sharply deteriorating security as the country is effectively controlled by
former rebels who helped topple Gaddafi but now use their guns to fight for power.
At least one bomb exploded on Sunday in the eastern town of Shahat, where U.N. special envoy
Bernadino Leon was meeting the internationally recognised Prime Minster Abdullah al-Thinni,
said security officials who reported up to five people were slightly injured.
"According to our colleagues, no one at the meeting was hurt," a U.N. spokesman said,
contradicting that report. "The U.N. delegation has returned safely to Tunis."
The United Nations has been trying to mediate between the conflict parties in Tripoli and the east
but no progress has been reported publicly.
In the main eastern city of Benghazi, 300 people have been killed in three weeks of clashes. The
recent turmoil has also lowered Libya's oil exports to below 500,000 barrels per day, based on
previous published figures.
In Tripoli, in the west, gunmen stormed a branch of Sahara commercial bank, robbing 1.7 million
dinars ($1.3 million), a central bank spokesman said.

UK: Cluff Natural Resources awarded 11 Promote Licences in UK 28th
Offshore Licensing Round. (Source: Cluff Natural Resources + NewBase)
Cluff Natural Resources has provisionally been awarded promote licences foreleven blocks by
the Department of Energy and Climate Change (DECC) on the UK Continental Shelf in
the UK's 28th Offshore Licensing Round.
The specific licence blocks provisionally awarded to CNR are as follows:
41/5, 41/10, 42/1; 42/14b; 43/3, 43/4, 43/5; 43/7, 43/8, 43/9; 43/11
All of the blocks are located in the Southern North Sea in close proximity to the Breagh Gas
Field. The Company believes this is an under-explored, emerging area which is potentially
responsive to the latest seismic and drilling technology, where fields can be developed quickly
and infrastructure is evolving rapidly.
Algy Cluff, Chairman and
Chief Executive of CNR,
commented:
'I am delighted to report that
DECC has provisionally
awarded CNR these new
licences within the Southern
North Sea area of the UK.
Whilst CNR already has a
portfolio of eight offshore
Underground Coal Gasification
('UCG') Licences totalling
61,274 hectares in the UK,
securing eleven North Sea
licences is a major
achievement for our Company
and further establishes our
position as a natural resources
focussed investing company
and reflects our commitment to
the UK and to the North Sea.
This Company has a particular
interest in the conventional gas
sector as well as a
determination to safely and
cleanly convert offshore coal to
gas.'

UK:Rathlin Energy announces plans for further drilling onshore Yorkshire
Source: Hull Daily Mail
Rathlin Energy has announced plans for another gas exploration site in the East Riding,
Yorkshire. The company insists it still has no plans to carry out the controversial process of
fracking at its West Newton andCrawberry Hill sites, despite heavy criticism from anti-fracking
campaigners. Both sites have
attracted protest camps.
The company has suspended
work at West Newton and is
planning to start drilling at a
new location in Aldbrough.
Rathlin chairman David
Montagu-Smith said: 'We
have just completed testing
operations at the first site at
West Newton and we have
suspended the work,
however, we may in the future
go back to look at it. We were
testing the conventional sand
and limestone formations that
are our main targets. We
were not working at any level
deeper than that and,
specifically, we were not
carrying out any form of
fracking activity.'
'We are now looking at another well location, sited about a mile from the first West Newton one,
and that will only drill down to the bottom of the conventional sands. We will not be drilling any
deeper than that.'
The company insists it has no plans to carry out any fracking, which involves drilling deep
underground and releasing a mix of water, sand and chemicals to crack rocks and release shale
gas stored inside.
Project manager Tom Selkirk said: 'We are looking for reserves of oil and gas that we can
produce to either wind up in the National Grid and wind up in people's homes, or oil products that
will wind up migrating their way to the petrol tank of your car or in the diesel tank of your truck.'
Rathlin hopes to submit a planning application for the second West Newton well at the beginning
of next year.
Mr Montagu-Smith said: 'We have to stress that we are at the exploration stage of the operation.
At the exploration stage we are here, potentially, only for a short length of time, but we can say
that in the past three years Rathlin has spent more than £7.5m investing in the Yorkshire
economy by employing local people, by buying local services , by retaining local construction
engineers – a very significant sum of money.'

Oil Price Drop Special Coverage
Oil price slide threatens energy subsidies in Arabian Gulf states
The National + NewBase
Low oil prices may lead Arabian Gulf states to issue additional debt and cut energy subsidies,
according to the ratings agency Standard and Poor’s. “If there’s a prolonged oil price correction,
corporate and government-related entities may have to change the way they fund infrastructure,
development and investment] projects,” said Tommy Trask, director of corporate ratings in the
Middle East at Standard and Poor’s.
A temporary reduction in oil prices is likely to force Gulf states to tap into their reserves, but “a
prolonged period of lower government revenues … may push up sovereign and government-
related entity capital market issuance”, the agency’s report states.
The benchmark oil price Brent crude has fallen by 29 per cent in the last nine months, from
US$107.76 per barrel, to $83.39 per barrel on Friday. Capital Economics predicts that the oil price
will hit $85 next year before falling to $80 in 2016.
The UAE’s break-even oil price is $81.3 per barrel, according to Standard and Poor’s. However,
Abu Dhabi’s break-even oil price is $45 per barrel, meaning that the capital’s fiscal plans should
be unaffected by the recent fall in oil prices.
“The UAE has a comparatively diversified economy by Gulf standards, making it less vulnerable to
lower oil prices,” states a recent report from Capital Economics. “We expect the non-oil economy
to grow at a solid pace supported by stronger global demand and rising credit growth.”

The federal fiscal surplus is projected to fall to 9.5 per cent of GDP this year, from 10.8 per cent
last year, when the oil price was $96.90 per barrel on average. Low oil prices have led to new
calls from GCC ministers to reduce subsidies for domestic energy consumption.
Energy and water tariffs in Abu Dhabi are set to rise, as the government reduces spending on
consumer subsidies. Tariff support is set to cost the emirate Dh17.5 billion this year, according to
the Abu Dhabi Executive Council.
Producers in energy-intensive industries, such as aluminium, could lose out if energy subsidies
are reduced, Mr Trask said. “There are strategic reasons why the UAE Government provides
subsidies to energy-intensive industries,” he said. “But many of these producers have high
margins, so there is room for the Government to reduce subsidies, even while these companies
continue to be profitable.”
Lower government revenues may lead to increased corporate and state fixed income issuance –
which would be good news for the country’s capital markets. In April, the Securities and
Commodities Authority relaxed sukuk issuance regulations in a bid to encourage more issuers to
list on the UAE’s bourses.
Global sukuk issuance hit $21 billion in 2013, while Nasdaq Dubai has attracted about $6bn of
new listings this year. Private sector fixed-income issuance in the UAE is equal to about 0.7 per
cent of GDP as of this year – considerably lower than in the UK and US, where private sector
bond issuance is equivalent to 29 per cent and 44.5 per cent of GDP respectively.
This means there is room for the UAE to grow its fixed-income capital markets, S&P said, which
could improve prospects for corporate financing, and the wider economy. “Developing fixed-
income markets should lead to more resilient and stable financial sectors, and more diversified
funding structures,” the report states. This would encourage “economic and private sector
employment growth”.
LNG prices may recover on rising winter heating demand
Gulf Times+ NewBase
Liquefied natural gas prices may recover this winter as heating demand gains in many countries
including Japan boost demand for LNG spot purchases, Bank of America Merrill Lynch (BOAML)
has said in a report.
“Japanese nukes will mostly be offline this heating season and LNG burn may exceed last year’s
when the weather was mild. As heating demand rises, so will spot purchases in Asia,” Bank of
America Merrill Lynch said in its weekly global energy report.
“The risk to spot LNG prices near term is also skewed to the upside if oil prices find support on an
Opec cut and a slowdown in US shale oil output, as we expect,” BOAML said.
In a move entirely out of sync with the seasonal norm where demand and prices strengthen into
winter, Asian LNG spot prices sold off in October to $13/MMBtu (million British thermal unit),
opening an astonishing $5 gap to where prices traded last year. Clearly, the collapse in oil prices
is reverberating across the energy complex, and is now filtering through to LNG prices.
“Yet, we still expect LNG prices to recover this winter,” BOAML said.

Nonetheless, any seasonal price recovery may be muted with the PNG project producing at full
capacity, demand looking weak in Asia Pacific, especially China, and major LNG consumers well
stocked.
PNG LNG is an integrated development that is commercialising the gas resources of Papua New
Guinea. Gas will be exported as LNG to customers around the world. The project will produce
6.9mn tonnes of LNG a year.
“We doubt LNG prices can trade above $18 /MMBtu this winter as the balance is significantly
weaker than last year, barring an unusually cold winter. After that, the combination of Japanese
and Korean nuke restarts, which coincide with the start-up of new LNG supplies in Australia, will
result in considerably weaker balances from Q2, 2015 onwards, earlier than we previously
expected.
“In our view, this may lead to another big seasonal summer price plunge next summer. The
lumpiness of new LNG supply next year implies a more volatile environment,” BOAML said.
Looking further ahead, BOAML sees large ramp-ups of Australian projects currently under
construction until 2017. After that, the Australian supply growth tails off to make room for lower
cost US projects.
“We still see 68mn tonnes per year (9.1 billion cubic feet a day) of US LNG exports by 2020,
starting with the Sabine Pass terminal starting up in late 2015. Strong US supply growth will likely
put downward pressure on LNG prices over the next few years, though long term we still see
price support for Asian LNG at the Australian total cost breakeven of $13-14/MMBtu,” BOAML
said.
OPEC says oil price to rebound by Q2 next yearBy Reuters
Evolution of Asian LNG spot prices (Japanese benchmark) 2012 – 2014 Reuters

Fundamental factors do not justify the sharp drop in oil prices, OPEC Secretary-General
Abdullah al-Badri has said, forecasting a price rebound
by the second half of 2015.
“We are concerned but we are not panicking," he told
reporters at a news conference on the group's 2014
World Oil Outlook.
"We don't see that much of change in fundamentals. The
decline is 28 percent, it's a little bit too much," he said,
adding the group was evaluating the situation to gauge
how events might develop.
OPEC meets on Nov 27 and Badri said OPEC had not invited any other producers to attend.
Brent crude futures have fallen 27 percent since the start of July and 12 percent in the last month.
"I think the price will rebound by the second half of next year. But I don't know by how much. This
situation of low prices cannot continue," he said, adding speculation was playing a role in the price
drop.
Badri had told reporters in September that he thought oil prices would come back up by the end
of this year. He said it was up to OPEC member countries to decide how to respond to the oil
price drop. The next ministerial meeting is on Nov. 27.
OPEC's oil market share is set to be 5 percent smaller by 2018 as supply of U.S. shale oil grows
faster than previously thought, giving the 12-member exporter group little comfort from rising world
demand, its market outlook found.
Asked about the impact if oil prices stay low for a long time, Badri pointed to the heavy
investments OPEC members were making in their energy sectors. "If we stop this I am sure the
supply will decline very soon and the price will shoot up and volatility will be causing the oil
industry...a lot of problems," he said.

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 aKhaled Al Awadi is a UAE National with aKhaled Al Awadi is a UAE National with aKhaled Al Awadi is a UAE National with a
total of 24 yearstotal of 24 yearstotal of 24 yearstotal of 24 years of experience in theof experience in theof experience in theof experience in the Oil &Oil &Oil &Oil &
Gas sector. Currently working as TechnicalGas sector. Currently working as TechnicalGas sector. Currently working as TechnicalGas sector. Currently working as Technical Affairs SpecialistAffairs SpecialistAffairs SpecialistAffairs Specialist
for Emirates General Petroleum Corp. “Emarat“ withfor Emirates General Petroleum Corp. “Emarat“ withfor Emirates General Petroleum Corp. “Emarat“ withfor Emirates General Petroleum Corp. “Emarat“ with
external voluntary Energy consultation for the GCC area viaexternal voluntary Energy consultation for the GCC area viaexternal voluntary Energy consultation for the GCC area viaexternal voluntary Energy consultation for the GCC area via
Hawk Energy Service as a UAE operations base , Most ofHawk Energy Service as a UAE operations base , Most ofHawk Energy Service as a UAE operations base , Most ofHawk Energy Service as a UAE operations base , Most of
the experience were spent as the Gas Operations Managerthe experience were spent as the Gas Operations Managerthe experience were spent as the Gas Operations Managerthe experience were spent as the Gas Operations Manager
in Emaratin Emaratin Emaratin Emarat , responsible for Emarat Gas Pipeline Network, responsible for Emarat Gas Pipeline Network, responsible for Emarat Gas Pipeline Network, responsible for Emarat Gas Pipeline Network
Facility & gas compressor stations . Through the years , heFacility & gas compressor stations . Through the years , heFacility & gas compressor stations . Through the years , heFacility & gas compressor stations . Through the years , he
has developed great experiences in the designing &has developed great experiences in the designing &has developed great experiences in the designing &has developed great experiences in the designing &
constructingconstructingconstructingconstructing of gas pipelines, gas metering & regulatingof gas pipelines, gas metering & regulatingof gas pipelines, gas metering & regulatingof gas pipelines, gas metering & regulating
stations and in the engineering of supstations and in the engineering of supstations and in the engineering of supstations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation &ply routes. Many years were spent drafting, & compiling gas transportation , operation &ply routes. Many years were spent drafting, & compiling gas transportation , operation &ply routes. 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 &maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil &maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil &maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil &
Gas Conferences held in the UAE andGas Conferences held in the UAE andGas Conferences held in the UAE andGas Conferences held in the UAE and Energy prEnergy prEnergy prEnergy program broadcasted internationally , via GCC leading satellite Channels .ogram broadcasted internationally , via GCC leading satellite Channels .ogram broadcasted internationally , via GCC leading satellite Channels .ogram 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 10 November 2014 K. Al Awadi

New base special 10 november 2014

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