New base special 15 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,
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NewBase 15 July 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
South Korea’s Hyundai wins $1.94 billion Abu Dhabi offshore oil and gas contract
The National + NewBase
Hyundai Heavy Industries has won a US$1.94 billion contract from Abu Dhabi Marine Operating
Company (Adma-Opco) to build an offshore oil and gas platform in Abu Dhabi. The South Korean
company will complete
engineering, procurement,
construction, installation and
commissioning work for the
Nasr oilfield, 130 kilometres
off the coast of Abu Dhabi,
close to the limit of the UAE’s
territorial waters.
Scheduled to complete in the
second half of 2019, the
facility will raise the daily
production capacity of the
offshore field to 65,000 barrels
per day from the current
22,000 bpd. Adma-Opco is
seeking to add 300,000 bpd to
total production from new
fields including Umm Lulu and
Nasr as part of its broader objective to ramp up output to 1 million bpd by the end of the decade.
Offshore oil is key to Abu Dhabi’s target to raise output capacity to 3.5 million bpd by 2017.
Current capacity stands at 2.7 million bpd. Abu Dhabi Marine Operating Company contributes
600,000 bpd of that amount, according to the company last year.
Hyundai’s contract also includes laying 144km of underwater power and 55km of infield cables, as
well as modifying an existing manifold tower and two wellhead towers in the Nasr oilfield.It is not
the first time Adma-Opco has partnered with Hyundai. In 2006, Hyundai Heavy Industries
constructed three new gas injection facilities for the Umm Shaif project. In April, the company said
it had awarded a US$1.89 billion to contract to Hyundai Engineering & Construction to develop the
Satah Al Rasboot oilfield.
More recently Adma-Opco has been actively seeking to expand its other offshore fields. National
Petroleum Construction Company of tyhe UAE last year won a Dh2.8bn contract to develop the
Umm Lulu offshore oilfield. Together with the Satah Al Rasboot and the Nasr fields, it is expected
to raise the company’s output sufficiently to meet its 2020 output target.
Adma-Opco is 60 per cent owned by Abu Dhabi National Oil Company, with shares also held by
UK-based BP (14 per cent), France’s Total (13 per cent) and Japan’s Jodco (12 per cent).

Musandam Gas Plant to be operational by Q4
OEPPA Business
Development Dept Oman Oil Company Exploration and Production LLC (OOCEP), the upstream
subsidiary of Oman Oil Company SAOC, hopes to launch its Musandam Gas Plant — a key
investment that promises to fuel the long-term economic development of the Sultanate’s
northernmost governorate — before the end of this year.
The project, the largest of its kind in this strategically important enclave, is being developed with
an investment of around $600 million at a waterfront location in Tibat in Wilayat Bukha.
Designed as an integrated processing plant, the facility will process well fluids from the existing
Bukha field offshore platforms.
The well fluids will be transported from the platform to the Musandam Gas Plant (MGP) through a
newly installed subsea pipeline where they will be processed to produce sales quality gas, oil,
LPG and sulphur, according to OOCEP.At full capacity, the plant will process 45 million standard
cubic feet per barrels per day of crude oil.
Part of the project’s output of natural gas will be used as fuel for the governorate’s first ever gas-
based power plant planned for implementation next door. Another offshore export pipeline will
transport sales gas from Musandam to Saqr Port in Ras Al Khaimah.Gas-powered electrification,

along with an array of notable infrastructure initiatives planned by the government, will usher in a
vigorous phase of economic development in this rugged part of the Sultanate.
Projects worth in excess of RO 500 million have been earmarked for implementation across the
governorate during the current 8th Five-Year Plan. Key among the schemes lined up for execution
is the massive Khasab — Lima — Diba road project, which will open up Musandam to tourism and
commercial investment.“The (Musandam Gas Plant) construction phase is nearing completion and
is expected to be fully operational by Q4 2014.
The gas will be supplied to the Musandam Power Plant currently under construction, with excess
gas being exported,” OOCEP stated in a report.
Significantly, the gas plant’s imminent completion comes against a gauntlet of challenges that
Korean engineering and construction giant Hyundai, the project’s EPC contractor, had to face
during the execution of the venture.As a green-field project, being implemented in an extremely
rugged and remote part of the governorate, all of the goods, equipment and personnel had to be
mobilised elsewhere and shipped to site. Furthermore, transportation of goods involved multiple
international border clearances and other challenging logistics.
“Extensive mountain cuttings and coastal reclamation was performed for preparation of the plant
site. The plant is located adjacent to the main highway and near the border, requiring additional
efforts: ROP liaison, site and public traffic management and dust control,” the upstream operator
noted.
Nevertheless, the project achieved over 10 million man-hours without any lost time on injuries, it
said.Operation and maintenance of the gas plant has been entrusted to Petrofac, the British-
headquartered international oil and gas services contractor, under a three-year contract signed
last year. Petrofac will manage
the initial transition from the
commissioning to full operating
phase, with an operations and
maintenance team to be
deployed at site.
India disallows Reliance from oil cost

Morocco Tangiers: TAO-1 drilling going as planned
Press Release,
Tangiers Petroleum Limited has provided an update on the drilling of the TAO-1
exploration well,located offshore Morocco.
No major operational issues have occurred to date and the well is expected to intersect the Assaka and
Trident objectives within 60 days from spud, as previously announced.
As the well has been designated as “tight”, no information related to depth or formation will be provided
during the drilling, beyond what is required by the ASX and AIM continuous disclosure obligations.
About Tangiers Petroleum:
Tangiers Petroleum is an Australian-based oil explorer with assets offshore Morocco in shallow
water. Tangiers has a 25 per cent participating interest in the Tarfaya Offshore Block, which is
being operated by Galp Energia with a 50 per cent interest.
The remaining 25 percent interest is held by ONHYM (Morocco's National Office of Hydrocarbons
and Mines), which is carried through the exploration phase. The high impact TAO-1 exploration
well spud on the 26th June 2014 and is expected to intersect two of three possible objectives
within 60 days from spud.

India disallows Reliance from oil cost recovery of $2.4bn
Reuters + NewBase
India has disallowed Reliance Industries Ltd from recovering $2.4bn invested to develop offshore
gas fields in the D6 block on the country’s east coast as output has fallen drastically and is way
below the promised volumes, the oil minister said.
Under India’s exploration policy, the government allows companies to first recover their costs from
oil and gas revenue, and subsequently share profits with the government.Reliance had set up
facilities to produce 80 million cubic metres a day (mmscmd), but actual gas production has been
much lower, resulting in underutilisation and creation of surplus inventories, Dharmendra Pradhan
told lawmakers in a written reply. said notices have been issued to Reliance, which is the block
operator, for disallowance of cost recovery.
The D1 and D3 gas fields in the block were to produce at a peak rate of 80 mmscmd in 2012-13
but actual production never reached that level. In April-June this year, production from the two
fields averaged just 8.05 mmscmd. The government disallowed Reliance to recover $1.797bn as
on March 2013, which had risen to $2.376bn by March 2014, Pradhan said.
Because of disallowance of cost recovery to Reliance and its partners BP and Niko Resources,
the government has raised an additional claim of $195m as profit petroleum for a period up to
March 31, 2014, Pradhan said.
Reliance had said earlier that unexpected geology caused the decline in output and drilling more
wells would not help, but this has been rejected by the oil ministry, which believes output has
fallen due to non-drilling of the promised number of wells.“The issue is currently under arbitration,”
he said.

PNG: InterOil suspends Wahoo-1 well due to higher-than-expected pressures
Source: InterOil
InterOil Corp has suspended the Wahoo-1 well in PPL474 in Papua New Guinea after intersecting gas and
higher-than-expected pressures that could compromise rig safety.
Significant concentrations of methane, ethane, propane and butane have been recorded and are believed to
be entering the well bore from permeable zones above the predicted reservoir zone, which is yet to be
penetrated. The gas is characteristic of thermogenic hydrocarbons, which are indicative of an active
hydrocarbon-generating source rock.
The Wahoo-1 well was designed for high pressures based on data from other wells in the region but the
pressures have exceeded by nearly 50% even those of InterOil’s Antelope discovery, 170km to the north-
west.
After a review by drilling and engineering teams and expert advisers, InterOil has concluded that drilling
ahead would pose an unacceptable safety risk to people and the rig. The company has received approval
from the PNG Department of Petroleum and Energy to suspend the well.
Operations to resume as soon as practicable
InterOil intends to resume operations as soon as practicable following a detailed review of well engineering,
equipment and options, when the company is satisfied it is safe to proceed, and after the regulator has
approved the company’s plans. An option includes testing of the gas-bearing permeable zones encountered
in the Orubadi mudstone. Progress on Wahoo-1 has confirmed an effective seal in the Orubadi mudstone, as
well as the presence of thermogenic hydrocarbons, both of which are key components to a working
petroleum system.
Further drilling is
required to
confirm the
presence of a
reservoir below
the current total
depth of the well
before Wahoo can
be considered a
discovery.

UK: Centrica commences drilling 43/13b-7 Pegasus West well on UK
Licence P1724. Source: Atlantic Petroleum
JV partner Atlantic Petroleum has announced that drilling of the Pegasus West well 43/13b-7 has
commenced on P1724 in the UKCS.
The well is being drilled with the Noble Julie Robertson jackup rig in a water depth of about 95 feet.
Pegasus West is being drilled approx. 7 km WSW of the 43/13b-6Z Pegasus North discovery well. This
well was drilled in 2010 by Centrica Energy and Volantis Exploration, now a subsidiary of Atlantic
Petroleum, and was plugged and abandoned in January 2011 having encountered gas in the Carboniferous.
The Pegasus West Prospect lies in the Southern North Sea, close to the producing Cavendish Field, and has
a Carboniferous gas target. The rig is expected to be on location for over two months.
The well is operated by Centrica Energy which holds a 55% interest in the licence. Atlantic Petroleum
holds 10% equity and the remaining equity 35% is held by Third Energy Offshore.
Ben Arabo, CEO, stated:
'We are very pleased to announce the spud of the Pegasus West well. The well is designed to delineate the
extent of the Pegasus Field, and if successful help to de-risk any future Pegasus development. This is
Atlantic Petroleum’s third of four exploration wells in our planned 2014 drilling programme'.

PSA audits barrier management on Johan Sverdrup
Press Release,
On 20 and 21 May 2014, the Petroleum Safety Authority Norway (PSA) carried out an
audit of Statoil’s barrier management in the early phase of the Johan Sverdrup project
prior to the plan for development and operation (PDO).
The objective of a pre-PDO audit is to monitor that the operator’s plans and decisions in the
early phase of the project have been adequately clarified. And furthermore to verify that the
operator has established and is monitoring processes to ensure that the selected solutions are
assessed in relation to regulatory requirements, including the requirements for prudent
activities and continuous improvement.
The PDO for Johan Sverdrup is scheduled to be submitted to the authorities on 13 February
2015 and to be debated during the Norwegian Parliament’s spring session in 2015.
Six observations were identified in connection with: Ignition source control; Emergency
power supply; Risk management; Transfer of experience; Barrier management;
Transformers.

Ethiopia: Tullow Oil's Gardim-1 exploration well disappoints
Source: Tullow Oil
Tullow Oil has announced that the Gardim-1 exploration well, drilled on the eastern flank of the Chew
Bahir Basin in the South Omo licence, onshore Ethiopia, has reached a total depth of 2,468 metres in
basement, without encountering commercial oil. The well intersected lacustrine and volcanic formations,
similar to those
found in the
Shimela-1 well on
the north-western
flank of the basin.
Minor intervals
with thermogenic
gas shows were
intersected just
above basement.
The well will be
plugged and
abandoned and
drilling operations
will now be
demobilised whilst
these results are
integrated into the
regional basin
model.
Meanwhile seismic
interpretation
continues on
independent
prospectivity
elsewhere in the
licence and the next
phase of our
Ethiopia
exploration
campaign will
target these
prospects.
Angus McCoss,
Exploration
Director, Tullow
Oil plc commented
today, 'We have
now drilled two independent wildcat wells in the Chew Bahir Basin, neither of which encountered
commercial oil. Whilst our analysis continues, initial indications suggest that the targeted seismic anomalies
related to lavas that flowed into a lake basin. Having gained valuable data, including evidence of
thermogenic gas, we look forward to the next phase of our exploration campaign in Ethiopia.'

Cote d'Ivoire: African Petroleum farms out Block CI-509 interest to Buried Hill
Source: African Petroleum
African Petroleum Corp has entered into an agreement with Buried Hill Africa to farm-out a 10% interest
in Block CI-509 offshore Côte d’Ivoire in return for Buried Hill funding 21.1% of the cost of the next
exploration well to be drilled on Block CI-509 and an additional cash payment to African Petroleum
representing 10% of past costs incurred. Under the terms of the Farm-out Agreement, African Petroleum
shall continue as Operator on the licence.
Completion of the Farm-out Agreement is subject to the satisfaction or waiving of certain conditions
precedent, which, apart from one pertaining to government approval of the transfer, must be satisfied or
waived no later than 1 November 2014 (unless extended in accordance with the Farm-out Agreement).
African Petroleum Corporation operates eight licences located in fast-emerging hydrocarbon basins offshore
West Africa. The Company is actively seeking partners to share risk and reward across all assets. In line
with this clearly communicated strategy, dialogue will continue with other potentially interested parties with
a view of securing an additional farm-in partner for Block CI-509.
African Petroleum Corporation’s Chief Executive Officer, Dr Stuart Lake commented: 'We are very pleased
to have secured an initial farm-in on Block CI-509. Alongside the adjacent Block CI-513, Block CI-509
forms part of our highly prospective acreage position offshore Côte d’Ivoire, and we look forward to
announcing further farm-in deals on our West African offshore acreage in due course.'

Tanzania: Woodside farms into Beach Energy's Lake Tanganyika South Block
Source: Woodside
Woodside has finalised an agreement to farm-in to the prospective basin of Lake Tanganyika in
western Tanzania. Beach Energy has accepted Woodside’s offer to acquire a 70% participating
interest in the Lake Tanganyika South Block and the respective Production Sharing Agreement.
Woodside CEO Peter Coleman said the farm-in provided an opportunity to secure a large acreage
footprint in an exciting and underexplored oil prone frontier basin. 'Securing this highly prospective
acreage represents another step forward in building Woodside’s global exploration portfolio' Mr
Coleman said.
The proposed work program includes seismic studies, with an option for future drilling and
operatorship. The agreement is subject to required government and regulatory approvals.

Flickr & Google pages and other tools make EIA data more accessible
Source: U.S. Energy Information Administration
EIA's recently launched Flickr page provides users with another avenue to view graphs, charts,
maps, and other images produced using EIA's data and analysis.
The images stored on EIA's Flickr page are categorized by state. This allows the public and EIA's state,
tribal, county, and local stakeholders to quickly find information relating directly to their state's energy
production, consumption, prices, and other energy topics covered by EIA's reports.
There are more than 240 images on the Flickr page, including many graphs and maps from Today in Energy
articles. The Flickr page includes graphs and maps that illustrate dozens of important energy trends,
including:
• Rising crude oil and natural gas production
• Growth in electricity generation by wind, solar, and other renewables
• Transportation bottlenecks for moving energy supplies and commodities
• Changes in energy prices
EIA's Flickr page also contains materials designed specifically for individual states, including Web banners
that state agencies can use to link to their EIA state profile.
Over the past year, EIA released many tools designed to make energy information more accessible. These
tools include EIA's coal data browser, electricity data browser, and application programming interface
(API), to name a few.
These resources and others will be highlighted during EIA's 2014 Energy Conference. The event is being
held today and tomorrow at the J.W. Marriott in Washington, DC. Readers can learn more about these
resources by attending EIA's 2014 Energy Conference or reading the proceedings that will be posted after
the conference.

Major Oil & Gas Events & Exhibitions
NewBase - Special

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 AKhaled Al AKhaled Al AKhaled Al Awadi is a UAE National with a total of 24 yearswadi is a UAE National with a total of 24 yearswadi is a UAE National with a total of 24 yearswadi 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 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 Hawthe GCC area via Hawthe GCC area via Hawthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedhas developedhas developedhas developed
great experigreat experigreat experigreat experiences in the designing & constructingences in the designing & constructingences in the designing & constructingences 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
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 foOUs foOUs foOUs 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 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
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New base special 15 july 2014

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