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NewBase 19 October 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Saudi Arabia going to green future to avoid consuming its oil production
Saudi Gazette + NewBase
Saudi Arabia could consume as much oil as it exports by 2030 and it uses nearly 200bn
kWh of electricity every year, according to an expert.
“There are excellent foundations here in Saudi Arabia for sustainability in green building and you
can sense the commitment when the Presidency of
Meteorology and Environment (PME) has initiated a decree
that in 5 years all companies have to meet new air, water and
noise pollution standards. As a start 90,000 mosque across the
Kingdom would be made more eco-energy,” said John
Mandyck, chief sustainability officer, UTC Building &
Industrial Systems.
He added “therefore, Saudis should make their economy more
energy, efficient and how to accelerate green building.”
Mandyck assured that the Saudis have the basics for the changes to green building. “You can
touch and feel that sustainability is started to take place in Saudi Arabia and we think that will lead
to greener future,” he said.
He noted that Saudi Arabia will invest $26 billion in 76 renewable energy projects across the
country. “Saudi Arabia has already shown strong interest in strengthening its green building
presence. We hope our continued discussions with the official Saudis will help further drive
advancements and shape the decisions made for years to come,” said Mandyck.
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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He pointed out that the GCC countries are one of the largest consumers of energy in the world
with increasing population and growing construction sector. He affirmed that Dubai and Abu Dhabi
are ahead in green building but other GCC can catch up because of their determination and
interest in accelerating green building.
“Dubai has been pursuing the lead in green building in the last ten years and Abu Dhabi comes
next because of its sophisticated system called “Pro Rating System,” he said. Speaking about
their lecture held in Jeddah recently, Mandyck said “UTC Building & Industrial Systems has been
a leader in sustainability and the green building movement. With buildings in the Middle East
accounting for more than 50 percent of the region’s energy consumption, we place sustainability
and energy efficiency at the core of our building solutions.
“The lecture showed our commitment to sustainability awareness and education, and connects
international sustainability thought experts with local professionals in countries with emerging
economies.”
Launched in the Middle East in 2011, the Distinguished Sustainability Lecture Series has reached
more than 2,500 professionals through 21 events in Brazil, China, India, Kuwait, Malaysia, Oman,
Qatar, Saudi Arabia, Singapore, Thailand, Turkey and the United Arab Emirates.
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
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Saudi Arabia tests US ties with oil price
Financial Times + Newbase
with the By starting a new oil price war, Saudi Arabia is taking a calculated gamble in its already
strained relationship US, hoping that the potential damage to America’s shale industry will be
offset by the geopolitical and economic prizes on offer to Washington.
At a time when the US and Saudi Arabia are fighting a new war together in Iraq and Syria, the
Saudis have taken the bold step of asserting their pivotal role in the oil market and subtly
squeezing the finances of some of America’s fledgling shale companies.
Yet, at the same time, the falling oil price will deliver a de facto tax cut for American consumers
and — if sustained — will hit both Russia and Iran at a time when Washington is trying to pressure
both countries.
Deborah Gordon, director of the energy and climate programme at the Carnegie Endowment,
sees the Saudi pressure on oil prices as a carefully calibrated move that will not alienate allies but
will cause problems for rivals and foes such as Russia and Iran.
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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“The Saudis seem to have concluded that this could be a game-changer for them,” she says.
“They get several benefits without hurting the people they do not want to hurt.”
With global demand for oil slowing sharply and US production surging, Saudi Arabia faced a
choice. It could have cut production to stabilise the market, shouldering the burden itself. Instead,
it appears to have decided to let the price fall, indicating that it would be happy with an oil price
around $80, rather than the $100 it has previously backed.
With new oil production in the US and elsewhere calling into question the future of Opec, the
Saudis have reminded the oil market of their central role in determining prices.
Sustained lower prices could push the Saudi budget into deficit — raising new questions about
political stability — but many analysts believe the kingdom’s huge foreign exchange reserves
allow it to withstand a period of reduced revenue.
The Saudi decision comes at a time of high tension in its relationship with the US. For the past
year, the two countries have been at loggerheads over the Obama administration’s attempts to
strike a nuclear deal with Iran, which the Saudis see as a naive accommodation of a perennial
rival. At the same time, Saudi Arabia has become a key part of the US-led coalition fighting
Islamist militants in Iraq and Syria.
By pushing oil prices lower, Saudi Arabia is helping to orchestrate some geopolitical outcomes
that will be very welcome in Washington. The plunging price will create further problems for the
Russian economy, which is already suffering under the weight or US and European sanctions in
response to its intervention in Ukraine.
Iran’s economy will also be affected by lower oil prices although the impact for the nuclear talks is
harder to judge. While Saudi Arabia would like the negotiations to fail, it is possible that the
prospect of lower oil revenues could encourage Tehran to make concessions to the US because it
will be even keener to win relief from international sanctions.
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 5
With global growth slowing, lower oil prices are good news for the weakening economies in
Europe and China — who are also among Saudi Arabia’s biggest customers — and will bring
direct benefits to US consumers. In spite of the shale boom, the US is still one of the world’s
largest net importers of oil.
Ed Morse of Citigroup estimates that $80 Brent crude is equivalent to a tax cut averaging almost
$600 for every household in the US. Jason Bordoff, a former energy official with President
Obama’s administration, now director of the Centre on Global Energy Policy at Columbia
University, said: “For the US economy and US consumers, lower oil prices are a great thing. They
will create winners and losers in different places. There is a downside. But the upside is greater
than the downside.”
“There is not a whiff of collusion” between the US and the Saudis, says Bob McNally, a former
George W Bush administration official now president of the Rapidan Group, unlike in the 1980s
when lower prices helped pressure the Soviet economy amid rumours of a deal between Riyadh
and the Reagan administration. “But for the US, there are pleasing aspects to this.”
Against all those potential benefits for the US, however, the lower prices also appear to be
designed to put a brake on the shale oil boom, which has been the most significant upheaval in
global energy for a decade.
The International Energy Agency, the watchdog backed by rich countries’ governments, reported
recently that US production of liquid petroleum, including crude oil and natural gas liquids such as
propane, had drawn level with that of Saudi Arabia over the summer.
Prices at these levels or lower will put financial strain on US shale producers, and several of them
are already talking about having to cut back their capital spending. If they do cut, then next year
US oil production growth will slow, and could even go into reverse if prices fall even lower.
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 6
Abu Dhabi's ADMA-OPCO, BP sign agreement on EOR Technology
(WAM) + NewBase
Abu Dhabi Marine Operating Company, ADMA-OPCO, the emirate's leading offshore company,
and British Petroleum, BP, have signed agreement to develop a new technology for Enhanced Oil
Recovery, EOR.
Signed during a recent visit by ADMA-OPCP officials to BP in UK, the new agreement for
performing a Carbonate Ionic Design EOR study developing a technology similar to the LoSal
EOR technology, which BP is deploying at the Offshore UK Clair Ridge field but applied to
carbonate reservoirs, "will be a significant step forward," said ADMA-OPCO in a press release.
"Under the agreement, BP will provide support to ADMA-
OPCO in conducting a Single Well Chemical Tracer Test,
SWCTT, and carrying out laboratory tests to evaluate
Carbonate Ionic Design EOR potential in ADMA-OPCO’s
fields." EOR has been identified as a key technology for
improving recovery. BP is also leading other key projects on
behalf of ADMA-OPCO including the rebuilding of reservoir
models.
More than 30 of BP’s technical experts are seconded into
ADMA-OPCO. They play a key role in actively managing the giant fields of Lower Zakum and
Umm Shaif, and delivering the new Umm Lulu and Nasr projects.
ADMA-OPCO officials, Chief Executive Officer Ali R. Al-Jarwan, and Ahmed Al-Hendi, Senior Vice
President for Subsurface Technology, Abdul Karim Al Mazmi, President and General Manager of BP
U.A.E., met with key BP’s Upstream Heads of Function for Reservoir Development and Technology, Ian
Cavanagh and Ahmed Hashmi, and the Vice President for EOR Technology, John Peak. They visited BP
laboratories in the UK, BP’s EOR laboratories in Sunbury and Pangbourne, the Castrol research centre in
Pangbourne. Their visit to the EOR laboratories in Pangbourne was a first ever for visitors from outside BP.
ADMA-OPCO Chief executive Officer, Ali R. Al-Jarwan said, "We are pleased to partner with our
Shareholder, BP, in this important programme. EOR technologies will play a key role to meet the
energy demand in Abu Dhabi in the years to come and we, at ADMA-OPCO, have an aspiration to
reach a recovery factor of 70% for our fields by the end of the fields’ life.
BP has been in partnership with ADMA since 1953 and currently has a 14.67% share in the
ADMA-OPCO JV. Other shareholders are the Abu Dhabi National Oil Company, ADNOC, (60%),
Total (13.33%) and Japan Oil Development Company, Jodco, (12%).
Production from the ADMA concession started in 1963. Around 3,000 employees work on the
fields, 60% of them Emirati nationals. The ADMA concession covers four shallow water offshore
oilfields with a series of stacked carbonate reservoirs in each of the fields: Lower Zakum, Umm
Shaif, Umm Lulu), and Nasr.
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 7
Chinese solar panels giant plans to set up Dubai factory
ArabianBusiness + NewBase
Chinese solar panels manufacturer Chang Zhou Almaden Ltd has announced plans to set up a
factory in Dubai as it looks to tap markets in the Middle East.
Dubai Silicon Oasis Authority (DSOA), the regulatory body for the Dubai Silicon Oasis, said it has
signed an agreement with the producer of photovoltaic anti-reflective coated glass to host its new
manufacturing and training facility in the free zone technology park.
The 15,000 sq m factory will be set up at a total capital cost of AED110 million ($29.9 million),
marking Almaden's foray into the MENA region. Designed to produce up to 400,000 PV panels
every year, the manufacturing facility is set for completion in the first quarter of 2015, a statement
said.
At the DSO plant, Almaden will produce specialized super thin dual glass PV panels to suit the
desert climate, especially for residential buildings, car parking areas, green houses, roof tops and
solar farms, it added. The facility will additionally host a training centre that will target raising
awareness on green energy and sustainable solutions for the MENA region.
The agreement was signed by Dr. Mohammad Alzarooni, vice chairman and CEO of Dubai Silicon
Oasis Authority, and Jinxi Lin, chairman of Chang Zhou Almaden during GITEX Technology
Week.
Alzarooni said: "We welcome Chang Zhou Almaden to the hi-tech park and look forward to a
symbiotic partnership with the world's largest producer of anti-reflective glass. The Middle East is
rapidly gaining international attention as an emerging market for solar energy.
"This has led to high uptake for innovative technologies. Dubai offers an international platform with
comprehensive regional reach, providing Almaden the perfect location to establish its regional
manufacturing facility."
Lin added: "Solar is definitely the energy source for the future and although there are huge
challenges facing the industry, we believe Almaden will create an impact on the market with our
improved eco-friendly technology, competitive pricing and quality standards.
"Our ultra-thin dual glass PV panel has been especially designed for the hot summers of the
Middle East allowing minimal power loss in high humidity and high temperature environments.
"We are glad to make our entry into this region with our facility at Dubai Silicon Oasis. We are
confident our operations will contribute to Dubai's green vision and contribute to reducing the
emirate's carbon footprint."
Almaden has branches in the United States, Germany, Australia and China with over 400,000 sq
m of manufacturing base and 1,500 employees worldwide.
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 8
Eni, Kogas bolster upstream, LNG partnership
Press Release + NewBase
Italian oil company Eni signed today a cooperation agreement with Korea Gas Corporation
(KOGAS) to further strengthen their relationship in a number of areas, particularly in the upstream
and LNG sectors. The agreement will allow the companies to jointly pursue opportunities
worldwide, Eni said in a press release.
According to the release, Eni and KOGAS expect the cooperation agreement to facilitate the LNG
development of Area 4 in Mozambique where Eni is operator with a 50% indirect interest, KOGAS,
Galp Energia and ENH partners in the agreement with 10% interest each and CNPC with 20%
indirect participation.
Area 4’s total resources are estimated to be approximately 85 trillion cubic feet of gas in place and
ready to enter in the development phase in 2015.
Eni and Kogas’ partnership has so far been involved in 5 upstream projects including
Mozambique, Cyprus, Iraq, Indonesia and Timor Leste.
Also, KBR yesterday announced it was, together with Daewoo Shipbuilding & Marine Engineering
Company, Ltd, awarded a front end engineering design (FEED) contract by Eni East Africa SpA
for a floating liquefied Natural Gas (FLNG) facility for the Coral South Development Project
located in Mozambique.
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 9
VAALCO Energy Announces Commencement Of New Drilling Campaign
SOURCE VAALCO Energy, Inc.
VAALCO Energy, Inc. (NYSE: EGY) today announced the commencement of a new six well
drilling campaign offshore Gabon on its Etame Marin block. The development drilling campaign
follows the recent on-schedule installation of the Etame platform and the Southeast Etame/North
Tchibala ("SEENT") platform. All work on this project was accomplished without a safety or
environmental incident.
All six wells in the current drilling campaign are development wells and VAALCO has spudded the
first well, Etame 8-H, using
the contracted Transocean
"Constellation II" jack-up rig.
The Constellation II rig will
be used to drill two
additional development wells
(Etame 9-H and 10-H), each
targeting the Gamba sand
formation in the Etame field,
where VAALCO has been
producing oil since 2002
utilizing subsea wells. First
oil production from the
Etame 8-H well is expected
in December 2014.
The Constellation II will be mobilized to drill three additional development wells from the SEENT
platform, beginning with a well to be drilled in the Southeast Etame field where the Company
drilled a successful exploration well in 2010. The remaining two development wells in the six well
campaign will target Dentale sand formations in the North Tchibala field.
The newly installed Etame and SEENT platforms are each equipped with eight well slots to
provide for the option to drill up to five additional development wells from each platform after the
completion of the current six well drilling campaign.
Steve Guidry, CEO, commented: "The spudding of the first well in this new drilling campaign
offshore Gabon is a proud moment for VAALCO and the culmination of years of work. The
successful installation of two new platforms to support production has been a complex operational
undertaking involving employees throughout our Company and I could not be more proud of their
collective achievement. We are now in a position to further develop the producing fields in the
Etame Marin concession that have been the cornerstone of VAALCO's growth and the creation of
shareholder value."
About VAALCO
VAALCO Energy, Inc. is a Houston based independent energy company principally engaged in the
acquisition, exploration, development and production of crude oil. VAALCO's strategy is to increase
reserves and production through the exploration and exploitation of oil and natural gas properties with high
emphasis on international opportunities. The company's properties and exploration acreage are located
primarily in Gabon, Angola and Equatorial Guinea in West Africa.
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 10
German industry earns cash from green energy upheaval
Reuters + NewBase
German industry is learning how to profit from the upheaval and costs of the country’s shift
towards solar and wind energy. Greater reliance on renewables in Europe’s biggest power market
is making the peaks and
troughs of electricity
production bigger and less
predictable, as the wind picks
up or drops and the sun shines
or disappears behind the
clouds.
Power firms have therefore
enlisted the help of big
consumers such as metals,
paper and chemical
companies to deal with the
problem of matching volatile
supply to demand.
By upgrading their plants or making relatively small changes to their operations, growing numbers
of manufacturers are taking more power at times of excess capacity and less when supplies are
tight.
In exchange for this flexibility, the manufacturers get breaks on their power bills. Neither the
suppliers nor the consumers will reveal how big the discounts are, with each deal negotiated
individually, but the need for thrift is great.
Industry consumes half of all power in Germany and pays roughly twice the price of US rivals,
mainly due to higher labour and infrastructure overheads and a lack of shale gas, which in the
United States has sharply cut generating costs.
“End consumers that were up to now mostly passive can become active in the energy market and
receive money for their flexibility,” said Thomas Schulz, co-founder of Entelios.
Entelios and Denmark’s Dong Energy A/S, are among the companies vie for the business of
helping manufacturers to earn rebates on their power bills.
Germany’s move towards renewable energy accelerated in 2011 when the government decided to
phase out nuclear generation after the Fukushima disaster in Japan. Driven by green-energy
targets and incentives, renewables now account for nearly half Germany’s installed power
capacity of over 185 gigawatts (GW).
But they contribute only a quarter of the actual power supply because wind and solar units operate
only between a fifth and a third of the time, while conventional nuclear and fossil fuel plants can
produce electricity around the clock.
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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An expansion of the national grid’s capacity will help to match supply and demand, and overcome
the problem that most wind energy is produced in the coastal areas of northern Germany while
much of the power hungry industries are far to the south.
But this will take time and be costly, so the utilities need manufacturers to turn their production up
and down more according to how much energy is available from sources that depend of the
weather.
Utilities already use backstop plants, typically natural-gas powered, which start generating when
other sources cannot meet demand. But as the number of wind and solar units grows, other power
cushions are needed.
So-called Demand Response (DR) or Demand Side Management (DSM) schemes, pioneered in
the United States, can ease the problem by flattening demand when supply is low while absorbing
and distributing oversupply at other times.
Among the companies involved in such schemes is SGL, which is based in the Bavarian town of
Meitingen.
An expert in working with extreme temperatures, SGL makes graphite electrodes that need to be
heated to 3,000 degrees Celsius (5,400 Fahrenheit) to become electrically conductive. They then
become components in scrap metal recycling furnaces.
SGL has given its power supplier LEW, part of the RWE utility group, remote control over its
industrial ovens during 24-hour slots.
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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in this publication. However, no warranty is given to the accuracy of its content . Page 12
PNG LNG Drives Santos' Production to Seven Year High
Source Santos + NewBase
Santos on Friday said successful ramp-up of the PNG LNG project had driven the company’s
highest quarterly production result since 2007. PNG LNG production reached full capacity in late-
July and 23 LNG cargoes were shipped during the quarter.
Company’s quarterly production stood at 14.0 mmboe, up 9 percent compared with previous
quarter. Sales revenue of $1,060 million for the quarter increased 9 percent on the previous
quarter and is up 16 percent compared with first nine months of 2013.
Santos also reported that the GLNG project continues to deliver key construction milestones,
including commissioning of the first upstream gas hub, first gas into the gas transmission pipeline,
delivery of the final train 2 module and the completion of hydro-testing of the second LNG tank.
Santos Managing Director and Chief Executive Officer David Knox said, “GLNG is approaching
90% complete, it remains on budget and we are on track to deliver first LNG in 2015.”
The PNG LNG Project is an integrated development that includes gas production and processing facilities in the
Southern Highlands, Hela, Western, Gulf and Central Provinces of Papua New Guinea. There are over 700
kilometres of pipelines connecting the facilities, which includes a gas conditioning plant in Hides and liquefaction
and storage facilities near Port Moresby with capacity of 6.9 million tonnes per year.
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 13
Russia, Ukraine reach tentative gas supply deal
Reuters+NewBase
Russia and Ukraine made progress yesterday towards resolving a row over gas supplies, but
European leaders said Moscow had to do much more to prop up a fragile ceasefire and end
fighting in eastern Ukraine.
The mooted deal aimed at re-opening Russian gas supplies to Ukraine ahead of the cold winter
months came as something of a surprise following an initial round of talks in Milan that the Kremlin
said was “full of misunderstandings and disagreements”.
However, Ukrainian President Petro Poroshenko said a subsequent meeting with Russian
President Vladimir Putin and the leaders of France and Germany had made some headway in
defusing a crisis that has revived memories of Cold War enmity.
“We have the first limited progress on the gas issue. We have agreed on the main parameters of
the contract,” he said, adding that all sides remain committed to a ceasefire deal struck last month
to halt a pro-Russia revolt.
The Kremlin said Putin and Poroshenko would meet one-on-one later yesterday. The West has
clamped sanctions on Russia in response to its annexation of Crimea in March and its support for
separatists battling government troops in the east of Ukraine.
Kiev and its Western backers accuse Moscow of aiding the separatist revolt by providing troops
and arms. Russia denies the charges but says it has a right to defend the interests of the region’s
Russian-speaking majority.
Yesterday, Merkel reprimanded Putin front of EU and Asian leaders, according to people present
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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in this publication. However, no warranty is given to the accuracy of its content . Page 14
EU officials said the gas talks would continue in Brussels next week, with Poroshenko telling
reporters that the financing still needed to be resolved. Moscow cut off gas supplies to Ukraine in
June over unpaid debts and a pricing disagreement. This has sparked fears that the Russian gas
that transits Ukraine en route to Europe could also be disrupted this winter.
Clearly sympathetic with Kiev, European leaders attending an EU-Asia summit in Milan lined up to
tell Russia to ensure full implementation of the ceasefire deal struck last month. Germany, in
particular, sounded gloomy. “I cannot see a breakthrough here at all so far,” Chancellor Angela
Merkel said earlier on Friday. “We will continue to talk. There was progress on some details, but
the main issue is continued violations of the territorial integrity of Ukraine,” she added.
Merkel’s position as German leader in effect means that she sets the tone of EU relations with
Russia, and she has taken the lead within Europe in trying to persuade Putin to change tack over
Ukraine. She had a rocky time in Milan, however, with one German official saying the Russian
leader had not displayed a “too constructive mood”.
An initial meeting set for Thursday was delayed for hours because Putin flew into Italy well behind
schedule. They then held more than 2-1/2 hours of talks that ran well past midnight, with both
sides acknowledging discussions had been unproductive.
Yesterday, Merkel reprimanded Putin front of EU and Asian leaders, according to people present.
After a speech in which Putin raised doubts about the sovereignty of Ukraine, Merkel reminded
him of the 1994 Budapest agreement, in which Russia recognised the sovereignty and territorial
integrity of Ukraine, including Crimea.
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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 15
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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in this publication. However, no warranty is given to the accuracy of its content . Page 16
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
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Emarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network Facility
& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has
developed great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in the
engineeriengineeriengineeriengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply 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 & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas
Conferences held in the UAE andConferences held in the UAE andConferences held in the UAE andConferences held in the UAE and EEEEnergy program broadcasted internationally , via GCC leading satellite Channels .nergy program broadcasted internationally , via GCC leading satellite Channels .nergy program broadcasted internationally , via GCC leading satellite Channels .nergy program 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 19 October 2014 K. Al Awadi

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New base special 19 october 2014

  • 1. Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, 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 19 October 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Saudi Arabia going to green future to avoid consuming its oil production Saudi Gazette + NewBase Saudi Arabia could consume as much oil as it exports by 2030 and it uses nearly 200bn kWh of electricity every year, according to an expert. “There are excellent foundations here in Saudi Arabia for sustainability in green building and you can sense the commitment when the Presidency of Meteorology and Environment (PME) has initiated a decree that in 5 years all companies have to meet new air, water and noise pollution standards. As a start 90,000 mosque across the Kingdom would be made more eco-energy,” said John Mandyck, chief sustainability officer, UTC Building & Industrial Systems. He added “therefore, Saudis should make their economy more energy, efficient and how to accelerate green building.” Mandyck assured that the Saudis have the basics for the changes to green building. “You can touch and feel that sustainability is started to take place in Saudi Arabia and we think that will lead to greener future,” he said. He noted that Saudi Arabia will invest $26 billion in 76 renewable energy projects across the country. “Saudi Arabia has already shown strong interest in strengthening its green building presence. We hope our continued discussions with the official Saudis will help further drive advancements and shape the decisions made for years to come,” said Mandyck.
  • 2. 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 2 He pointed out that the GCC countries are one of the largest consumers of energy in the world with increasing population and growing construction sector. He affirmed that Dubai and Abu Dhabi are ahead in green building but other GCC can catch up because of their determination and interest in accelerating green building. “Dubai has been pursuing the lead in green building in the last ten years and Abu Dhabi comes next because of its sophisticated system called “Pro Rating System,” he said. Speaking about their lecture held in Jeddah recently, Mandyck said “UTC Building & Industrial Systems has been a leader in sustainability and the green building movement. With buildings in the Middle East accounting for more than 50 percent of the region’s energy consumption, we place sustainability and energy efficiency at the core of our building solutions. “The lecture showed our commitment to sustainability awareness and education, and connects international sustainability thought experts with local professionals in countries with emerging economies.” Launched in the Middle East in 2011, the Distinguished Sustainability Lecture Series has reached more than 2,500 professionals through 21 events in Brazil, China, India, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, Thailand, Turkey and the United Arab Emirates.
  • 3. 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 3 Saudi Arabia tests US ties with oil price Financial Times + Newbase with the By starting a new oil price war, Saudi Arabia is taking a calculated gamble in its already strained relationship US, hoping that the potential damage to America’s shale industry will be offset by the geopolitical and economic prizes on offer to Washington. At a time when the US and Saudi Arabia are fighting a new war together in Iraq and Syria, the Saudis have taken the bold step of asserting their pivotal role in the oil market and subtly squeezing the finances of some of America’s fledgling shale companies. Yet, at the same time, the falling oil price will deliver a de facto tax cut for American consumers and — if sustained — will hit both Russia and Iran at a time when Washington is trying to pressure both countries. Deborah Gordon, director of the energy and climate programme at the Carnegie Endowment, sees the Saudi pressure on oil prices as a carefully calibrated move that will not alienate allies but will cause problems for rivals and foes such as Russia and Iran.
  • 4. 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 4 “The Saudis seem to have concluded that this could be a game-changer for them,” she says. “They get several benefits without hurting the people they do not want to hurt.” With global demand for oil slowing sharply and US production surging, Saudi Arabia faced a choice. It could have cut production to stabilise the market, shouldering the burden itself. Instead, it appears to have decided to let the price fall, indicating that it would be happy with an oil price around $80, rather than the $100 it has previously backed. With new oil production in the US and elsewhere calling into question the future of Opec, the Saudis have reminded the oil market of their central role in determining prices. Sustained lower prices could push the Saudi budget into deficit — raising new questions about political stability — but many analysts believe the kingdom’s huge foreign exchange reserves allow it to withstand a period of reduced revenue. The Saudi decision comes at a time of high tension in its relationship with the US. For the past year, the two countries have been at loggerheads over the Obama administration’s attempts to strike a nuclear deal with Iran, which the Saudis see as a naive accommodation of a perennial rival. At the same time, Saudi Arabia has become a key part of the US-led coalition fighting Islamist militants in Iraq and Syria. By pushing oil prices lower, Saudi Arabia is helping to orchestrate some geopolitical outcomes that will be very welcome in Washington. The plunging price will create further problems for the Russian economy, which is already suffering under the weight or US and European sanctions in response to its intervention in Ukraine. Iran’s economy will also be affected by lower oil prices although the impact for the nuclear talks is harder to judge. While Saudi Arabia would like the negotiations to fail, it is possible that the prospect of lower oil revenues could encourage Tehran to make concessions to the US because it will be even keener to win relief from international sanctions.
  • 5. 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 5 With global growth slowing, lower oil prices are good news for the weakening economies in Europe and China — who are also among Saudi Arabia’s biggest customers — and will bring direct benefits to US consumers. In spite of the shale boom, the US is still one of the world’s largest net importers of oil. Ed Morse of Citigroup estimates that $80 Brent crude is equivalent to a tax cut averaging almost $600 for every household in the US. Jason Bordoff, a former energy official with President Obama’s administration, now director of the Centre on Global Energy Policy at Columbia University, said: “For the US economy and US consumers, lower oil prices are a great thing. They will create winners and losers in different places. There is a downside. But the upside is greater than the downside.” “There is not a whiff of collusion” between the US and the Saudis, says Bob McNally, a former George W Bush administration official now president of the Rapidan Group, unlike in the 1980s when lower prices helped pressure the Soviet economy amid rumours of a deal between Riyadh and the Reagan administration. “But for the US, there are pleasing aspects to this.” Against all those potential benefits for the US, however, the lower prices also appear to be designed to put a brake on the shale oil boom, which has been the most significant upheaval in global energy for a decade. The International Energy Agency, the watchdog backed by rich countries’ governments, reported recently that US production of liquid petroleum, including crude oil and natural gas liquids such as propane, had drawn level with that of Saudi Arabia over the summer. Prices at these levels or lower will put financial strain on US shale producers, and several of them are already talking about having to cut back their capital spending. If they do cut, then next year US oil production growth will slow, and could even go into reverse if prices fall even lower.
  • 6. 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 6 Abu Dhabi's ADMA-OPCO, BP sign agreement on EOR Technology (WAM) + NewBase Abu Dhabi Marine Operating Company, ADMA-OPCO, the emirate's leading offshore company, and British Petroleum, BP, have signed agreement to develop a new technology for Enhanced Oil Recovery, EOR. Signed during a recent visit by ADMA-OPCP officials to BP in UK, the new agreement for performing a Carbonate Ionic Design EOR study developing a technology similar to the LoSal EOR technology, which BP is deploying at the Offshore UK Clair Ridge field but applied to carbonate reservoirs, "will be a significant step forward," said ADMA-OPCO in a press release. "Under the agreement, BP will provide support to ADMA- OPCO in conducting a Single Well Chemical Tracer Test, SWCTT, and carrying out laboratory tests to evaluate Carbonate Ionic Design EOR potential in ADMA-OPCO’s fields." EOR has been identified as a key technology for improving recovery. BP is also leading other key projects on behalf of ADMA-OPCO including the rebuilding of reservoir models. More than 30 of BP’s technical experts are seconded into ADMA-OPCO. They play a key role in actively managing the giant fields of Lower Zakum and Umm Shaif, and delivering the new Umm Lulu and Nasr projects. ADMA-OPCO officials, Chief Executive Officer Ali R. Al-Jarwan, and Ahmed Al-Hendi, Senior Vice President for Subsurface Technology, Abdul Karim Al Mazmi, President and General Manager of BP U.A.E., met with key BP’s Upstream Heads of Function for Reservoir Development and Technology, Ian Cavanagh and Ahmed Hashmi, and the Vice President for EOR Technology, John Peak. They visited BP laboratories in the UK, BP’s EOR laboratories in Sunbury and Pangbourne, the Castrol research centre in Pangbourne. Their visit to the EOR laboratories in Pangbourne was a first ever for visitors from outside BP. ADMA-OPCO Chief executive Officer, Ali R. Al-Jarwan said, "We are pleased to partner with our Shareholder, BP, in this important programme. EOR technologies will play a key role to meet the energy demand in Abu Dhabi in the years to come and we, at ADMA-OPCO, have an aspiration to reach a recovery factor of 70% for our fields by the end of the fields’ life. BP has been in partnership with ADMA since 1953 and currently has a 14.67% share in the ADMA-OPCO JV. Other shareholders are the Abu Dhabi National Oil Company, ADNOC, (60%), Total (13.33%) and Japan Oil Development Company, Jodco, (12%). Production from the ADMA concession started in 1963. Around 3,000 employees work on the fields, 60% of them Emirati nationals. The ADMA concession covers four shallow water offshore oilfields with a series of stacked carbonate reservoirs in each of the fields: Lower Zakum, Umm Shaif, Umm Lulu), and Nasr.
  • 7. 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 7 Chinese solar panels giant plans to set up Dubai factory ArabianBusiness + NewBase Chinese solar panels manufacturer Chang Zhou Almaden Ltd has announced plans to set up a factory in Dubai as it looks to tap markets in the Middle East. Dubai Silicon Oasis Authority (DSOA), the regulatory body for the Dubai Silicon Oasis, said it has signed an agreement with the producer of photovoltaic anti-reflective coated glass to host its new manufacturing and training facility in the free zone technology park. The 15,000 sq m factory will be set up at a total capital cost of AED110 million ($29.9 million), marking Almaden's foray into the MENA region. Designed to produce up to 400,000 PV panels every year, the manufacturing facility is set for completion in the first quarter of 2015, a statement said. At the DSO plant, Almaden will produce specialized super thin dual glass PV panels to suit the desert climate, especially for residential buildings, car parking areas, green houses, roof tops and solar farms, it added. The facility will additionally host a training centre that will target raising awareness on green energy and sustainable solutions for the MENA region. The agreement was signed by Dr. Mohammad Alzarooni, vice chairman and CEO of Dubai Silicon Oasis Authority, and Jinxi Lin, chairman of Chang Zhou Almaden during GITEX Technology Week. Alzarooni said: "We welcome Chang Zhou Almaden to the hi-tech park and look forward to a symbiotic partnership with the world's largest producer of anti-reflective glass. The Middle East is rapidly gaining international attention as an emerging market for solar energy. "This has led to high uptake for innovative technologies. Dubai offers an international platform with comprehensive regional reach, providing Almaden the perfect location to establish its regional manufacturing facility." Lin added: "Solar is definitely the energy source for the future and although there are huge challenges facing the industry, we believe Almaden will create an impact on the market with our improved eco-friendly technology, competitive pricing and quality standards. "Our ultra-thin dual glass PV panel has been especially designed for the hot summers of the Middle East allowing minimal power loss in high humidity and high temperature environments. "We are glad to make our entry into this region with our facility at Dubai Silicon Oasis. We are confident our operations will contribute to Dubai's green vision and contribute to reducing the emirate's carbon footprint." Almaden has branches in the United States, Germany, Australia and China with over 400,000 sq m of manufacturing base and 1,500 employees worldwide.
  • 8. 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 8 Eni, Kogas bolster upstream, LNG partnership Press Release + NewBase Italian oil company Eni signed today a cooperation agreement with Korea Gas Corporation (KOGAS) to further strengthen their relationship in a number of areas, particularly in the upstream and LNG sectors. The agreement will allow the companies to jointly pursue opportunities worldwide, Eni said in a press release. According to the release, Eni and KOGAS expect the cooperation agreement to facilitate the LNG development of Area 4 in Mozambique where Eni is operator with a 50% indirect interest, KOGAS, Galp Energia and ENH partners in the agreement with 10% interest each and CNPC with 20% indirect participation. Area 4’s total resources are estimated to be approximately 85 trillion cubic feet of gas in place and ready to enter in the development phase in 2015. Eni and Kogas’ partnership has so far been involved in 5 upstream projects including Mozambique, Cyprus, Iraq, Indonesia and Timor Leste. Also, KBR yesterday announced it was, together with Daewoo Shipbuilding & Marine Engineering Company, Ltd, awarded a front end engineering design (FEED) contract by Eni East Africa SpA for a floating liquefied Natural Gas (FLNG) facility for the Coral South Development Project located in Mozambique.
  • 9. 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 9 VAALCO Energy Announces Commencement Of New Drilling Campaign SOURCE VAALCO Energy, Inc. VAALCO Energy, Inc. (NYSE: EGY) today announced the commencement of a new six well drilling campaign offshore Gabon on its Etame Marin block. The development drilling campaign follows the recent on-schedule installation of the Etame platform and the Southeast Etame/North Tchibala ("SEENT") platform. All work on this project was accomplished without a safety or environmental incident. All six wells in the current drilling campaign are development wells and VAALCO has spudded the first well, Etame 8-H, using the contracted Transocean "Constellation II" jack-up rig. The Constellation II rig will be used to drill two additional development wells (Etame 9-H and 10-H), each targeting the Gamba sand formation in the Etame field, where VAALCO has been producing oil since 2002 utilizing subsea wells. First oil production from the Etame 8-H well is expected in December 2014. The Constellation II will be mobilized to drill three additional development wells from the SEENT platform, beginning with a well to be drilled in the Southeast Etame field where the Company drilled a successful exploration well in 2010. The remaining two development wells in the six well campaign will target Dentale sand formations in the North Tchibala field. The newly installed Etame and SEENT platforms are each equipped with eight well slots to provide for the option to drill up to five additional development wells from each platform after the completion of the current six well drilling campaign. Steve Guidry, CEO, commented: "The spudding of the first well in this new drilling campaign offshore Gabon is a proud moment for VAALCO and the culmination of years of work. The successful installation of two new platforms to support production has been a complex operational undertaking involving employees throughout our Company and I could not be more proud of their collective achievement. We are now in a position to further develop the producing fields in the Etame Marin concession that have been the cornerstone of VAALCO's growth and the creation of shareholder value." About VAALCO VAALCO Energy, Inc. is a Houston based independent energy company principally engaged in the acquisition, exploration, development and production of crude oil. VAALCO's strategy is to increase reserves and production through the exploration and exploitation of oil and natural gas properties with high emphasis on international opportunities. The company's properties and exploration acreage are located primarily in Gabon, Angola and Equatorial Guinea in West Africa.
  • 10. 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 10 German industry earns cash from green energy upheaval Reuters + NewBase German industry is learning how to profit from the upheaval and costs of the country’s shift towards solar and wind energy. Greater reliance on renewables in Europe’s biggest power market is making the peaks and troughs of electricity production bigger and less predictable, as the wind picks up or drops and the sun shines or disappears behind the clouds. Power firms have therefore enlisted the help of big consumers such as metals, paper and chemical companies to deal with the problem of matching volatile supply to demand. By upgrading their plants or making relatively small changes to their operations, growing numbers of manufacturers are taking more power at times of excess capacity and less when supplies are tight. In exchange for this flexibility, the manufacturers get breaks on their power bills. Neither the suppliers nor the consumers will reveal how big the discounts are, with each deal negotiated individually, but the need for thrift is great. Industry consumes half of all power in Germany and pays roughly twice the price of US rivals, mainly due to higher labour and infrastructure overheads and a lack of shale gas, which in the United States has sharply cut generating costs. “End consumers that were up to now mostly passive can become active in the energy market and receive money for their flexibility,” said Thomas Schulz, co-founder of Entelios. Entelios and Denmark’s Dong Energy A/S, are among the companies vie for the business of helping manufacturers to earn rebates on their power bills. Germany’s move towards renewable energy accelerated in 2011 when the government decided to phase out nuclear generation after the Fukushima disaster in Japan. Driven by green-energy targets and incentives, renewables now account for nearly half Germany’s installed power capacity of over 185 gigawatts (GW). But they contribute only a quarter of the actual power supply because wind and solar units operate only between a fifth and a third of the time, while conventional nuclear and fossil fuel plants can produce electricity around the clock.
  • 11. 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 11 An expansion of the national grid’s capacity will help to match supply and demand, and overcome the problem that most wind energy is produced in the coastal areas of northern Germany while much of the power hungry industries are far to the south. But this will take time and be costly, so the utilities need manufacturers to turn their production up and down more according to how much energy is available from sources that depend of the weather. Utilities already use backstop plants, typically natural-gas powered, which start generating when other sources cannot meet demand. But as the number of wind and solar units grows, other power cushions are needed. So-called Demand Response (DR) or Demand Side Management (DSM) schemes, pioneered in the United States, can ease the problem by flattening demand when supply is low while absorbing and distributing oversupply at other times. Among the companies involved in such schemes is SGL, which is based in the Bavarian town of Meitingen. An expert in working with extreme temperatures, SGL makes graphite electrodes that need to be heated to 3,000 degrees Celsius (5,400 Fahrenheit) to become electrically conductive. They then become components in scrap metal recycling furnaces. SGL has given its power supplier LEW, part of the RWE utility group, remote control over its industrial ovens during 24-hour slots.
  • 12. 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 12 PNG LNG Drives Santos' Production to Seven Year High Source Santos + NewBase Santos on Friday said successful ramp-up of the PNG LNG project had driven the company’s highest quarterly production result since 2007. PNG LNG production reached full capacity in late- July and 23 LNG cargoes were shipped during the quarter. Company’s quarterly production stood at 14.0 mmboe, up 9 percent compared with previous quarter. Sales revenue of $1,060 million for the quarter increased 9 percent on the previous quarter and is up 16 percent compared with first nine months of 2013. Santos also reported that the GLNG project continues to deliver key construction milestones, including commissioning of the first upstream gas hub, first gas into the gas transmission pipeline, delivery of the final train 2 module and the completion of hydro-testing of the second LNG tank. Santos Managing Director and Chief Executive Officer David Knox said, “GLNG is approaching 90% complete, it remains on budget and we are on track to deliver first LNG in 2015.” The PNG LNG Project is an integrated development that includes gas production and processing facilities in the Southern Highlands, Hela, Western, Gulf and Central Provinces of Papua New Guinea. There are over 700 kilometres of pipelines connecting the facilities, which includes a gas conditioning plant in Hides and liquefaction and storage facilities near Port Moresby with capacity of 6.9 million tonnes per year.
  • 13. 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 13 Russia, Ukraine reach tentative gas supply deal Reuters+NewBase Russia and Ukraine made progress yesterday towards resolving a row over gas supplies, but European leaders said Moscow had to do much more to prop up a fragile ceasefire and end fighting in eastern Ukraine. The mooted deal aimed at re-opening Russian gas supplies to Ukraine ahead of the cold winter months came as something of a surprise following an initial round of talks in Milan that the Kremlin said was “full of misunderstandings and disagreements”. However, Ukrainian President Petro Poroshenko said a subsequent meeting with Russian President Vladimir Putin and the leaders of France and Germany had made some headway in defusing a crisis that has revived memories of Cold War enmity. “We have the first limited progress on the gas issue. We have agreed on the main parameters of the contract,” he said, adding that all sides remain committed to a ceasefire deal struck last month to halt a pro-Russia revolt. The Kremlin said Putin and Poroshenko would meet one-on-one later yesterday. The West has clamped sanctions on Russia in response to its annexation of Crimea in March and its support for separatists battling government troops in the east of Ukraine. Kiev and its Western backers accuse Moscow of aiding the separatist revolt by providing troops and arms. Russia denies the charges but says it has a right to defend the interests of the region’s Russian-speaking majority. Yesterday, Merkel reprimanded Putin front of EU and Asian leaders, according to people present
  • 14. 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 14 EU officials said the gas talks would continue in Brussels next week, with Poroshenko telling reporters that the financing still needed to be resolved. Moscow cut off gas supplies to Ukraine in June over unpaid debts and a pricing disagreement. This has sparked fears that the Russian gas that transits Ukraine en route to Europe could also be disrupted this winter. Clearly sympathetic with Kiev, European leaders attending an EU-Asia summit in Milan lined up to tell Russia to ensure full implementation of the ceasefire deal struck last month. Germany, in particular, sounded gloomy. “I cannot see a breakthrough here at all so far,” Chancellor Angela Merkel said earlier on Friday. “We will continue to talk. There was progress on some details, but the main issue is continued violations of the territorial integrity of Ukraine,” she added. Merkel’s position as German leader in effect means that she sets the tone of EU relations with Russia, and she has taken the lead within Europe in trying to persuade Putin to change tack over Ukraine. She had a rocky time in Milan, however, with one German official saying the Russian leader had not displayed a “too constructive mood”. An initial meeting set for Thursday was delayed for hours because Putin flew into Italy well behind schedule. They then held more than 2-1/2 hours of talks that ran well past midnight, with both sides acknowledging discussions had been unproductive. Yesterday, Merkel reprimanded Putin front of EU and Asian leaders, according to people present. After a speech in which Putin raised doubts about the sovereignty of Ukraine, Merkel reminded him of the 1994 Budapest agreement, in which Russia recognised the sovereignty and territorial integrity of Ukraine, including Crimea.
  • 15. 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 15
  • 16. 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 16 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 a totalKhaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a total of 24 yearsof 24 yearsof 24 yearsof 24 years of experience in theof experience in theof experience in theof experience in the Oil & GasOil & GasOil & GasOil & Gas sector. Currently working as Tsector. Currently working as Tsector. Currently working as Tsector. Currently working as Technical Affairs Specialist forechnical Affairs Specialist forechnical Affairs Specialist forechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Manager inininin Emarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has developed great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in the engineeriengineeriengineeriengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply 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 & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andConferences held in the UAE andConferences held in the UAE andConferences held in the UAE and EEEEnergy program broadcasted internationally , via GCC leading satellite Channels .nergy program broadcasted internationally , via GCC leading satellite Channels .nergy program broadcasted internationally , via GCC leading satellite Channels .nergy program 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 19 October 2014 K. Al Awadi