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NewBase 20 August 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil Search suspends drilling at Kurdish oil well, but profits surge
The National + NewBAse
Oil Search, an Australian oil and gas explorer part-owned by Abu Dhabi, is the latest energy
company to be affected by the security crisis in northern Iraq, even though Iraqi government
forces have made gains against the Islamist State insurgents.
Oil Search, announcing half-year results today, said that it had suspended drilling on its Taza 2 oil
well, located in southwestern Kurdish Iraq. However, the company said it would keep other Iraq
operations running. While reporting promising results on Taza 2, the company added: “Due to the
recent increase in regional tensions, our ability to deploy key skilled technicians, equipment and
materials to the Taza 2 well site has been interrupted. Consequently, in consultation with the
Kurdistan’s ministry for natural resources, we have decided to temporarily suspend the well. As
the security situation at Taza is presently stable, our other operations [there] are ongoing.”
In the past month, a number of companies announced suspension of operations or evacuation of
staff as the insurgents advanced, including Abu Dhabi National Energy Company (Taqa), whose
Artrush development is in the north of the Kurdish region, Hess, Genel, Petro-celtic, Afren and
Chevron.
This week, Kurdish forces supported by US airstrikes regained the Mosul dam, a key source of
electricity and water, from the insurgents and were making other advances, although the security
situation in the region remained precarious. Oil Search and other oil companies have said that
they will monitor the situation and resume suspended operations when security improves.
Oil Search is Australia’s third-largest oil and gas explorer and the largest operating in Papua New
Guinea (PNG). In spring this year, the Abu Dhabi wealth fund Ipic gained a 17.6 per cent share in
the company from the PNG government when it converted bondholdings it owned.
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Oil Search reported a 68 per cent surge in production in the first six months of the year, to 5.4
million barrels of oil equivalent, the main factor being the start of shipments of liquefied natural gas
from a big new plant in PNG.
The company said revenue rose 34 per cent to US$510 million, driven by the first sales from the
PNG LNG Project, strong oil production and slightly higher oil prices. Net profit for the period was
also up 34 per cent, at $152.5 million.
In its guidance for the full year 2014, Oil Search said it expects further gains in PNG to feed
through to revenue and profits, forecasting total production of between 18 million and 20 million
barrels of oil equivalent. It also said that despite the disruption in Kurdish Iraq, the appraisal
results so far on the Taza field indicate it is a “potentially very large oil field
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Russia's Lukoil ships first oil cargo from Iraq's West Qurna-2 field
Reuters + NewBase
Lukoil, Russia's second biggest oil producer, said on Tuesday it had shipped 1 million barrels of
oil produced from southern Iraq's giant West Qurna-2 oilfield, its first shipment from the field,
despite a surge of violence in Iraq.
Ranked as one of the largest oil fields in the world, West Qurna-2, where Lukoil holds a 75-
percent stake, is one of several big fields under development which are set to boost Iraq's
economy. West Qurna-2's output alone is expected to peak at 1.2 million barrels per day from
estimated recoverable reserves of about 13 billion barrels.
Shipping its first oil, Lukoil said the Sea Triumph tanker had left the port of Basra bound for
Augusta in Sicily, where Lukoil owns the ISAB refinery. Production at West Qurna-2 is a key part
of Lukoil's efforts to make up for its declining production elsewhere, chiefly in western Siberia.
Lukoil's foreign upstream projects now account for around 6 percent of the company's oil output
and it expects the figure to rise to 17 percent of its total hydrocarbon production by 2020. Lukoil
said three weeks ago that production at West Qurna-2 has increased to 280,000 barrels per day
since commercial production started in March at a rate of 120,000 bpd.
"The project's development is on schedule with Lukoil successfully fulfilling all of its contractual
obligations," the company said in a statement on Tuesday.
While northern provinces of Iraq have been hit by an upsurge in violence and fighting with Islamist
militants a spokesman for Lukoil said the situation in the south where the company is working "is
stable and, on the whole, predictable"
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Mexican Oil Industry in Talks with UAE’s ADNOC & Mubadala
Gulf News + NewBase
Mexican government and oil industry officials have held informal discussions with Abu Dhabi
National Oil Company (Adnoc) and Mubadala Petroleum to invest in Mexico’s oil industry.
Officials have so far briefed representatives from the two Abu Dhabi state-owned companies on
the size of investment needed to revitalise Mexico’s ailing
energy sector, said Francisco Alonso, Mexico’s
Ambassador to the UAE, on Tuesday.
The briefing sessions took place before last week’s signing
of a package of laws by Mexican President Enrique Pena
Nieto aimed at luring billions of dollars of investment to the
country’s oil, gas and electricity sectors.
The package of laws opens up the seven decade-long
monopoly by Mexico’s two state-owned energy giants,
Pemex, the national oil company, and CFE, the electricity
firm, to new foreign and private investment opportunities.
Arjuna Mahendran, chief investment officer at Emirates
NBD Wealth Management, said Mexico represents
sizeable opportunity because traditional oil wells have been under exploited under the
nationalised monopoly.
Mexico, the world’s 15th biggest economy and 10th largest crude oil producer, is opening its
energy sector in a bid to rejuvenate the slumping economy. Pemex has already said it now
expects oil output to increase to 2.8 million barrels per day (bpd) by 2018, according to reports.
Mexico’s oil production peaked at 3.38 million bpd in 2004 but slipped to 2.52 million bpd last year.
Formal discussions between Mexico and the Abu Dhabi companies are likely to start next month
when José Manuel Carrera Panizzo, chief executive of PMI Group, a Pemex affiliated company,
visits the emirate as part of a Mexican government-led delegation.
An Adnoc spokesperson said “no comment” when asked about the prospect of partnering in the
Mexican oil industry. Mubadala Petroleum could not be reached for comment. Pemex has said
that investment in Mexico’s energy sector could increase to $55 billion a year following the
reforms, significantly higher than the current $27 billion.
Mexico’s oil industry is trying to lure partnered investments in shale and deep sea exploration and
shallow-oil fields. Deep sea exploration has so far been relatively untapped due to a lack of
technology, experience and investment.
Both Adnoc, through its subsidiaries, and Mubadala Petroleum have experience in offshore and
onshore exploration and production. However, according to reports, Pemex has had contact with
as many as 80 companies about possible partnerships.
While Mahendran said shale exploration could attract “cross border synergies” from the United
States oil fracking industry. Mexico’s Deputy Energy Secretary Lourdes Melgar recently said,
around 30 per cent of additional production over a 15 year period could come from companies
other than Pemex.
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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 6
Japan refiner eyes plants in Indonesia, Vietnam
Reuters + NewBase
JX Nippon Oil & Energy Corp is looking at building refineries and petrol stations in Indonesia and
Vietnam as fuel consumption slumps at home, in what would be its first major downstream oil
investment in Asia outside Japan.
Japan’s biggest oil refiner sees the two markets as the most promising locations for investment
due to their robust economic growth outlook and openness to foreign investment, the company’s
president Tsutomu Sugimori said in an interview.
Japan’s oil demand has dropped a fifth over the past decade, and is projected to fall another 8%
in the next five years, a government energy committee forecast in March.
Indonesia and Vietnam, where oil demand is growing 1%-2% a year, are looking to beef up their
refining capacities to reduce expensive product imports. Another Japanese refiner is already
helping to build Vietnam’s second oil refinery.
Still, neither of the countries is an easy place to do business for overseas investors. Indonesia
hasn’t been able to agree terms with foreign partners on any proposed refinery project in the past
20 years, and access to Vietnam’s retail sector could be limited.
“Indonesia has many requirements such as a need to upgrade refineries, increase refining
capacity and improve ageing facilities, and we are looking for an opportunity to enter,” Sugimori
said. “We are looking to see if we can set up a complete refining and retail service station
network.”
JX has opened a Southeast Asia business development section in Singapore and has been
looking at business opportunities in Asia excluding China and South Korea. A company
spokesman said its officials had been travelling to meet various industry and government officials
in Southeast Asia, but declined to give further details.
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Sugimori and the spokesman provided no timeline or spending target for any potential
investments. Indonesia and Vietnam, with populations of about 240mn and 90mn, respectively,
have been courting foreign direct investment in their downstream oil sectors.
Their economies are
expected to grow more
than 5% this year, and
while oil demand growth
has been sluggish, neither
is self-sufficient in the
refining sector. Vietnam’s
motorcycle sales have
taken off as its citizens get
richer and hit 3.5mn units
in 2012, making it the
fourth-biggest market after
China, India and
Indonesia. Indonesia, Southeast Asia’s largest economy, could become the world’s biggest
gasoline importer by 2018, according to Wood Mackenzie, and industry sources say it could hold
a roadshow next year to attract investors to build a new refinery.
Indonesia’s 1mn-barrels-per-day (bpd) capacity can meet only two-thirds of its domestic oil
demand, while Vietnam’s sole 130,000-bpd Dung Quat refinery meets about a third of oil product
use there. JX already operates lubricant oil plants in both nations and launched a diesel import
and sales business in Indonesia this year.
“Wanting to expand overseas their core competencies of refinery and retail sales business is
natural,” given the state of Japan’s domestic market, said Reiji Ogino, a senior analyst at
Mitsubishi UFJ Morgan Stanley Securities.
In Vietnam, JX had previously been looking to team up with state-owned Petrovietnam to expand
the Dung Quat oil refinery, but gave up on the project last year as financial terms could not be
concluded.
Idemitsu Kosan Co, Japan’s No.2 refiner by revenue, is already taking part in a $9bn project to
build Vietnam’s second refinery. The 200,000-bpd Nghi Son refinery and chemical complex in
Vietnam marks the first time a Japanese refiner is building an oil plant in Asia outside Japan.
Petrovietnam is also looking for investment partners for the $7bn-$8bn needed for the 200,000bpd
Long Son refinery, slated for operation in 2020-2030. Access to Vietnam’s retail sector may be
limited, though, as its World Trade Organisation commitments do not include opening the market
for oil product distribution.
In Indonesia, an Iranian firm and a local partner are looking to build a $3bn refinery, and
Thailand’s PTT Global Chemical Pcl is planning to triple the crude refining capacity of a joint
petrochemical project slated for operation in 2020.
Indonesia, however, has signed many preliminary deals on joint refinery projects over the last 20
years and none have ever moved beyond initial planning stages. Last year, for instance,
Indonesia broke off talks with Kuwait Petroleum and Saudi Aramco on two projects over tax
issues.
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Sino Oil and Gas Holdings's Sanjiao CBM Project Environmental
Report Gets State Approval. Press Release
Orion Energy International Inc. (OEI), a wholly-owned subsidiary of Sino Oil and Gas Holdings
Limited, has been notified by China National Petroleum Corporation (CNPC) that the report on
environmental effects from Sanjiao CBM Project was approved by Shanxi Provincial Department
of Environmental Protection on 28 July2014.
“The report on environmental effects is a
core assessment report which is the most
crucial and symbolic part to the Overall
Development Program of Sanjiao CBM
Project (“ODP”). This approval is not only
important to the reporting and the
subsequent approval of the entire ODP,
but also marks the substantial progress of
the same while the approval indicates the
support and recognition from the relevant
government authorities in relation to the
exploration, development and production
of Sanjiao CBM Project,” Sino Oil and
Gas Holdings said Tuesday.
This approval of the report on
environmental effects has laid a solid
foundation for the grant of final approval
of the ODP from the PRC government,
the company further stated.
Sino Gas Oil and Gas Holdings and China National Petroleum Corporation are engaged into the
exploration, development, production and sale of coal bed methane and other relevant derivative
products in area of approximately 383 square kilometers located in the Erdos Basin of Shanxi and
Shaanxi Provinces in China.
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UOP to clean gas at Catcher FPSO, offshore UK
Press Release, August 19, 2014
UOP LLC, a Honeywell company, announced today that it has been selected by BW Offshore to
remove contaminants from natural gas aboard a new Floating Production, Storage and Offloading
(FPSO) vessel off the coast of Scotland.
The vessel, which will be leased to Premier Oil, will include a UOP SeparexTM Membrane System
to remove carbon dioxide. While the technology has been successfully used elsewhere, this will
be the first FPSO in the North Sea to use a membrane-based treatment system.
UOP guard bed adsorbents will also be used to remove mercury and hydrogen sulfide. These
contaminants must be removed to meet export and end-user specifications, and to protect
downstream equipment.
Vast quantities of recoverable natural gas lie under
the Earth’s oceans. Accessing, treating and
recovering these natural resources can be challenging
due to ocean movement, environmental regulations,
and space and resource constraints on offshore
production facilities.
“UOP is continually innovating to create lightweight,
compact, chemical-free equipment that is ideal for the
complex offshore gas environment,” said Rebecca
Liebert, senior vice president and general manager of
Honeywell’s UOP Gas Processing and Hydrogen business
unit. “By integrating UOP Separex membrane technology and guard bed adsorbents into a single
system, we are able to create a solution that improves gas processing efficiency while reducing
operating costs for FPSO operators.”
Scheduled for start-up in 2017, BW Offshore’s FPSO will be located approximately 125 miles east
of Aberdeen, Scotland, in the Catcher oil field, in which Premier Oil has a 50 percent operating
interest. It will have a processing capacity of 60,000 barrels per day of oil and a storage capacity
of 650,000 barrels. UOP Separex technology upgrades natural gas streams by removing carbon
dioxide and water vapor. These contaminants must be removed to meet the quality standards
specified by pipeline transmission and distribution companies as well as natural gas end users.
UOP SeparexTM Membrane
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US: Natural gas can keep those motors running
Reuters + NewBase
Cheap natural gas is starting to revolutionise traffic on US roads, cutting bills for some of the
country's heaviest fuel users while reducing carbon emissions and other pollution. The revolution
is still in its very early stages. Gas remains a niche vehicle fuel, with last year's nationwide
consumption less than the amount of gasoline and diesel dispensed in the tiny state of Vermont.
But gas consumption by motorists, taxis, refuse
trucks, transit operators and logistics companies is
growingly rapidly at a time when overall gasoline
and diesel sales are flat. Like other bold gambles
on new technology, there is no guarantee that this
one will pay off. But the steady rise in natural gas
sales suggests that gas-fuelled vehicles are
making progress.
Gas as a transport fuel is sometimes portrayed as
a cottage industry, but the truth is rather different.
Gas-fuelled vehicles have strong support from
some of the biggest and most powerful names in truck manufacturing and petroleum. Royal Dutch
Shell is constructing a network of natural gas fuelling stations at truck stops along the interstate
highway system in association with TravelCenters of America, an existing truck refuelling
operator.
Love's Travel Stops, Blu LNG, Kwik Trip, Questar Fueling and TruStar Energy are also adding
gas-refuelling systems at locations across the US as well as parts of Canada. The concept has
powerful strategic and financial backing from engine manufacturer Cummins, gas producer
Chesapeake Energy and equipment maker and financing company General Electric.
Leading truck manufacturers including Freightliner, International, Kenworth, Peterbilt, Mack and
Volvo all offer natural gas trucks using Cummins' ISX 12G engine, which one major fuel supplier
hopes will be a "game changer" for the industry.
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TRADE-OFFS
Gas-fuelled vehicles typically cost significantly more than conventional gasoline and diesel-
powered equivalents, while fuelling stations dispensing compressed natural gas (CNG) or
liquefied natural gas (LNG) to the public remain rare.
Set against these disadvantages, however, is the substantially lower price of natural gas. Between
2011 and 2013 compressed CNG and LNG delivered cost savings of more than $1 per gallon on
an energy equivalent basis compared with gasoline and diesel to California customers.
For individual vehicles and fleet operators that use a lot of fuel each year, the savings on fuel can
more than offset the increased equipment costs and inconvenience arising from restricted
refuelling infrastructure. Switching to gas makes most sense for high-mileage vehicles and those
with very large engines, which explains why taxi fleets, transit operators, refuse collectors, airport
shuttles and trucking companies have shown the most interest in gas-fuelled engines.
SLOW START
Gas conversion, however, has been plagued with the teething problems typical in any new
technology and there is still competition between companies promoting either CNG or LNG as the
best fuel.
The transition has not been helped by early gas-fuelled engines not always being suitable for
certain customer groups. Cummins, the leading engine manufacturer, supplied 8.9 lire and 15 litre
engines suitable for LNG, but the former did not deliver enough horsepower and the latter was too
large for efficient operation by most potential users.
Gas-fuel vendors are pinning their hopes on a new generation of 12 litre Cummins engines, led by
the ISX 12G, to speed the spread of gas-fuelled vehicles.
Notwithstanding the problems, sales of gas as a road transport fuel are rising rapidly. Clean
Energy Fuels, the leading provider of natural gas as an alternative fuel for vehicles in the US and
Canada based on sales volumes and the number of refuelling stations, has reported rapid and
sustained growth in the amount of CNG and LNG sold since 2009.
Clean Energy Fuels sold almost 65 million gasoline gallons equivalent (GGE) of natural gas fuels
in the second quarter of this year, up from 50 million in the same period of 2012 and 25 million in
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2009. CNG accounts for two thirds of the company's sales, but deliveries of both CNG and LNG
have been rising steadily over the past five years.
Roughly half of all natural gas sales for transport fuel are in California, according to the Energy
Information Administration, and gas sales remain tiny compared with other fuels. US drivers
purchased 174 billion gallons of gasoline and diesel last year, according to the Federal Highway
Administration. So if Clean Energy manages to sell 170 million gasoline equivalent gallons in
2014, it will still amount to less than 0.1 percent of all US fuel sales. But Clean Energy has big
ambitions and believes it is well positioned to capture expected future growth in demand for
alternative-fuelled vehicles.
CLEAN ENERGY
The company owns, operates and supplies 516 refuelling stations dispensing CNG, LNG or
biogas, up from 224 at the start of 2011. Some of these stations are open to the public, but the
majority are private stations operated on behalf of transit and refuse companies or other fleet
operators.
In 2013 Clean Energy served 779 fleet customers
operating approximately 35,000 natural gas vehicles and
had fuelling stations in 39 states across the US, plus the
provinces of Ontario and British Columbia in Canada. In
the first six months of this year the company added
another 43 CNG fleet customers, accounting for an extra
9.8 million gallons of sales, and 11 new LNG customers,
adding an extra 6.5 million gallons.
Clean Energy has been building a network of refuelling
stations along major transportation corridors, which it calls
"America's Natural Gas Highway" (ANGH). The idea is to
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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guarantee refuelling facilities for coast-to-coast trucking companies. More than 80 ANGH stations
have been built, though only a minority are open to the public, with the company waiting for
customer demand to increase.
Building so much infrastructure has pushed Clean Energy deep into debt. The company posted a
pre-tax loss of $60 million in the first half of this year, bringing total pre-tax losses since the start of
2011 to $271 million.
"We have a history of losses and may incur additional losses in future," the company admits,
adding in regulatory filings that it might never achieve or maintain profitability and that investment
in the business "involves a high degree of risk".
The company had consolidated debt of more than $600 million on June 30, according to its
quarterly filing with the Securities and Exchange Commission. Clean Energy is essentially a
concept company dedicated to the idea that cheap gas could grab a significant share of North
America's giant fuel market.
The main risks are that the company will run out of cash before natural gas vehicles go
mainstream or oil prices fall enough to spoil the economics of switching. But otherwise the
concept is a good one. Gas is cheap and abundant in North America and the engine technology is
mature. Gas will not be suitable for all motorists, but for a group of the heaviest users there is a
compelling argument for making the switch.
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Comprehensive cybersecurity plan needed to keep information secure
Saudi Gazatte + NewBase
Cyber threats, data breaches and high-risk vulnerabilities have continued to dominate the first half
of 2014, Trend Micro Incorporated’s second quarter security roundup report “Turning the Tables
on Cybercrime: Responding to Evolving Cybercrime Tactics” showed.
The severity of these attacks intensified against financial and banking institutions as well as retail
outlets. Total attacks have exposed more than 10 million personal records as of July 2014 and
strongly indicate the need for organizations to adopt a more strategic approach to safeguarding
digital information.
These incident attacks in the second quarter affecting consumer’s personal information included
theft of data such as customer names, passwords, email addresses, home addresses, phone
numbers, and dates of birth. These types of personal privacy breaches have affected
organization’s sales and earnings while leaving customers unable to access accounts and dealing
with service disruption. As a result many countries have begun developing stricter privacy and
data collection policies to begin dealing with this problem.
As of July 15, 2014, more than 400 data breach incidents have been reported, creating the need
for organizations to identify and understand their core data in order to protect and build an
effective defense strategy to keep them secure. A change in mindset, organizations initially need
to determine which information they regard as “core data” before devising a plan on how to protect it.
“Organizations must treat information security as a primary component of a long-term business
strategy rather than handling security issues as tertiary, minor setbacks,” said Raimund Genes,
CTO, Trend Micro. “Similar to having a business strategy to improve efficiency, a well-thought-out
security strategy should also improve current protection practices that achieve long-term benefits.
The incidents observed during this quarter further establish the need for a more comprehensive
approach to security.”
The report highlighted, among others, that:
‱ Critical vulnerabilities created havoc among information security professionals and the
public: High-risk vulnerabilities affected various components of Internet browsing and Web
services, including server-side libraries, OSs, mobile apps and browsers.
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‱ Escalation in the severity and volume of attacks: The severity of attacks against
organizations highlighted the importance of incident response planning and organization-
wide security awareness.
‱
‱ Cybercriminals counter online banking and mobile platform developments: Deployment of
mobile ransomware and two-factor authentication-breaking malware has emerged in
response to technological developments in the online banking and mobile platforms.
‱ Digital Life and Internet of Everything (IOE) improved way of life with emerging
vulnerabilities: The 2014 FIFA World Cup held in Brazil was one of the most popular
sporting events in recent history. As such, users faced various threats related to the
event—one of the most widely used social engineering hooks this quarter.
‱ Global law enforcement partnerships lead to arrests: By sharing research findings with law
enforcement agencies, financial loss prevention from cybercrime has proven effective.
“The reported attacks in the second quarter reveal that the wide spectrum of cyber threats
can have a disastrous impact globally,” said JD Sherry, vice president of technology and
solutions, Trend Micro. “Implementing a strategic incident response plan by forging
collaborations, both internally and externally, will provide agencies and industries the
resources to respond and protect against current threats to information security.”
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NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Services
Khaled Malallah Al Awadi,
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Energy Services & Consultants
Mobile : +97150-4822502
khalid_malallah@emarat.ae
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years ofofofof experience in theexperience in theexperience in theexperience 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 Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsof the experience were spent as the Gas Operationsof the experience were spent as the Gas Operationsof 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 experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipeliof gas pipeliof gas pipeliof gas pipelines, gas metering & regulating stations and in the engineering of supplynes, gas metering & regulating stations and in the engineering of supplynes, gas metering & regulating stations and in the engineering of supplynes, 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 forOUs forOUs forOUs for
the local authorities. He has become a referencethe local authorities. He has become a referencethe local authorities. He has become a referencethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satellite Channels .internationally , via GCC leading satellite Channels .internationally , via GCC leading satellite Channels .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 20 August 2014 K. Al Awadi

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New base special 20 august 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 20 August 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Oil Search suspends drilling at Kurdish oil well, but profits surge The National + NewBAse Oil Search, an Australian oil and gas explorer part-owned by Abu Dhabi, is the latest energy company to be affected by the security crisis in northern Iraq, even though Iraqi government forces have made gains against the Islamist State insurgents. Oil Search, announcing half-year results today, said that it had suspended drilling on its Taza 2 oil well, located in southwestern Kurdish Iraq. However, the company said it would keep other Iraq operations running. While reporting promising results on Taza 2, the company added: “Due to the recent increase in regional tensions, our ability to deploy key skilled technicians, equipment and materials to the Taza 2 well site has been interrupted. Consequently, in consultation with the Kurdistan’s ministry for natural resources, we have decided to temporarily suspend the well. As the security situation at Taza is presently stable, our other operations [there] are ongoing.” In the past month, a number of companies announced suspension of operations or evacuation of staff as the insurgents advanced, including Abu Dhabi National Energy Company (Taqa), whose Artrush development is in the north of the Kurdish region, Hess, Genel, Petro-celtic, Afren and Chevron. This week, Kurdish forces supported by US airstrikes regained the Mosul dam, a key source of electricity and water, from the insurgents and were making other advances, although the security situation in the region remained precarious. Oil Search and other oil companies have said that they will monitor the situation and resume suspended operations when security improves. Oil Search is Australia’s third-largest oil and gas explorer and the largest operating in Papua New Guinea (PNG). In spring this year, the Abu Dhabi wealth fund Ipic gained a 17.6 per cent share in the company from the PNG government when it converted bondholdings it owned.
  • 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 Oil Search reported a 68 per cent surge in production in the first six months of the year, to 5.4 million barrels of oil equivalent, the main factor being the start of shipments of liquefied natural gas from a big new plant in PNG. The company said revenue rose 34 per cent to US$510 million, driven by the first sales from the PNG LNG Project, strong oil production and slightly higher oil prices. Net profit for the period was also up 34 per cent, at $152.5 million. In its guidance for the full year 2014, Oil Search said it expects further gains in PNG to feed through to revenue and profits, forecasting total production of between 18 million and 20 million barrels of oil equivalent. It also said that despite the disruption in Kurdish Iraq, the appraisal results so far on the Taza field indicate it is a “potentially very large oil field
  • 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 Russia's Lukoil ships first oil cargo from Iraq's West Qurna-2 field Reuters + NewBase Lukoil, Russia's second biggest oil producer, said on Tuesday it had shipped 1 million barrels of oil produced from southern Iraq's giant West Qurna-2 oilfield, its first shipment from the field, despite a surge of violence in Iraq. Ranked as one of the largest oil fields in the world, West Qurna-2, where Lukoil holds a 75- percent stake, is one of several big fields under development which are set to boost Iraq's economy. West Qurna-2's output alone is expected to peak at 1.2 million barrels per day from estimated recoverable reserves of about 13 billion barrels. Shipping its first oil, Lukoil said the Sea Triumph tanker had left the port of Basra bound for Augusta in Sicily, where Lukoil owns the ISAB refinery. Production at West Qurna-2 is a key part of Lukoil's efforts to make up for its declining production elsewhere, chiefly in western Siberia. Lukoil's foreign upstream projects now account for around 6 percent of the company's oil output and it expects the figure to rise to 17 percent of its total hydrocarbon production by 2020. Lukoil said three weeks ago that production at West Qurna-2 has increased to 280,000 barrels per day since commercial production started in March at a rate of 120,000 bpd. "The project's development is on schedule with Lukoil successfully fulfilling all of its contractual obligations," the company said in a statement on Tuesday. While northern provinces of Iraq have been hit by an upsurge in violence and fighting with Islamist militants a spokesman for Lukoil said the situation in the south where the company is working "is stable and, on the whole, predictable"
  • 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 Mexican Oil Industry in Talks with UAE’s ADNOC & Mubadala Gulf News + NewBase Mexican government and oil industry officials have held informal discussions with Abu Dhabi National Oil Company (Adnoc) and Mubadala Petroleum to invest in Mexico’s oil industry. Officials have so far briefed representatives from the two Abu Dhabi state-owned companies on the size of investment needed to revitalise Mexico’s ailing energy sector, said Francisco Alonso, Mexico’s Ambassador to the UAE, on Tuesday. The briefing sessions took place before last week’s signing of a package of laws by Mexican President Enrique Pena Nieto aimed at luring billions of dollars of investment to the country’s oil, gas and electricity sectors. The package of laws opens up the seven decade-long monopoly by Mexico’s two state-owned energy giants, Pemex, the national oil company, and CFE, the electricity firm, to new foreign and private investment opportunities. Arjuna Mahendran, chief investment officer at Emirates NBD Wealth Management, said Mexico represents sizeable opportunity because traditional oil wells have been under exploited under the nationalised monopoly. Mexico, the world’s 15th biggest economy and 10th largest crude oil producer, is opening its energy sector in a bid to rejuvenate the slumping economy. Pemex has already said it now expects oil output to increase to 2.8 million barrels per day (bpd) by 2018, according to reports. Mexico’s oil production peaked at 3.38 million bpd in 2004 but slipped to 2.52 million bpd last year. Formal discussions between Mexico and the Abu Dhabi companies are likely to start next month when JosĂ© Manuel Carrera Panizzo, chief executive of PMI Group, a Pemex affiliated company, visits the emirate as part of a Mexican government-led delegation. An Adnoc spokesperson said “no comment” when asked about the prospect of partnering in the Mexican oil industry. Mubadala Petroleum could not be reached for comment. Pemex has said that investment in Mexico’s energy sector could increase to $55 billion a year following the reforms, significantly higher than the current $27 billion. Mexico’s oil industry is trying to lure partnered investments in shale and deep sea exploration and shallow-oil fields. Deep sea exploration has so far been relatively untapped due to a lack of technology, experience and investment. Both Adnoc, through its subsidiaries, and Mubadala Petroleum have experience in offshore and onshore exploration and production. However, according to reports, Pemex has had contact with as many as 80 companies about possible partnerships. While Mahendran said shale exploration could attract “cross border synergies” from the United States oil fracking industry. Mexico’s Deputy Energy Secretary Lourdes Melgar recently said, around 30 per cent of additional production over a 15 year period could come from companies other than Pemex.
  • 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
  • 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 Japan refiner eyes plants in Indonesia, Vietnam Reuters + NewBase JX Nippon Oil & Energy Corp is looking at building refineries and petrol stations in Indonesia and Vietnam as fuel consumption slumps at home, in what would be its first major downstream oil investment in Asia outside Japan. Japan’s biggest oil refiner sees the two markets as the most promising locations for investment due to their robust economic growth outlook and openness to foreign investment, the company’s president Tsutomu Sugimori said in an interview. Japan’s oil demand has dropped a fifth over the past decade, and is projected to fall another 8% in the next five years, a government energy committee forecast in March. Indonesia and Vietnam, where oil demand is growing 1%-2% a year, are looking to beef up their refining capacities to reduce expensive product imports. Another Japanese refiner is already helping to build Vietnam’s second oil refinery. Still, neither of the countries is an easy place to do business for overseas investors. Indonesia hasn’t been able to agree terms with foreign partners on any proposed refinery project in the past 20 years, and access to Vietnam’s retail sector could be limited. “Indonesia has many requirements such as a need to upgrade refineries, increase refining capacity and improve ageing facilities, and we are looking for an opportunity to enter,” Sugimori said. “We are looking to see if we can set up a complete refining and retail service station network.” JX has opened a Southeast Asia business development section in Singapore and has been looking at business opportunities in Asia excluding China and South Korea. A company spokesman said its officials had been travelling to meet various industry and government officials in Southeast Asia, but declined to give further details.
  • 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 Sugimori and the spokesman provided no timeline or spending target for any potential investments. Indonesia and Vietnam, with populations of about 240mn and 90mn, respectively, have been courting foreign direct investment in their downstream oil sectors. Their economies are expected to grow more than 5% this year, and while oil demand growth has been sluggish, neither is self-sufficient in the refining sector. Vietnam’s motorcycle sales have taken off as its citizens get richer and hit 3.5mn units in 2012, making it the fourth-biggest market after China, India and Indonesia. Indonesia, Southeast Asia’s largest economy, could become the world’s biggest gasoline importer by 2018, according to Wood Mackenzie, and industry sources say it could hold a roadshow next year to attract investors to build a new refinery. Indonesia’s 1mn-barrels-per-day (bpd) capacity can meet only two-thirds of its domestic oil demand, while Vietnam’s sole 130,000-bpd Dung Quat refinery meets about a third of oil product use there. JX already operates lubricant oil plants in both nations and launched a diesel import and sales business in Indonesia this year. “Wanting to expand overseas their core competencies of refinery and retail sales business is natural,” given the state of Japan’s domestic market, said Reiji Ogino, a senior analyst at Mitsubishi UFJ Morgan Stanley Securities. In Vietnam, JX had previously been looking to team up with state-owned Petrovietnam to expand the Dung Quat oil refinery, but gave up on the project last year as financial terms could not be concluded. Idemitsu Kosan Co, Japan’s No.2 refiner by revenue, is already taking part in a $9bn project to build Vietnam’s second refinery. The 200,000-bpd Nghi Son refinery and chemical complex in Vietnam marks the first time a Japanese refiner is building an oil plant in Asia outside Japan. Petrovietnam is also looking for investment partners for the $7bn-$8bn needed for the 200,000bpd Long Son refinery, slated for operation in 2020-2030. Access to Vietnam’s retail sector may be limited, though, as its World Trade Organisation commitments do not include opening the market for oil product distribution. In Indonesia, an Iranian firm and a local partner are looking to build a $3bn refinery, and Thailand’s PTT Global Chemical Pcl is planning to triple the crude refining capacity of a joint petrochemical project slated for operation in 2020. Indonesia, however, has signed many preliminary deals on joint refinery projects over the last 20 years and none have ever moved beyond initial planning stages. Last year, for instance, Indonesia broke off talks with Kuwait Petroleum and Saudi Aramco on two projects over tax issues.
  • 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 Sino Oil and Gas Holdings's Sanjiao CBM Project Environmental Report Gets State Approval. Press Release Orion Energy International Inc. (OEI), a wholly-owned subsidiary of Sino Oil and Gas Holdings Limited, has been notified by China National Petroleum Corporation (CNPC) that the report on environmental effects from Sanjiao CBM Project was approved by Shanxi Provincial Department of Environmental Protection on 28 July2014. “The report on environmental effects is a core assessment report which is the most crucial and symbolic part to the Overall Development Program of Sanjiao CBM Project (“ODP”). This approval is not only important to the reporting and the subsequent approval of the entire ODP, but also marks the substantial progress of the same while the approval indicates the support and recognition from the relevant government authorities in relation to the exploration, development and production of Sanjiao CBM Project,” Sino Oil and Gas Holdings said Tuesday. This approval of the report on environmental effects has laid a solid foundation for the grant of final approval of the ODP from the PRC government, the company further stated. Sino Gas Oil and Gas Holdings and China National Petroleum Corporation are engaged into the exploration, development, production and sale of coal bed methane and other relevant derivative products in area of approximately 383 square kilometers located in the Erdos Basin of Shanxi and Shaanxi Provinces in China.
  • 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 UOP to clean gas at Catcher FPSO, offshore UK Press Release, August 19, 2014 UOP LLC, a Honeywell company, announced today that it has been selected by BW Offshore to remove contaminants from natural gas aboard a new Floating Production, Storage and Offloading (FPSO) vessel off the coast of Scotland. The vessel, which will be leased to Premier Oil, will include a UOP SeparexTM Membrane System to remove carbon dioxide. While the technology has been successfully used elsewhere, this will be the first FPSO in the North Sea to use a membrane-based treatment system. UOP guard bed adsorbents will also be used to remove mercury and hydrogen sulfide. These contaminants must be removed to meet export and end-user specifications, and to protect downstream equipment. Vast quantities of recoverable natural gas lie under the Earth’s oceans. Accessing, treating and recovering these natural resources can be challenging due to ocean movement, environmental regulations, and space and resource constraints on offshore production facilities. “UOP is continually innovating to create lightweight, compact, chemical-free equipment that is ideal for the complex offshore gas environment,” said Rebecca Liebert, senior vice president and general manager of Honeywell’s UOP Gas Processing and Hydrogen business unit. “By integrating UOP Separex membrane technology and guard bed adsorbents into a single system, we are able to create a solution that improves gas processing efficiency while reducing operating costs for FPSO operators.” Scheduled for start-up in 2017, BW Offshore’s FPSO will be located approximately 125 miles east of Aberdeen, Scotland, in the Catcher oil field, in which Premier Oil has a 50 percent operating interest. It will have a processing capacity of 60,000 barrels per day of oil and a storage capacity of 650,000 barrels. UOP Separex technology upgrades natural gas streams by removing carbon dioxide and water vapor. These contaminants must be removed to meet the quality standards specified by pipeline transmission and distribution companies as well as natural gas end users. UOP SeparexTM Membrane
  • 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 US: Natural gas can keep those motors running Reuters + NewBase Cheap natural gas is starting to revolutionise traffic on US roads, cutting bills for some of the country's heaviest fuel users while reducing carbon emissions and other pollution. The revolution is still in its very early stages. Gas remains a niche vehicle fuel, with last year's nationwide consumption less than the amount of gasoline and diesel dispensed in the tiny state of Vermont. But gas consumption by motorists, taxis, refuse trucks, transit operators and logistics companies is growingly rapidly at a time when overall gasoline and diesel sales are flat. Like other bold gambles on new technology, there is no guarantee that this one will pay off. But the steady rise in natural gas sales suggests that gas-fuelled vehicles are making progress. Gas as a transport fuel is sometimes portrayed as a cottage industry, but the truth is rather different. Gas-fuelled vehicles have strong support from some of the biggest and most powerful names in truck manufacturing and petroleum. Royal Dutch Shell is constructing a network of natural gas fuelling stations at truck stops along the interstate highway system in association with TravelCenters of America, an existing truck refuelling operator. Love's Travel Stops, Blu LNG, Kwik Trip, Questar Fueling and TruStar Energy are also adding gas-refuelling systems at locations across the US as well as parts of Canada. The concept has powerful strategic and financial backing from engine manufacturer Cummins, gas producer Chesapeake Energy and equipment maker and financing company General Electric. Leading truck manufacturers including Freightliner, International, Kenworth, Peterbilt, Mack and Volvo all offer natural gas trucks using Cummins' ISX 12G engine, which one major fuel supplier hopes will be a "game changer" for the industry.
  • 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 TRADE-OFFS Gas-fuelled vehicles typically cost significantly more than conventional gasoline and diesel- powered equivalents, while fuelling stations dispensing compressed natural gas (CNG) or liquefied natural gas (LNG) to the public remain rare. Set against these disadvantages, however, is the substantially lower price of natural gas. Between 2011 and 2013 compressed CNG and LNG delivered cost savings of more than $1 per gallon on an energy equivalent basis compared with gasoline and diesel to California customers. For individual vehicles and fleet operators that use a lot of fuel each year, the savings on fuel can more than offset the increased equipment costs and inconvenience arising from restricted refuelling infrastructure. Switching to gas makes most sense for high-mileage vehicles and those with very large engines, which explains why taxi fleets, transit operators, refuse collectors, airport shuttles and trucking companies have shown the most interest in gas-fuelled engines. SLOW START Gas conversion, however, has been plagued with the teething problems typical in any new technology and there is still competition between companies promoting either CNG or LNG as the best fuel. The transition has not been helped by early gas-fuelled engines not always being suitable for certain customer groups. Cummins, the leading engine manufacturer, supplied 8.9 lire and 15 litre engines suitable for LNG, but the former did not deliver enough horsepower and the latter was too large for efficient operation by most potential users. Gas-fuel vendors are pinning their hopes on a new generation of 12 litre Cummins engines, led by the ISX 12G, to speed the spread of gas-fuelled vehicles. Notwithstanding the problems, sales of gas as a road transport fuel are rising rapidly. Clean Energy Fuels, the leading provider of natural gas as an alternative fuel for vehicles in the US and Canada based on sales volumes and the number of refuelling stations, has reported rapid and sustained growth in the amount of CNG and LNG sold since 2009. Clean Energy Fuels sold almost 65 million gasoline gallons equivalent (GGE) of natural gas fuels in the second quarter of this year, up from 50 million in the same period of 2012 and 25 million in
  • 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 2009. CNG accounts for two thirds of the company's sales, but deliveries of both CNG and LNG have been rising steadily over the past five years. Roughly half of all natural gas sales for transport fuel are in California, according to the Energy Information Administration, and gas sales remain tiny compared with other fuels. US drivers purchased 174 billion gallons of gasoline and diesel last year, according to the Federal Highway Administration. So if Clean Energy manages to sell 170 million gasoline equivalent gallons in 2014, it will still amount to less than 0.1 percent of all US fuel sales. But Clean Energy has big ambitions and believes it is well positioned to capture expected future growth in demand for alternative-fuelled vehicles. CLEAN ENERGY The company owns, operates and supplies 516 refuelling stations dispensing CNG, LNG or biogas, up from 224 at the start of 2011. Some of these stations are open to the public, but the majority are private stations operated on behalf of transit and refuse companies or other fleet operators. In 2013 Clean Energy served 779 fleet customers operating approximately 35,000 natural gas vehicles and had fuelling stations in 39 states across the US, plus the provinces of Ontario and British Columbia in Canada. In the first six months of this year the company added another 43 CNG fleet customers, accounting for an extra 9.8 million gallons of sales, and 11 new LNG customers, adding an extra 6.5 million gallons. Clean Energy has been building a network of refuelling stations along major transportation corridors, which it calls "America's Natural Gas Highway" (ANGH). The idea is to
  • 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 guarantee refuelling facilities for coast-to-coast trucking companies. More than 80 ANGH stations have been built, though only a minority are open to the public, with the company waiting for customer demand to increase. Building so much infrastructure has pushed Clean Energy deep into debt. The company posted a pre-tax loss of $60 million in the first half of this year, bringing total pre-tax losses since the start of 2011 to $271 million. "We have a history of losses and may incur additional losses in future," the company admits, adding in regulatory filings that it might never achieve or maintain profitability and that investment in the business "involves a high degree of risk". The company had consolidated debt of more than $600 million on June 30, according to its quarterly filing with the Securities and Exchange Commission. Clean Energy is essentially a concept company dedicated to the idea that cheap gas could grab a significant share of North America's giant fuel market. The main risks are that the company will run out of cash before natural gas vehicles go mainstream or oil prices fall enough to spoil the economics of switching. But otherwise the concept is a good one. Gas is cheap and abundant in North America and the engine technology is mature. Gas will not be suitable for all motorists, but for a group of the heaviest users there is a compelling argument for making the switch.
  • 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 Comprehensive cybersecurity plan needed to keep information secure Saudi Gazatte + NewBase Cyber threats, data breaches and high-risk vulnerabilities have continued to dominate the first half of 2014, Trend Micro Incorporated’s second quarter security roundup report “Turning the Tables on Cybercrime: Responding to Evolving Cybercrime Tactics” showed. The severity of these attacks intensified against financial and banking institutions as well as retail outlets. Total attacks have exposed more than 10 million personal records as of July 2014 and strongly indicate the need for organizations to adopt a more strategic approach to safeguarding digital information. These incident attacks in the second quarter affecting consumer’s personal information included theft of data such as customer names, passwords, email addresses, home addresses, phone numbers, and dates of birth. These types of personal privacy breaches have affected organization’s sales and earnings while leaving customers unable to access accounts and dealing with service disruption. As a result many countries have begun developing stricter privacy and data collection policies to begin dealing with this problem. As of July 15, 2014, more than 400 data breach incidents have been reported, creating the need for organizations to identify and understand their core data in order to protect and build an effective defense strategy to keep them secure. A change in mindset, organizations initially need to determine which information they regard as “core data” before devising a plan on how to protect it. “Organizations must treat information security as a primary component of a long-term business strategy rather than handling security issues as tertiary, minor setbacks,” said Raimund Genes, CTO, Trend Micro. “Similar to having a business strategy to improve efficiency, a well-thought-out security strategy should also improve current protection practices that achieve long-term benefits. The incidents observed during this quarter further establish the need for a more comprehensive approach to security.” The report highlighted, among others, that: ‱ Critical vulnerabilities created havoc among information security professionals and the public: High-risk vulnerabilities affected various components of Internet browsing and Web services, including server-side libraries, OSs, mobile apps and browsers.
  • 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 ‱ Escalation in the severity and volume of attacks: The severity of attacks against organizations highlighted the importance of incident response planning and organization- wide security awareness. ‱ ‱ Cybercriminals counter online banking and mobile platform developments: Deployment of mobile ransomware and two-factor authentication-breaking malware has emerged in response to technological developments in the online banking and mobile platforms. ‱ Digital Life and Internet of Everything (IOE) improved way of life with emerging vulnerabilities: The 2014 FIFA World Cup held in Brazil was one of the most popular sporting events in recent history. As such, users faced various threats related to the event—one of the most widely used social engineering hooks this quarter. ‱ Global law enforcement partnerships lead to arrests: By sharing research findings with law enforcement agencies, financial loss prevention from cybercrime has proven effective. “The reported attacks in the second quarter reveal that the wide spectrum of cyber threats can have a disastrous impact globally,” said JD Sherry, vice president of technology and solutions, Trend Micro. “Implementing a strategic incident response plan by forging collaborations, both internally and externally, will provide agencies and industries the resources to respond and protect against current threats to information security.”
  • 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, MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990 Energy Services & Consultants Mobile : +97150-4822502 khalid_malallah@emarat.ae khdmohd@hotmail.com Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years ofofofof experience in theexperience in theexperience in theexperience 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 Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsof the experience were spent as the Gas Operationsof the experience were spent as the Gas Operationsof 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 experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipeliof gas pipeliof gas pipeliof gas pipelines, gas metering & regulating stations and in the engineering of supplynes, gas metering & regulating stations and in the engineering of supplynes, gas metering & regulating stations and in the engineering of supplynes, 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 forOUs forOUs forOUs for the local authorities. He has become a referencethe local authorities. He has become a referencethe local authorities. He has become a referencethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted internationally , via GCC leading satellite Channels .internationally , via GCC leading satellite Channels .internationally , via GCC leading satellite Channels .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 20 August 2014 K. Al Awadi