NewBase energy news - Khaled Al Awadi

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,
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NewBase 21 July 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
QP awards QR1.2bn new rig contract to GDI
Gulf-Times
Gulf Drilling International (GDI) has been awarded a QR1.2bn contract by Qatar Petroleum for a
new “hi-spec premium jack-up rig”, starting in the second quarter in 2016. The brand new rig,
recently named ‘Halul’, will become the 4th jack-up rig in
GDI’s fleet to be under contract to QP, for an initial term
of five years. GDI is a subsidiary of Gulf International
Services (GIS) and the largest oilfield service company in
Qatar.
The other three GDI jack-up rigs under contract to QP
are ‘Al Doha’, ‘Al Zubarah’ and ‘Dukhan’. GDI has
identified a renowned international shipyard with a rig
suitable to QP, which will be delivered within the
specified time frame and is in the process of finalising its
order.
GDI chief executive officer, Ibrahim J al-Othman said:
“GDI is pleased to have received this important award
from QP, which will be starting work mid-2016. This new
business generated by ‘Halul’ will support our growth
plan in 2016, which will in turn support our long term
revenue growth.
“GDI’s favourable reputation has been earned over time
through the strong partnerships that have been forged with all our clients, where flexibility to
customise our services to meet the client’s specific requirements has always been emphasised.
“I must also mention my appreciation and thanks to HE the Minister of Energy and Industry Dr
Mohamed bin Saleh al-Sada, also QP chairman and managing director, for his continuous support
to GDI and the respective departments of QP. My thanks also goes to GDI Board of Directors for
their guidance and support,” al-Othman added.
The key features of the new rig ‘Halul’ will be a 1.5mn pound derrick, 150 man accommodation, 75
foot cantilever outreach, 7,500 horse power mud pumps and other customisations required by QP.
Adding another state of the art rig to GDI’s fleet will serve the dual purpose of raising the
company’s technical capabilities while reducing the average age of its fleet. GDI’s versatility will
also be enhanced with four of its six cyber rigs capable of operating anywhere within the offshore
areas of Qatar.

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,
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Petchem prices may increase in next three years’ Says SABIC CEO
Source SABIC + NewBase
The global outlook for petrochemical demand over the next three years is positive and there is
room for prices to rise, the chief executive of Saudi Basic Industries Corp (Sabic) said yesterday.
Mohamed al-Mady was addressing a news conference after Sabic, one of
the world’s largest petrochemicals groups, earlier reported a 7% year-on-year
increase in second-quarter net income, matching analysts’ predictions.
Forecasts suggest shale gas, a potential feedstock for petrochemicals, will
only be produced in large quantities from the US in 2018, leaving room for
improvement in petrochemical prices
before then, he said.
For this year, Mady predicted the
business outlook would remain
similar to 2013, with petchrochemical
product prices probably staying
stable.
He added that Africa was a very
promising market for Sabic and the
company was focusing on opening
distribution centres in a number of
African countries, especially for
fertilisers and plastics.
Chief financial officer Mutlaq Morished told the news conference that Sabic’s sales in the second
quarter climbed to 48.15bn riyals ($12.84bn) from 44.99bn riyals a year earlier.
Sonatrach to spend $100bn on oil output

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Algiers: Sonatrach to spend $100bn on oil output
Re uters + NewBase
Algerian state energy group Sonatrach has approved a $100bn investment plan for 2014-2018 to
increase oil and gas output and also aims to start producing shale gas in 2020, the official APS
news agency reported.
Opec member Algeria, a major gas
supplier to Europe, has been
struggling to raise energy output, on
which it relies heavily for state funds
to finance development and social
programmes.
Oil and gas production has been
stagnating since 2010 due to a fall in
exploration activity and a lack of
investment from foreign companies,
which have been wary of Algeria’s
contract terms and security since a
2013 militant attack on a gas plant.
But energy officials are hopeful things
will improve in the medium term
through higher spending in the
sector.
The $100bn spending for the five-
year period through 2018 will be
aimed at boosting reserves and
increasing oil and gas production,
APS said, citing an unidentified
source at Sonatrach late on
Saturday.
The plan allocates $42bn to help
develop oil and gas fields from now
through 2018. That figure includes
$22bn for natural gas
development.Officials have said
Sonatrach is planning to start
production at six gas fields with a
total capacity of 74 million cubic
metres per day in the next three
years.
The investment plan was reported as
Algeria prepares to open bids for a
new oil and gas round, with 31 fields on offer in September this year. For the first time, the bidding
includes blocks for unconventional resources, with tax incentives for foreign companies interested
in investing in shale gas and shale oil.

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,
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in this publication. However, no warranty is given to the accuracy of its content . Page 4
Tunisia: Serinus Energy spuds Sabria field development well
onshore Tunisia . Source Serinus Energy
Serinus Energy has spudded the Winstar-12bis (WIN-12bis) development well on the Sabria field, onshore
Tunisia. WIN-12bis is located in the eastern portion of the Sabria Field in central Tunisia. The planned total
depth is 3,900 metres and the well is expected to take 63 days to drill. WIN-12bis is the first of a 2 well
drilling program by the Company in the Sabria Field. The rig will move to the second location, Winstar-13
(WIN-13), immediately after finishing WIN-12bis.
The Sabria Field is a very large oil accumulation, with 347 MMBbl of Original Oil in Place[1] (OOIP) of
which 280 MMBbl and 67 MMBbl are associated with assigned Reserves and Contingent Resources,
respectively. It was discovered in 1979 and only six wells have been drilled in the field. Four of those wells
have produced 3.1 MMBbl of oil and 8.8 Bcf of solution gas to the end of December 2013. The targets are
the Ordovician aged Hamra and El Atchane formations which are tight sandstones with a high degree of
natural fracturing.
Sabria is 45% owned and operated by Winstar Tunisia, a wholly-owned subsidiary of Serinus. The other
55% is owned by the Tunisian state oil company, Entreprise Tunisienne D’Activites Petrolieres
('ETAP').[1] Best Estimate as determined by the Company’s independent third party evaluator as at
December 31, 2013.

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
Russia: Schlumberger says unaffected by U.S. sanctions on Russia
Reuters + NewBase
Oilfield service provider Schlumberger, which drills with Rosneft on the Russian island of Sakhalin, said
there was no 'real impact' on its business in Russia, two days after the United States slapped sanctions on
Rosneft. Washington imposed sanctions on Rosneft, Russia's largest oil producer, and Novatek, the
country's second-largest gas producer, over Moscow's role in the Ukraine crisis.
'As of now, there is no impact from sanctions,' Schlumberger Chief Executive Paal Kibsgaard said on a
post-earnings conference call. 'Whether there will be impacts in the future is a bit difficult to comment on,'
he said, adding that it was 'business as usual' for now.
Schlumberger's
shares fell as much
as 3.5 percent in
early trading on
Friday. Analysts
attributed this fall
to 'unreasonable'
earnings
expectations from
the company.
Schlumberger
reported better-
than-expected
revenue and profit
after the market
closed on Thursday
as drilling activity
rose in the United
States and offshore
Gulf of Mexico.
A recovery in
activity in Russia after a harsh winter also helped the company's quarterly results. 'The underlying activity
outlook - both offshore and on land - in Russia continues to look solid, and with recent contract awards in,
we expect to finish the year on a strong note,' Kibsgaard said.
Schlumberger signed an agreement with Russia and Gazprom Neft earlier this year to collaborate on
technology for the planned Bazhenov shale development project in the Priobskoe oilfield in Western
Siberia. Gazprom Neft is the oil-producing arm of Russian state gas company Gazprom, which is not facing
any U.S. or European Union sanctions. Schlumberger also has offshore projects in Sakhalin.
Russia accounts for less than 5 percent of Schlumberger's total revenue, Simmons & Co International
analyst Bill Herbert said. '(Sanctions against Russia are) a risk and Schlumberger is vigilant about it and I
clearly think they have a contingency plan in the event that (further) sanctions do unfold,' he said.
Further sanctions against Russia are likely if an investigation establishes the country's links to the downing
of a Malaysian airliner on Thursday, the Washington-based Institute of International Finance said.

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
Kenya: Swala Energy commits to drill in Kenya Block 12B - CEPSA withdraws from PSC
Source: Swala Energy
Swala Energy has advised that the Company’s joint venture partner and the Operator in Block 12B in
Kenya, Tullow Oil, has informed the Government of Kenya of their intention to proceed into the First
Additional Exploration Period (Contract Years 3 and 4) of the Production Sharing Contract (PSC). Under
the terms of the PSC the joint venture is obliged to acquire 300km2 of 3D seismic data or drill one
exploratory well during
Years 3 and 4. The
interpreted data received
so far from the recently
completed seismic
survey over Block 12B
has given Swala and
Tullow firm confidence
to continue the work
programme and to
commit to drill an
exploratory well in 2015.
The third Joint venture
partner, CEPSA, has
opted to withdraw from
the PSC saying they
would have preferred
more time to review the
data before having to
commit to a drill-or-drop
decision. As the
Company announced on
the 10th March 2014,
CEPSA farmed into
Block 12B, with a
commitment to carrying the Company’s seismic costs up to a maximum of US$2.6 million and had also
agreed to carry Swala through the first exploration well (should they have elected to enter this First
Additional Exploration Period of the PSC).
Dr. David Mestres Ridge, CEO, said 'The recent seismic results have provided the technical comfort
to both Tullow and Swala to make an informed decision to proceed into Years 3 and 4 of the PSC
and we are excited at the prospect of drilling the first exploration well in this frontier basin. We do
however regret that CEPSA has felt it necessary to withdraw from the licence after such a short
period of time as a joint venture participant. All parties are working together to reduce the impact of
this premature withdrawal constructively and we are confident that this will lead to a satisfactory
outcome to the matter. With seismic campaigns due to commence over the Pangani and Kilosa-
Kilombero licences in Tanzania in the coming months and the high likelihood of our maiden
drilling project taking place in 2015 the Company is looking to the future with confidence.'

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
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Mali Grants Four Exploration Permits To Qatar Mining
Reuters + NewBase
Mali has awarded four mining permits to Qatar Mining, the mines minister said, as the West
African country seeks to boost exploration to offset ageing mines. The International Monetary
Fund forecasts a steady decline in gold output in Mali, Africa’s third-largest gold producer,
from 2015 as existing mines reach maturity.
“Qatar Mining has opened its Mali entity. We will be granting them four mining concessions –
greenfield projects – that they will develop in the next few years,” Mines Minister Boubou
Cisse said in an email to Reuters.
The agreement follows a meeting between Malian President Ibrahim Boubacar Keita and a
visiting Qatari investment delegation last month. Officials at state-owned Qatar Mining could
not be reached for comment. Qatar sent relief aid to thousands of displaced people in
northern Mali in 2012 after a Tuareg uprising, later hijacked by Islamist fighters, plunged the
country into chaos.
A French military intervention last year helped restore order, although both Islamic fighters
and armed Tuareg separatists are still present in the desert north. “This company (Qatar
Mining Mali Greenfield) will represent the interests of Qatar in Mali and the region as they say

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
they would like to make Mali their base for West Africa,” Lassana Guindo, a mines ministry
official, said.
A document outlining Qatar
Mining’s investments showed
that the permits cover four
zones named as Tabako,
Mininko Nord, Netekoto and
Linguekoto, located in the west
and south. It also showed that
Qatar Mining planned to take a
share in a mining site in Mali
that is already operational,
without giving further details.
Qatar Mining was established
four years ago to invest in
mining and metals. It has so far
said little about its strategy,
although industry sources say it
is focused on Africa and is also
reviewing a mining opportunity
in Burkina Faso. In 2012, Qatar
International, a joint venture by Qatar Steel and Qatar Mining, secured a deal to build, own
and operate a $2 billion steel plant in Algeria.

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
Brazil eyeing Japan’s help in oil project
AFP + NewBase
TOKYO: Brazil plans to use Japanese technology in building a floating structure and ships for its
huge offshore oil development project, media reports said yesterday.
Japanese Prime Minister Shinzo Abe and Brazilian President Dilma Rousseff will announce the
use of Japanese technology in building a so-called “logistics hub” for the project when they meet
in Brazil on August 1, according to a draft of their joint statement, Kyodo news agency said. The
massive floating structure under consideration would be about 300 metres long and 100 metres
wide, Kyodo said, citing government sources.
Abe is scheduled to leave on a tour of Central and
South America on Friday. Abe and Rousseff will
also announce that Brazil will launch a programme
this year to upgrade its shipbuilding industry by
training experts with Japanese help, according to
the draft. The business daily Nikkei said the
leaders are expected to reach agreement during
their talks on cooperation in the project to develop
the field off Brazil.
Petrobras, Brazil’s government-affiliated oil company, aims to start production by 2020 at the field
which is estimated to hold more than 50 billion barrels worth of oil reserves, Nikkei said.

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,
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in this publication. However, no warranty is given to the accuracy of its content . Page 10
Pemex to stop depletion in giant Cantarell in Gulf of Mexico
The wholly state-owned company Petroleos Mexicanos (Pemex) is planning to invest up to $6 billion capital
expenditure to stop the depletion of its giant Cantarell oil and gas field on the Mexican Continental Shelf of
the Gulf of Mexico.
Located 80 kilometers offshore in the Bay of Campeche, Cantarell lies in the shallow waters of the southern
part of the Gulf of Mexico.Discovered by fishermen
in 1972, its easy access and light crude oil quality
enabled Pemex to undertake the fast track
development of a discovery which appeared as the
largest field in Mexico and one of the largest in the
world.
Cantarell field is split in multiple reservoirs including
Akal, Chac, Kutz and Nohoch. With the first oil
commercially produced in 1979, Pemex managed to
ramp up the production up to the exceptional level of
2.21 million barrels per day (b/d) in 2003
representing more than half of Mexico total
production.
Because of the quality of its crude oil and easy access
in the shallow water of Gulf of Mexico, Cantarell
appeared to be very productive at low costs leading
Mexico and its spearhead company Pemex to feel
confident in standing self sufficient in developing oil
and resources in Mexico.
But this lack of technological challenges during some decades has left Pemex unable to develop the
expertise to explore deep offshore field or to implement enhanced oil recovery (EOR) techniques required to
maintain national oil and gas production while Cantarell started to deplete naturally.
Mexico Round Zero allocation expected in September
Since 2003 peak, the production continuously declined from Cantarell down to the current
340,000 b/d. To stop this decline and restore its production capacity, Mexican Authorities has
decided, after years of intense debates, to change constitution to allow foreign companies to
invest in Mexico.
In this perspective, the Government is preparing legal ground for
Pemex to establish joint venture with foreign companies in order
to develop existing and new fields. Among Cantarell main
reservoirs, Akal has been identified as the most promising for
enhanced oil recovery (EOR) investment in order to compensate
the additional foreseeable lose of 100,000 b/d.
Stopping Cantarell depletion is ranked as the first priority in Pemex agenda. With capital expenditure
estimated around $6 billion, Pemex expects to maintain Akal production around 200,000 b/d. Considering
that the first allocation of licences to foreign companies should occur in September 2014 through the so
called Round Zero process, Pemex should proceed with Cantarell Akal EOR project in 2017.

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,
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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

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
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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 of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently wOil & Gas sector. Currently wOil & Gas sector. Currently wOil & Gas sector. Currently working asorking asorking asorking 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 , Most of the experience were spent as the Gas Operatiothe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operatiothe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operatiothe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsnsnsns
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 pipelines, gas metering & regulating stations and in thof gas pipelines, gas metering & regulating stations and in thof gas pipelines, gas metering & regulating stations and in thof gas pipelines, gas metering & regulating stations and in the engineering of supplye engineering of supplye engineering of supplye 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 reference for many of the Oil & Gas Conferences held in thethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in thethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in thethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andUAE andUAE andUAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....

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NewBase 21 July 2014 K. Al Awadi