New base special 21 may 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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 21 May 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
New Dubai energy agency to put emphasis on efficiency
John Everington , The National .
The Dubai Energy Agency will work to promote low-carbon industries and attract foreign
investment in renewables, working as a facilitator between between industry, government,
consumers and other energy stakeholders in the emirate.
The Dubai Supreme Council of Energy (DSCE) has signed a contract with Germany’s second
largest power company RWE and the consulting firm Oliver Wyman to establish the new agency,
and to implement several energy efficiency programmes across the emirate, RWE announced
yesterday.
“We are pleased that the Dubai Supreme Council of Energy has also opted for our expertise,” said
Norbert Verweyen, the managing director of RWE Effizienz. “Over the past few years, we have
gained a level of consulting expertise in this innovative field that is increasingly attracting
international attention.”
The DSCE could not be reached for comment. An Oliver Wyman spokeswoman declined to
comment.
The Dubai Energy Agency will be a key
component of Dubai’s Intergrated Energy
Strategy, launched by the emirate in 2011, which
aims to reduce energy demand by 30 per cent by
2030 and diversify the energy mix with 71 per
cent from natural gas, 24 per cent from nuclear
and clean coal, and 5 per cent from solar energy.
Before the agency’s launch next year, RWE and
Oliver Wyman will assist the DSCE with the
implementation of eight energy efficiency
programmes via a joint project office in
collaboration with state agencies and authorities, according to RWE. These projects involve the
state energy utility, city administration, road transport and traffic authority and a newly established
energy efficiency company, the company said.
The Dubai Supreme Council of Energy was formed in 2009 under Law 19 of 2009, Sheikh
Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.
Chaired by Sheikh Ahmed bin Saeed Al Maktoum, the council consists of senior executives
representing energy stakeholders including Dubai Electricity and Water Authority, the Department
of Oil Affairs, Dubai Aluminium and the Dubai Nuclear Energy Committee.

UAE's nuclear energy plan closer to reality
• WAM
Abu Dhabi: Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of
Presidential Affairs, and Park Geun-hye, South Korea’s President, on Tuesday attended a special
ceremony marking the arrival of the reactor container of the first nuclear power plant in Baraka,
Abu Dhabi.
• Image Credit: WAM
• Shaikh Mansour watches as South Korean President Park Geun-hye signs the reactor
container for the first power plant in Baraka, Abu Dhabi, yesterday. Park said construction
work at the Baraka power plants was proof of her country’s strong ties with the UAE.
Shaikh Mansour and the South Korean President were briefed by Eng. Mohammad Ebrahim Al
Hammadi, CEO of Emirates Nuclear Energy Corporation (Enec), on the progress of work on the
UAE’s peaceful nuclear power programme and its latest developments.
Officials from Enec and Korea Electric Power Corporation (Kepco) gave presentations on
improvements made in safety at the nuclear site and the construction development. They were
also informed about the newly opened Simulator Training Centre (STC) at Baraka in the Western
Region of Abu Dhabi — the site of the UAE’s nuclear energy plants.
The new simulators, which are among the world’s most advanced nuclear training devices and the
first of their kind in the Middle East, will complement Enec’s comprehensive training programme
and help Enec to prepare its scholarships students to attain Reactor Operator (RO) and Senior
Reactor Operator (SRO) certification. They will also provide continuous training for Enec’s SROs.
Shaikh Mansour expressed his pleasure at this historic event in the development of the UAE’s
peaceful nuclear programme where the arrival of the reactor container is a significant achievement
and clear cut evidence of the strong relationship between the UAE and South Korea as well as of

the importance of fruitful cooperation between the two countries in the quest to make this project a
success according to the highest quality standards.
He added: “The peaceful nuclear energy plays an important role in the future of our nation; these
stations will provide us the electricity we need to meet our requirements.”
Shaikh Mansour underlined that the programme would provide many opportunities for national
personnel and would also further enhance their skills and knowledge to contribute to the economic
prosperity of the country.
The Korean President expressed her delight at being at Baraka where she witnessed the arrival of
the first reactor container. She said the construction works on Baraka nuclear power plants
provides concrete proof of the strong relations with the UAE.
Later, Shaikh Mansour and President Park Geun-hye attended the signing of three memorandums
of understanding on strategic cooperation in the field of peaceful nuclear energy between the two
countries.
Barakah nuclear power plant
In December 2009, Emirates Nuclear Energy Corporation (ENEC) awarded a coalition led
by Korea Electric Power Corporation (KEPCO) a $20 billion bid to build the first nuclear
power plant in the UAE. Barakah,
23°59′5.77″N 52°17′1.39″E23.9849361°N 52.2837194°E, about 50 km west of Ruwais, was chosen as the
site to build four APR-1400 nuclear reactors successively, with the first scheduled to start supplying
electricity in 2017
The plant's ground-breaking ceremony was held on 14 March 2011, including Korean
President Lee Myung-bak. Construction of the first unit was begun in the afternoon of 18
July 2012, ahead of its scheduled date in late 2012. This happened despite delays being
mooted in the wake of the Japanese nuclear accident. In May 2013 construction started on
the second unit, which is expected to take five years
In 2011 Bloomberg reported that following detailed finance agreements, the build cost was
put at $30 billion: $10 billion equity, $10 billion export-credit agency debt, and $10 billion
from bank and sovereign debt. South Korea may earn a further $20 billion from operation,
maintenance and fuel supply contracts.
The Emirates Nuclear Energy Corporation is
working to deliver safe, clean, efficient
nuclear energy to the United Arab Emirates –
energy that is needed to support the UAE’s
social and economic growth. www.enec.ae

Aramco to invest $100bn in Refinaries & PetroChem - downstream
Reuters
Oil giant Saudi Aramco said its downstream investments would exceed $100 billion over the next
decade, as global demand for oil rises by a quarter in the next 25 years.
"Globally, these investments will exceed $100 billion over the next decade alone and that is
premised on our belief in the long term sustainability of oil demand," Khalid Al-Falih, the
company's chief executive said at a petrochemicals conference in Bahrain. "As a result of both
global demographic growth and rising standards of living
in the developing world we see global demand for oil
growing by a quarter over the next 25 years," he said.
Al-Falih said Aramco's refining capacity would be
between 8 million to 10 million barrels a day (bpd) in the
coming years, a figure exceeding the goal cited by
Aramco in 2012 of 8 million bpd. "In the years to come
Saudi Aramco will have 8 to 10 million bpd of participate
refining capacity primarily in the high demand growth
markets of the Far East and of course here at home in
the Middle East that will make us one of the largest downstream players on the planet by volume,"
Al-Falih said.
According to the company's 2013 annual review, Aramco and its subsidiaries own or have equity
interest in domestic and international refineries with a total worldwide refining capacity of 4.9
million bpd, of which its equity share is 2.6 million bpd, making it the world's sixth-largest refiner.
Aramco is also looking to grow within the petrochemicals sector with two major projects. Aramco
has a joint venture with Dow Chemical Co to build the $20 billion Sadara petrochemical complex
in Jubail that is due to come on stream in the second half of 2015 is also expanding its
petrochemical complex called PetroRabigh that it jointly owns with Sumitomo Chemical
"That will take our total chemicals participate production capacity to more than 15 million tonnes
per year," Al-Falih said. –

Qatar agrees to supply LNG to Pakistan next year
Internews/Islamabad
Qatar has given a firm commitment to Pakistan that it will start exporting 200mn cubic feet of
liquefied natural gas per day (mmcfd) next year, a promise that will end years of efforts to bring
vital gas supplies to ease energy shortages, officials say.
This comes as the government takes a giant leap forward to prepare for receiving LNG imports.
Interstate Gas Systems (ISGS) — a state-run company formed to handle energy import projects
— has wrapped up the process of awarding the LNG terminal services contract to Elengy
Terminal Pakistan Limited, a subsidiary of Engro Corp.
ISGS has already signed Iran-Pakistan and Turkmenistan-Afghanistan-Pakistan-India gas pipeline
deals. It has also completed the task of awarding the LNG terminal contract in less than six
months.
The government is keeping three options open for LNG import including :-
1- A supply agreement with Qatar on a state-to-state basis,
2- Floating tenders for import through competitive bidding and
3- Spot purchases after the successful bidder completes construction of a terminal in Karachi.
A Qatari team, which was in Pakistan, held a meeting with officials of Pakistan State Oil, Sui
Southern Gas Company and ISGS on May 13 in Karachi to discuss the proposed Heads of
Agreement a non-binding document outlining the main issues relevant to a partnership
agreement, sources said.
“Qatar gave a firm commitment to export 200 mmcfd of LNG, which will be later enhanced to 400
mmcfd,” a source familiar with the development said.
According to officials, the two sides discussed different clauses of the Heads of Agreement such
as volume of LNG, specification of gas, guarantees and timeframe for first supplies to Pakistan.
However, the price did not come up for discussion.
A senior official said the price was the last point that would be taken up after the two sides signed
the Heads of Agreement. They had not finalised the agreement, therefore, the price was not
quoted, he said.

Officials pointed out that Qatar sought to include a clause that would allow it to slap a $200mn
penalty if Pakistan terminated the supply contract. However, Islamabad fiercely opposed the
proposal and did not accept it.
“Now, the two sides will meet again next month to try and finalise the Heads of Agreement,” the
official said.
In the agreement, Qatar insists that the LNG supply contract should be for 15 years extendable for
another five years with no “price reopener”. It wants LNG price should be fixed as a percentage of
Brent crude oil.
Earlier, during negotiations with the previous PPP-led government, Doha had offered LNG export
at a price equivalent to 14.7% of Brent crude oil when it was hovering around $110 per barrel in
the international market.
Later, it pushed the price down to $17.437 per million British thermal units (mmbtu), a 0.5%
discount over the previous rate of $18.002 for the 20-year lifetime of the project. The price did not
cover capital cost of the LNG terminal and its charges, import expenses, re-gasification, wastage
and shipping costs. The additional costs will add about $2.084 per mmbtu to the quoted price.
According to an assessment of the Ministry of Petroleum, gas production will drop from the current
4.47bn cubic feet per day (bcfd) to 2.53 bcfd in 2019-20 if additional supplies were not brought.
Gas shortfall stood at 1.88 bcfd in 2013-14, which would jump to 4.79 bcfd in 2019-20.
The ministry plans to import 200 mmcfd to 2 bcfd of LNG, 750 mmcfd of natural gas from Iran and
1.365 bcfd from Turkmenistan to bridge the shortfall. It also wants to enhance supplies from
domestic sources to meet energy needs in future.

UK: Hercules Offshore signs newbuild jackup rig contract with
Maersk Oil for Central North Sea Culzean field development …
Source: Hercules Offshore
Hercules Offshore has signed a five year drilling contract with Maersk Oil North Sea UK for a newbuild
jackup rig to be owned and operated by Hercules Offshore. Total contract value is approx. $420 million,
which includes approx. $9 million of mobilization fees. Contract commencement is expected in mid-2016.
Hercules Offshore has also signed a rig construction contract with Jurong Shipyard Pte Ltd ('JSL') in
Singapore. The rig is based on the Friede & Goldman JU-2000E design, with enhancements that will
provide for greater load-bearing capabilities
and operational flexibility. These
enhancements are based on collaborative
efforts between Maersk Oil, JSL and
Hercules Offshore. In addition, this High
Specification, Harsh Environment (HSHE)
rig will feature a 400 foot water depth rating,
30,000 foot drilling capacity, two million
pounds of static hook load, 75 foot cantilever
reach, off-line pipe handling capability,
15,000 psi blowout preventer systems, high
pressure/high temperature rating and
accommodations capacity for up to 150
personnel. The shipyard cost of the rig is
estimated at approximately $236 million.
Including project management, spares,
commissioning and other costs, total delivery
cost is estimated at approx. $270 million.
Hercules Offshore initially pays 10% of the
shipyard cost, or approximately $24 million
to JSL, followed by a second 10% payment
one year after the initial payment. The final
80% of the shipyard payment is due upon
delivery of the rig, estimated in April 2016.
John T. Rynd, Chief Executive Officer and
President of Hercules Offshore stated, 'The
contract with Maersk Oil is a great
achievement for our organization and marks
another significant milestone in the development of our Company. Strategically, this opportunity further
demonstrates our worldwide capabilities and expands our operational footprint to the North Sea with a
leading operator in the region. The rig will operate in the Central North Sea to develop Maersk Oil's high
profile Culzean Field. The decision by Maersk Oil to contract a newbuild rig with specific enhancements
was driven by the unique challenges to develop this field. Given these enhancements, we expect demand for
this rig in the North Sea to extend well beyond the initial five year fixed contract term, with two (2) one-
year unpriced options.
'This investment is also consistent with our commitment to renew our rig fleet with high specification assets
that are expected to garner strong long term demand. We have structured the investment to balance between
maximizing returns and minimizing investment risk. Cash on hand will be used to fund the initial shipyard
payments and we plan to secure project financing to fund the remaining payment as the rig nears delivery.'

ALE breaks world record with Arkutun Dagi topside load-out
Press elease , ALE
ALE Heavylift has completed another world record with the load-out of the 47,830t Arkutun
Dagi topside. This weight, which was the combination of the 42,695t topside positioned on a
5,135t load-out support frame is the heaviest to be loaded-out in the world.
The topside will be located in the Arkutun Dagi field off the east coast of Russia; the development is
expected to be the largest oil and gas production platform in Russia where the first oil is scheduled to be
produced within the next 12 months.
ALE’s full scope of work included the stand jack pulling, high capacity modular ballast system and
precision 3D barge monitoring. In addition to this, ALE also supplied the full engineering scope and
supervision of the overall load-out. Due to the record weight, the working tolerances of the barge were
much smaller than during a conventional load-out.
The high capacity modular ballast system is adapted for each barge – the bespoke system for this project
included 2400 Cu M / Hr ballast pumps. This enabled the ballast pump and power pack operation to be
completed from one central control by using a computerised PLC control. The computer system provides,
tank sounding, flow rates, tidal monitoring and HPU control. This innovative system also allows the flow
distribution for the barge to be controlled with a click of a mouse.
Russ Jones General Manager for ALE – Offshore Services stated “Working on such a prestigious project
really shows how ALE are leading the way with technology. When you are working to such tight tolerances,

technology and experience really are the key to success. The precision barge level monitoring system was
developed in-house and gives you the comfort factor when you are out there working in the project, knowing
the accuracy and reliability of the system allows ALE to push the boundaries and make such projects
possible.”
Related: Van Oord, Sovcomflot Recognised for Arkutun Dagi GBS Project (Russia)
This load-out was the final stage of the project that saw ALE complete the heaviest jack-up in the world.
The topside, then weighing 42,780t due to additional steelwork, was jacked to a height of 24 metres. This
jack-up operation was a first of a kind project for ALE’s Mega Jack system. To complete this stage of the
project, the Mega Jack was configured in four sets of towers each made of a combination of three singular
towers; this gave each of the four towers capacity of 15,000te and an overall jacking capacity of 60,000te.
The Mega Jack is a completely computerised and stroke controlled system operated via a control room; it
took only 11 hours to complete the lift.
Kees Kompier Executive Director at ALE said: “This pioneering project is a great achievement for ALE. It
clearly demonstrates the strength of ALE’s global capabilities that we are able to jack-up a weight of
47,830t to a height of 24 metres in 11 hours and then load-out a final weight of 48,000t. These are statistics
that the industry haven’t been able to witness before and shows that we are now making the impossible
possible.”

U.S. appeals court rejects BP bid to undo ruling in Macondo oil spill case
Source: Reuters
A U.S. appeals court will not revisit a decision to reject BP's bid to block businesses from recovering
money over the 2010 Gulf of Mexico oil spill, even if those businesses could not trace their economic losses
to the disaster.
The 5th U.S. Circuit Court of
Appeals in March voted 2-1 to
authorize payments on so-called
business economic loss claims, and
said an injunction preventing
payments should be lifted. BP
asked the entire 5th Circuit to
rehear the case. However, the 5th
Circuit voted 8-5 to let the March
ruling stand, according to a court
filing made public on Monday. In a
statement, BP spokesman Geoff
Morrell said the company is
disappointed in the decision, and is
considering its options. Plaintiff
attorneys Steve Herman and Jim
Roy said in a statement they are
'pleased that the court of appeals
agreed that BP must honor its
contract.'
The decision is a setback for BP's
effort to limit payments over the
April 20, 2010, explosion of the
Deepwater Horizon drilling rig and
rupture of BP's Macondo oil well.
The disaster killed 11 people and
triggered the largest U.S. offshore
oil spill.
A lower court judge had ruled that
BP would have to live with its
earlier interpretation of a
multibillion dollar settlement
agreement over the spill, in which
certain businesses claiming losses
were presumed to have suffered
harm. BP argued that this would
allow businesses to recover for
fictitious losses, but the 5th Circuit
rejected its appeal.
The case is In re: Deepwater Horizon, 5th U.S. Circuit Court of Appeals, Nos. 13-30315 and 13-30329.

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 & GasOil & GasOil & GasOil & Gas sector. Currently working assector. Currently working assector. Currently working assector. 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 , Most of the experience were spentthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spentthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spentthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsas the Gas Operationsas the Gas Operationsas 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 pipelines, gas metering & regulatingof gas pipelines, gas metering & regulatingof gas pipelines, gas metering & regulatingof gas pipelines, gas metering & regulating stations and in the engineering of supplystations and in the engineering of supplystations and in the engineering of supplystations 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 reference for many of the Oil & Gas Confthe local authorities. He has become a reference for many of the Oil & Gas Confthe local authorities. He has become a reference for many of the Oil & Gas Confthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE anderences held in the UAE anderences held in the UAE anderences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 21 May 2014 K. Al Awadi

New base special 21 may 2014

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (6)

Similar to New base special 21 may 2014

Similar to New base special 21 may 2014 (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base special 21 may 2014