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NewBase 25 February 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Fastnet Oil & Gas: update on Foum Assaka well, offshore Morocco
Source: Fastnet Oil & Gas
Fastnet Oil & Gas has announced that its partner in the Foum Assaka license area, offshore Morocco,
Kosmos Energy, has confirmed that its
management expects the FA-1 well,
which is located within the Foum Assaka
Licence, to spud in March.
The FA-1 well will target the Eagle
Prospect, which is estimated by the
operator, Kosmos, to contain 360 mmboe
of Pmean resources in its primary
deepwater Lower Cretaceous reservoir
objective. The well will also target
multiple secondary objectives which
could provide additional upside in a
success case. The planned target depth
('TD') is 4,000 metres, in water depth of
approx. 600 metres. The well is expected
to take up to three months to reach TD.
Kosmos has contracted the Maersk
Discoverer, a sixth generation semi-
submersible rig, to drill the well.
On the completion of the SK farmout
agreement, announced on 18 December 2013, and receipt of all regulatory approvals, Fastnet will hold a
9.375% interest in the Foum Assaka Licence, with Kosmos holding 29.925%, BP 26.325%, SK Innovation
9.375% and ONHYM the remaining 25%.
Fastnet is carried for past costs, as previously announced, and the cost of the FA-1 well up to a gross well
cost of USD$100m. The total value of the SK transaction includes the carried cost of an exploration well
and either an appraisal well or, at SK Innovation's discretion, a further exploration well (also capped at
USD$100m gross). SK Innovation is the energy and chemicals affiliate of SK Group, South Korea's third
largest conglomerate with over 70,000 employees who work from 113 offices worldwide. The group's
businesses include energy, refining, chemicals, telecommunications, semiconductors, finance, and
distribution.
Commenting, Paul Griffiths, Managing Director of Fastnet, said:
'This well and the multiple drilling opportunities that surround it, offer the Company potentially significant high impact upside at
minimal expected financial risk following the farmout agreement reached late last year with SK Innovation, a multinational
company we are very pleased to be partnering with. We are, as such, delighted to have certainty on the timing of the well and look
forward to operations progressing in March.'
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
Gassi Touil plant 'online' in Algeria
http://www.upstreamonline.com/live/article1353296.ece
Algeria brought online a new gas processing plant on Monday but its energy minister indicated the
resumption of full production from the In Amenas plant targeted in a deadly terror attack last year has
been pushed back, according to reports.
The Gassi Touil plant, with a total capacity of 3.6 billion
cubic metres per year, has now started production from
42 out of 52 planned wells, the official APS news agency,
citing an unnamed official at state-owned Sonatrach, was
quoted as saying by Reuters.However, Energy& Mines
Minister Youcef Yousfi told government newspaper El
Moudjahid the third train at In Amenas “will be on
stream in a few months”, without giving any further details of the revised schedule. Ali Hached, a senior
adviser to Yousfi, stated last month the three-train facility was producing 20 million cubic metres per day -
around two thirds of its full capacity of 30 MMcm - but said it would only be weeks before the plant was
running at full steam.
Forty oil workers, all but one foreign, died at In Amenas in January 2013 after the militants took expatriates
hostage during a four-day siege that ended when Algerian forces stormed the site. The plant, operated by a
joint venture of BP, Statoil and Sonatrach, was producing 11.5% of Algeria’s natural gas output before the
attack. BP and Statoil since have withdrawn their staff from the Sahara desert complex, demanding better
security measures. Algerian officials say they have met all the demands of foreign companies, but
contractors have yet to return to the plant. Meanwhile, Yousfi said Algeria will also this year start up a new
6 Bcm-per-year liquefied natural gas plant. The Opec member and gas producer earlier this year started
production from another new LNG unit at the eastern town of Skikda. "A new unit is expected to come
online this year, with the same capacity," the minister told APS.
Algeria's Energy & Mines Minister Youcef Yousfi
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Algeria expects 6 bcm LNG plant to start up this year
(Reuters) Reuters - UK
Algeria will start up a new plant to liquefy natural gas (LNG) this year, with a annual capacity of 6 billion
cubic metres, ( 4 MT/Y) Energy and Mines Minister Youcef Yousfi told a state news agency on Monday.
The OPEC member and gas producer, which aims to bolster production in its lagging energy sector, earlier
this year started production from a new LNG unit at the eastern town of Skikda."A new unit is expected to
come online this year, with the same capacity," Yousfi told state news agency APS.
He appeared to be referring to a unit that has been under construction in the western town of Arzew. Yousfi
also said the In Amenas gas plant, hit by Islamist militants attack early last year, would resume full
production in months.
Last month, the minister said he expected the plant to fully
restart "within weeks". The plant is currently producing 20
million cubic metres per day out of a total capacity of 30 million
cubic metres. BP , Norway's Statoil, STL Taiwan and state-
owned Sonatrach jointly operate the facility, in which 40
workers died during the attack.
BP and Statoil have withdrawn their staff since the assault,
demanding better security conditions, though Algerian officials
say they have met all demands for improved protection. "Specific measures have been taken to prevent such
a tragedy from happening again in the future and provide partners with maximum assurance regarding the
safety of their personnel," Yousfi said on Monday.
Separately, the APS reported that Algeria on Monday started production from a new gas processing plant
with a total capacity of 3.6 billion cubic metres per year. The Gassi Touil plant will be supplied from 42
wells out of 52 planned, it said, citing unnamed official at the Sonatrach at a ceremony at the plant in the
southern province of Ourgla.
Sonatrach's gas processing facility located in Arzew on the
western coast of Algeria,
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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Kenya: Taipan Resources extends Block 2B seismic into Simba Energy's Block 2A
By: Simba energy + www.energy-pedia.com/news/kenya/new-158275
Simba Energy has announced that it has granted permission to Taipan Resources, operator of Block 2B in
Kenya, to carry out 2-D seismic in an area located in the southwest corner of Simba`s Block 2A just to the
north of their Pearl Prospect.
Taipan, having already completed a small
amount 2D seismic (22 line kms in total)
in the southwest corner of Block 2A and
provided the processed data to the
Company, have requested permission to
conduct an additional 24 line kms of 2D
seismic within this same area. This work
will comprise six lines, mostly 'tails', and
is part of Taipan's current seismic
program that aims to finalize a drilling
location for their first exploration well
planned for the fourth quarter of 2014 at
the Pearl Prospect which lies just south of
the Company's Block 2A boundary. This
work is expected to be completed by the
end of February and the seismic data will
be forwarded to Simba at the conclusion
of processing.
Once interpreted, this seismic data will
serve to complement Simba's existing
dataset as well as future seismic work
contemplated by the Company's recently
announced LOI to conduct further
exploration on Block 2A. This includes
FTG (Full Tensor Gravity) and 2D
seismic coverage over the area of the
Anza Basin underlying the southwest of
Simba's Block 2A. FTG has been the
most effective exploration tool for
identifying prospects throughout the East African rift system.
'Africa Oil's upcoming well on the Sala Prospect in Block 9 and Taipan`s planned Pearl-1 well on the south
border of Block 2A strongly suggest that a potential 'String of Pearls' trend passes through the south western
corner of our block, as both prospects are located at the basin edge where this type of play is found. The
Anza basin`s edge passes through the western part of Block 2A', remarked Simba's CTO & Director, James
W. Dick P. Geol., P. Eng.
The Anza basin is one of the largest Tertiary-age rift basins in the East African rift system and demonstrates
a similar geological setting to the South Lokichar basin where Tullow and Africa Oil have recently had
significant discoveries.
About Simba Energy
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
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
Iraq: KRG exercises back-in right to Genel Energy's Miran PSC
http://www.genelenergy.com/operations/kurdistan-region-of-iraq/miran-psc.aspx
Genel Energy has announced that, on 23 February 2014, the Kurdistan Regional Government ('KRG')
notified the Company of its intention, pursuant to the Miran Production Sharing Contract ('PSC'), to
exercise its Option of Government Participation. Accordingly, Genel's working and paying interests in the
Miran PSC will fall from 100% to 75%, with the KRG's working and paying interests at 25%.
The Miran PSC covers 761km2
and contains the Miran gas, oil
and condensate discovery,
which has been independently
assessed to contain gross mean
contingent resources of 3.5
trillion cubic feet and 95 million
barrels of oil and condensate.
On the back of the Turkey-KRG
Gas Sales Agreement signed in
November 2013, Genel is
currently working with the
KRG to put in place a Gas Sales
Offtake Agreement for the Miran field by mid-year 2014. In parallel, the Company continues to screen a
number of development concepts, incorporating both domestic and export supply options.
About Miran PSC
The Miran block is a world class gas field. Miran
contains two large contiguous structures, Miran West
and Miran East. Results from wells drilled to date
have confirmed the existence of two hydrocarbon
systems with oil in the shallower Upper Cretaceous
section and gas & condensate within the deeper
Lower Cretaceous and Jurassic formations. Miran is
a significant gas field with recoverable gas resources
of 3.8 tcf. Multiple elements of the development have
been progressed during the year.An Extended Well
Test on the oil-bearing Upper Cretaceous reservoirs
was completed in the first quarter, and an Early
Production Facility for Miran oil was commissioned
in August 2013 whichhas been producing at rates up
to 3,000bopd. Production is expected to ramp up as additional wells come on line in 2014 and beyond. A
Declaration of Commerciality for the Miran field was approved by the Ministry of Natural Resources of the
Kurdistan Regional Government in September 2013.
Getting Miran Field gas to market
A fundamental driver for Miran is an ability to access attractive gas markets, with our main focus on the
large and fast growing Turkish market. Turkey has little domestic production and is therefore one of the
world’s top importers of natural gas. Gas from the Kurdistan Region of Iraq provides the Turkish
Government with an opportunity to meet its domestic demand requirements, as well as achieve its stated
goal of diversifying sources of supply.
Genel Energy's Kurdistan assets - including Miran
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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As part of the KRG/Turkey March Energy Framework Agreement, heads of terms have been agreed
between the KRG and the Turkish Government for the sale of 10 bcma to Turkey. Negotiations are
envisaged to continue through the remainder of the year with the agreement of a final GSA by the end of
2013. Final Investment Decision will follow completion of the GSA.
Plans are in place to install gas export infrastructure, building on existing capacity and taking advantage of
established pipeline right of ways - the additional infrastructure required to connect the Kurdistan Region's
gas into the existing Turkish gas transmission system is both relatively modest and technically
straightforward.
Supporting Infrastructure
Genel has interests in the two largest producing fields in the Kurdistan Region of Iraq, Taq Taq and Tawke,
with access to local and international markets. These fields have a currently estimated gross proven and
probable (2P) reserves of 1.4 billion barrels of oil (bbls) (445 mmbbls net to Genel Energy) and gross
proven, probable and possible reserves of 1.9bn boe (655 mmbbls net to Genel Energy)1.
We are targeting material production capacity growth at both fields to achieve 140,000 net bopd in 2014.
The bottleneck to increasing production at Taq Taq is the current truck transportation. Currently, crude oil
used for exporting is trucked
approximately 135 km to
Khurmala or 255 km to
Fishkabur, where it is metered
and pumped into the Kirkuk-
Ceyhan Pipeline. Crude oil
allocated to the local sales
market is picked up by trucks at
the Taq Taq field.
The KRG has in place pipeline
infrastructure plans for the
Kurdistan Region to facilitate the
export of its crude oil production
through the construction of a new
pipeline to the Turkish border.
The first phase directly connects
Taq Taq to the Erbil refinery and
the existing Kirkuk Ceyhan
export infrastructure and is
complete. The second phase,
linking oil fields in the Kurdistan
Region from Khurmala directly
to Fishkabur on the Turkish border, is now complete and tied-in to the Iraq-Turkey Pipeline, and is expected
to be fully commissioned during 2Q 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 8
Six offshore discoveries in India declared commercial
www.offshoreenergytoday.com
Jubilant has declared commerciality of six discoveries (KG-16, KG-22, KG-31, KG-21,
KG-19 and KG-20SS) in Block KG-OSN-2001/3, off the eastern coast of India.
GSPC, the Operator of
the block, had submitted
a commerciality analysis
report on the six
discoveries to the
Ministry of Petroleum &
Natural Gas on 14th
February 2013 and the
same has been reviewed
by the Management
Committee as required
under the terms of the
Production Sharing
Contract.
The Declaration of
Commerciality (“DOC”)
of the six discoveries has
been examined with the
following parameters and
reviewed by the
Directorate General of
Hydrocarbons, India
(“DGH”):-
a) Gas Initially In Place (“GIIP”) : Gross 8.392 TCF as estimated by DGH;Net to Jubilant being 839 BCF.
b) Recoverable Gas (Contingent Resources) : Gross 1.015 TCF as estimated by DGH; Net to Jubilant being
102 BCF .
c) Development Wells : 25 wells (combination of dry tree and sub-sea wells) .
d) Production Facilities :Platforms, Pipelines, Flow-lines, Process Umbilicals and Modifications of DDW
Platform and Onshore Terminal .
The Operator has prepared a long term phased resource maturation plan for the development of total
available resources in the discovery area. As part of this phased development, the approved DOC considers
recoverable gas of 1.015 TCF for initial development out of 2C recoverable gas resources of 4.708 TCF on
gross basis (corresponding GIIP 8.392 TCF). GCA had estimated 2C recoverable resources of 4.888 TCF
(corresponding GIIP 9.178 TCF), as was announced on 6 September 2012.
The above discoveries exclude the DeenDayal West (“DDW”) and DDW Extension areas.
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
About Jubilant Energy
Jubilant has a 10% Participating Interest in the KG Block and actively participates in technical
evaluations as a non-operating partner along with the operator, Gujarat State Petroleum
Corporation Limited (“GSPCL”), promoted by the State Government of Gujarat, which holds 80%
Participating Interest. The remaining Participating Interest is held by GGR. The consortium has
drilled 13 exploratory and five appraisal wells in the block. Of the 13 exploratory wells, nine were
successful discoveries.
The Ministry of Petroleum and Natural Gas of the Government of India (“MoPNG”) had approved
an extension of 20.5 sq kms to the existing contract area for the Krishna-Godavari in January
2012, thereby increasing the approved mining lease area for Deen Dayal West from 17 sq kms to
a total of 37.5 sq kms.
During 2012, Gaffney, Cline & Associates (“GCA”) audited the Reserves & Resources for the
Deen Dayal Structural complex. As on 31 May 2012, the gross 2P reserves of Gas &
Condensates in DDW have been assessed as 1612 bcf & 32.2 MMbbls respectively. Additional
2C condensate resources of 5999 bcf of gas and 125.7 MMbbls of condensates is also booked for
DD-others, part of which is currently being proposed for commerciality. An upside potential of
5278 bcf has also been assessed for the undiscovered prospects
The development of the Deen Dayal West Field (“DDW”) is expected to produce first gas in Q4
2013-14. Based on the initial results of the same, the consortium plans to submit an addendum to
the DDW FDP to include the DDW extension area.
The onshore & offshore facilities are at an advanced stage of completion and will be
commissioned in time for first gas.Two to three wells will be put on production initially and
subsequently more wells will be drilled (total 15) and put on production in the DDW area. Based
on the appraisal programme, a Declaration of Commerciality (“DOC”) proposal for the six natural
gas discoveries within the block, namely, KG-16 in DDE area, KG-22 in DDN area, KG-21 & KG-
31 in DDW-DT area, KG-19 and KG-20SS in DDNE-BRU area, has been submitted to the
Directorate General of Hydrocarbons, India on 15 February 2013. The approval from the
management committee of the said DOC will take Jubilant one step closer to maturing the 2C
Resources into 2P Reserves category
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
Iran outlines new oil projects for investors
Reuters/Dubai
An oil refinery is seen in Tehran. Iran’s oil ministry yesterday said the country’s new model for oil field
development contract aims to tempt back foreign energy firms with 25-year deals.
Iran’s new model for oil field
development contracts aims to
tempt back foreign energy
companies with 25-year deals,
Iran’s oil ministry news service
said yesterday.
One change under the new
integrated petroleum contract
(IPC) will allow foreign
contractors to work on fields
over the long term instead of
having to hand them over at an
early stage to Iranian
companies.
Under Iran’s former “buy back” system, contractors did initial development work but then had to
leave the country and await payment in oil, which proved unpopular with foreign investors before
Western sanctions drove them away.
Mehdi Hosseini, head of a committee revising that system, told a forum in Tehran on Sunday
that approach was too one-sided and only benefited Iran.
Investors will also be offered better terms for riskier projects, as
in neighbouring Iraq, whose contracts Iranian officials drew from.
“In the new contracts, different stages of the petroleum industry
(exploration, development and production) are awarded in an
integrated manner,” Hosseini was quoted as saying by the Shana
oil ministry news service.
“We must try to persuade foreign companies to enter high-risk zones of the petroleum industry,”
he said, adding that the government should not shoulder the high costs of exploring for oil and
gas but should ensure contracts reward those who do.
Unlike the last generation of contracts, which required contractors to leave Iran within five years
of developing new fields, foreign contractors will be allowed to work on them for 20-25 years,
Shana reported an committee adviser as saying on Monday.
Some oil majors are waiting for multi-million dollar payments for projects completed decades ago.
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
GE to hike pro-environment energy research by $10 bn
AFP –
US industrial conglomerate General Electric said Monday it would boost spending on environmentally
friendly energy research by $10 billion by 2020, including on fracking technologies and wind turbines.
The new investment extends and builds on a research and
development (R&D) program launched in 2005 aimed at finding
technologies that reduce costs and environmental impacts for GE's
customers and its own operations, the company said.
GE said the new investment will support research in alternative
technologies to replace water in hydraulic fracturing, known as
"fracking", and improve wind turbine and power plant efficiencies.
The program, "ecomagination", has already generated more than $160 billion in revenue, and reduced GE's
greenhouse gas emissions and freshwater use, said the company, whose wide portfolio of products includes
aircraft engines, power plants, geospatial systems and household appliances.
GE has invested $12 billion to date of its $15 billion commitment on the R&D program through 2015. Jeff
Immelt, GE chairman and chief executive, said the now $25 billion program was one of the conglomerate's
most successful cross-company business initiatives.
"Bold investments in ecomagination research and development have resulted in strong returns for
shareholders and improved cost and emissions savings for our customers," he said in a statement. GE
announced two new R&D projects in the natural gas sector, where fracking -- the use of pressurized liquids
to create fissures in rocks to release gas and oil -- has significantly raised production as well as
environmental concerns.
GE said it had teamed up with Norwegian oil giant Statoil look into whether carbon dioxide would be
suitable for large-scale use as an alternative to water, potentially reducing the large amounts of water needed
for fracking. CO2 is currently used for some fracking but is a high-cost option.
"The goal of GE and Statoil's new research collaboration is to evaluate whether a system can be designed to
capture CO2 produced from emissions; reuse the CO2 to fracture rock formations; and then capture it again
for re-use on the next well," the Norwalk, Connecticut-based company said.
In the second project, GE is working with Canadian company Ferus to capture natural gas that operators
flare off from new oil and gas
wells in remote areas because
of a lack of infrastructure to
economically capture and
transport it.
GE and Ferus are capturing
the natural gas and
removing natural gas liquids,
such as propane and butane, which are then sold. The remaining methane is compressed, stored and then
used to power operations on remote wells, GE said.
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
Eni Awards $1.1B Jangkrik FPU EPCI Deal to Chiyoda-
Saipem-Tripatra-HHI JV in Indonesia
by Chiyoda Corp. www.rigzone.com/news/ + Press Release
Chiyoda Corporation (Chiyoda) reported Monday that Eni Muara Bakau (Eni: 55 percent, GDF
Suez: 45 percent, Operator: Eni) has awarded Chiyoda's group company PT. Chiyoda
International Indonesia, in collaboration with PT. Saipem Indonesia (Leader), PT Tripatra
Engineers and Constructors and Hyundai Heavy Industries Co. Ltd, a contract for the Engineering,
Procurement, Construction and Installation (EPCI) of a new Barge Floating Production Unit (FPU)
for Jangkrik and Jangkrik North East Gas Field Development in Indonesia for a total amount of
$1.1 billion with delivery date at site ready for
SURF hook-up in 34 months.
The new-build spread-moored FPU will have
the capacity to treat 450 MMscf/d of gas plus
condensates (LPG) and the scope of work
includes engineering, procurement, fabrication
of the FPU (Hull and Topside) and the
installation of a mooring systems as well as
hook-up, commissioning and assistance to the
start-up. Gas produced by the FPU will be
delivered through the existing East Kalimantan
Pipeline facilities to Bontang LNG Plants,
which were constructed by Chiyoda.
The overall Project Management, Engineering
and Procurement of the Jangkrik FPU project
will be carried out in Jakarta, Indonesia. The
topsides fabrication activities will be carried out
in Saipem's Karimun Yard, also in Indonesia,
while the hull will be fabricated in HHI's
shipyard in Ulsan, South Korea. Chiyoda
Group will make every effort to advance to the
EPCI work for this Project.
The award of this contract aligns with
Chiyoda's strategy of growth in offshore floater
construction in particular, where Chiyoda
recently announced in its Mid-Term Management Plan that it would expand its business area to
offshore EPCI projects; this Project is the first EPCI Project in the floating business for the
Chiyoda group. Chiyoda is accelerating its involvement in the floating business worldwide with the
objective of becoming a leading player through its strategic alliance with Saipem.
Chiyoda, together with its group companies, has leveraged its extensive experience continuously
for over 60 years and is at the forefront of the relentless drive for innovative design and world-
class project expansion.
Chiyoda Corporation, headquartered in Yokohama, Japan, provides services in the fields of
engineering, procurement and construction on a global basis for gas processing, refineries and
other hydrocarbon or industrial plant projects, particularly gas value chain projects, in South East
Asia, the Oceania regions, the Middle East and Russia.
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 13
Singapore LNG Terminal Capacity Rises to 6 Mtpa
by Cheang Chee Yew Rigzone Staff
Singapore LNG Corp. (SLNG) Pte Ltd. completed construction of a third storage tank and additional
regasification facilities at the Singapore LNG (liquefied natural gas) Terminal, which is located at the
southern-most tip of Jurong Island in Singapore, a company official told Rigzone.
"Construction of the Third Tank and additional regasification facilities have been completed, bringing the
throughput capacity of the terminal to 6 Mtpa (million ton per annum). Utilization of this additional capacity
will be dependent on the future requirements of the LNG importers, both existing and new," the SLNG said
in an emailed reply to Rigzone.
The Singapore LNG Terminal commenced operations in May 2013 with two LNG storage tanks and a
regasification capacity of 3.5 Mtpa. The third storage tank and additional regasification capacity were
scheduled for completion late last year.
Meantime, SLNG is on track to increase the capacity of the Singapore LNG Terminal under Phase 3
expansion, which will boost its throughput capacity to 9 Mtpa.
"As for Phase 3 expansion, the final investment decision, including construction award, is on track for the
second quarter of 2014," SLNG said when asked about the status of the project.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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in this publication. However, no warranty is given to the accuracy of its content . Page 14
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 working asOil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working as
Technical Affairs SpeciTechnical Affairs SpeciTechnical Affairs SpeciTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation foralist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation foralist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation foralist 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 Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsiblManager in Emarat , responsiblManager in Emarat , responsiblManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developede for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developede for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developede for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has 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 the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supply
routes. Mroutes. Mroutes. Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forany years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forany years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forany years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for
the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcEnergy program broadcEnergy program broadcEnergy program broadcastedastedastedasted
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 25 February 2014 K. Al Awadi

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Algeria to start new 6 bcm LNG plant this year

  • 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 25 February 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Fastnet Oil & Gas: update on Foum Assaka well, offshore Morocco Source: Fastnet Oil & Gas Fastnet Oil & Gas has announced that its partner in the Foum Assaka license area, offshore Morocco, Kosmos Energy, has confirmed that its management expects the FA-1 well, which is located within the Foum Assaka Licence, to spud in March. The FA-1 well will target the Eagle Prospect, which is estimated by the operator, Kosmos, to contain 360 mmboe of Pmean resources in its primary deepwater Lower Cretaceous reservoir objective. The well will also target multiple secondary objectives which could provide additional upside in a success case. The planned target depth ('TD') is 4,000 metres, in water depth of approx. 600 metres. The well is expected to take up to three months to reach TD. Kosmos has contracted the Maersk Discoverer, a sixth generation semi- submersible rig, to drill the well. On the completion of the SK farmout agreement, announced on 18 December 2013, and receipt of all regulatory approvals, Fastnet will hold a 9.375% interest in the Foum Assaka Licence, with Kosmos holding 29.925%, BP 26.325%, SK Innovation 9.375% and ONHYM the remaining 25%. Fastnet is carried for past costs, as previously announced, and the cost of the FA-1 well up to a gross well cost of USD$100m. The total value of the SK transaction includes the carried cost of an exploration well and either an appraisal well or, at SK Innovation's discretion, a further exploration well (also capped at USD$100m gross). SK Innovation is the energy and chemicals affiliate of SK Group, South Korea's third largest conglomerate with over 70,000 employees who work from 113 offices worldwide. The group's businesses include energy, refining, chemicals, telecommunications, semiconductors, finance, and distribution. Commenting, Paul Griffiths, Managing Director of Fastnet, said: 'This well and the multiple drilling opportunities that surround it, offer the Company potentially significant high impact upside at minimal expected financial risk following the farmout agreement reached late last year with SK Innovation, a multinational company we are very pleased to be partnering with. We are, as such, delighted to have certainty on the timing of the well and look forward to operations progressing in March.'
  • 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 Gassi Touil plant 'online' in Algeria http://www.upstreamonline.com/live/article1353296.ece Algeria brought online a new gas processing plant on Monday but its energy minister indicated the resumption of full production from the In Amenas plant targeted in a deadly terror attack last year has been pushed back, according to reports. The Gassi Touil plant, with a total capacity of 3.6 billion cubic metres per year, has now started production from 42 out of 52 planned wells, the official APS news agency, citing an unnamed official at state-owned Sonatrach, was quoted as saying by Reuters.However, Energy& Mines Minister Youcef Yousfi told government newspaper El Moudjahid the third train at In Amenas “will be on stream in a few months”, without giving any further details of the revised schedule. Ali Hached, a senior adviser to Yousfi, stated last month the three-train facility was producing 20 million cubic metres per day - around two thirds of its full capacity of 30 MMcm - but said it would only be weeks before the plant was running at full steam. Forty oil workers, all but one foreign, died at In Amenas in January 2013 after the militants took expatriates hostage during a four-day siege that ended when Algerian forces stormed the site. The plant, operated by a joint venture of BP, Statoil and Sonatrach, was producing 11.5% of Algeria’s natural gas output before the attack. BP and Statoil since have withdrawn their staff from the Sahara desert complex, demanding better security measures. Algerian officials say they have met all the demands of foreign companies, but contractors have yet to return to the plant. Meanwhile, Yousfi said Algeria will also this year start up a new 6 Bcm-per-year liquefied natural gas plant. The Opec member and gas producer earlier this year started production from another new LNG unit at the eastern town of Skikda. "A new unit is expected to come online this year, with the same capacity," the minister told APS. Algeria's Energy & Mines Minister Youcef Yousfi
  • 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 Algeria expects 6 bcm LNG plant to start up this year (Reuters) Reuters - UK Algeria will start up a new plant to liquefy natural gas (LNG) this year, with a annual capacity of 6 billion cubic metres, ( 4 MT/Y) Energy and Mines Minister Youcef Yousfi told a state news agency on Monday. The OPEC member and gas producer, which aims to bolster production in its lagging energy sector, earlier this year started production from a new LNG unit at the eastern town of Skikda."A new unit is expected to come online this year, with the same capacity," Yousfi told state news agency APS. He appeared to be referring to a unit that has been under construction in the western town of Arzew. Yousfi also said the In Amenas gas plant, hit by Islamist militants attack early last year, would resume full production in months. Last month, the minister said he expected the plant to fully restart "within weeks". The plant is currently producing 20 million cubic metres per day out of a total capacity of 30 million cubic metres. BP , Norway's Statoil, STL Taiwan and state- owned Sonatrach jointly operate the facility, in which 40 workers died during the attack. BP and Statoil have withdrawn their staff since the assault, demanding better security conditions, though Algerian officials say they have met all demands for improved protection. "Specific measures have been taken to prevent such a tragedy from happening again in the future and provide partners with maximum assurance regarding the safety of their personnel," Yousfi said on Monday. Separately, the APS reported that Algeria on Monday started production from a new gas processing plant with a total capacity of 3.6 billion cubic metres per year. The Gassi Touil plant will be supplied from 42 wells out of 52 planned, it said, citing unnamed official at the Sonatrach at a ceremony at the plant in the southern province of Ourgla. Sonatrach's gas processing facility located in Arzew on the western coast of Algeria,
  • 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 Kenya: Taipan Resources extends Block 2B seismic into Simba Energy's Block 2A By: Simba energy + www.energy-pedia.com/news/kenya/new-158275 Simba Energy has announced that it has granted permission to Taipan Resources, operator of Block 2B in Kenya, to carry out 2-D seismic in an area located in the southwest corner of Simba`s Block 2A just to the north of their Pearl Prospect. Taipan, having already completed a small amount 2D seismic (22 line kms in total) in the southwest corner of Block 2A and provided the processed data to the Company, have requested permission to conduct an additional 24 line kms of 2D seismic within this same area. This work will comprise six lines, mostly 'tails', and is part of Taipan's current seismic program that aims to finalize a drilling location for their first exploration well planned for the fourth quarter of 2014 at the Pearl Prospect which lies just south of the Company's Block 2A boundary. This work is expected to be completed by the end of February and the seismic data will be forwarded to Simba at the conclusion of processing. Once interpreted, this seismic data will serve to complement Simba's existing dataset as well as future seismic work contemplated by the Company's recently announced LOI to conduct further exploration on Block 2A. This includes FTG (Full Tensor Gravity) and 2D seismic coverage over the area of the Anza Basin underlying the southwest of Simba's Block 2A. FTG has been the most effective exploration tool for identifying prospects throughout the East African rift system. 'Africa Oil's upcoming well on the Sala Prospect in Block 9 and Taipan`s planned Pearl-1 well on the south border of Block 2A strongly suggest that a potential 'String of Pearls' trend passes through the south western corner of our block, as both prospects are located at the basin edge where this type of play is found. The Anza basin`s edge passes through the western part of Block 2A', remarked Simba's CTO & Director, James W. Dick P. Geol., P. Eng. The Anza basin is one of the largest Tertiary-age rift basins in the East African rift system and demonstrates a similar geological setting to the South Lokichar basin where Tullow and Africa Oil have recently had significant discoveries. About Simba Energy
  • 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 Iraq: KRG exercises back-in right to Genel Energy's Miran PSC http://www.genelenergy.com/operations/kurdistan-region-of-iraq/miran-psc.aspx Genel Energy has announced that, on 23 February 2014, the Kurdistan Regional Government ('KRG') notified the Company of its intention, pursuant to the Miran Production Sharing Contract ('PSC'), to exercise its Option of Government Participation. Accordingly, Genel's working and paying interests in the Miran PSC will fall from 100% to 75%, with the KRG's working and paying interests at 25%. The Miran PSC covers 761km2 and contains the Miran gas, oil and condensate discovery, which has been independently assessed to contain gross mean contingent resources of 3.5 trillion cubic feet and 95 million barrels of oil and condensate. On the back of the Turkey-KRG Gas Sales Agreement signed in November 2013, Genel is currently working with the KRG to put in place a Gas Sales Offtake Agreement for the Miran field by mid-year 2014. In parallel, the Company continues to screen a number of development concepts, incorporating both domestic and export supply options. About Miran PSC The Miran block is a world class gas field. Miran contains two large contiguous structures, Miran West and Miran East. Results from wells drilled to date have confirmed the existence of two hydrocarbon systems with oil in the shallower Upper Cretaceous section and gas & condensate within the deeper Lower Cretaceous and Jurassic formations. Miran is a significant gas field with recoverable gas resources of 3.8 tcf. Multiple elements of the development have been progressed during the year.An Extended Well Test on the oil-bearing Upper Cretaceous reservoirs was completed in the first quarter, and an Early Production Facility for Miran oil was commissioned in August 2013 whichhas been producing at rates up to 3,000bopd. Production is expected to ramp up as additional wells come on line in 2014 and beyond. A Declaration of Commerciality for the Miran field was approved by the Ministry of Natural Resources of the Kurdistan Regional Government in September 2013. Getting Miran Field gas to market A fundamental driver for Miran is an ability to access attractive gas markets, with our main focus on the large and fast growing Turkish market. Turkey has little domestic production and is therefore one of the world’s top importers of natural gas. Gas from the Kurdistan Region of Iraq provides the Turkish Government with an opportunity to meet its domestic demand requirements, as well as achieve its stated goal of diversifying sources of supply. Genel Energy's Kurdistan assets - including Miran
  • 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 As part of the KRG/Turkey March Energy Framework Agreement, heads of terms have been agreed between the KRG and the Turkish Government for the sale of 10 bcma to Turkey. Negotiations are envisaged to continue through the remainder of the year with the agreement of a final GSA by the end of 2013. Final Investment Decision will follow completion of the GSA. Plans are in place to install gas export infrastructure, building on existing capacity and taking advantage of established pipeline right of ways - the additional infrastructure required to connect the Kurdistan Region's gas into the existing Turkish gas transmission system is both relatively modest and technically straightforward. Supporting Infrastructure Genel has interests in the two largest producing fields in the Kurdistan Region of Iraq, Taq Taq and Tawke, with access to local and international markets. These fields have a currently estimated gross proven and probable (2P) reserves of 1.4 billion barrels of oil (bbls) (445 mmbbls net to Genel Energy) and gross proven, probable and possible reserves of 1.9bn boe (655 mmbbls net to Genel Energy)1. We are targeting material production capacity growth at both fields to achieve 140,000 net bopd in 2014. The bottleneck to increasing production at Taq Taq is the current truck transportation. Currently, crude oil used for exporting is trucked approximately 135 km to Khurmala or 255 km to Fishkabur, where it is metered and pumped into the Kirkuk- Ceyhan Pipeline. Crude oil allocated to the local sales market is picked up by trucks at the Taq Taq field. The KRG has in place pipeline infrastructure plans for the Kurdistan Region to facilitate the export of its crude oil production through the construction of a new pipeline to the Turkish border. The first phase directly connects Taq Taq to the Erbil refinery and the existing Kirkuk Ceyhan export infrastructure and is complete. The second phase, linking oil fields in the Kurdistan Region from Khurmala directly to Fishkabur on the Turkish border, is now complete and tied-in to the Iraq-Turkey Pipeline, and is expected to be fully commissioned during 2Q 2014.
  • 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 Six offshore discoveries in India declared commercial www.offshoreenergytoday.com Jubilant has declared commerciality of six discoveries (KG-16, KG-22, KG-31, KG-21, KG-19 and KG-20SS) in Block KG-OSN-2001/3, off the eastern coast of India. GSPC, the Operator of the block, had submitted a commerciality analysis report on the six discoveries to the Ministry of Petroleum & Natural Gas on 14th February 2013 and the same has been reviewed by the Management Committee as required under the terms of the Production Sharing Contract. The Declaration of Commerciality (“DOC”) of the six discoveries has been examined with the following parameters and reviewed by the Directorate General of Hydrocarbons, India (“DGH”):- a) Gas Initially In Place (“GIIP”) : Gross 8.392 TCF as estimated by DGH;Net to Jubilant being 839 BCF. b) Recoverable Gas (Contingent Resources) : Gross 1.015 TCF as estimated by DGH; Net to Jubilant being 102 BCF . c) Development Wells : 25 wells (combination of dry tree and sub-sea wells) . d) Production Facilities :Platforms, Pipelines, Flow-lines, Process Umbilicals and Modifications of DDW Platform and Onshore Terminal . The Operator has prepared a long term phased resource maturation plan for the development of total available resources in the discovery area. As part of this phased development, the approved DOC considers recoverable gas of 1.015 TCF for initial development out of 2C recoverable gas resources of 4.708 TCF on gross basis (corresponding GIIP 8.392 TCF). GCA had estimated 2C recoverable resources of 4.888 TCF (corresponding GIIP 9.178 TCF), as was announced on 6 September 2012. The above discoveries exclude the DeenDayal West (“DDW”) and DDW Extension areas.
  • 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 About Jubilant Energy Jubilant has a 10% Participating Interest in the KG Block and actively participates in technical evaluations as a non-operating partner along with the operator, Gujarat State Petroleum Corporation Limited (“GSPCL”), promoted by the State Government of Gujarat, which holds 80% Participating Interest. The remaining Participating Interest is held by GGR. The consortium has drilled 13 exploratory and five appraisal wells in the block. Of the 13 exploratory wells, nine were successful discoveries. The Ministry of Petroleum and Natural Gas of the Government of India (“MoPNG”) had approved an extension of 20.5 sq kms to the existing contract area for the Krishna-Godavari in January 2012, thereby increasing the approved mining lease area for Deen Dayal West from 17 sq kms to a total of 37.5 sq kms. During 2012, Gaffney, Cline & Associates (“GCA”) audited the Reserves & Resources for the Deen Dayal Structural complex. As on 31 May 2012, the gross 2P reserves of Gas & Condensates in DDW have been assessed as 1612 bcf & 32.2 MMbbls respectively. Additional 2C condensate resources of 5999 bcf of gas and 125.7 MMbbls of condensates is also booked for DD-others, part of which is currently being proposed for commerciality. An upside potential of 5278 bcf has also been assessed for the undiscovered prospects The development of the Deen Dayal West Field (“DDW”) is expected to produce first gas in Q4 2013-14. Based on the initial results of the same, the consortium plans to submit an addendum to the DDW FDP to include the DDW extension area. The onshore & offshore facilities are at an advanced stage of completion and will be commissioned in time for first gas.Two to three wells will be put on production initially and subsequently more wells will be drilled (total 15) and put on production in the DDW area. Based on the appraisal programme, a Declaration of Commerciality (“DOC”) proposal for the six natural gas discoveries within the block, namely, KG-16 in DDE area, KG-22 in DDN area, KG-21 & KG- 31 in DDW-DT area, KG-19 and KG-20SS in DDNE-BRU area, has been submitted to the Directorate General of Hydrocarbons, India on 15 February 2013. The approval from the management committee of the said DOC will take Jubilant one step closer to maturing the 2C Resources into 2P Reserves category
  • 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 Iran outlines new oil projects for investors Reuters/Dubai An oil refinery is seen in Tehran. Iran’s oil ministry yesterday said the country’s new model for oil field development contract aims to tempt back foreign energy firms with 25-year deals. Iran’s new model for oil field development contracts aims to tempt back foreign energy companies with 25-year deals, Iran’s oil ministry news service said yesterday. One change under the new integrated petroleum contract (IPC) will allow foreign contractors to work on fields over the long term instead of having to hand them over at an early stage to Iranian companies. Under Iran’s former “buy back” system, contractors did initial development work but then had to leave the country and await payment in oil, which proved unpopular with foreign investors before Western sanctions drove them away. Mehdi Hosseini, head of a committee revising that system, told a forum in Tehran on Sunday that approach was too one-sided and only benefited Iran. Investors will also be offered better terms for riskier projects, as in neighbouring Iraq, whose contracts Iranian officials drew from. “In the new contracts, different stages of the petroleum industry (exploration, development and production) are awarded in an integrated manner,” Hosseini was quoted as saying by the Shana oil ministry news service. “We must try to persuade foreign companies to enter high-risk zones of the petroleum industry,” he said, adding that the government should not shoulder the high costs of exploring for oil and gas but should ensure contracts reward those who do. Unlike the last generation of contracts, which required contractors to leave Iran within five years of developing new fields, foreign contractors will be allowed to work on them for 20-25 years, Shana reported an committee adviser as saying on Monday. Some oil majors are waiting for multi-million dollar payments for projects completed decades ago.
  • 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 GE to hike pro-environment energy research by $10 bn AFP – US industrial conglomerate General Electric said Monday it would boost spending on environmentally friendly energy research by $10 billion by 2020, including on fracking technologies and wind turbines. The new investment extends and builds on a research and development (R&D) program launched in 2005 aimed at finding technologies that reduce costs and environmental impacts for GE's customers and its own operations, the company said. GE said the new investment will support research in alternative technologies to replace water in hydraulic fracturing, known as "fracking", and improve wind turbine and power plant efficiencies. The program, "ecomagination", has already generated more than $160 billion in revenue, and reduced GE's greenhouse gas emissions and freshwater use, said the company, whose wide portfolio of products includes aircraft engines, power plants, geospatial systems and household appliances. GE has invested $12 billion to date of its $15 billion commitment on the R&D program through 2015. Jeff Immelt, GE chairman and chief executive, said the now $25 billion program was one of the conglomerate's most successful cross-company business initiatives. "Bold investments in ecomagination research and development have resulted in strong returns for shareholders and improved cost and emissions savings for our customers," he said in a statement. GE announced two new R&D projects in the natural gas sector, where fracking -- the use of pressurized liquids to create fissures in rocks to release gas and oil -- has significantly raised production as well as environmental concerns. GE said it had teamed up with Norwegian oil giant Statoil look into whether carbon dioxide would be suitable for large-scale use as an alternative to water, potentially reducing the large amounts of water needed for fracking. CO2 is currently used for some fracking but is a high-cost option. "The goal of GE and Statoil's new research collaboration is to evaluate whether a system can be designed to capture CO2 produced from emissions; reuse the CO2 to fracture rock formations; and then capture it again for re-use on the next well," the Norwalk, Connecticut-based company said. In the second project, GE is working with Canadian company Ferus to capture natural gas that operators flare off from new oil and gas wells in remote areas because of a lack of infrastructure to economically capture and transport it. GE and Ferus are capturing the natural gas and removing natural gas liquids, such as propane and butane, which are then sold. The remaining methane is compressed, stored and then used to power operations on remote wells, GE said.
  • 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 Eni Awards $1.1B Jangkrik FPU EPCI Deal to Chiyoda- Saipem-Tripatra-HHI JV in Indonesia by Chiyoda Corp. www.rigzone.com/news/ + Press Release Chiyoda Corporation (Chiyoda) reported Monday that Eni Muara Bakau (Eni: 55 percent, GDF Suez: 45 percent, Operator: Eni) has awarded Chiyoda's group company PT. Chiyoda International Indonesia, in collaboration with PT. Saipem Indonesia (Leader), PT Tripatra Engineers and Constructors and Hyundai Heavy Industries Co. Ltd, a contract for the Engineering, Procurement, Construction and Installation (EPCI) of a new Barge Floating Production Unit (FPU) for Jangkrik and Jangkrik North East Gas Field Development in Indonesia for a total amount of $1.1 billion with delivery date at site ready for SURF hook-up in 34 months. The new-build spread-moored FPU will have the capacity to treat 450 MMscf/d of gas plus condensates (LPG) and the scope of work includes engineering, procurement, fabrication of the FPU (Hull and Topside) and the installation of a mooring systems as well as hook-up, commissioning and assistance to the start-up. Gas produced by the FPU will be delivered through the existing East Kalimantan Pipeline facilities to Bontang LNG Plants, which were constructed by Chiyoda. The overall Project Management, Engineering and Procurement of the Jangkrik FPU project will be carried out in Jakarta, Indonesia. The topsides fabrication activities will be carried out in Saipem's Karimun Yard, also in Indonesia, while the hull will be fabricated in HHI's shipyard in Ulsan, South Korea. Chiyoda Group will make every effort to advance to the EPCI work for this Project. The award of this contract aligns with Chiyoda's strategy of growth in offshore floater construction in particular, where Chiyoda recently announced in its Mid-Term Management Plan that it would expand its business area to offshore EPCI projects; this Project is the first EPCI Project in the floating business for the Chiyoda group. Chiyoda is accelerating its involvement in the floating business worldwide with the objective of becoming a leading player through its strategic alliance with Saipem. Chiyoda, together with its group companies, has leveraged its extensive experience continuously for over 60 years and is at the forefront of the relentless drive for innovative design and world- class project expansion. Chiyoda Corporation, headquartered in Yokohama, Japan, provides services in the fields of engineering, procurement and construction on a global basis for gas processing, refineries and other hydrocarbon or industrial plant projects, particularly gas value chain projects, in South East Asia, the Oceania regions, the Middle East and Russia.
  • 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 Singapore LNG Terminal Capacity Rises to 6 Mtpa by Cheang Chee Yew Rigzone Staff Singapore LNG Corp. (SLNG) Pte Ltd. completed construction of a third storage tank and additional regasification facilities at the Singapore LNG (liquefied natural gas) Terminal, which is located at the southern-most tip of Jurong Island in Singapore, a company official told Rigzone. "Construction of the Third Tank and additional regasification facilities have been completed, bringing the throughput capacity of the terminal to 6 Mtpa (million ton per annum). Utilization of this additional capacity will be dependent on the future requirements of the LNG importers, both existing and new," the SLNG said in an emailed reply to Rigzone. The Singapore LNG Terminal commenced operations in May 2013 with two LNG storage tanks and a regasification capacity of 3.5 Mtpa. The third storage tank and additional regasification capacity were scheduled for completion late last year. Meantime, SLNG is on track to increase the capacity of the Singapore LNG Terminal under Phase 3 expansion, which will boost its throughput capacity to 9 Mtpa. "As for Phase 3 expansion, the final investment decision, including construction award, is on track for the second quarter of 2014," SLNG said when asked about the status of the project.
  • 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 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 working asOil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working as Technical Affairs SpeciTechnical Affairs SpeciTechnical Affairs SpeciTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation foralist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation foralist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation foralist 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 Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsiblManager in Emarat , responsiblManager in Emarat , responsiblManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developede for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developede for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developede for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has 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 the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Mroutes. Mroutes. Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forany years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forany years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forany years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcEnergy program broadcEnergy program broadcEnergy program broadcastedastedastedasted 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 25 February 2014 K. Al Awadi