Newbase energy news covering the MENA by Energy expert Khaled Al Awadi

1. Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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NewBase 25 March 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Petrofac wins $1bn oil and gas project in Oman
Sean Cronin , www.thenational.ae/business/
Petrofac has won a contract expected to be worth at least US$1 billion on a massive oil and gas
project in Oman. The London-listed oilfield services contractor that operates out of Abu Dhabi and
Sharjah was selected by Petroleum Development Oman (PDO).
It covers engineering and procurement on the Rabab Harweel Integrated Project, which will also
include a sour gas facility. “This award underpins Petrofac’s strategy to enhance service capability
in the Middle East,” said Craig Muir, the managing director for the company’s engineering and
consulting services.
It is the company’s second major award in Oman in as many months. It was awarded a $1.2bn
contract on the Khazzan gas project in the country last month. Despite the recent wins, the
company said it expected only “flat to modest growth in net profit” this year during its results
presentation last month.
Oman is ramping up oil and gas spending and investing in enhanced recovery techniques to boost
production. Oil and gas spending in the country reached $10bn last year, according to government
figures. PDO accounts for about 70 per cent of Oman’s oil production and almost all of its gas. It
operates in a concession area that spans 100,000 square kilometres, or about one third of the
country’s land mass.
Countries including Oman and the UAE are
increasingly tapping sour gas deposits,
named because of their high sulphur
content, which makes them more expensive
to process. Rising energy demands are
making the commercial development of
such fields more economically viable.
Associated sulphur production from gas
projects under development in the Middle
East is expected to leap by 44 per cent
during the next three years, creating
opportunities to develop downstream
industries, such as fertilizer production. Sour
gas experts from across the region will
descend on the capital tomorrow for the
Sour Oil and Gas Advanced Technology
Conference.

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Shell sees ‘minor’ impact in higher US gas exports to Europe
Reuters/Goyang, South Korea
Growing interest in sending more US natural gas to Europe does not hold a big threat for Asian gas markets,
although such exports would help improve spot market liquidity for the super-chilled form of the fuel, a
Shell executive said yesterday.
Tension over the future of Ukraine is prompting the European Union and US to look at deepening their
economic ties. Europe is hoping to tap the abundant energy resources of its key ally to reduce dependence
on Russia, which feeds a bulk of the region’s gas demand. It is still unclear how much US gas might
eventually go to Europe because Asia is a more lucrative export market. Some US lawmakers also oppose
shipping domestic gas overseas, worried prices would rise at home. Liquefied natural gas (LNG) will in the
meantime remain tight due to Japan’s
post-Fukushima demand, until new
supply comes onstream from
Australia, Angola and Papua New
Guinea, Maarten Wetselaar, executive
vice president of Royal Dutch Shell’s
integrated gas division, told Reuters in
an interview. “The effects are
relatively minor on the scale of the
global gas market, even on the scale
of the global energy market,”
Wetselaar said of potentially higher
US LNG exports to Europe. “I
wouldn’t expect them to disrupt any
of the short-term, medium-term flows
going around Asia,” he said.
Wetselaar is in South Korea for an
international gas conference this
week. And while US LNG exports -
which are expected to start up from Texas and Louisiana next year - would help to relieve overall supply
tightness, Wetselaar said market liquidity would not be so big as that of crude oil.
The pace of China’s gas demand growth will also be key to how markets develop over the next few years as
new supplies emerge from Australia, East Africa, North America, Russia and the Middle East. “A big
question mark ... is how fast China will grow, and within that, how fast the gas market will grow,” he said,
noting that gas is “really low” in China’s energy mix compared with 20%-25% in Asia.
China has set a target of raising natural gas’ share of its energy mix to 8% by 2015, from around 5% now.
As for the development of a spot market for LNG, Wetselaar said: “It is clear that with a rise of North
American exports where many of the cargoes are not sold on a long-term basis, and have more destination
flexibility, the spot market in the future will be bigger than it has been in the past.”
Gas investors will still need to sell much of their gas on a long-term basis to finance their LNG projects, and
that will remain the main portion of the gas market, he said. “The (spot) volumes on the market and liquidity
of the market will never be anything near crude oil markets,” he said, especially considering the technical
features of LNG and the expense involved in storing and shipping the fuel.

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Morocco: Tangiers Petroleum preparing to drill the TAO-1 well on the Tarafaya
Source: Tangiers Petroleum / energy-pedia
Tangiers Petroleum has advised that the site survey has been completed at the location of the TAO-1 well,
offshore Morocco, and is compatible for the use of a jack-up rig. A Novation Agreement has been entered
into by Galp Energia on behalf of the joint venture partners to secure access to the Ralph Coffman Drilling
Unit to undertake exploration drilling in the Tarfaya Block. The exploration well TAO-1 is scheduled to
spud 2Q 2014.
Tangiers Petroleum has announced December 13 that the Ministries of Energy and Finance in Morocco had
officially approved the assignment of a 50 per cent interest in the Tarfaya Offshore Block from Tangiers to
Galp Energia. See: Tangiers receives official approval for farmout of Tarfaya Offshore Block to Galp
Energia At the time, according to information on the Tangiers Petroleum web site, Galp Energia had
commenced the planning of the first exploration well, TAO-1 which will optimally test the Trident Prospect
and tag the Assaka and TMA objectives within structural closure (see map).
JOINT VENTURE INTERESTS
• Tangiers Petroleum 25%
• ONHYM 25% (carried through exploration)
• Galp Energia (50%) Operator
LOCATION
The Tarfaya Offshore Block is located on the Moroccan Atlantic margin and was acquired by Tangiers Petroleum in
2009. The Block comprises 8 contiguous permits covering an area of 11,281 sq km (approximately 2.8 million acres).
The Block is located approximately 600 km southwest of Morocco’s capital Rabat, inboard of the Canary Islands on a
shallow shelf with water depths generally under 200m.

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PROSPECTIVITY
The Tarfaya Block is located in an area with an already proven hydrocarbon system associated with a Jurassic
carbonate fairway. The Cap Juby Field, in neighbouring acreage to the west, was discovered by Esso in 1968 and is to
be appraised further by new operator Cairn Energy in 2013/14.
The Jurassic carbonate fairway has a direct link to its conjugate margin basin, offshore Nova Scotia, Canada where
material discoveries have been made in analogous settings.
Prospects and Leads
Following the reprocessing of 2D seismic data and the acquisition of 3D seismic data in the Tarfaya Block a prospects
and leads inventory has been matured for the block. The main exploration focus is currently the Jurassic carbonate
fairway.
Tarfaya Block, Jurassic Prospects and Leads
Primary Jurassic prospects covered by 3D seismic data are: Trident, TMA , Assaka and La Dam. These prospects
have been independently assessed by Netherland Sewell and Associates (NSAI) to have a combined P50 estimate of

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4335 million barrels of gross unrisked original oil-in-place with a corresponding P50 prospective resource of 867
million barrels of oil (NSAI CPR, 2012).
* Independently assessed by Netherland Sewell and
Associates (2012)
Galp Energia Farm-in
The international oil and gas industry has shown
unprecedented interest in Morocco over the last 18
months as evidenced by the high level of farm-in
transactions.
Tangiers capitalised on this interest and in December 2012 signed a farmin agreement with Galp Energia. Under the
terms of the farmin agreement, Galp will earn a 50% interest in the Tarfaya Offshore Block by spending US$40.5
million, which includes a carry on the exploration well capped at US$33 million and reimbursement of US$7.5
million for past costs. Finalisation of the agreement is awaiting the approval of the Moroccan government to the
transaction which is expected shortly.
TAO-1 Exploration Well
Galp Energia has commenced the planning of the first exploration well, TAO-1 which will optimally test the Trident
Prospect and tag the Assaka and TMA objectives within structural closure.

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
Chad: Caracal Energy announces first sales oil from Badila field
Source: Caracal Energy
Caracal Energy has announced that the first shipment of Badila oil for export sales has been loaded at the
Kribi sea terminal offshore Cameroon. Total cargo size of the lifting was approx. 950,000 barrels of oil, and
Caracal's net entitlement share was 560,000 barrels of oil. Caracal's partner, GlencoreXtrata, was entitled to
the balance of the cargo. Caracal and Glencore joint lift cargos, and
Glencore markets the shipments on behalf of the partners.
Ceremonies were held in Kribi and Douala to mark this significant
event. In addition to Caracal senior executives, also attending were
high ranking officials from the Republic of Chad, senior executives
from Société des Hydrocarbures du Tchad (SHT), the Chadian
national oil company, COTCO, the operator of the Kribi offshore
terminal, and senior representatives of the Pipeline Committee of Cameroon (CPSP).
Gross production from the Badila field during March has averaged 14,100 barrels of oil per day (up from
12,000 bopd on 20 January 2014), and Caracal is on schedule to expand the production processing and
shipping facilities during Q3 of 2014.

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,
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Japan's Chubu in deal with India's GAIL to consider joint LNG buy
Source: Reuters
Japan's Chubu Electric Power said on Monday it has signed a deal with India's GAIL to consider
cooperation in joint procurement of liquefied natural gas (LNG), as Asian buyers look for stable and lower
prices of the fuel. Rising demand for LNG in Asia, already the top destination for the fuel, has helped push
its price to near-record levels and now buyers such as India, Japan and South Korea are trying to find ways
to cut their soaring gas import bills. The two firms had been considering a preliminary deal on joint
purchases since January. India, Japan and other Asian countries that together import 70 percent of the
world's LNG met in December to discuss forming a buyers' club to get a better deal from suppliers.
State-run Korea Gas Corp (KOGAS) and a Japanese company bought natural gas jointly on Monday and
such cooperative purchases will become more common, the head of state-run Japan Oil, Gas and Metals
National Corp (JOGMEC) said. Asian prices LNG-AS are at least three times the cost of natural gas in the
United States, where a boom in shale oil and gas has sharply reduced prices.
Asian importers say they are charged an excessive premium over other regions because of a practice of
linking LNG contracts to oil prices. They also want more flexibility in contracts over ship destinations to
free up the market.

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
Anadarko Has Sold Two-Thirds of Mozambique LNG Project Capacity
http://www.naturalgasasia.com/anadarko-has-sold-two-thirds-of-mozambique-lng-project-capacity-12093
Anadarko Petroleum Corp has sold two-thirds of the capacity of its planned Mozambique LNG
project to Asian customers and hopes to have the rest sold soon, news agency Reuters reported
its chief executive as saying on Monday.
"We think we have financially de-risked the project," Anadarko CEO Al Walker said in an interview
to Reuters at the Howard Weil energy conference in New Orleans. "We expect to make a final
investment decision on the project later this year."
Anadarko and its partners are advancing a commercial LNG development onshore Mozambique
with first cargoes planned in 2018. The joint venture has drilled more than 20 deepwater wells
within Mozambique Offshore Area 1 Block discovering an estimated 45 to 70 trillion cubic feet
(Tcf) of recoverable natural gas.
Walker said he expects the remaining third of the Mozambique capacity to be sold to Asian
customers, not European customers, despite recent tensions between Europe and Russia over
Ukraine, added Reuters.
About MLNG :-
Mozambique LNG is emerging as a leader in the global LNG industry, with up to 65 trillion cubic feet (Tcf)
of estimated recoverable natural gas (approaching 100 Tcf of original gas in place (OGIP)) discovered to
date in Mozambique's Offshore Area 1. In cooperation with the Government of Mozambique and the
operator of the adjacent Offshore Area 4, the partners are advancing an LNG development initially
consisting of four 5-million-tonnes-per-annum liquefaction trains with significant expansions in future
years. Mozambique LNG has the expertise, skills and knowledge to safely deliver one of the world's most
significant LNG projects with first LNG cargoes expected in 2018.

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US : Jordan Cove gets export approval
Jordan Cove Energy
The US Department of Energy on Monday approved liquefied natural gas exports from the proposed
Jordan Cove facility in the US state of Oregon.
The export license, which authorises shipments of up to 800 million cubic feet per day of LNG to countries
without free trade agreements with the US, is conditional upon further approval from the Federal Energy
Regulatory Commission. Jordan Cove, located in Coos Bay, becomes the the seventh project to be granted
non-FTA export authorisation by the Energy Department.
Canadian junior Veresen Energy, which will own and operate Jordan Cove, received the green light last
month from Canada's National Energy Board to export LNG from the US facility. Veresen, which operates
pipelines and gas-processing facilities, will ship gas via existing pipelines to the Malin Hub in southern
Oregon, from which point it will be sent to the Jordan Cove site through a planned 232-mile.
The LNG export facility is expected to supply 6 million tonnes per annum of gas to Asian markets.
Commercial LNG production at that capacity is targeted for early 2019. Legislators on both sides of the
aisle in the US praised the federal approval, while Alaska senator Lisa Murkowski urged the Energy
Department to move forward with approvals of other projects in the queue.
Congressional calls have grown louder in recent weeks for the White House to expedite LNG approvals in
order to weaken Russia's grip on European gas markets amid the row over Crimea. “Given the situation in
Ukraine, this license sends a positive signal to our allies and to energy markets that the United States is
ready to join the growing global gas trade,”Murkowski said in a statement.
“While this license moves us in the right direction, I would be strongly opposed to any ‘pause for further
study’, as some have proposed.” Senator Mary Landrieu said the approval would help "solidify the US as an
energy superpower". "A quick and efficient approval process to responsibly export natural gas from our
shores will also reduce the stronghold that countries, like Russia, currently exercise over their neighbours,”
Landrieu said on Monday.

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Indonesia: Santos commences first gas from Peluang project ahead of schedule
Source: Santos
Santos has announced that natural gas production has commenced ahead of schedule and on budget from the
Peluang gas project offshore East Java in Indonesia. Sanctioned in February 2013, Peluang is a tie-back to
the existing facilities at the Maleo gas field and is located in the Madura Offshore Production Sharing
Contract (PSC). The project is
expected to have gross peak
production of 25 million standard
cubic feet per day.
Santos Vice President Asia,
WA&NT John Anderson said
Peluang first production
represented the delivery of
another project into the
company’s expanding Asian
portfolio. 'Peluang is the fourth
operated asset for Santos in South
East Asia. The success of first gas
ahead of schedule and on budget
with Peluang represents another
significant milestone in the
company’s delivery of a strong
growth strategy in Asia,' he said.
'In addition to Peluang, Santos is
also focused on progressing our
recently acquired position in the
Ande Ande Lumut oil field in the
West Natuna Basin.'
Santos President Indonesia
Marjolijn Wajong said Peluang
gas will be used by domestic
consumers in East Java,
Indonesia, as is the case with
other gas produced by Santos in
East Java. 'We already have gas
production from the Oyong,
Wortel and Maleo fields in
offshore East Java, so this builds
on our capacity in the region. Peluang also demonstrates our ability to deliver new projects in Indonesia,'
she said.
Santos has a 67.5% interest and is the operator of the Madura Offshore PSC. Other partners are PC
Madura Ltd and PT Petrogas Pantai Madura.

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India: Oilex encounters mechanical problems drilling the Cambay-77H production well
Source: Oilex
Oilex has provided information regarding the Cambay-77H well. Drilling of the 12 ¼ inch hole section
reached 1,626.5m MD which is approx. 26.5m above the planned casing point for the 9 5/8 inch casing.
While pulling out of hole (POOH) to service a mud pump, the Essar Land Rig #4 (Rig) experienced
mechanical issues and is currently on equipment downtime at no cost ($0.00 day rate) to the Cambay Joint
Venture.
Some of the required replacement parts have been ordered and are being airfreighted from Houston while
others have been locally sourced. This reflects the fastest delivery option for special parts not normally
included as onsite spares for drilling rigs. It is anticipated the Rig will be operational within 10 - 12 days.
Synthetic Oil Based Drilling Mud (SOBM) is being circulated to keep the well bore clean and the drill pipe
is being rotated on a regular basis. The use of SOBM was highlighted as the appropriate mud system to use
in the forensic engineering analysis of Cambay-76H which is 300m offset to Cambay-77H. Contingency
plans are in place to ensure that this effort can continue uninterrupted while the rig is being repaired.
Managing Director of Oilex, Ron Miller, said:
'While this is untimely, drilling rigs do experience mechanical issues from time to time. We are working
closely with Essar to expedite the return of the Rig to operational status. Excluding the instances of delays
associated with rig mechanical issues, the operational activities have been completed in line with the
anticipated durations.'

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NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Services
Khaled Malallah Al Awadi,
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Energy Services & Consultants
Mobile : +97150-4822502
khalid_malallah@emarat.ae
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 24Khaled Al Awadi is a UAE National with a total of 24Khaled Al Awadi is a UAE National with a total of 24Khaled Al Awadi is a UAE National with a total of 24
yearsyearsyearsyears oooof experience in thef experience in thef experience in thef experience in the Oil & Gas sector.Oil & Gas sector.Oil & Gas sector.Oil & Gas sector.
Currently working as Technical Affairs Specialist forCurrently working as Technical Affairs Specialist forCurrently working as Technical Affairs Specialist forCurrently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with external
voluntary Energy consultation for the GCC area via Hawk Energyvoluntary Energy consultation for the GCC area via Hawk Energyvoluntary Energy consultation for the GCC area via Hawk Energyvoluntary Energy consultation for the GCC area via Hawk Energy
Service as a UAE operations base , MostService as a UAE operations base , MostService as a UAE operations base , MostService as a UAE operations base , Most of the experience wereof the experience wereof the experience wereof the experience were
spent as the Gas Operations Manager in Emarat , responsible forspent as the Gas Operations Manager in Emarat , responsible forspent as the Gas Operations Manager in Emarat , responsible forspent as the Gas Operations Manager in Emarat , responsible for
Emarat Gas Pipeline Network Facility & gas compressor stations .Emarat Gas Pipeline Network Facility & gas compressor stations .Emarat Gas Pipeline Network Facility & gas compressor stations .Emarat Gas Pipeline Network Facility & gas compressor stations .
Through the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructing of gas pipeof gas pipeof gas pipeof gas pipelines, gas metering & regulating stationslines, gas metering & regulating stationslines, gas metering & regulating stationslines, gas metering & regulating stations
and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenand in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenand in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenand in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceanceanceance
agreements along with many MOUs for the local authorities. He has become a referencagreements along with many MOUs for the local authorities. He has become a referencagreements along with many MOUs for the local authorities. He has become a referencagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in thee for many of the Oil & Gas Conferences held in thee for many of the Oil & Gas Conferences held in thee for many of the Oil & Gas Conferences held in the
UAE andUAE andUAE andUAE and Energy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
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NewBase 25 March 2014 K. Al Awadi