New base special 26 october 2014

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NewBase 26 October 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
UAE to host & welcome, solar powered aircraft - Solar Impulse 2 (Si2)
NewBase + www.solarimpulse.com/
Abu Dhabi is readying to welcome Solar Impulse 2 (Si2), a new single-seater solar aircraft
designed to take up the challenge of the first round-the-world solar flight without any fuel in 2015.
As part of its preparation for the plane’s arrival in January, Solar Impulse representatives arrived
in the UAE capital to meet the local authorities.
With the historic flight scheduled to take off from Abu Dhabi next March, pilots of the Solar
Impulse 2 (Si2) will conduct test flights and perform fine-tuning exercises this January, in
preparation for the five-month journey. The plane, and its two co-founders, will attempt to fly
around the world – without a drop of fuel – only using the power of the sun.
Masdar, Abu Dhabi’s renewable energy company, is an official host partner of Si2 and Abu Dhabi
will be the location of the plane’s departure and arrival. “It’s fitting that we’re departing from Abu
Dhabi,” remarked Bertrand Piccard, the chairman, initiator and pilot of Si2, “as the emirate is a
true energy leader committed to realizing a cleaner tomorrow. Through initiatives like Masdar, Abu
Dhabi is demonstrating a real commitment to diversifying the global energy mix with clean, reliable
renewable energy.”
Preparations are well under way for the planes arrival in Abu Dhabi, ahead of the five-month
round-the-world flight, he stated. “With less than six months until departure, we can feel the
pressure. The plane must be tested and the entire flight path, including all landing permissions,
organized,” explained André Borschberg, the co-founder and pilot of Si2.
“We couldn’t have wished for a better host city in Abu Dhabi, given its location, state of the art
facilities and the fantastic support we’ve received so far,” he added. The announcement of Abu

Dhabi as the host city and Masdar’s partnership with Si2 was made during the UN Climate
Summit last month in New York.
Commenting on the move, Dr Sultan Ahmed Al Jaber, the chairman of Masdar, said: "The
departure of Solar Impulse - and its journey around the world - is a historic event that Abu Dhabi
will play an important role in." "In fact, Solar Impulse and Masdar share a common goal of
advancing renewable energy and innovative clean technologies. More importantly, we aim to also
inspire future generations to explore new horizons and push the boundaries of science and
technology," he added.
Si2 will be assembled in Abu Dhabi at a specially designated location where safety tests and
training will also be undertaken. The plane will be showcased during the World Future Energy
Summit, as part of the Abu Dhabi Sustainability Week, January 17-24, when the public will have
the opportunity to view the plane and meet the pilots.
“As a previous guest and speaker during the World Future Energy Summit,” said Piccard, “I’ve
seen first-hand Abu Dhabi’s commitment to advancing clean technology, creating social
opportunity and extending its energy leadership through the acceleration of wind and solar power.
Abu Dhabi is truly the ideal location for our safe departure, and hopefully, arrival.”
The round-the-world flight will take approximately five months, with stops expected in Asia, the
US, Southern Europe or North Africa, before returning to Abu Dhabi in July 2015
http://www.solarimpulse.com/

Fujairah Emirates LNG Terminal at bidding stage by Mubadala and IPIC
The Abu Dhabi Sovereign funds Mubadala Petroleum (Mubadala) and the International Petroleum
Investment Company (IPIC) are currently reviewing the tenders submitted by the qualified bidders for the
engineering, procurement and construction (EPC) contracts to be awarded for the Emirates LNG Terminal
and Regasification project on the coast of Fujairah
on the northeast of the United Arab Emirates
(UAE).
Mubadala and IPIC established the 50/50 Emirates
LNG joint venture (JV) in order to secure the
natural gas supply into the Emirates. In the 2000s
years, Mubadala initiated the Dolphin project to
import natural gas from Qatar through a pipeline
which turned into commercial operations in 2007.
Anyway the UAE economy remains very much
depend on the gas supply to power the electrical
generation as well as to feed the multiple
petrochemical complex planned by the Kingdoms.
As the main supply is coming from the neighboring
Gulf countries, the UAE are keen to diversify their sources out of the global gas markets, especially Asia-
Pacific and East Coast of Africa. In that respect the Fujairah Emirates offers a strategic location along the
Gulf of Oman opening direct access on the Indian Ocean .
This position allows Mubadala and IPIC to consider Fujairah as the best place to build the Emirates
LNG Terminal and Regasification project as it prevents the LNG carriers to come across the sensitive Strait
of Hormuz. Originally planned to be developed in two phases whereas Mubadala and IPIC should have first
moored floating storage and regasification units (FSRU) units and then expanded this near-shore terminal
with landed-base storage facilities.
In 2013 Mubadala and IPIC redefined their Fujairah Emirates LNG Terminal and Regasification project to
be fully landed. While rethinking Fujairah Emirates LNG project concept, Mubadala and IPIC maintained
the capacity of the regasification to 9 million tonnes per day
(t/d) of liquefied natural gas (LNG) that should deliver 1.2
million cubic feet per day (cf/d) of natural gas to the UAE.
The Fujairah Emirates LNG project should include two
EPC packages:-
- EPC-1 the LNG dowloading and regasification units
- EPC-2, the storage tanks and associated facilities.
Three engineering companies are bidding on the first package
for the regasification plant with an estimated budget of $900
million capital expenditure. Four competitors submitted a
technical offer for the second package covering four storage
tanks of 200,000 cubic meter of natural gas. These companies
are expected to submit their commercial offers by the end of year. Most of the imported gas through the
Fujairah Emirates LNG terminal and Regasification project should be directed to the power generation
supply. In a second phase, Mubadala and IPIC are considering to expand the Fujairah Emirates
LNG Terminal and Regasification capacity by an additional 6 million t/y of LNG.

India likely to strike deal with Vietnam for oil exploration
By FPJ Bureau + NewBase
New Delhi : Looking to deepen its economic ties with Vietnam, India is likely to strike a deal for
exploration and production of oil and gas during the visit of South East Asian nation’s Prime
Miniter Nguyen Tan Dung on October 27.
Ahead of its Prime Minister’s
two-day visit here, Vietnam
has also evinced keen
interest in greater
cooperation in key areas of
defence, security and oil
exploration and has hoped
that some pacts will be
signed during the trip.
“We are looking at enhancing
India’s cooperation in the
fields of hydrocarbons and oil
exploration,” Oil Minister
Dharmendra Pradhan told
PTI.
He said he interacted with
Vietnamese authorities on
further cooperation in the oil
sector during President
Pranab Mukherjee’s visit to
Vietnam in September and
wants this cooperation to be
taken further. “We are
exploring more options to
further our cooperation with
Vietnam in the oil sector,” he
said, hinting at further talks
and some possible tie-ups
during the Vietnam Prime
Minister’s visit.
Pradhan said a team of
officials of state-run Indian Oil Corporation had visited Vietnam and explored some business
ventures which may come to fruition during the Vietnamese President Pranab Mukherjee’s visit.

Tanzania Talks Oil, Gas Exploration With Total, BP
Reuters + NewBase
Tanzania has discussed issue of oil and gas exploration possibility with Total and BP, news
agency Reuters reported Saturday
citing country's energy ministry. Some
of world's leading energy companies
are already present in the east African
nation.
Total executives were in Tanzania's
commercial capital Dar es Salaam this
week with Energy and Minerals
Minister Sospeter Muhongo, the
ministry said. "Total has expressed
interest to explore for gas and oil in the
Lake Eyasi (open acreage area),"
Muhongo said in a statement,
reported Reuters.
Muhongo has also held separate talks with BP officials, though he did not give details about when
those talks were held.
Tanzania estimates it has up to 53.2 trillion cubic feet (tcf) of recoverable natural gas resources off
of its southern coast, up from an earlier estimate of 46.5 tcf, Reuters said.

Fuel smugglers from all walks of life drain Indonesia’s economy
Washington Post + NewBase
It’s Tuesday morning, and about three dozen vehicles are waiting for the fuel truck to arrive at a
service station on the island of Belitung, Indonesia. Soon, a steady stream of cars will buy all the
subsidised diesel and many of the drivers will then siphon their ration into jerry cans to sell at a
profit.
ugThe daily ritual is one step in a series of scams
that range from car owners earning a few
hundred dollars, to organised crime syndicates
making millions out of Indonesia’s lopsided fuel
distribution system. The pervasive fraud, which
has embroiled people from all walks of life, from
provincial officials to the armed forces, takes
advantage of subsidies that cost the government
more than $20 billion a year and lures hundreds
of thousands of Indonesians into breaking the
law.
“With the discrepancy between the price of
subsidised fuel and market value, smuggling, hoarding and deliberate scarcity are normal,” said
Achmad Sukarsono, an associate fellow at the Habibie Center, a research institute in Jakarta. “It
can be a lucrative business involving soldiers, policemen and violent incidents.”
President-elect Joko Widodo is the latest leader of the country to promise to curtail the subsidies
and their inherent corruption, a strategy that helped end the three-decade rule of dictator Suharto
and has eluded four presidents since. The issue is so entrenched in the country’s economy that it
touches almost every aspect of life across the 17,000-island archipelago, from fishermen selling
their marine diesel to pay for cigarettes, to wealthy drivers in the capital, unable to fill their SUVs
as gas stations run dry.
Among the smallest operators in this nationwide scam is a tall man in a dark blue Daihatsu SUV at
the filling station in Kelapa Kampit district in Belitung, who declines to give his name because what
he is about to do is illegal. He’s waiting to fill up with his daily quota of 40 litres (10.6 gallons) of

diesel at the subsidised rate of 5,500 rupiah (45 U.S. cents) a litre, less than half the market price.
The fuel is then sold for 8,000 rupiah or more to businesses that aren’t eligible for the subsidy or
need more than their quota.
He said the car belonged to someone else, the boss, and his job was to line up and buy the
diesel.
Local government staff try to prevent people
taking more than their ration, said Hajanudin, an
official who monitors fuel distribution in another
part of the island. Like many Indonesians, he
only uses one name.
“We take down their plate numbers so that we
don’t see any cheating where one vehicle tries
to line up again,” said the thickly bearded
Hajanudin, 49, showing the entries in his book.
“There’s no smuggling. Rumours that security
officials allow some people to get more than
their ration of diesel are wrong.”
The tall man in the Daihatsu says he
circumvents the quota by driving to another
station to get 40 litres more. He then siphons
the fuel out of the car’s tank and into 20-liter
jerry cans. After he sells it, he splits the profit
with the vehicle owner, who gets 60 per cent.
It’s easy money, he said, and he has a family to feed. Basuri Purnama, head of East Belitung
Regency, says the racketeering and smuggling are so profitable that it draws people away from
getting legal jobs.
“Why work?” he said. Anyone can make 200,000 rupiah a day smuggling fuel. “Every day, just do
that and then chill out in the coffee house.”
The diesel mostly is bought by illegal tin miners on Belitung and the neighbouring island of
Bangka, who use diesel- powered high-pressure hoses to blast away tin ore in pits or to suck up
the metal-rich sand from offshore deposits. Indonesia is the world’s largest exporter of tin and
about 90 per cent of its production comes from these two islands.
It’s prohibited to buy diesel from filling stations using jerry cans, said an illegal miner in Sungailiat,
on Bangka, who works a deposit that was once mined by PT Timah, Indonesia’s biggest tin
producer.
The miner, who declined to give his name, said he buys fuel from the driver-smugglers, known as
pengerit, to run his diesel pump. Tin mining has been going on in the province since the 1800s —
Belitung in English was known as Billiton and gave its name to the Dutch company that became
part of the BHP Billiton group.
Amid the Asian financial crisis in 1998, and under pressure from the International Monetary Fund,
Suharto raised fuel prices by more than 70 per cent. For Indonesians suffering from inflation and
food shortages, it was the final straw. Mass protests broke out in the capital and within three
weeks Suharto resigned.
Efforts by three subsequent leaders to raise fuel prices were also greeted by public protests or
strikes, forcing many of the plans to be diluted or rolled back. As world oil prices rose 10-fold since
1998 and more Indonesians became able to afford cars and motorbikes, the nation became a net
fuel importer and the subsidy bill climbed.

“It’s the Achilles heel of the economy,” said Tim Condon, Singapore-based head of Asia research
at ING Groep. “The best thing the incoming president could do would be to eliminate fuel
subsidies. That’s going to take political leadership that’s eluded presidents for seemingly forever.”
Widodo, who is known as Jokowi, urged outgoing President Susilo Bambang Yudhoyono to raise
fuel prices before the transfer of power on Oct. 20. Yudhoyono has so far refused. The 2015
budget lifts subsidies for fuel to 276 trillion rupiah ($23 billion), or 13.5 per cent of government
spending.
Jokowi plans to gradually reduce fuel subsidies within three years, he said in a Bloomberg TV
interview, a faster target than previously announced.
“Our subsidies for oil, for fuel are very
large,” Jokowi said in the Bloomberg TV
interview last month. “They must be
diverted to productive enterprises,” he
said, referring to small village
businesses, irrigation and fertiliser for
farmers.
Jokowi has said he will raise fuel prices
once in power, though the timing and
size of the increase have yet to be
decided. He may face resistance from
parties loyal to defeated presidential
candidate Prabowo Subianto, which
control more than half of the parliament.
To narrow the nation’s near-record current-account gap, Jokowi would have to raise fuel prices at
least 40 per cent, PT Bank Central Asia said last month.
Failure to scale back the subsidies and invest some of the savings in infrastructure would risk
dragging economic growth below 5 per cent within five years, said Vice Finance Minister
Bambang Brodjonegoro in an interview in his Jakarta office.
He suggested a transition period with a fixed subsidy of about 3,000 rupiah per litre, and a cap of
46 million kilolitres on the total volume of subsidised fuel. That would cost the government about
143 trillion rupiah, compared with this year’s estimated bill of 246.5 trillion rupiah, he said.
“Not every president would like to take the risk of dealing with this,” said Bambang, who was dean
of the economics faculty at the University of Indonesia, the nation’s most prestigious college,
before joining the Finance Ministry. “The political aspect hasn’t been solved since the 1970s.”
That’s partly because fuel scams, and the profits they provide, are ingrained into the economy, the
government and even the military.
In September, a raid by armed police in Batam in the Riau Islands on a warehouse suspected of
housing subsidised fuel, led to a fight between the police and the army, after soldiers were
discovered at the building, Brigadier general Bujang Zuhirman said in the Jakarta Post. Four
soldiers were wounded and the army is investigating the incident, the paper said.
“If you go to service stations in remote places, the vehicles that line up mostly are not private cars
but large trucks or modified vans to transport loads of subsidised fuel,” said Sukarsono at the
Habibie Center. “In some regions that I’ve visited, people have to buy smuggled fuel because
nothing legal is available.”
And it’s not only in distant provinces. On the congested road to Jakarta from Pertamina’s giant
Plumpang fuel depot in the north of the capital, gangs wait for the state oil company’s tankers to

get stuck in traffic before they hop on and open the taps to steal the supply, a practice known as
“peeing” fuel.
“There is a long list of vested interests who stand to lose out if subsidies are scrapped,” said Keith
Loveard, head of risk analysis at Jakarta-based security company Concord Consulting. “While
rising prices would reduce the motivation for smuggling, it would not stop fuel tapping.”
In Bangka and Belitung, the sale of contraband fuel affects almost everyone, said Purnama, the
East Belitung regent. “I met this fisherman who said he earns 700,000 rupiah a month,” said
Purnama. “So I asked him, does he smoke? He said yes, he smokes three packs a day — that’s
27,000 rupiah. That means his income is only for smoking. So how do his wives and kids eat?”
Fishermen buy diesel from special depots that are allowed to sell fuel in jerry cans. On a recent
weekday at the one in Kelapa Kampit, a crowd of people at the entrance scatters as a government
fuel-monitoring team pulls up in two cars, leaving a line of empty plastic containers on the ground.
A few of the motorbike-drawn carts that carry the fuel, leave without their cargo.
Inside, where diesel is dispensed from two large tanks that can hold a total of 10 tons of fuel, the
compound’s chief, Helmi, says there are no illegal sales. “The diesel ration is distributed equally,”
he said. Each person gets 20-40 litres a day, though they can get 100 if they’ve saved up their
quota, Helmi said.
Iwan, a government official who runs Kelapa Kampit’s public-order office, said racketeers bribe
officials to get a bigger quota, paying 550,000 rupiah for 100 litres and selling it to the miners for
800,000-850,000 rupiah. “Real fishermen find it difficult to get diesel,” he said.
The irony is, while thousands rely on the subsidies to make a living from racketeering or
smuggling, the fuel-price caps are actually of little benefit to the poor, said Purnama the East
Belitung regent. The average motorbike owner probably only uses about 3 litres of fuel a week, he
said.
Last year, the police confiscated a total of 7.2 million litres of illegal fuel in the country, according
to a government regulator. Meantime, a growing middle class, weaned on cheap fuel, is buying
bigger and bigger vehicles, swelling the traffic jams in the capital almost to gridlock and pushing
up demand for gasoline and diesel. To meet that demand, a country that was once one of the
world’s biggest oil exporters now has to import more than 300,000 barrels of gasoline a day.
“Why do we have to break the foundation of the nation just because we’re afraid of removing
subsidies?” said Purnama. “As long as there are subsidies, smuggling will continue.”

US: Lower electricity-related CO2 emissions reflect lower carbon
intensity and electricity use. Source: U.S. Energy Information Administration, Annual CO2 Analysis
U.S. energy-related carbon dioxide emissions (CO2) have declined in five of the past eight years. This trend has been
led by emissions reductions in the electric power sector. Electricity demand growth has been lower than in the past
and at the same time the power sector has become less carbon intensive (measured as CO2 emitted per kilowatthour
of generation). Total emissions from the electric power sector in 2013 totaled 2,053 million metric tons (MMmt),
about 15% below their 2005 level.
U.S. electricity demand has decreased in recent years, as declines in the industrial sector continue to
outweigh slight increases in residential and commercial demand. If electricity demand had continued to
increase at its rate over the 1996-2005 period, emissions in 2013 would have been roughly 400 MMmt
above actual 2013 levels, assuming carbon intensity remained constant.
The power sector has become less carbon intensive for two reasons: the substitution of less-carbon-intensive
natural gas-fired generation, displacing coal and petroleum generation, and the growth in noncarbon
generation, especially from renewables such as wind and solar.
While the substitution of natural gas for coal has garnered significant attention, since 2005 the decline in the
carbon intensity of total generation as a result of the increase in noncarbon power generation has also had an
effect on emissions from power generation. The growth in noncarbon generation has been driven largely by
state policies and federal tax incentives that have encouraged the use of renewables. These factors have
particularly benefitted wind and solar energy sources; in 2005, wind and solar generation totaled 18 billion
kWh, or about 2% of noncarbon generation, while by 2013 they generated 176 billion kWh, or 14% of
noncarbon generation. Although nonhydroelectric renewables have shown steady growth, other noncarbon
energy sources such as conventional hydroelectric power and nuclear power have fluctuated from year to
year. In 2005, hydroelectric and nuclear power totaled 1,049 billion kWh (95% of noncarbon generation),
and by 2013 totaled 1,055 million kWh (83% of noncarbon generation).
The overall decline in carbon intensity of electricity generation, through both reduced fossil fuel carbon
intensity and increased noncarbon generation, has reduced cumulative CO2 emissions from power
generation by about 1.6 billion metric tons since 2005. Including the decrease in electricity demand, growth
since 2005 compared with the 1996-2005 period raises the cumulative effect on CO2 emissions from power
generation to more than 3 billion MMmt of CO2.

Special Coverage on Falling oil prices – Reactions from within
Upcoming OPEC meeting seen as a game changer
Syed Rashid Husain+ NeewBase
Uncertainty is ruling. Crude markets are in for a battering. The wheel has taken a full circle.
Market prices have fallen by 25 percent since June. The classical, cyclical, trough has arrived - yet
at a wrong time - as always. It has come while most producers are faced with growing public
expenditure. The call on petrodollars in energy-rich countries is on the rise, as public spending
has skyrocketed throughout the region. With spring in air, the impact on the expenditure pattern of
the Gulf OPEC producers is no different - to say the least. The additional, still growing expenses,
needs to be accounted for, somehow.
With markets faltering, most Gulf Arab crude producers today however, can bank upon the
cushion of significant reserves. The budget breakeven levels of most Gulf Arab crude producers
appear manageable too - at this point in time.
But not all the producers are in the same league. In case of a bottoming market, Russia, Iran and
Venezuela are faced with strong headwinds - threatening the very growth, stability and
sustainability of their economies. The dwindling fortunes may have strategic consequences too -
altering and impacting - the long term geopolitical ambitions of their respective governments.
While a lot has been said and reported globally on the Russian quagmire and its consequences,
the situation of Iran is significantly interesting. It has many facets. Already faced with western
sanctions, it presents a peculiar scenario. Designed to curb its purported nuclear program,
sanctions have made Iran especially vulnerable to the falling crude fortunes.
Tehran desperately needs
revenue from oil sales. The
country has already lost about
half of its oil revenues since
2011. Sanctions involving tough
restrictions on financial
transactions related to Iranian oil
exports have had a significant
impact on Tehran’s oil output
too. By some estimates, crude
exports have fallen by one
million barrels per day. As a
result, Iran’s income from oil
exports has reportedly fallen from $118 billion in 2011-2012 to $56 billion in 2013-2014. Falling
prices are a double whammy to Tehran. To cover its budgeted expenditure, the Islamic Republic
needs an oil price of at least $140 per barrel. The prices currently are hovering around $85. The
gap is significant and is widening!
And while lower oil prices have definitely impacted the overall economy in Tehran, it also has
limited Iran’s flexibility in negotiations over its nuclear program. Sanctions are choking crude
exports, the nation’s main source of income. Iran is negotiating with the US and five other world

powers over an agreement that would lift the curbs. The countries have set a November 24
deadline for an accord, three days before OPEC meets next. Time is getting crucial.
The less cash flows from oil business, easing of sanctions becomes the more important to Tehran,
analysts strongly feel. Diminishing returns on oil sales could push Tehran to strike a deal with
West, many in Washington argue today. “Iran is constrained by sanctions,” Mehdi Varzi, a former
Iranian diplomat and director of Varzi Energy Ltd., an energy-consulting company, was quoted as
saying by media.
The situation is already dire. Oil exports from Iran fell to the lowest level on record in August, Joint
Organizations Data Initiative (JODI) confirmed. As sanctions drove oil output to the lowest since
1990 and deterred foreign investment, Iran’s $400 billion economy has shrunk by more than 7
percent over the past two years, the International Monetary Fund reported.
Iran’s dependence on oil revenue is putting the Islamic Republic’s economy at the mercy of major
powers, Supreme Iranian leader Ayatollah Ali Khamenei conceded last week. “Running our
country on oil revenue leaves Iran’s economy at the mercy of major policymakers in the world,”
Khamenei underlined, referring to the sharp drop in oil prices.
“They (the West) have forced our oil production from 4 million bpd to 1 million bpd, and this recent
fall of oil prices is their latest gimmick,” government spokesman Mohammad Baqer Nobakht was
quoted as saying by the semi-official Mehr News.
“We should not pin our hopes on high oil prices, but seek to compensate for falling revenues with

bigger volumes of exports,” Abbas Ali Noura, an ex-parliamentarian, was quoted as saying by
Qods Online. But how is that possible, with sanctions on, is though difficult to gauge.
In view of the emerging scenario, President Hassan Rouhani’s administration appears scrambling
for alternative sources of income to meet revenue forecasts. Last week, the president asked the
oil minister Bijan Zangeneh to come up with “more effective use of diplomacy” to stop a further
slide in crude prices.
Iran, OPEC’s second-largest producer, is normally among the first OPEC members stressing on
cutting supply to support prices, analysts say. But in a change of tack, Iran is now saying that it
could live with lower oil prices and that there was no need for an emergency OPEC meeting to
discuss and stop the slide in prices. ‘Tehran isn’t concerned about the latest decrease,’ Roknoddin
Javadi, deputy oil minister and managing director of the National Iranian Oil Co., told the Mehr
agency on October 14. “They may have made the calculation that if a nuclear deal can be struck,
they will be permitted to increase their exports, so why talk about an OPEC cut right now?”
underlines Mehdi Varzi.
But in medium term, Tehran definitely wants producers to rein in output. Iran’s Oil Ministry warned
earlier the month that oil prices will slump further if OPEC repeats its mistakes of the 1990s and
fails to cut production fast enough to cope with the glut of crude flooding the international market.
“In 1998, the inadequate response by OPEC sent oil prices to as low as $6 to $8 per barrel,”
Mehran Amirmoeini, a top energy adviser, was quoted as saying by the official Iranian Oil Ministry
news service. Iran cannot afford that - this time round.
The next OPEC meeting in Vienna on November 27 would be crucial in many ways. Eyes are focused on
it. The ministerial would determine the direction of the oil markets in the near to mid-term. Fireworks are
already in air. The upcoming moot in Vienna is anticipated to be one of the most heated ones in recent
times, analysts strongly feel. Flaring up of temperatures inside the meeting room in Vienna on the fateful
day could not be ruled out. Much is at stake
Gulf states risk deficit as oil price falls, IMF head Lagarde says
BYAFP
Oil-dependent Gulf states will face budget shortfalls if the recent decline in oil prices persists,
International Monetary Fund chief Christine Lagarde warned on Saturday. A sustained decline of
$25 a barrel in the oil price would reduce the revenues of most Gulf countries by eight per cent of
gross domestic product (GDP), "and put many of them into a fiscal deficit situation," Lagarde told
reporters.
But the six nations of the Gulf Cooperation Council
(GCC) have built up fiscal buffers to cope with the
immediate impact of the reduction in revenues, she
said after a meeting with regional finance ministers
and central bank chiefs. $1.64 trillion combined
GDP
The combined GDP of the GCC last year reached
$1.64 trillion, so in this scenario the annual revenue
of the six nations could plunge by roughly $130
billion. The total revenue of the GCC states — 90 per
cent of which come from oil — more than doubled from $317 billion in 2008 to $756 billion in
2012. It declined slightly to $729 billion last year, according to IMF estimates. The GCC groups

Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which together pump
17 million barrels of crude oil per day and depend on oil for about 90 per cent of public revenues.
Oil prices have slumped by about 25 per cent since June because of a production glut, weaker
demand and a gloomy world economic outlook. The US benchmark West Texas Intermediate
(WTI) declined to about $81 a barrel on Friday on the New York Mercantile Exchange. Lagarde
called on GCC states to implement reforms and stressed the urgent need for fiscal consolidation
— an appeal echoed by Kuwait's finance minister
Rising public spending
Anas al-Saleh urged steps to tackle rising public spending, mainly on wages and subsidies, as
well as efforts to boost the role of the private sector. "Comprehensive economic reforms, including
reforming distortions in the public finances, should be enforced," he said
Saleh said the Gulf states must diversify their economies and "reduce dependence on oil"
Forecasts indicate a healthy economic growth for the six GCC nations averaging 4.5 per cent in
2014-2015, Saleh said. "But these forecasts should be treated with caution in light of fast-paced
regional and international developments, particularly the drop in oil prices which has started to
impact the public finances of GCC states," the Kuwaiti minister added.
Benefiting from high oil prices for more than a decade, the Gulf Cooperation Council states have
built fiscal reserves estimated at $2.45 trillion by the International Institute of Finance.
Kuwait urges Gulf reforms as oil prices fall
Kuwait’s oil minister on Saturday called for economic reforms by energy-dependent Gulf states to
cope with a drop in oil prices that has hurt their public finances. Anas Al Saleh urged steps to
tackle rising public spending, mainly on wages and subsidies, as well as efforts to boost the role of
the private sector.
“Comprehensive economic reforms, including reforming distortions in the public finances, should
be enforced,” he said at a meeting of regional finance ministers and central bank chiefs. Saleh
said the Gulf states must diversify their economies and “reduce dependence on oil”.
“Implementing these policies has become inevitable,” Saleh told the meeting, which International
Monetary Fund managing director Christine Lagarde was also attending. Forecasts indicate a
healthy economic growth for the six nations of the Gulf Cooperation Council (GCC) averaging 4.5
per cent in 2014-2015, Saleh said.
“But these forecasts should be treated with caution in light of fast-paced regional and international
developments, particularly the drop in oil prices which has started to impact the public finances of
GCC states,” the Kuwaiti minister added.
The GCC group Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, together pump 17
million barrels of crude oil per day and depend on oil for about 90 per cent of public revenues. Oil
prices have slumped by about 25 per cent since June because of a production glut, weaker
demand and a gloomy world economic outlook. Benefiting from high oil prices for more than a
decade, the GCC states have built fiscal reserves estimated at $2.45 trillion by the International
Institute of Finance.

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,
Energy Consultant
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Mobile : +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is aKhaled Al Awadi is aKhaled Al Awadi is aKhaled Al Awadi is a UAE National with a totalUAE National with a totalUAE National with a totalUAE National with a total
of 24 yearsof 24 yearsof 24 yearsof 24 years of experience in theof experience in theof experience in theof experience in the Oil & GasOil & GasOil & GasOil & Gas
sector. Currently working as Technical Affairs Specialist forsector. Currently working as Technical Affairs Specialist forsector. Currently working as Technical Affairs Specialist forsector. Currently 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 Hawkvoluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawk
EnergyEnergyEnergyEnergy Service as a UAE operations base , Most of theService as a UAE operations base , Most of theService as a UAE operations base , Most of theService as a UAE operations base , Most of the
experience were spent as the Gas Operations Manager inexperience were spent as the Gas Operations Manager inexperience were spent as the Gas Operations Manager inexperience were spent as the Gas Operations Manager in
Emarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network Facility
& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has
developed great experiences indeveloped great experiences indeveloped great experiences indeveloped great experiences in the designing & constructingthe designing & constructingthe designing & constructingthe designing & constructing of gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in the
engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance
agreements along with many MOUs for the locagreements along with many MOUs for the locagreements along with many MOUs for the locagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasal authorities. He has become a reference for many of the Oil & Gasal authorities. He has become a reference for many of the Oil & Gasal authorities. He has become a reference for many of the Oil & Gas
Conferences held in the UAE andConferences held in the UAE andConferences held in the UAE andConferences held in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 26 October 2014 K. Al Awadi

New base special 26 october 2014

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