New base special 27 october 2014

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NewBase 27 October 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
UAE- Update to ADNOC sour gas $10b Shah gas project
By Fareed Rahman, Gulf News + NewBase
Abu Dhabi Gas Development Company Limited (Al Hosn Gas), which is developing Shah Gas
field, said it will have a capacity to supply half a billion standard cubic feet per day of network gas
when fully developed.
The gas field located about
210 kilometers south-west of
Abu Dhabi is targeted for full
production in late 2014. It will
contribute significantly to the
energy needs of Abu Dhabi
and the UAE for over 30
years, the corporate
magazine of Al Hosn gas
said.
According to the publication,
though the sour gas field with
high levels of hydrogen
sulphide content was
discovered in the mid 1960s, its remoteness and the complexity of gas extraction made
development virtually impossible. Only in recent years has technology advanced to an extent that
makes processing such sour gas feasible.
“The Shah Gas field will yield
about half a billion cubic feet
per day of network gas and
produce vast amounts of
highly valuable hydrocarbon
by-products for domestic use
and export,” the magazine
said.
It said that there were no
access roads to the site and it
could only be reached after a
grueling 27 kilometers trek
across the sands in an off
road 4x4 vehicle and there
was no power supply, telecommunications or water with summer temperatures soaring well over
50 degrees Celsius.

“Now a mini-city with a population expected to reach 35,000 is taking shape in the desert as an
international team of expert engineers, contractors and construction workers strive to achieve a
feat of historic dimension-a $10 billion project.”
Difficulties
According to the magazine, Shah gas field is the biggest sour gas project of its kind ever
undertaken-tapping into energy riches that are contained at high temperature and pressure.
The sour descriptor comes from the high proportion of impurities in the gas. The sour gas
hydrogen sulphide content alone is 23 per cent and so corrosive that conventional recovery
equipment will perish in the attempt. The highest hydrogen sulphide concentration in sour gas
fields that have so far been exploited is about 15 per cent.
Saif Ahmad Al Ghafli, chief executive officer of Al Hosn gas said that utilisation of the Shah gas
field would have been a virtual impossibility.
“The remoteness of the site, the difficulties of extracting and handling such high levels of
sourness, the attendant safety and environmental hazards-all represented huge obstacles to
overcome specially when much sweeter and more easily managed gas field were available.”
He said processed sulphur granules will be transported on a purpose built 266 kilometer railway
line to the Ruwais port terminal for export.
Al Hosn gas is a 60-40 joint venture between Abu Dhabi National Oil Company (Adnoc) and
Occidental Petroleum (Oxy) from the US.
When contacted Oxy declined to comment where as Al Hosn gas said that they would not
comment to the media and the information should be taken from the corporate magazine.

Oman plans to reduce subsidies next year, says finance minister
BY: AGENCIES + OMAN TIMES
Oman's government is likely to start cutting some state subsidies next year as the decline in global
oil prices pressures its finances, Minister Responsible for Financial Affairs Darwish bin Ismail
Al Balushi said on Saturday
The country's original budget plan for 2014 assumed the
government would run a deficit with an average oil price
of $85 a barrel. For most of this year the oil price has
been much higher, but in the last few months it has
dropped steeply to as low as $82.
Ineffective subsidy system
Oman has been considering ways to reform its costly and sometimes wasteful subsidy system,
though reductions in spending would be politically sensitive. Asked by Reuters whether cuts were
likely next year, Balushi said; "Yes, I think the time is probable and especially with the decline in
oil prices.
"I think the people would be more
understanding now, more accepting. They
realise that this was natural wealth that is
being overused, wasted..." In an interview
on the sidelines of a meeting of Gulf Arab
finance ministers and central bank
governors in Kuwait, Balushi also said the
current subsidy system was ineffective
because it did not focus on poorer people.
Priorities
"Everybody gets, people who deserve and
people who do not. I think if we rationalise
it and use the saving for better priorities,
that will definitely have a return for the
people of Oman.
The subsidy reforms will proceed
gradually and make sure people who
deserve state aid are not affected, Balushi
said. He did not give details of which
subsidies would be cut, but in the past has
described petrol as an obvious target

Bonds
Omani officials have said the government may return to the international debt market for the first
time since 1997 to cover a budget deficit.Balushi said, however, that the government's priority was
to make its first issue of Islamic bonds for the domestic market. "Sukuk for the local market is I
would say more clear at the moment, and we might be doing it during the first quarter of next
year."
Omani bankers say a rial-denominated sukuk issue would be a boost for the country's fledgling
Islamic finance industry, giving sharia-compliant banks a badly needed tool with which to manage
their liquidity.
The sukuk issue might be worth the equivalent of around $300 million or $400 million, Balushi
said; the government has been considering maturities of five and seven years. "We want to create
a benchmark. We are not under pressure to go and take what comes. No, we look at more options
and see which one will serve the government objective and also the economic objective and the
financial market.
The international bond issue is expected to follow later next year and its size "will depend on our
requirement based on our 2015 budget", Balushi said. Oman's original 2014 budget plan
envisaged state spending of OMR13.5 billion ($35.1 billion), up just five per cent from the original
2013 budget, which envisaged a 29 per cent leap from 2012
No plan to cut spending
Balushi said spending in the 2015 budget plan would be around the same level as the 2014
budget or marginally higher. He said there was no plan to cut spending on the big infrastructure
projects which Oman is building to diversify its economy beyond oil
"For years we have been growing at a relatively fast pace and I think we will slow down. But
having said that, it is not our intention at the moment to cut expenditure where we would affect
especially development projects for infrastructure," he said
"There is no intention unless if the trend with the oil price continues declining downwards. It is not
clear at the moment if oil prices will sustain and at which level. "We do not want to come up with a
policy response that will create nothing but more confusion for our programmes. We want to do it
gradually, in a steady manner."

Qatar’s LNG producers need to maintain focus on operational excellence,
Gulf Times
Qatar’s LNG producers will have to maintain their focus on operational excellence as they
continue to build on the great achievements of the past two decades, said RasGas Chief
Operations Officer Hamad Mubarak al-Muhannadi.
Al-Muhannadi (third right) with Qatar University College of Engineering dean Dr Rashid al-Ammari, Qafac
CEO Nasser Jeham al-Kuwari, Oryx GTL CEO Abdul Rahman al-Suwaidi, QP managing director Saad
Sherida al-Kaabi, QU president Prof Sheikha Abdulla A al-Misnad, ExxonMobil Qatar VP and joint interest
manager Alistair Routledge, and Dolphin Energy general manager Adel Ahmed Albuainain at the 4th
International Gas Processing Symposium in Doha yesterday.
This is significant in the wake of the fast-growing demand for liquefied natural gas (LNG) from new
and diverse fields; he said while delivering the keynote speech at the 4th International Gas
Processing Symposium at the Grand Hyatt yesterday.
Al-Muhannadi cited Qatar’s historic growth over the past 20 years to become a world-leader in
LNG exports as a key contributor to natural gas’s rapid emergence as the clean energy of choice
that powers and transforms global economies.
Relating it to RasGas, he confirmed the company’s aim for actively and positively enabling and
contributing to Qatar’s sustainable development.
“Through RasGas’ adoption of best practices in operations and maintenance and the use of
technological solutions to minimise environmental impact, the company has demonstrated that it is
a reliable supplier of energy for the domestic and global markets. We continue to be well-placed to
meet the increased LNG demand that is anticipated from power generation, transportation and
marine sectors,” al-Muhannadi said.
“All this comes with the responsibility of continuously improving the efficiency and reliability of our
facilities’ operations throughout the entire process from reservoir to delivery point,” al-Muhannadi
added.

Technip-Fluor JV wins Malaysia 300,000 BPD refinery contract
Source : Petronas + NewBase
Technip, a leader in project management, engineering and construction, and US-based Fluor
Corporation have been jointly awarded a engineering, procurement and construction (EPC)
contract for a refinery complex in Malaysia.
The deal was awarded to the duo by PRPC Utilities and Facilities, a subisidiary of Malaysia’s
national oil and gas company Petronas for its refinery and petrochemical integrated development
(Rapid) project in the state of Johor. As per the contract, the Fluor and Technip joint venture will
be responsible for the utilities, interconnecting and offsites (UIO) scope of work.
Rapid is part of Petronas Pengerang Integrated Complex development comprising associated
facilities including the Pengerang co-generation plant, liquefied natural gas (LNG) re-gasification
terminal, air separation unit, the raw water supply project as well as other ancillary facilities.
The 300,000 BPD project includes a refinery and petrochemical complex with a combined
capacity of producing 7.7 million MT per year of various grades of products, including
differentiated and specialty chemicals products. Rapid’s refinery start-up is expected by early
2019, said a statement from Technip.
On the contract win, Lim Kwee Keong, the president of Technip in Asia Pacific, said: "With the
Rapid UIO contract, we are proud to be able to support Petronas in an expanded presence to
deliver this national project of strategic importance to Malaysia. The Technip-Fluor joint venture
had earlier been awarded the project management consultancy (PMC) contract for Rapid, he
added.
RAPID is part of the mammoth PETRONAS Pengerang Integrated Complex development that is
worth an estimated US$27 billion. It comprises RAPID and its associated facilities including the
Pengerang co-generation plant, liquefied natural gas (LNG) re-gasification terminal, air separation
unit, the raw water supply project as well as other ancillary facilities.
Technip's operating centre in Kuala Lumpur, Malaysia, will execute the contract.
Refinery And Petrochemicals Integrated Development (RAPID) Project Images

Thailand: KrisEnergy signs elements for Wassana oil development
Source: KrisEnergy
KrisEnergy has chartered the Rubicon Vantage FSO vessel and a catenary anchor leg mooring
('CALM') buoy for utilisation on the Wassana oil development in the G10/48 licence area in the
Gulf of Thailand. The Wassana field is anticipated to commence production in the second half of
2015.
The Rubicon Vantage is
a double-hull FSO
facility owned by
Rubicon Vantage
International and has
been operating in the
Gulf of Thailand since
2008. The vessel is
228.6 metres in overall
length and has a
storage capacity of
597,206 barrels. It can
accommodate up to 40
persons. The CALM
buoy is supplied by
Equatoriale Services. Its
hull is moored to the
seabed using six
mooring chain legs
guided through rotating
chain stoppers and
connected to high
capacity power anchors. A turntable is located on top of the hull to accommodate FSO mooring
hawsers and floating hoses. A proprietary-designed dual-path swivel unit enables the transfer of
fluids during vessel rotations. Fluids are transferred from the CALM buoy to the FSO via floating
hoses protected by marine breakaway couplings. This widely-used technology enables safe
mooring of the vessel while guaranteeing the transfer of crude oil and water during weather-
vanning of the FSO.
Chris Gibson-Robinson, Director Exploration & Production, commented: 'The Rubicon Vantage
has experience of the environment and local regulations in the Gulf of Thailand where it has
been operating for six years. With the FSO and CALM buoy contracts, most of the key elements
for the Wassana development – facilities, drilling contract and now offloading and storage – are
in place and we are on track to take the field into production next year. We plan to coordinate
further exploration in G10/48 at the same time.'
KrisEnergy holds 100% working interest in G10/48, which covers 4,696 sq km over the southern
section of the Pattani Basin in water depths up to 60 metres. The licence contains three oil
discoveries - Wassana, Niramai and Mayura - in various stages of development or appraisal.

Angola: VAALCO Energy enters Subsequent Exploration Phase on Block 5
Source: VAALCO Energy
VAALCO Energy has entered into theSubsequent Exploration Phase ('SEP') onBlock 5
offshore Angola together with its working interest partner, Sonangol P&P, as provided for in the
Production Sharing Agreement signed in 2006 with the Republic of Angola.
The SEP extends the exploration license for an
additional three year period such that the new
expiry date for exploration activities is
November 30, 2017. The SEP requires the
Company and its partner to acquire a 3D
seismic program covering 600 sq kms and to
drill two additional exploration wells. The
seismic obligation has been satisfied with a
seismic program already completed covering
1,058 sq kms over the outboard portion of the
block.
By entering the SEP, the Company is now
required to drill a total of four exploration wells
during the exploration extension period. The
four well obligation includes the two well
commitment under the primary exploration
period that carries over to the SEP period. A
ten million dollar assessment (five million
dollars net to VAALCO) applies to each of the
four commitment exploration wells, if any, that
remain undrilled at the end of the exploration
period in 2017.
As previously announced, the Company has
contracted for the Transocean 'Celtic Sea'
semi-submersible rig to drill the first
exploration well, the post-salt, Kindele-1 well. The Kindele well is targeting the Mucanzo sand
(Pinda group) with a planned total depth of 2,250 meters in a water depth of 101 meters. Gross
unrisked recoverable resources are estimated to be between 20-49 million barrels. The rig is
currently estimated to be on location in mid-December 2014.
The decision to enter the SEP was made in part to remove uncertainty that the primary term of
the exploration license would be extended by the Republic of Angola before the November 30,
2014 expiration date.
Steve Guidry, Chairman and CEO, commented, 'We believe entering into the SEP is a sound
strategy for the Company. Although the SEP comes with additional commitments, we believe
this is a coveted block with potential in the deep syn-rift and sag play. The SEP allows VAALCO
and its partner to properly assess the results of the current seismic reprocessing that is being
merged with previously licensed seismic data through pre-stack depth migration. This will help
us determine the best opportunities in the pre-salt horizons. The action we took to enter into the
SEP removes the uncertainty of an exploration license extension and allows us to focus on our
exploration activities on the block.'

Senegal/Guinea Bissau: Impact Oil and Gas awarded AGC Profond Block
Source: Impact Oil and Gas
Impact Oil and Gas, the African-focused pure exploration Company, has announced the award of
a new exploration licence covering the AGC Profond Block, located offshore, in the Senegal
Guinea Bissau Joint Development Zone ('AGC') by the ‘Agence de Gestion et de Coopération
entre la Guinée- Bissau et le Sénégal’. The offshore AGC Profond licence covers approx.
6,700km², in water depths ranging from 1,000m to over 3,000m and is located in a proven
petroleum area west of
the Dome Floreand Dome
Gea oilfields, adjacent
to Impact’s Block 4B,
offshore Guinea-Bissau.
This new licence increases
Impact’s total licence
holding offshore Africa to
over 100,000km2 (gross).
AGC Profond was
previously held by a
consortium led byOphir
Energy, which drilled
the Kora-1 well in the
northern part of the Block
in 2011. The well was
located on the crest of a
salt piercement feature
and encountered claystone
and interebedded
limestones rather than the
prognosed sandstone
reservoir facies. However,
Impact believes that the Block remains very prospective – particularly for Cretaceous fans which
have been the target for recent successful drilling in Cairn’s Senegal Sagomar licence located to
the north of the AGC Profond Block. The licence area immediately to the east of the AGC
Profond Block has been awarded to Oryx Petroleum.
The initial term of Impact’s licence lasts for three years. During this period Impact expects to
acquire, reprocess and interpret existing data on the licence. Further seismic may be acquired if
it is deemed necessary. A well could be drilled before the end of the first period or during the first
renewal period which lasts for two years. Impact as Operator has an 85% interest, together
with Enterprise AGC S.A., a Senegal registered company, holding 15% in the licence.
Executive Chairman, Mike Doherty said: 'The award of offshore AGC Profond, Impact’s second
licence in the petroliferous Casmance basin, is an exciting addition to our growing world class
porftolio of assets. The recent discovery in the Sangomar licence, announced by Cairn, has
highlighted offshore Senegal as a very prospective region for good quality oils. As with our other
licences, we look forward to moving ahead quickly to explore this promising area.'
Note: AGC is 'L'Agence de Gestion et de Coopération entre la Guinée-Bissau et le Sénégal'
which is a joint commission with sovereign status set up by the governments of Guinea- Bissau
and Senegal to administer petroleum activities in the maritime zone situated between the two
countries.

Kazakhstan: BG and Eni prepare Karachaganak Expansion Project S#1
Through its national oil company (NOC) KazMunaiGas (KMG) Kazakhstan joined in 2012 the
partnering companies BG Group (BG), Eni, Chevron and Lukoil in the Karachaganak Petroleum
Operating BV (KPO) joint venture for the Karachaganak Expansion Project (KEP) Stage-1 of
the oil and gas field development Karachaganak phase-3 in the northwest of the country.
To do so the previous partners have accepted to reduce their respective stake in the
Karachaganak joint venture so that the working interests are now shared as following:
- BG 29.25% is the operator
- Eni 29.25% is joint operator
- Chevron 18%
- Lukoil 13.5%
- KMG 10%
Discovered in 1979, Karachaganak is one of the largest oil and gas and condensate field in the
world.
Located at the border with Russia, the joined operators BG and Eni estimated its in-place reserves
to: - 9 billion barrels of oil and condensate &
48 trillion cubic feet (tcf) of gas

First production started in 1984, but BG and Eni signed the first production sharing agreement
(PSA) in 1997.
In 2004, BG and Eni supported by Chevron and Lukoil completed the Karachaganak Phase-2
project to export:
– Oil to the Black Sea through the 650 kilometers Caspian Pipeline Consortium (CPC) pipelines
- Gas and condensate to the 150 kilometers north Russia Orenburg gas central processing facilities
A part of the exported gas is re-imported into Kazakhstan for the domestic consumption. Among
BG and Eni local challenges of operating by +/- 40°C temperature, Karachaganak contains a high
percentage of high pressure sour gas.
BG and Eni developed the technologies to separate this sour gas and to re-inject it in the reservoir
in order to boost the liquids and gas production.
The volume of re-injected sour gas is about the same as the volume of natural gas exported from
Karachaganak field.
At the end of 2013, BG and
its KPO partners have
decided to start the feasibility
study for the Karachaganak
phase-3 called
Karachaganak Expansion
Project (KEP).
Because of its size and
complexity, KPO decided to
phase up the development of
the Karachaganak Expansion
Project.
For the KEP Stage-1, BG and its KPO partners, are planning to invest $14.5 billion capital
expenditure in order to:
- Maintain the production of hydrocarbon liquids (oil and condensate) to the current plateau of 11
million tonnes per year
- Boost the gas production from the current 1.7 billion cubic feet per day (cf/d) to 4 billion cf/d.
With a conceptual study to be completed by the end of 2014, BG and its KTO partners, Eni,
Chevron, Lukoil and KMG, are expecting to start Karachaganak Expansion Project front end
engineering and design (FEED) on early 2015 in order to award the KEP1 engineering,
procurement and construction (EPC) contracts by 2016.

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 a UAE National with a totalKhaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE 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 Tsector. Currently working as Tsector. Currently working as Tsector. Currently working as Technical Affairs Specialist forechnical Affairs Specialist forechnical Affairs Specialist forechnical 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
Energy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of the
experience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Manager inininin
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 in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the 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
engineeriengineeriengineeriengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many 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 & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local 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 EEEEnergy program broadcasted internationally , via GCC leading satellite Channels .nergy program broadcasted internationally , via GCC leading satellite Channels .nergy program broadcasted internationally , via GCC leading satellite Channels .nergy 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 27 October 2014 K. Al Awadi

New base special 27 october 2014

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