NewBase 608 special 20 may 2015

Copyright © 2015 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 20 May 2015 - Issue No. 608 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: ADNOC to raise investments to Dh120b
next year to hit 3.5 MBD
Gulf News + NewBase
The Abu Dhabi National Oil Company (Adnoc) is on track to hit the emirate’s target of raising oil
production to 3.5 million barrels per day (bpd) in 2017, with plans to expand refining capacity to
920,000 bpd.
The company is also backing its growth with increased investments next year of Dh120 billion —
up from this year’s Dh91 billion, according to Saif Al Gafli, chief executive officer of Al Hosn Gas, a
joint venture between Adnoc and Occidental Petroleum.
Adnoc’s plans will see investments of Dh119 billion in 2017, Dh72 billion in 2018 and Dh66 billion
in 2019, the CEO said. Speaking at the Al Gharbia Development Forum on Tuesday, Al Gafli said
that Abu Dhabi’s Western Region was an important hub for oil, with 90 per cent of the emirate’s oil
and gas coming from there.
The Western Region is expected to see significant growth in the next five years, with Adnoc and
other companies set to boost their investments there. This will double the region’s gross domestic
product from Dh250 billion to Dh500 billion by 2030.
The event saw officials from various public and private entities discuss projects and the need to
raise in the Western Region. Mohammad Al Fahim, regional head of global wholesale banking at
Abu Dhabi Islamic Bank, said the bank is expected to finance more projects in the region.
“We can go into different industries, and [whatever] industries are there,” Al Fahim said. “Oil and
gas, real estate, [tourism], we can tap into any of these markets depending on the feasibility of it.
We have financed companies in the Western Region, and we have already partnered with some.”
The bank is also looking to finance more small and medium enterprises to boost the sector.
Additionally, industry experts discussed improving infrastructure in the Western Region, with the
Abu Dhabi Water and Electricity Authority citing Al Mirfa Station, which will have a 1,600 megawatt
capacity by July 2017. A Musanada spokesperson added that there were developments on the
roads, with the Dh5.3 billion development on Al Mafraq-Ghweifat Road now 76 per cent complete.

UAE: Oil & gas testing center launched in Abu Dhabi
Intertek + NewBase
Intertek, a leading quality solutions provider to industries worldwide, has opened a new
laboratory in Abu Dhabi. The facility is the first of its kind in the region for Intertek and
offers integrated oil and gas testing services for its rapidly growing client base.
Addressing increasing
challenges in the exploration
and production industry, the
laboratory provides the testing
and expert consultancy
services required to help
maximize recovery and
minimize risks and operational
costs.
Sheikh Tahnoun Bin Saeed Al
Nahyan officially opened the
new 15,000 square foot facility
in Musaffah, Abu Dhabi, which
forms part of Intertek’s global
Exploration and Production
Services.
The Abu Dhabi Technology
Centre will locally conduct
reservoir characterization and
formation evaluation in the
exploration phase of
conventional and
unconventional reserves, as
well as reservoir and
production optimization for
existing mature concessions.
Hussain Al- Atrakchi, Intertek Regional Managing Director for the Middle East, North Africa
and Pakistan, said: “The new Abu Dhabi Technology Centre will bring cutting-edge testing
equipment to the doorsteps of our regional clients, here in Abu Dhabi and throughout the
Gulf Cooperation Council (GCC) and beyond, offering advanced testing and evaluation for
the oil and gas industry.”
The laboratory, which forms part of Intertek’s Upstream Services business, consists of
three interconnected buildings and houses Intertek’s resident and visiting scientists,
engineers, geologists and technicians working with national and multi-national oil
companies operating in the region.

Egypt opens new power plant
Reuters + NewBase
Egypt has opened a 750 megawatt power plant in the northern outskirts of Cairo, the cabinet said
on Tuesday, as the country tries to stave off power cuts that have plagued Egyptians' lives and
businesses in the summer months of the last few years.
The $500-million plant in Qaliyubia governorate is part of the state's 2012-2017 plan to provide
environmentally-friendly electricity, the cabinet statement said. It added that the facility was a
combined cycle gas turbine plant, with 500 megawatts coming from two gas-powered turbines and
the remainder from a steam turbine.
Egypt's power shortages are a part of a broader energy crisis triggered by high energy
consumption and low production. The government has tried to tackle that by cutting subsidies,
importing natural gas, and boosting its power output.
Power cuts usually peak in the summer, when more air conditioners are used to deal with high
temperatures. Popular anger over power shortages contributed to summer 2013 protests that led
to the army's removal of elected president Mohamed Mursi.
In addition to investing in new plants, Egypt has secured a floating liquefied natural gas (LNG)
import terminal and signed LNG import agreements with Russia's Gazprom, Trafigura, Vitol,
Noble, and Algeria's Sonatrach.
The government has also approved the use of coal as a power source for some industries, despite
environmental concerns. The new power plant was funded by the Abu Dhabi Fund for
Development, the Arab Fund for Economic and Social Development, the Islamic Development
Bank, the Kuwaiti Fund for Arab Economic Development, the Opec Fund for International
Development and the Saudi Fund for Development, the statement said.
Cairo's Gulf Arab allies have poured billions of dollars in investments and aid into Egypt since the
removal of Mursi, who was from the Muslim Brotherhood.

Pakistan: MOL Makes Gas Discovery in Khyber Pakhtunkhwa Province
MOL + NewBase
MOL Group has announced a new commercial natural gas discovery from Mardan Khel-1 in
the TAL block in northern Pakistan.
Mardan Khel-1 was drilled as an exploration well in TAL block, located in the Khyber Pakhtunkhwa
province. It was spudded on September 17, 2014 and the well reached target depth of 4,912
meters on February 17, 2015. The well tested four formations and all flowed with high volumes of
gas and condensate.
The current total production capacity of the facilities in the TAL block is 80 kboepd gas and 37
kboepd of liquids per day, MOL said in a statement Tuesday. The company intends to carry out an
appraisal plan including additional wells on the eastern and western parts of the structure.
Meanwhile the company also announced that it has signed a farm-in agreement for the DG Khan
block in Pakistan. MOL is acquiring a 30 percent non-operating interest from Pakistan Oil Fields
Limited (POL) in the block.

Niger Savannah Petroleum To Explore 14 Drill-Ready Sites
Savannah Petroleum has said that it has discovered 14 drill-ready exploration sites with
prospective oil resources of 215 million barrels in Niger.
According to a report by Rigzone, the prospects were found following detailed 3D seismic
mapping over a 260-square mile area in the R1/R2 permit region, which is situated in the Agadem
Rift Basin of southeast Niger, adding that an additional 37 leads have been mapped by Savannah
along the northwest and northeast areas of the R1/R2 license, noting that a structure with a
potential closure size of up to 15 square miles was found extending throughout the western
section of R2 at the upper cretaceous and deeper horizons.
CEO of Savannah Petroleum, Andrew Knott, was quoted to have said in a company statement:
“This update reflects the culmination of over nine months of technical work, with Savannah having
had the equivalent of a team of six senior geologists and geophysicists working full time on this
project. I look forward with confidence to the next phase of our analysis of the subsurface, as we
move towards further seismic acquisition and the commencement of our drilling campaign on
R1/R2.”
The report noted that full-year results for 2014 showed that Savannah had no debt at the end of
December after having raised a total of $72 million in equity during two funding rounds last year.
The results, it said, also revealed the firm made an operating loss of $6.8 million.
Savannah Petroleum Chairman, Steve Jenkins, said in the company’ results statement:
“Savannah Petroleum has made very solid progress in its first nine months as a public company.
We are working closely with our hosts within the government of Niger as we look to continue to
explore and evaluate R1/R2, located in the proven hydrocarbon fairways of the Agadem Rift Basin
where over 1 billion barrels of oil have been discovered to date.
Our team is highly focused on operational delivery and I do not believe any other company could
have achieved more than we have to date, and that energy and drive is very much a mark of our
future intent.”

China looks to secure first US LNG supplies by 2020
Reuters + NewBase
Chinese buyers are eyeing long-term supplies of liquefied natural gas (LNG) from US company
Cheniere Energy, an official from the firm said yesterday, in what would be the first LNG deal
between the world’s two biggest energy users.
Cheniere Energy is set to become the first US LNG exporter, with shipments to start by the end of
this year. However, no Chinese companies have signed up for any US LNG cargoes so far.
That could change soon: “There’s a lot of interest from Chinese buyers for long-term LNG volume,
especially for 2020 onwards,” said Nicolas Zanen, vice president for Asia at Cheniere Marketing
Pte Ltd, a wholly-owned subsidiary of Cheniere Energy.
Zanen said that some Chinese buyers had already begun moving to secure supplies, although
without providing any details. “The Chinese market is a very interesting market for us. I wouldn’t
be surprised if in the future we are delivering LNG to China. And not necessarily small buyers, big
buyers as well,” said Zanen on the sidelines of the Asia Oil and Gas Conference in Kuala Lumpur,
declining to give more information.
Zanen made the comments following recent controversy in the US about American companies
contracting to ship LNG supplies to China. The US, which is seeing demand for new exports
despite an emerging glut, is set to become the world’s third biggest exporter of LNG by 2020,
behind Qatar and Australia. Australia’s LNG export capacity is set to more than triple to 86mn
tonnes a year before 2020, compared to Qatar’s annual 77mn tonnes and US expectations of
selling 61.5mn tonnes per year by 2020. Due to soaring output and cheaper oil, Asia’s spot LNG
prices have fallen by almost two-thirds since February of last year.

US: Shell vows to explore Arctic despite Seattle protests
Reuters + NewBase
Royal Dutch Shell will press on with a campaign to explore the Arctic for oil this summer despite
protests in the port city of Seattle, chief executive officer Ben van Beurden said on Tuesday.
Hundreds of environmental activists have fanned out across the Seattle Bay in recent days to
disrupt the Anglo-Dutch company's rigs from entering the port en route to the Chukchi Sea off
Alaska, saying drilling in the remote Arctic waters could lead to an ecological catastrophe.
Van Beurden however dismissed claims that Shell's was using Seattle's port illegally. 'The
contract that we have with Fos, the maritime contractor that we have there, the lease that they
have in terminal 5 we think they are legally valid and indeed have tested it and are ready to move
ahead with putting the Polar Pioneer (rig) there, loading it out so it is ready for its journey to
Alaska,' van Beurden told investors during Shell's annual general meeting in The Hague,
Netherlands. 'We have not seen, apart from the protests, any legal obstacles for us to do that.'
Environmental groups contend harsh and shifting weather conditions make it impossible to drill in
the Arctic, a region with a fragile environment that helps regulate the global climate because of
its vast layers of sea ice.
Van Beurden nevertheless sought to assuage investor concerns over Alaska by saying that any
decision to invest there 'is many years if not a decade away'. 'We will only proceed with the real
development of anything offshore Alaska if again we can find that we can do it responsibly,
economically sensibly and commercially sensibly.'
Shell requires further permits to get the final green light before resuming fossil fuel exploration in
the Arctic, which was suspended after a mishap-filled 2012 season. Shell's AGM was dominated
by questions and comments over Shell's environmental track record as well as the oil and gas
giant's efforts to curb carbon emissions.
Van Beurden lambasted calls by environmental activists to reduce investment in new oil
production in order to reduce carbon emissions to prevent global warming. 'The theory also
ignores the reality of our industry and as a matter of fact it actually risks distraction from the real
issues around energy transition needs,'

Germany:Coal row may damage Germany's green image
Reuters + NewBase
Germany's clean energy drive earned it a reputation as a green leader but a domestic row over
coal has highlighted the challenge of balancing economic and environmental demands and
threatens its ability to lead by example.
Angela Merkel, once dubbed the "climate chancellor", hopes to encourage the Group of Seven
industrial nations to commit to tough goals to cut greenhouse gases at a June 7-8 summit in
Bavaria before a larger year-end United Nations climate meeting in Paris.
In charge of Europe's largest economy but also its biggest emitter of CO2, she wants to promote
the 'Energiewende', a policy that backs cleaner energy and a move away from fossil fuels and
nuclear power.
But stalled projects, including her government's attempt to impose penalties on old, highly
polluting coal plants, have put Germany's 2020 goal of cutting greenhouse gas emissions by 40
percent compared to 1990 at risk.
"Germany cannot get around the truth that in order not to fail its climate commitments it has to
reduce its emissions from its enormous fleet of lignite coal technology," said Kumi Naidoo,
executive director of Greenpeace International.
Aware it was on course to miss the 2020 target, the government approved a climate package last
December to put it back on track. This included plans to force coal operators to slash their
emissions by at least 22 million tonnes by 2020, equivalent to shutting about eight coal plants.
But a coal levy aimed at achieving those cuts, proposed by Sigmar Gabriel, economy minister and
leader of Merkel's junior coalition partner, the Social Democrats (SPD), led to protests by coal
miners last month and a backlash from the industry.

Union IG BCE says it could put up to 100,000 jobs at risk while Germany's second biggest utility
RWE said the levy would mean immediate closure for the majority of its lignite mines and lignite-
fired power stations.
Bowing to those industry concerns, the economy ministry is now proposing softening the CO2
emissions cuts for coal-fired power plants to 16 million tonnes, according to a ministry document
seen by Reuters. A final decision has been delayed until the summer, and risks undermining
Merkel's efforts to convince others that it is possible to cut CO2 emissions and grow the economy.
Only a third of experts from 35 countries surveyed by the World Energy Council believe the
'Energiewende' could serve as a blueprint for the world. In addition, three-quarters think the
transition away from nuclear and fossil fuels will weaken Germany's economy in the short-term.
Germany generated more than a quarter of its electricity from renewable sources - such as wind
and solar power - last year. But at the same time the phase-out of nuclear power has increased its
reliance on brown coal, the dirtiest of all energy sources, which is cheaper than low-emission gas-
powered plants.
Its brown coal addiction meant CO2 emissions actually rose slightly in 2012 and 2013 and
Germany still emits more CO2 per capita than the European Union average.
"If Merkel and Gabriel aren't able to repair the market, reduce the share of coal and therefore
emissions, the credibility for other nations to be convinced to go for stronger climate targets will be
very low," said Claudia Kemfert, energy economist at the DIW in Berlin.
CAR CHANCELLOR
Merkel, who has made climate a key issue of her G7 presidency this year, has remained
conspicuously silent in the coal debate so far, leaving the SPD, who hold both the energy and
environment portfolios, to deal with the opposition.
A scientist by training, she reversed course on nuclear power after the 2011 Fukushima disaster in
Japan. As environment minister in the mid-1990s, she pushed for a precursor to the Kyoto
Protocol on cutting CO2 emissions.

A decade later, she used her clout as leader of Europe's largest economy to seal a 2007
European Union commitment on reducing greenhouse gases and boosting energy efficiency and
renewables.
Then, at her last outing as host to the world's leading industrial nations, in 2007, Merkel convinced
former U.S. President George W. Bush to make a firm pledge to tackle climate change.
But when the financial crisis struck in 2008, she prioritised the economy. Some climate activists in
Berlin and Brussels called Merkel the 'car chancellor' after she lobbied to scrap an EU cap on car
emissions over fears it could hit jobs at big German automakers.
The latest row over coal again underscores the dilemma of whether to stick to climate
commitments while safeguarding the energy supply and protecting industry.
"The economy ministry's proposals are eroding fair competition in Europe's electricity market at
the expense of German coal-powered stations," said Eric Schweitzer, president of Germany's
DIHK Chambers of Commerce.
"The inevitable increase in electricity prices will place an additional burden on the German
economy and stunt the competitiveness of many companies."
Nevertheless, the green lobby is hoping that Merkel will push for a pledge to phase out fossil fuels
by the middle of this century ahead of the Paris meeting, which aims to agree on a successor to
the Kyoto Protocol.
"Like it or not, if we were to single out one leader in the world we have the greatest hope in, it
would be Chancellor Merkel," said Greenpeace's Naidoo.

EIA launches redesigned International Energy Portal
Source: U.S. Energy Information Administration, International Energy Portal
On May 18, EIA launched a beta version of a redesigned International Energy Portal designed to
help users access international energy data and to provide new and expanded tools and
capabilities to examine trends in global energy markets.
Increased access to data. The International Energy Portal includes a powerful data browser that
provides country-level energy data; many countries have at least 30 years of historical data. The
data browser provides users the ability to view and download complete datasets for consumption,
production, trade, reserves, and carbon dioxide emissions for different fuels and energy sources.
New user-driven customization. The portal's data browser, as one example, provides users with
the ability to convert between U.S. and European common units of measurement for energy.
Users can also compare data across different energy sources by converting to British thermal
units, terajoules, and tons of oil equivalent. The portal also provides users with the ability to
choose specific countries, regions, and data series for review and comparison.
New data visualization features. These features include summary graphics of the world's top
producers and consumers of all fuel types, including oil, natural gas, coal, and electricity. Users
can plot their own data visualizations by energy source and series. This feature enables users to
quickly see how energy production, consumption, reserves, imports, and exports have changed
over time. An example of the new data visualization can be seen below, showing global carbon
dioxide emissions over a 20-year period.

Source: U.S. Energy Information Administration, International Energy Portal
Improved access to international analysis. The International Energy Portal links to international
forecasts and projections such as EIA's Short-Term Energy Outlook and International Energy
Outlook.
It also provides access to EIA's entire library of international reports and analyses. These reports
include analytical documents such as Country Analysis Briefs and Country Analysis Notes that
contain detailed information on more than 100 countries significant to world energy markets as
well as on critical issues in global energy trade, such as world oil transit chokepoints and OPEC
(the Organization of the Petroleum Exporting Countries) revenues.
Enhanced data downloads. The International Energy Portal incorporates a complete application
programming interface (API) that provides access to EIA's historical international data. Users can
retrieve international datasets as they are updated, or use the EIA Excel Data Add-In tool to
download the data directly into spreadsheets.

Oil Price Drop Special Coverage
Oil prices rise on strong Japan, Australia economic data
Reuters + NewBase
Crude oil prices bounced back on Wednesday from steep falls in the previous session as strong
Japanese economic growth surprised markets and the consumer outlook in Australia seemed to
brighten, stoking producer hopes of increased demand.
Japan's economy, the world's third largest, expanded at an annualised rate of 2.4 percent in the
first three months of this year, above a median market forecast for a 1.5 percent rise and following
a revised 1.1 percent expansion in October-December, official data showed.
"Japan is one of the major importers of crude oil and growth in this region would definitely be
favourable for crude demand," Singapore-based brokerage Phillip Futures said.
Brent futures rose as high as $64.75 a barrel in early trading before retreating to $64.40 at 0651
GMT, still up 38 cents. U.S. crude prices were up 33 cents at $58.32 a barrel.
The price rises came after a session on Tuesday that saw oil slide over 3 percent on a dollar rally
and concerns of a building glut, which Goldman Sachs said would lead to a return of 2015 lows.
Japan's weekly crude runs were at 3.02 million barrels per day for the week to May 16, official
data showed Wednesday, up 0.12 percent from this time last year, although 0.17 percentage
points below the previous week.
The country's refinery utilization rate stood at 77.1 percent, up 3.5 percentage points from last
year, but still 4.4 percentage points below the previous week.
In Australia, an important commodity employer and exporter, consumer sentiment surged in May
as people's outlook on the economy brightened following this month's interest rate cut and after
the government unveiled a budget that included a surprise tax break for small businesses

.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering & regulating stations
and in the engineering 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 & Gas Conferences held in the UAE
and 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 20 May 2015 K. Al Awadi

NewBase 608 special 20 may 2015

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NewBase 608 special 20 may 2015