NewBase August 10-2022 Energy News issue - 1537 by Khaled Al Awadi.pdf

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NewBase Energy News 10 August 2022 No. 1537 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Adnoc Drilling wins $3.4bn deals to drive offshore growth
TradeArabia News Service + NewBase
Abu Dhabi National Oil Company (Adnoc) said that two contracts totalling more than $3.4 billion
(AED12.6 billion) have been awarded to Adnoc Drilling to hire eight jack-up offshore rigs.
The contracts, valued at $1.5 billion (AED5.6 billion) and $1.9 billion (AED7 billion) respectively,
awarded by Adnoc Offshore, will support the expansion of Adnoc’s crude oil production capacity to
five million barrels per day (mmbpd) by 2030 and enable gas self-sufficiency for the UAE.
Over the life of the 15-year contracts, Adnoc Drilling’s state-of-the-art rig fleet will enable Adnoc and
its strategic international partners to further unlock Abu Dhabi’s offshore oil and gas resources,
creating significant value for Adnoc, its partners and the UAE.

Over 80% of the value of the awards will flow back into the UAE’s economy under Adnoc’s
successful In-Country Value (ICV) program, supporting local economic growth and diversification.
Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing
Director and Group CEO, said: “This world-leading investment will significantly expand our drilling
activity to accelerate growth, drive value and responsibly unlock the UAE’s resources in response
to globally rising demand for energy.
Adnoc Drilling’s state-of-the-art fleet and market-leading capabilities, will be a key enabler as Adnoc
strengthens its position as a leading low-cost and low-carbon energy producer. We are focused on
delivering on our 2030 strategy, in support of the directives of our wise leadership to grow and
diversify the UAE’s economy.”
The jack-up rigs will be hired along with manpower and equipment to support drilling operations
across Adnoc’s offshore fields, which account for about half of Adnoc’s production capacity. Adnoc
Drilling is the largest national drilling company in the Middle East by rig fleet size, with 105 owned
rigs, including 27 offshore jack-up units, one of the largest operational jack-up fleets in the world.
The company’s expansive rig fleet and market leading expertise remain key drivers in its ability to
win and service large-scale drilling contracts for customers such as Adnoc Offshore, and to enable
the unlocking of significant potential in Abu Dhabi’s waters
Adnoc recently awarded Adnoc Drilling two further substantial contracts totalling $2 billion (AED
7.49 billion) for integrated drilling services and the provision of Island Drilling Units at its Hail and
Ghasha Gas Development Project.
Adnoc is looking to lower its greenhouse gas emissions intensity by 25 per cent over the next
ten years. The company's plans to lower its carbon footprint is also increasingly factored into its
es emitted to the environment, we managed to get these new engines on rigs to generate
power with the best technology available on the market," he added.
The engines used by Adnoc use less fuel, and therefore emit comparably less greenhouse
gases into the environment.

Morocco: Sound Energy provides an update on Phase 2 development
financing of Tendrara and launch of farmout process.. Source: Sound Energy
Sound Energy, the transition energy company, has provided an update on the Phase 2 development
financing of its Tendrara Production Concession, an update on the Company's exploration and
appraisal activities and the launch of a farm-out process for the Tendrara Production Concession
and the surrounding Greater Tendrara and Anoual exploration permits.
Phase 2 Development Financing and Farm-Out Update
As announced on 23 June 2022, the Company mandated Attijariwafa bank, a Moroccan
multinational bank and one of the leading banks in Morocco, to arrange a long-term project senior
debt facility of up to c.US$250 million for the partial financing (the 'Phase 2 Senior Debt') of the
currently estimated approx. US$330 million Phase 2 development costs (gross, 100%) of the
Tendrara Production Concession.
Progress continues to be made with a number of external banking advisers and data review and,
as previously announced, the parties are seeking to negotiate binding terms for the Phase 2 Senior
Debt within 120 days under the 8 month exclusivity.
In addition, the Company is continuing to mature industry and alternative financing solutions for the

remaining Phase 2 development costs of approximately US$60 million net to Sound's 75% working
interest in the Tendrara Production Concession. A number of industry counterparties capable of
providing the required financing have expressed interest in pursuing discussions in respect of both
of the Company's Tendrara Production Concession and surrounding Greater Tendrara and Anoual
exploration permits.
As a result, the Company announces that it has initiated a formal farm-out process for the Tendrara
Production Concession and the surrounding Greater Tendrara and Anoual exploration permits and
has appointed Gneiss Energy, a leading energy corporate finance advisory firm, to manage the
farm-out process.
The objective of the area-wide farm-out is to seek a co-investing partner in each licence to both fund
the expected balance of Phase 2 development costs and also to progress an exploration and
appraisal drilling programme in the Greater Tendrara and Anoual exploration permit areas.
Exploration Update
Following the Company's announcement on 14 April 2022, the Company has continued to re-
evaluate the extensive exploration portfolio within the Greater Tendrara and Anoual exploration
permits surrounding the Tendrara Production Concession.
The Company had high graded several potential near term subsalt drilling opportunities within the
Trias Argilo-Gréseux Inférieur ('TAGI') gas reservoir, the proven reservoir of the TE-5 Horst gas
accumulation within the Tendrara Production Concession.
These drilling opportunities include the exploration prospect 'M5' located on the Anoual exploration
permit, together with the SBK-1 and TE-4 structures previously drilled on the Greater Tendrara
exploration permit.
The Company has published an updated presentation detailing the Company's planned exploration
and appraisal activities which can be accessed on the corporate website here.

Both SBK-1 and TE-4, drilled in 2000 and 2006 respectively, encountered gas shows in the TAGI
reservoir. SBK-1 flowed gas to surface during testing in 2000 at a peak rate of 4.41 mmscf/d post
acidification, but was not tested with mechanical stimulation.
TE-4 was tested in 2006 but did not flow gas to the surface. Mechanical stimulation has proven to
be a key technology to commercially unlock the potential of the TAGI gas reservoir in the TE-5 Horst
gas accumulation and, accordingly, the Company believes this offers potential to unlock
commerciality elsewhere in the basin.
Commercial discoveries in the Greater Tendrara and Anoual exploration permits would have the
potential to be commercialised through the proposed development infrastructure centred on the TE-
5 Horst, with sufficient capacity in the planned Tendrara Export Pipeline or as standalone projects.
The Company is pleased to announce the exploration potential in these three planned drilling
targets. The table below summarises the exploration potential, expressed as Gas Initially-in-Place.
The Company cautions that notwithstanding its internal estimates for the exploration potential of the
three planned exploration drilling targets, further exploration activity, including drilling, will be
required to substantiate the estimated exploration potential and that general exploration in the oil
and gas industry contains an element of risk and there can be no guarantee that the Company's
current estimates of volumes of gas originally in place will be substantiated by exploration drilling or
that any volumes encountered would actually be available for extraction.
Graham Lyon, Sound Energy's Executive Chairman, commented:
'We are making good progress on the senior debt facility for the Tendrara project, which is planned
to fund the majority of the Phase 2 development costs.
In parallel, we have now commenced a farm-out process to secure partner participation in both the
development of the Tendrara Production Concession and exploration and appraisal in the
surrounding exploration permits.
Our re-evaluation of the potential of the Greater Tendrara and Anoual exploration permits has high-
graded three drilling targets, two of which have previously encountered gas shows. We believe
mechanical stimulation is the key to unlocking the potential of the TAGI gas reservoir, as we have
done at the TE-5 Horst discovery. Importantly, future discoveries in this area have the potential to
be commercialised through the planned infrastructure that will be built at the TE-5 Horst
development.

Oman: Maha Energy enters into a farmout agreement with
Mafraq Energy for Block 70 in Oman… Source: Maha Energy
Maha Energy, through its wholly owned subsidiary Maha Energy (Oman), has entered into an
Agreement with Mafraq Energy for Maha to reduce the Participating Interest in the Block 70
Exploration and Production Sharing Agreement ('EPSA') in Oman from 100% to 65%. Maha will
continue to be the Operator of the Block. The Agreement is subject to Government approval in
Oman.
Maha has decided to reduce its working interest in the onshore oil-bearing Block 70 in Oman by
bringing in a strategic Omani partner. The Agreement requires Mafraq Energy to reimburse Maha
for their prorated share of all past costs including the signature bonus. Mafraq Energy will also be
required to pay their share of all future expenditures on Block 70.
Jonas Lindvall, Maha’s CEO said: 'We are delighted to have Mafraq Energy join us on Block 70.
Mafraq Energy brings extensive experience of the Mafraq field and the surrounding areas in Oman.
The fact that Mafraq Energy joins us is perhaps the best evidence yet of the future potential of the
Mafraq field.'
Talal Al Subhi, Director of Mafraq Energy said: 'We are pleased and honoured to join Maha Energy
to commercialize Oman’s national resources. The farm out arrangement is also completely aligned
with the realisation of the Oman national 2040 vision’s 'Growing the Private Sector', and we are
proud to be doing our part.'
Immediate plans for the Mafraq oil field include drilling six wells to obtain important reservoir
information to assist in developing a full Field Development Plan. The Gulf Drilling rig 109 was
recently contracted for this drilling. Anticipated mobilisation of the drilling rig is scheduled for
October this year.

About the Mafraq field
Maha was successful in securing Block 70, which contains the Mafraq heavy oil discovery, in a 2019
– 2020 Government bid round. The Mafraq structure is a delineated heavy oil field that was
extensively tested by Petroleum Development Oman (PDO) in 1988 and 1991.
The field tested 15,700 barrels of 13° API oil over a period of 24 days using a Progressive Cavity
Pump (PCP) from a single well. The test well, MF-5, tested 100% oil for less than a day after which
water production stabilized at around 25%.
It is unknown why PDO did not develop the field at the time, but it is likely that prevailing commodity
prices (US$ 18 – US$ 20 per barrel) and access to other lower cost opportunities precluded Mafraq
as a development option at the time.
According to the independent reserve auditor, Chapman Petroleum Engineering Ltd. of Calgary,
Canada, the Mafraq field may hold approx. 35 million barrels of recoverable oil (2C + 2P as at 31
December 2021). Following farmout approval by the Government of Oman, Maha’s share of its
contingent resources will be reduced proportionally by 35%.
The field oil-water contact has not been penetrated yet which renders possible further upside to
these volumes. The Mafraq structure is an East-West fault bounded anticline with the productive
interval being at +/- 430 meters below the ground level. The oil flows freely in the reservoir at 51°
C and is expected to cold flow to surface in commercial quantities.

China's July coal imports surge 24% to meet peak power load
Reuters + NewBase
China's coal imports in July rose by nearly a quarter from June to near the highest levels so far this
year as power generators increased purchases to provide for peak summer electricity demand.
Arrivals of the fuel totalled 23.52 million tonnes last month, up sharply from 18.98 million tonnes in
June but 22% lower than a year earlier, data issued by the General Administration of Customs
showed on Sunday.
Over the first seven months of the year, China imported 138.52 million tonnes of coal, down 18%
on the same period of 2021.
Daily coal consumption in major coastal regions hovered around 2.2 million tonnes in late July, a
similar level to last year, according to Shanghai Shipping Exchange. A temperature spike across
the country drove up the use of air conditioning.
The government has vowed to avoid
power rationing this year and has urged
coal-burning power generators, which
supply about 60% of the country's
electricity, to enlarge coal stocks. Data
tracked by Refinitiv showed China's
seaborne coal imports from Russia would
hit a record high of 7.38 million tonnes in
July.
However, analysts have expected coal
demand will soon begin to ease as
temperatures moderate, while industrial activity remains sluggish amid COVID-19 restrictions.

Germany: Hitachi Energy contracte in Germany’s energy transition
TradeArabia News Service
Hitachi Energy, a global technology leader, has won a major order from Germany’s TenneT and
TransnetBW to supply a transmission solution for the SuedLink DC4 high-voltage direct current
(HVDC) interconnection.
The HVDC Light transmission system will transfer vast amounts of renewable energy for up to 5
million households and help Germany achieve its 2045 carbon neutrality goal.
SuedLink DC4, between the north and south of the country, is one of the most important power grid
and energy transition projects in Germany. It will play a crucial role in Germany’s energy transition,
enabling a reduction in the use of fossil fuels.
Emission free electricity
Using Hitachi Energy’s HVDC Light technology, SuedLink DC4 will transfer up to 2,000 megawatts
of emission-free electricity. The link will efficiently transmit electricity for 550 kilometres
underground, at ±525 kilovolts, sending wind power from the north to the industrial south, or
alternatively solar power from the south to the north when needed.
“We are proud to play a crucial role in this very important investment in Germany’s transition to
renewable energy and carbon neutrality,” said Niklas Persson, Managing Director of Hitachi
Energy’s Grid Integration business. “HVDC Light is the enabling technology for large-scale transfers
of renewable energy, both onshore and offshore.”
“SuedLink will form the backbone of the energy transition in Germany. With the award of the DC4
high-voltage direct current system to Hitachi Energy, we are now moving towards the realisation of
this important power link,” says Tim Meyerjürgens, Chief Operations Officer of TenneT.

Three cable section stations
Hitachi Energy will supply an HVDC Light converter station at each end of SuedLink DC4 to convert
AC power from the transmitting grid to DC for delivery through the link, and back to AC for transfer
to the receiving grid. The contract includes three cable section stations to speed up fault detection
in the link.
As part of its long-term commitment to Germany’s energy transition, Hitachi Energy has recently
won or completed orders for solutions that integrate large-scale renewables. These include the
converter stations for the NordLink HVDC interconnector between
Germany and Norway, the converter stations for the connection of the 900-megawatt DolWin
offshore wind farm in the German North Sea, the Kriegers Flak Combined Grid Solution which
connects the German power grids with two offshore wind farms in the Baltic Sea and Denmark, and
power quality solutions to enable more renewable energy to flow from north to south Germany.—

NewBase August 10 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil drops on Druzhba pipeline news and U.S. inflation expectations
Reuters + NewBase
Oil prices edged lower on Wednesday on expectations that Druzhba pipeline flows will resume
shortly and demand concerns ahead of publication of key demand indicators.
Brent crude futures fell 73 cents, or 0.76%, to $95.58 a barrel by 0928 GMT. U.S. West Texas
Intermediate crude futures were down 64 cents, or 0.71%, at $89.86.
Both contracts slipped by more than $1 a barrel earlier in the session.
Oil flows to central Europe via the Druzhba pipeline will resume shortly after Hungarian energy
group MOL (MOLB.BU) transferred the transit fee for use of the Ukrainian section of the pipeline,
MOL said on Wednesday.
Oil price special
coverage
 Druzhba pipeline flows to resume shortly, says MOL
 U.S. crude inventories rise, say sources citing API data
 Coming up: U.S. inflation data, official U.S. crude stockpiles

Demand fears also weighed on prices, analysts said. "Fears of recession-induced demand
destruction are the single-biggest price driver currently and the principal reason why Brent is trading
sub-$100 a barrel," said PVM analyst Stephen Brennock.
The consumer price index (CPI) report, due to be released at 1230 GMT on Wednesday, will be
scrutinised for a steer on how steeply the U.S. Federal Reserve will raise interest rates in the coming
months.
The report is likely to show that underlying inflation pressures remain elevated as the Federal
Reserve considers whether to embrace another supersized interest rate increase in September,
which could curb economic activity and fuel demand.
U.S. crude oil stocks, meanwhile, rose by about 2.2 million barrels for the week ended Aug. 5,
according to market sources citing American Petroleum Institute (API) figures. Analysts polled by
Reuters had forecast that crude inventories would rise by about 100,000 barrels.
Official government data is due later on Wednesday.
Though concerns over a potential global recession have weighed on oil futures recently, U.S. oil
refiners and pipeline operators expect energy consumption to be strong for the second half of 2022,
according to a Reuters review of company earnings calls.

NewBase Specual Coverage
The Energy world –August -10 -2022
CLEAN ENERGY
The fallout from Europe's energy crisis
Harold Maass,
The European Union has called on members of the trading bloc to slash their use of natural gas as
Russia cuts deliveries. European wholesale natural-gas prices jumped last week when Russia
announced the reduction of flows through the Nord Stream 1 pipeline, which carries natural gas
from Russia to Germany and is now down to 20 percent of normal capacity.
Energy experts warn that a brutal heat wave, a hydropower shortage, and corrosion issues at
French nuclear reactors are contributing to the continent's worsening energy crisis, according
to The Wall Street Journal.
European leaders have accused the Kremlin of blackmailing them as punishment for supporting
Ukraine's resistance to Russia's invasion.
They are scrambling to find alternative fuel sources before winter and trying to reduce demand to
help them stockpile fuel before cold weather hits. Spain, for example, published rules last
week telling businesses not to cool indoor spaces below 81 degrees Fahrenheit, or heat them above
66 degrees. What does this energy crisis mean for Europe's future?

European voters might pick leaders less supportive of Ukraine
Moscow's "ultimate aim is to bring governments to power in Europe that aren't committed to
supporting Ukraine and thus fracture the Western coalition," say Daniel Yergin and Michael
Stoppard in The Wall Street Journal.
And it just might work. "Last month a right-wing party pulled out of Italy's governing coalition, citing
'the terrible choice' that Italian families face 'of paying their electricity bill or buying food.'" This forced
out Prime Minister Mario Draghi, who visited Kyiv in June to show Italy's support.
But Europe, which got 38 percent of its natural gas from Russia before the war, has started importing
more from the United States and other sources, and its higher prices are "acting like a magnet." Its
winter stockpile is now 67 percent-filled, but Europe's fate this winter still will "hinge on the severity
of the weather."
Either way, Germany loses
One outcome is certain as all of Europe struggles to
contend with Russia's restriction of gas flows to
Germany, says Maria Tedeo at Bloomberg.
"Europe's era of 'Germany knows best' is ending."
The region's biggest economy has long
"commanded moral and financial authority in the
European Union, guiding policy and playing bad cop
to the weaker southern economies.
The energy crisis has upended that balance." The
crisis has "exposed the flaws of its economic model
— high-intensity industry running on cheap gas"
from Russia. Berlin's political leaders now look like
fools for having blindly depended on the Kremlin for
the fuel to make their factories run.

"While Berlin is still coming to grips with the shock, Europe's south is growing assertive," unleashing
pent-up resentment over "German-led austerity" during their recent debt crises. This doesn't bode
well for Germany's leadership role in Europe, "but a recalibration of forces that may ultimately result
in a healthier EU."
France's approach to Russia looks bad, too
"If Germany erred by failing to see the geopolitical risk posed by its reliance on cheap Russian
gas," says The Economist, "France's mistake was to think right up until the eve of war that it could
sweet-talk [Russian President Vladimir] Putin into better behavior."
Just three years ago, French President Emmanuel
Macron hosted Putin on the Mediterranean. That
charm blitz confirmed that Macron's strategy to play
nice with Putin "was at odds with that of much of the
rest of Europe." His neighboring counterparts
haven't forgotten.
"No other Western leader called before the war for a
'new security architecture' to include Russia, nor
after it started urged allies not to 'humiliate' Russia." Now, "as the war drags on and Europeans feel
the energy crunch," other Western leaders are probably betting Macron will be the first one to "push
Ukraine into suing for peace."
Europe brought this on itself
"It is ridiculous to expect Russia to keep providing a stable supply of natural gas to the countries
that are imposing crippling
sanctions on it," says China
Daily, an English-language
Chinese state media outlet, in an
editorial.
Now green-energy pioneers like
Germany, faced with an energy
shortage, are having to crank up
coal burning to meet demand.
"That means the U.S.-led
sanctions, which are
fundamentally contradictory to
the needs to build a lasting,
sustainable, and balanced
security mechanism in Europe,
are also overdrawing on the
future development prospects of
the world." If this causes division
in Europe, it's not Russia's fault.
The U.S. did this by "misleading
the EU into believing that binding
itself to the U.S. is the only way
it can ensure its security."

Russia caused this crisis, and might regret it
"Europe is right to blame Russia" for its energy crisis, says Defense Priorities fellow Daniel R.
Depetris at Newsweek. "But Moscow's own actions are an inevitable byproduct of years in which
Europe, and Germany in particular, leaned on Russia as its main source of natural gas."
International Energy Agency figures indicate that the EU used to get 45 percent of its gas imports
from Russia. Germany got even more, "although that figure has since decreased to 26 percent, a
remarkable climb-down in a short period of time." This made it easy for Putin to use his control of
the gas valve to "make Europe sweat."
For now, Putin is keeping some gas flowing, to cash in on the high prices, but a full cutoff is so likely
that "Germany may temporarily reverse its decision to phase out nuclear power." But the crisis won't
last beyond this winter. When it's over, Europe will have new natural-gas sources, and Russia will
no longer be considered a reliable supplier. Then, Moscow will have to find new buyers in Asia, but
it will take years to build the infrastructure to "fully replace the market it lost in Europe."

NewBase Energy News 10 August 2022 - Issue No. 1537 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase August 10-2022 Energy News issue - 1537 by Khaled Al Awadi.pdf

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