NewBase March 29-2022 Energy News issue - 1499 by Khaled Al Awadi.pdf

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NewBase Energy News 29 March 2022 No. 1499 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Investment in hydrocarbons vital to ensuring smooth
global energy transition: UAE ministers
WAM/Amjad Saleh
UAE government ministers have underlined the vital need for stronger investment in oil and gas
resources to protect the global economy from the impact of geopolitical issues and effectively
manage the energy transition of the future. They warned that divesting from energy sources that
drive the global economy will lead to a systemic supply crunch that erodes economic growth.
Speaking at the opening of the Global Energy Forum, taking place today under the theme ‘The
Geopolitics of Energy Transition’ as part of the World Government Summit (WGS2022) at Expo
2020 Dubai today, both Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure,
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, UAE's Special
Envoy for Climate Change and Managing Director and Group CEO of the Abu Dhabi National Oil
Company (ADNOC), made a powerful case for the need for greater investment in oil and gas to
protect against global energy disruption.

The Global Energy Forum is being organised by the Atlantic Council in collaboration with WGS2022,
and moderated by Frederick Kempe, President and CEO, Atlantic Council.
Dr. Al Jaber said that the world is witnessing how sensitive energy markets are to geopolitical
shocks, noting that the current volatility in oil prices is the result of a deeper underlying structural
issue. Long-term underinvestment in oil and gas has left markets more exposed to risks of any kind
and wherever they take place, he added.
Dr. Al Jaber explained that divesting from the energy sources that drive the global economy will lead
to a systemic supply crunch that erodes economic growth.
The UAE is taking an approach that is pro-growth, pro-sustainability, pro-prosperity, and pro-
climate, he further added, noting that the UAE is increasing investments in low-carbon and no-
carbon energy sources.
We are expanding production capacity of the world’s least carbon-intensive oil to over 5 million
barrels per day while also growing our renewables portfolio fivefold and growing natural gas capacity
by 30 percent, Dr. Al Jaber said, in conclusion.
For his part, Al Mazrouei explained that increasing investment in oil and gas capacity was being
undertaken in tandem with a full commitment to renewable energy and innovation.
He said, "We are currently promoting renewable energy in 70 countries, and are proud of the work
that Masdar is doing in many parts of the world in this regard. Meanwhile, hydrogen has great
potential, and we are one of the few countries with a clear roadmap for its utilisation.
We are starting with blue hydrogen, as it is both available and affordable, but we are also
collaborating in investing in the technology required to commercialise green hydrogen, which is the
future.
"In the UAE, we are also committed to sustainable mobility options and creating choice for people
in the future, be that hydrogen, electric power, or traditional combustion energy sources that are
cost-effective and affordable."

Egypt: United Oil and Gas announces commencement of
production from the ASD-2 well Source: United Oil and Gas
United Oil & Gas has announced an update on the ASD-2 development well in the Abu Sennan
licence, onshore Egypt. United holds a 22% working interest in the licence, which is operated
by Kuwait Energy Egypt.
Highlights
 The ASD-2 well has commenced production at an initial rate of c. 2,100 bopd gross (c.462
bopd net), significantly above pre-drill expectations. An exceptionally short turnaround time
of just six days from well completion to production and revenue generation for United
 A rig has been mobilised to drill the second well in the 2022 drilling programme. This is the
ASV-1X exploration well which is expected to spud in the coming days
 A fifth firm well has been added to the fully funded 2022 drilling campaign following
completion of technical work and a sustained high-oil price
United's Chief Executive Officer, Brian Larkin commented:
'This is another fantastic drilling result, significantly above our pre-drill expectations. The ASD-2
well is the eighth consecutive successful well at Abu Sennan since we acquired the licence in 2020.
The wells within Abu Sennan have an exceptionally short turnaround time between well completion
and commencement of production - typically a matter of days for development wells. With our
production being leveraged to the current higher oil prices, this additional production rapidly
generates revenue and cashflow for United.
We have had a great start to the year with the agreement on the Crown milestone payment followed
by this impressive drilling result and we look forward to continuing our 2022 drilling programme with
the ASV-1X exploration well, due to spud in the coming days.

We are also pleased to have added a firm development well to the drilling programme. There
remains vast potential in the Abu Sennan licence and against the backdrop of higher commodity
prices it is great that the JV partners have the flexibility to optimise the drilling programme to
generate the best returns'.
As previously announced, the ASD-2 development well was interpreted to have encountered at
least 25.5 metres of net oil pay across the Abu Roash and Bahariya reservoirs. Twenty metres of
high quality net pay was interpreted in the Abu Roash-E (AR-E) reservoir, significantly above pre-
drill expectations.
The AR-E reservoir was tested with flow rates of 4,076 bopd and 3.1 mmscf/d gas (c. 4,703 boepd
gross; 1,035 boepd net) achieved on a 48/64" choke and 2,299 bopd and 1.7 mmscf/d gas (c.2,646
boepd gross; 582 boepd net) achieved on a 32/64" choke.
The well has now been tied into the existing facilities and brought on stream at an initial rate of c.
2,100 bopd gross (462 bopd net) on a 28/64" choke. This is just six days from well completion to
production, and this short turnaround time means revenue is rapidly generated for the Company.
The excellent rates achieved on test have demonstrated the potential of the AR-E reservoir at this
location. The well will continue to be monitored, so that the long term production potential of the well
can be assessed.
2022 Egypt Drilling Programme
Following the completion of the ASD-2 well, the first well in the in the 2022 Abu Sennan drilling
campaign, the ECDC-6 rig has been released. The second well to be drilled will be the ASV-1X
exploration well.
The Sino Tharwa-1 rig which will be used to drill the ASV-1X well has been mobilised. United
estimate that the ASV-1X structure has the potential to hold over 2.5 million barrels gross mean
recoverable resources. The well is expected to spud in the coming days.
In response to the sustained high oil-prices and the results of recently completed technical work,
the fully funded 2022 drilling programme at Abu Sennan will now include a fifth firm well. The drilling
programme had initially included four firm wells and one contingent well, which was dependent on
the results of technical studies on the Al Jahraa field.
These studies have now been completed, and have led to the Al Jahraa-14 development well (AJ-
14) being approved by the Joint Venture partners. AJ-14 will target multiple Abu Roash reservoirs
with the aim of accessing additional reserves and accelerating production.
It replaces the AJSE-3 water injector that was initially proposed as a contingent well. The AJ-14 well
is likely to be the third well of the 2022 campaign, followed by the ASH-5 development well at the
ASH field. United will be releasing its results for the full year ending 31 December 2021 on the 26
April 2022. In advance of this, the Company will provide its usual quarterly production update for
Q1 2022.

Pakistan’s Energy Crunch Spurs ‘Barter’ Trade for Afghani Coal
Bloomberg + NewBase
Cash-strapped Pakistan can’t afford to buy fuel on the spot market and is either skipping purchases
or turning to alternatives such as Afghani coal as it grapples with a worsening energy crisis.
State-owned Pakistan LNG Ltd. didn’t award a recent purchase tender seeking several shipments
of liquefied natural gas through May due to high offer prices. Cement manufacturers, meanwhile,
are buying coal from Afghanistan at roughly half the price of shipments from regular supplier South
Africa.
Poorer countries like Pakistan that are heavily reliant on imported fuels are being hit the hardest by
the surge in prices following Russia’s invasion of Ukraine. LNG, diesel and coal are essential to
keep the lights on and factories humming, and the shortages are straining government finances
after Prime Minister Imran Khan cut local fuel and electricity prices at the start of March.
One of Pakistan’s long-term suppliers recently canceled several LNG cargoes for delivery through
July, and the country can’t afford to replace them with spot market purchases, according to traders,
who requested anonymity to discuss private details. That risks shortages for power plants and
factories.
Some cement manufacturers are now buying coal from their northern neighbor, which is 40% to
45% cheaper than seaborne cargoes, said Tahir Abbas, head of research at brokerage Arif Habib
Ltd. Pakistan buys about 85% of its coal overseas, he said.
Imports from Afghanistan have risen to around 500,000 tons a month from zero last summer, and it
now makes up 70% of supply for some factories in the north of Pakistan, according to Maple Leaf
Cement Factory Ltd.
Afghanistan is ramping up production, but the trade is still disorganized, Maple Leaf Chief Financial
Officer Mohsin Raza Naqvi said at a briefing this month. The manufacturers pay for the coal in local
rupees and then the Afghans use the money to buy goods like wheat and meat from Pakistan, he
said.
“It’s sort of a barter that’s happening,” Naqvi said. “With these global prices, Afghanistan coal supply
will keep continuing and growing.”

U.K: Stagnating Gas Output to Keep Market Tight, Trade Body Says
Bloomberg - Elena Mazneva
U.K. natural gas production will struggle to rebound from last year’s slump, keeping the market tight
as Europe moves to cut its reliance on Russian supplies, according to trade body Offshore Energies
U.K.
Output in one of western Europe’s biggest producers is expected to be little changed in 2022 after
slipping last year, OEUK said. With consumption recovering from the Covid-19 pandemic, the
country may need to turn more to
imports, the competition for which is
heating up.
The European Union wants to cut
gas imports from Russia by about
two-thirds this year following
Moscow’s invasion of Ukraine. The
bloc has already been drawing in
supplies of liquefied natural gas that
had initially been intended for Asia to
avoid intensifying a supply crunch.
Energy giant Norway -- a key
supplier to Britain -- has also been
taking measures to boost output.
Norway last year became the U.K.’s
primary source of gas, with those
flows exceeding what Britain got from its own continental shelf, OEUK said. Norway is “reliable,” but
also has other customers that it’s committed to, the body said.
The U.K. is fortunate to have well-diversified supplies, with one of the biggest capacities in Europe
to import LNG and a minimal reliance on Russian energy, Ross Dornan, market intelligence
manager at OEUK, told reporters. The problem is that Britain is becoming more dependent on other
countries when the market is getting ever more competitive, keeping prices high.
Ten oil and gas fields are expected to start up in the U.K. in 2022 and early next year, Dornan said.
Still, total gas supplies from the U.K. North Sea fields -- net of volumes consumed by producers
themselves -- are expected to be between 28 billion and 30 billion cubic meters this year, according
to OEUK. That compares with 29 billion cubic meters in 2021.
For comparison, Norwegian gas supplies to the U.K. exceeded 32 billion cubic meters last year,
accounting for 64% of the U.K.’s imports, the report showed.
Britain’s overall oil and gas production will fall by as much as 15% a year unless there’s “rapid”
investment in new infrastructure,” the trade body said.
“This decline is much faster than the predicted reduction in U.K. energy demand so, if there is no
such investment then, by 2030, we will be reliant on other countries for at least 80% of our gas and
70% of our oil,” it said.
Investment in the U.K.’s oil and gas sector has dropped sharply in the past decade and is expected
to be around 4 billion pounds ($5.2 billion) this year. Drivers of the decline include major producers
shifting away from fossil fuels and an aging U.K. basin, as well as a lack of support from the
government, according to OEUK.

U.S. exported record amounts of liquefied natural gas in 2021
Source: U.S. Energy Information Administration, Natural Gas Monthly
U.S. exports of liquefied natural gas (LNG) set a record high in 2021, averaging 9.7 billion cubic feet
per day (Bcf/d), according to our most recent Natural Gas Monthly. U.S. LNG exports increased by
50% from 2020.
The increase in U.S. LNG exports was driven by increased demand in
both Europe and Asia (particularly China) and by expanding U.S. liquefaction capacity. In 2021,
liquefaction at the six U.S. LNG export terminals averaged 102% of nameplate (or nominal)
capacity and 89% of peak capacity, according to our estimates.
In 2021, U.S. LNG exports to Asia increased by 1.5 Bcf/d (51%). Last year, the United States
became the third-largest LNG supplier to Asia, accounting for 12% of all LNG imports into Asia,
after Australia (29%) and Qatar (21%), according to our estimates based on data from CEDIGAZ.
South Korea and China were nearly tied as the top two destinations for U.S. LNG exports, at 1.2
Bcf/d each. The increase in U.S. LNG exports to China (by 0.6 Bcf/d) was the largest increase
among all destinations for U.S. LNG exports last year.
Since China lowered tariffs on imports of LNG from the United States from 25% to 10% in 2019,
U.S. LNG imports into China have increased. Japan was the third-largest importer of U.S. LNG in
2021, at 1.0 Bcf/d. Combined, these three countries accounted for 35% of all U.S. LNG exports in
2021.
European countries (including Turkey) were the destination of 3.3 Bcf/d of LNG imported from the
United States during 2021—an increase of 0.8 Bcf/d (32%) compared with 2020. U.S. LNG exports
to Europe increased in March and April 2021 following a cold winter in Europe, which significantly
reduced the region’s natural gas held in storage.

U.S. LNG exports to Europe declined in subsequent months as higher spot prices in Asia attracted
larger volumes of flexible U.S. LNG supplies to Asia.
During the fourth quarter of 2021, U.S. LNG exports to Europe increased again as Europe’s natural
gas storage inventories remained low and spot prices for natural gas in Europe exceeded those in
Asia.
The United States exported 6.7 Bcf/d of LNG to Europe in December 2021—a record volume that
has since been surpassed in both January and February 2022.
U.S. LNG exports to Brazil increased by 0.5 Bcf/d in 2021 compared with 2020, averaging 0.8 Bcf/d
on an annual basis. Last year, Brazil experienced its worst drought in more than 90 years, which
limited hydroelectric power generation and led to more consumption of natural gas for electricity
generation.

NewBase March 29-2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rise after a big drop yesterday
NewBase
Oil prices on Tuesday ceased losses from the previous day as Ukraine and Russia headed for
peace talks and on concerns about demand as China's financial hub of Shanghai shut down to curb
a surge in COVID-19 cases.
Brent crude futures were stable at $112.88 a barrel at 09.49 GMT, having fallen as low as $109.97.
U.S. West Texas Intermediate (WTI) crude futures were at at $105.70after hitting a low of
$103.46.
Oil price special
coverage

Both benchmark contracts lost around 7% on Monday. Ukraine and Russia were set to meet in
Istanbul on Tuesday for their first peace talks in over two weeks. Sanctions imposed on Russia after
it invaded Ukraine have curtailed oil supply and sent prices to 14-year highs earlier this month.
Russia calls its actions in Ukraine a "special operation" to disarm its neighbour.
"Oil prices are under pressure again on expectations for peace talks between Ukraine and Russia,
which could lead to an easing or avoidance of Western sanctions on Russian oil," said Hiroyuki
Kikukawa, general manager of research at Nissan Securities.
"A successful ceasefire could also raise the prospect of reviving an Iranian nuclear deal," he added.
Offsetting concerns about tight supply, Shanghai's two-stage lockdown over nine days is expected
to hit fuel demand in China, the world's largest oil importer. Shanghai accounts for about 4% of
China's oil consumption, ANZ Research analysts said. read more
"Selling pressure grew on concerns that China may impose more restrictions in other places to
contain the pandemic," said Tsuyoshi Ueno, senior economist at NLI Research Institute. The market
is also waiting on a meeting on Thursday of the Organization of the Petroleum Exporting Countries
(OPEC) and allies, collectively known as OPEC+.
The group will likely stick to plans for a modest increase in oil output in May, several sources close
to the group said, despite a surge in prices and calls from the United States and others for more
supply. read more
Worldwide demand has risen to nearly pre-pandemic levels, but supply has been hindered, as
OPEC+ has been slow to restore supply after cuts enacted during the pandemic in 2020.
U.S. oil exports have climbed since Russia's invasion of Ukraine, and barrels of domestic oil that
would typically go to the Cushing, Oklahoma, storage hub are instead being exported via the Gulf
Coast,

NewBase Special Coverage
The Energy world –March -07 -2022
CLEAN ENERGY
Oil and gas 'will continue to account for more than 50% of
global energy mix by 2045'
The National + NewBase
Oil and gas will account for more than 50 per cent of the global energy mix by 2045 and will continue
to play an important role even as the world pivots towards cleaner forms of energy, according to
Opec's secretary general.
The role of oil and gas is guaranteed for the foreseeable future, Mohamed Barkindo said, during a
panel discussion at the global energy forum on Monday. Investment in the sector needs to
accelerate to meet growing energy demand, Opec secretary general says
“What is required at the moment is to revisit how we explore, produce, refine, distribute and
consume hydrocarbons and bring them in line with current realities, especially in terms of
sustainability.”
Energy demand will grow as the world population increases 20 per cent by 2045 and access to
energy must be taken “seriously” while pursuing goals related to the transition, he said.
Mr Barkindo stressed the importance of boosting investments in the oil and gas sector to meet
growing energy demand globally.
Investments dropped by 50 per cent as a result of the impact of the downturn caused by lower oil
prices in 2015 and 2016 and “we had not recovered fully before Covid struck in 2020 and we saw
in 2020 capital investments contracted by about 30 per cent, unprecedented in history, and stayed
flat in 2021”.
The oil and gas sector needs $600 billion worth of investments until 2030 to keep pace with rising
demand, Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and managing
director and group chief executive of Adnoc, said last year.
“Now our world oil outlook to 2045 shows that the industry will need in the upstream, in the
midstream and downstream, about $11.8 trillion in investments to be able to catch up,” Mr Barkindo
said.

Total investment in the upstream sector of the oil and gas sector fell 23 per cent below pre-
coronavirus levels to $341bn in 2021 while oil demand continued to rise globally, according to a
recent report by the International Energy Forum (IEF) and IHS Markit.
“Two years in a row of large and abrupt underinvestment in oil and gas development
is a recipe for higher prices and volatility later this decade,” said Joseph McMonigle,
secretary general of the IEF.
Suhail Al Mazrouei, the UAE's Minister of Energy and Infrastructure, with Opec
Secretary General Mohammad Barkindo, centre, at the Atlantic Council's Global Energy
Forum in Dubai. AFP
Oil prices are currently trading higher as global economies recover from the
coronavirus pandemic and supply concerns grow as a result of the Russian military
offensive in Ukraine.
Brent, the global benchmark for two thirds of oil, was trading at $114.74.26 a barrel
at 3.47pm UAE time on Monday while US crude gauge West Texas Intermediate was
at $107.83 a barrel.
Mr Barkindo said Opec countries are not “climate deniers” and are “part and parcel” of the
conversation related to the energy transition.

“Almost all our member countries have taken measures that we refer to as more rigorous measures
in accordance with the core principle of the United Nations Framework Convention on Climate
Change.”
Saudi Arabia and the UAE announced initiatives to reach net zero emissions by the middle of the
century, as part of their nationally determined contributions in line with the Paris Agreement.
The UAE, the first Arab nation to commit to achieving net zero, aims to reach that milestone by
2050.
Saudi Arabia aims to offset its domestic emissions by 2060, with the kingdom's state-
owned energy company, Saudi Aramco, set to achieve net zero by 2050.
Nigeria has also pledged net zero emissions by 2060, while Kuwait is developing a
renewables strategy as it diversifies its energy mix, which is heavily reliant on fossil
fuels, to include clean sources.

NewBase Energy News 29 March 2022 - Issue No. 1499 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 March 29-2022 Energy News issue - 1499 by Khaled Al Awadi.pdf

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NewBase March 29-2022 Energy News issue - 1499 by Khaled Al Awadi.pdf