New base 493 special 09 december 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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NewBase 09 December 2014 - Issue No. 493 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
$10bn Ruwais refinery extension operational by new year
The National + NewBase
The $10 billion extension of Ruwais refinery will be fully operational by the beginning of next year,
which is part of plans to diversify the economy away from energy, an official at state-run refiner
Takreer said.
Takreer has already started commissioning the new facility, which will nearly double the refinery’s
capacity from the current 415,000 barrels-per-day and will process Abu Dhabi’s Murban crude oil
grade.
Takreer signed contracts worth US$9.6bn in March 2010 with SK Engineering, Samsung and
Daewoo to increase the Ruwais facility’s daily output. The expansion of the plant, located some
240 kilometres west of Abu Dhabi city, was originally slated for completion by the end of 2013.
“Refinery expansion supports Abu Dhabi’s plans toward diversifying its economy by investing in
downstream capacity,” said, said Fareed al-Jaberi, vice president of supply division at Takreer at
MEED’s Abu Dhabi Conference.
“There is growth in demand and we are committed to meeting the additional demand
requirements. We are going to export very high quality refined products, which is another step
towards meeting environmental specifications.”

Round Three of US$350 Million IRENA-ADFD Renewable
Energy Funding Cycle Opens. Press Release + NewBase
In line with ADFD commitment to support renewal energy projects in cooperation with IRENA by
extending concessional finance of up to USD 350 million over 7 cycles Abu Dhabi Fund for
Development ( ADFD ) and the International Renewable Energy Agency (IRENA) have
announced the opening of the third Funding Cycle for the Project Facility.
Applicants can now submit
request for funding of RE
Technology project in
accordance with the "Guidelines
for applicants". Countries that
intend to apply for funding
through the renewable energy
development facility will have
until February 18, 2015.
In support of this
initiative ADFD has reduced
their lending conditions to
encourage developing countries to take advantage of the Project Facility. Successful projects will
enjoy funding rates ranging between 1-2 percent only. ADFD believes that this action would attract
a wider range of renewable energy projects - many of which can be hugely capital intensive.
"We believe that the provision of renewable energy is an important and effective form of
development aid," said Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for
Development . "For that reason it is important that the recipients of the aid are able to fully realize
the economic and social benefits of the clean energy projects delivered.
"Based on lessons learned from the first and second cycles we believe these new terms will
significantly increase the facility's impact, and encourage developing countries to utilize this
opportunity."
Projects approved for funding to date include solar, hydropower, biomass, wind energy and hybrid
projects in Ecuador, Mali, Maldives, Mauritania, Samoa and Sierra Leone. The projects selected
represent a diverse mix of renewable energy sources and innovative technologies that are
replicable, scalable and will improve energy access in developing countries.
"The demand for concessional finance for renewable energy projects is high as demonstrated by
the more than US$ 1.5 billion worth of loans requested in the first two cycles of the
IRENA/ ADFD Project Facility," said Adnan Amin, Director-General of IRENA. "The lower interest
rates now offered by ADFD make this an even more effective platform to support innovative
projects, a diverse range of technologies and a wider geographic spread of countries."
ADFD pioneers the use of renewable energy as a viable and sustainable form of foreign aid that
offers long-term social and economic benefits - through energy access - to developing countries.
Recently, ADFDstrengthened its commitment to the deployment of clean energy for aid -
delivering Samoa's first wind farm in partnership with MASDAR.
The recipient countries from round two of the facility will be announced during the IRENA General
Assembly, which takes place during Abu Dhabi Sustainability Week, from 17-24 January, 2015.

Last January, the facility announced that six renewable energy projects in six separate developing
countries would receive more than $41 million in loans. Once complete, the projects will provide
energy to over 300,000 people and numerous businesses.
About Abu Dhabi Fund for Development
Abu Dhabi Fund for Development is a Government of Abu Dhabi national institution
established in 1971 to assist developing countries by providing concessionary loans to finance
development projects in those countries, as well as direct, long term investments and
contributions. Simultaneously, the Fund undertakes the management of government grants
provided by the UAE through direct supervision and monitoring of project implementation and
progress. The fund has provided and managed more than AED 64 billion since its inception until
to date to finance 417 projects in 71 countries around the world. For more information about Abu
Dhabi Find for Development, visit: www.adfd.ae
About the International Renewable Energy Agency (IRENA)
The International Renewable Energy Agency is mandated as the global hub for renewable energy
cooperation and information exchange by 138 Members (137 States and the European Union).
Roughly 35 additional countries are in the accession process and actively engaged. IRENA
supports countries in their transition to a sustainable energy future, and serves as the principal
platform for international cooperation, a centre of excellence, and a repository of policy,
technology, resource and financial knowledge on renewable energy. The Agency promotes the
widespread adoption and sustainable use of all forms of renewable energy, including bioenergy,
geothermal, hydropower, ocean, solar and wind energy in the pursuit of sustainable development,
energy access, energy security and low-carbon economic growth and prosperity. www.irena.org

UAE nuclear builder gearing for fourth reactor construction
Enec + The National + NewBase
The UAE government is exploring options to fund its US$20 billion nuclear reactors and to store
nuclear waste as the emirate of Abu Dhabi gears up to pour concrete next year on its fourth plant,
a government official said on Monday.
The UAE, the first country in the Arabian Gulf to build nuclear reactors, is building four units in an
area west of the capital to generate 25 per cent of its power from nuclear energy by 2020.
The project had been fully funded by the Government, with various finance options being
considered for future work, said Fahad Al Qahtani, the group external affairs director at Emirates
Nuclear Energy Corporation (Enec), the company building the reactors.
The UAE is looking to diversify its energy mix to lower dependence on fossil fuels. It is embracing
renewable energy in addition to nuclear to achieve its target and meet power demand that is
expanding by about 9 per cent a year.
In 2009, the UAE awarded the state-run Korea Electric Power Corporation (Kepco) the $20bn
construction contract to build the four nuclear units by 2020. In 2012, Enec signed a $3bn fuel
contract with six companies to source uranium for 15 years, starting in 2017. Uranium will not be
enriched to a level exceeding 5 per cent, said Mr Al Qahtani.
Companies that may provide the uranium include France’s Areva, Russia’s Tenex, Canada’s
Uranium One, the United Kingdom’s Urenco and ConverDyn of the United States. “They, either
ENEC announced in August that more than 55 per cent of construction on Unit 1 at Barakah, the site
of the UAE’s nuclear energy plants in the Western Region, had been completed. Image courtesy ENEC
First of 4 nuclear reactors 61% complete

independently or working together, will work on what we call sourcing the enriched uranium
product,” Mr Al Qahtani said. “They will mine the uranium, convert it, enrich it then package it and
then send it to Kepco, who will eventually package it in their assemblies and bring it to here.”
The UAE is currently exploring options to store nuclear waste and is looking at three scenarios.
The first short-term option is using spent fuel pools, the second medium-term option is dry casks
above ground at the site of the reactor, and the third option is having underground repositories.
Fuel leasing may also be considered, where spent fuel is recovered by a leasing company after
being removed from the reactor core. Short-term fuel storage lasts 20 years and mid-term fuel
storage lasts up to 100 years, Mr Al Qahtani said.
“The spent fuel quantity is so small,” he said. “The short-term and mid-term will suffice for use for
a long time.” Enec has already started pouring concrete for its third unit after receiving approval in
September from the Federal Authority for Nuclear Regulation (FANR).
The first unit is slated for operation by 2017 and unit two is due to enter commercial operation in
2018. Unit 1 one was 61 per cent complete and unit 2 two was 37 per cent complete, Mr Al
Qahtani said added.
The UAE currently had no plans to further expand its nuclear programme, but may look at this
option in the future, he said. “In the future if the government decides there is more demand, the
company is of course ready, but for the time being we are focused on developing the four units,”
he said.
“One of the things we did when we looked at the site is we looked at a site which is big enough for
expansion if it ever happens.”

ALGIERS: Sonatrach maps out energy output expansion, to invest $80bn by 2019
Reuters + NewBase
Algerian state energy company Sonatrach said yesterday it will intensify its exploration efforts by
drilling 125 wells a year and expanding its transportation network to help boost production over
five years.
The North African Opec state’s
crude oil and gas production
has stagnated in recent years,
stymied by a lack of foreign
investors because of
bureaucracy and security
concerns, but neither Sonatrach
nor the energy ministry provided
details on incentives for
potential oil partners.
Sonatrach’s plans are crucial for
a country that relies heavily on
energy exports to pay for social
programmes that have helped
to maintain stability in an often
volatile region. Domestic energy
consumption is also growing.
Speaking at a North Africa oil
and gas conference in Algiers,
Sonatrach’s interim chief Said
Sahnoun said the company
would invest about $80bn by
2019 to boost production to 225
million tonnes of oil equivalent, adding that he does not expect lower oil prices to affect spending
plans. Last year Algeria’s total production was 192 million tonnes of oil equivalent, including 121
million tonnes from natural gas, 54.5 million tonnes from crude oil and 9.5 million tonnes from
condensate. “I remain optimistic about our energy output for the coming years and we are ready to
work with all of our partners,” Sahnoun said.
The Sonatrach head said development plans included building up transportation network and a
focus on less mature fields around Illizi, Berkine, Hassi Messaoud and Hassi R’mel areas, the
APS state news agency said. However, there was no indication on what measures will be taken to
attract investors that largely shied away from Algeria’s previous energy bidding round.
Sid Ali Betata, head of Algeria’s hydrocarbons agency, said a new round was still being studied,
with no date or further details available as yet. “There will be no new bidding round before we
change the legal framework,” said one senior Sonatrach source who asked not to be identified.
Only four of 31 areas on offer were taken by foreign consortiums that included
Spain’s Repsol, Royal Dutch Shell and Norway’s Statoil in Algeria’s first attempt to
draw investors since a disappointing 2011 round. Algeria expects to start production
at six gasfields in the next three years

reland: Europa Oil & Gas reports large prospects identified on its
offshore Ireland acreage. Source: Europa Oil & Gas
AIM-listed Europa Oil & Gas has provided an update with respect to its FEL 2/13 and FEL
3/13licences in the South Porcupine Basin, offshore Ireland. Europa has now received a new
prospect inventory from the operator of the licences, Kosmos Energy.
The inventory is based on state of the art 3D seismic acquired in 2013 and includes the
identification of a number of new, large prospects and leads on both licences. As a result,
material changes have been made to the prospectivity previously mapped on the licences using
historic 2D seismic data. Europa is currently preparing relevant data to initiate work on a
Competent Persons Report for completion in H1 2015.
Licence FEL 3/13

- Two prospects, named Beckett and Wilde, and one lead, Shaw, have been identified
- The new prospects have gross mean unrisked prospective resources of: 760 million
barrels of oil (mmbo) for Beckett and 493 mmbo for Wilde
- These new prospects and leads replace the Kiernan prospect previously identified by
Europa (see announcement dated 16 January 2013)
- Two new prospects, Doyle A and Doyle B, have been identified
- Gross mean unrisked prospective resources of: 123 mmbo for Doyle A and 69 mmbo for
Doyle B
- These new prospects replace the Mullen prospect previously identified by Europa (see
announcement dated 6 November 2012)
Further seismic analysis work is now being conducted to provide a definitive prospect risking and
ranking. It is expected that this work will be completed in H1 2015 and will enable a decision to
be made regarding next steps on the licences. This includes the possibility of detailed drilling
planning and preparatory work to enable an exploration well to be drilled as early as 2016.
Europa's CEO, Hugh Mackay said, 'This is a significant step forward for our exploration in
Ireland. The prospect inventory has been completed by Kosmos and the early promise shown on
historic 2D seismic data has been vindicated by the prospects identified on the new 3D seismic.
Geophysical studies are now being performed to clarify prospect risk and ranking with a view to
inform a drilling decision, expected to be in H1 2015.
If positive this could lead to what could be a company-making well for Europa being drilled in
2016. More information will become available over the coming months as our plans mature and
we look forward to updating the markets in due course. These are very exciting times for Europa.'

Canada:Petronas Approved for Canada Pacific Northwest LNG project
PNW-LNG + NewBase
British Columbia Province Authorities have approved Petronas Pacific Northwest liquefied natural
gas (PNW LNG) export terminal project and its related TransCanada Prince Rupert Gas
Transmission (PRGT) pipeline project on the Canada west coast.
The joint venture Progress Energy Canada Ltd (Progress Energy) and its stakeholders,
the national oil company (NOC) Petronas, Japan Petroleum and Exploration Corporation Ltd
(Japex), Indian Oil Corporation Ltd (Indian Oil) and Petroleum Brunei made a major step forward
for the construction of one of the largest LNG export terminal project to be built on the Lelu Island,
near Prince Rupert in BC. In 2013, Petronas, Japex and Petroleum Brunei acquired the Calgary-
basedProgress Energy.
In 2014, Petronas sold 15% to China Petroleum & Chemical Corporation (Sinopec) and 10% of its
stakes to Indian Oil so that currently the working interests in Progress Energy are shared as
following:
- Petronas 62% is the operator
- Sinopec 15%
- Japex 10%
- Indian Oil 10%
- Petroleum Brunei 3%

In order to supply this Pacific Northwest LNG project with natural gas, Progress Energy and its
partners in the North Montney joint venture (NMJV) explored and developed natural gas reserves
in the Northeast ofBritish Columbia, along the Province of Alberta.
At the end of 2013, Petronas and its NMJV partners declared to have accumulated 8.35 trillion
cubic feet (tcf)of proven and probable (2P) reserves of natural gas between the Montney Basin in
BC, the Deep Basin and the Foothills in Alberta.
In addition, Petronas and its NMJV partners are targeting to delineate 65 percent of 24.7
tcf contingent resources. With these shale gas reserves in development in Alberta and British
Columbia, Petronas is planning to build the Pacific Northwest LNG export terminal project in two
phases.
The PNW LNG Phase-1 project should include:
- Utilities and power generation
- LNG Trains 1 and 2
- Gas Inlet system
- Gas Treatment facilities
- Offsites
- Storage and offloading facilities
- Marine and jetty
Then in a second phase Petronas would add the Pacific Northwest LNG train 3.
Each LNG train should have a capacity of 6 million tonnes per year of LNG.
In May 2013, Petronas and its partners selected three teams of engineering companies to
organize a competitive front end engineering and design (FEED) in order to be proposed the most
cost effectiveengineering, procurement and construction (EPC) contract for PNW LNG Phase-1
project.
The costs estimates returned by the engineering companies in competitive FEED for Pacific
Northwest LNG Phase-1 project are significantly above the budgeted $11.4billion capital
expenditure leading Petronas and its partners to revise costs. As a consequence Petronas and its
PNW LNG partners Japex, Petroleum Brunei and Indian Oil will postponed the final investment
decision (FID) for Pacific Northwest LNG Phase-1 project EPC contractfrom the end of 2014 to
mid 2015 as they still target the first LNG shipment from Lelu Island in British Columbia by 2019.

U.S. nuclear plants require life extension past 60 years to operate beyond 2050
U.S. Energy Information Administration, based on U.S. Nuclear Regulatory Commission
When nuclear power plants are built, the Nuclear Regulatory Commission (NRC) has the authority
to issue initial operating licenses for a period of 40 years. Beyond that, the reactors need license
renewals, and the NRC has granted 20-year license renewals to 74 of the 100 operating reactors in the
United States.
These reactors may now operate for a total period of 60 years. They represent a cumulative
capacity of a little more than 69,000 megawatts (MW). The NRC is currently reviewing license
renewal applications for an additional 17 reactors, and expects to receive seven more applications
in the next few years.
With the bulk of the existing nuclear fleet licensed before 1990, nearly all existing reactors will be
more than 60 years old by 2050. Unless a utility applies for and receives a Subsequent License
Renewal (SLR) that could further extend the operating lives of their reactors up to 20 additional
years, the reactors will not generate power beyond age 60.
Although no applications for an SLR have been submitted, several utilities are evaluating whether
to apply for one, including Dominion Resources for its Surry Power Station Units 1 and 2 in Virginia
(current license expiration dates of 2032 and 2033) as well as Exelon for its Peach Bottom Atomic
Power Station Units 2 and 3 in Pennsylvania (current license expiration dates of 2033 and 2034).
From a regulatory perspective, the NRC determined in August 2014 that existing license renewal
regulations were sufficient to support the SLR process. The NRC's determination was supported
by the May 2014 findings of the NRC's Advisory Committee on Reactor Safeguards, which stated that
the current NRC license renewal framework would support SLR.

In making the decision to extend the operating lives of nuclear reactors beyond 60 years, the NRC
will consider the long-term safety and security of continued reactor operation. In addition to the
NRC, the U.S. Department of Energy, through its Light Water Reactor Sustainability Program, is one
of several organizations studying the effects of aging on nuclear power plant systems, structures,
and components.
Other industry groups involved in studying SLR include the Electric Power Research Institute and the
Nuclear Energy Institute. International groups, such as the International Atomic Energy Agency
and the Organization for Economic Cooperation and Development's Nuclear Energy Agency, are
also involved in addressing life extension issues in support of nuclear power plants around the world.
U.S. utilities already make significant investments in maintaining and upgrading the current fleet of
U.S. nuclear power plants to ensure safe, secure, and reliable operation throughout their 40- or
60-year lifetimes. The Electric Utility Cost Group estimated that the industry invested $6.4 billion in
capital projects to upgrade and maintain nuclear power plant systems during 2013.

Oil Price Drop Special Coverage
Brent crude slips as Morgan Stanley slashes forecast to $43/B
The National + NewBase
Brent crude took a further tumble on Monday after another major forecaster cut its price
expectations for next year, adding to the bearish sentiment for oil markets. The investment bank
Morgan Stanley slashed its outlook and offered a worst-case scenario of the benchmark falling as
low as US$43 a barrel in the second quarter.
It revised its earlier estimate for next year to $70 a barrel from $98 and lowered its 2016 outlook to
$88 a barrel from $102.
Brent for January settlement declined as much as $2.30 to $66.77 a barrel on the London-based
ICE Futures Europe exchange on Monday, the lowest intraday price in more than five years. It
slumped 18 per cent last month, a fifth straight decline.
Industry experts expect oil prices to remain below $70 as the battle for market share between US
producers and Saudi Arabia continues to take centre stage. BNP Paribas, Credit Suisse, UBS and
Barclays have all cut their forecasts since Opec’s meeting last month when it maintained output
amid oversupply.

The head of Kuwait’s state oil company said there was no likelihood of a rebound any time soon,
forecasting prices to remain around $65 a barrel.
“I think oil prices will remain at these levels for the next six to seven months,” Nizar Al Adsani said.
The chief executive added, ahead of Opec releasing its monthly report tomorrow, that prices
would not increase barring fresh political crises, a change in Opec production policy or until
concerns eased over the world’s economic recovery.
Opec’s market update will be followed by the International Energy Agency’s (IEA) report,
collectively setting the tone for energy markets in the new year. They are expected to reveal how
much the 12-member group is actually producing after it decided to maintain official output levels
at 30 million barrels per day (bpd), around 1 million bpd more than global demand for its oil.
The group pumped 30.56 million bpd in November, exceeding its quota of 30 million for a sixth
straight month, according to estimates compiled by Bloomberg. Last month the IEA, in a rare
move, predicted a further drop in oil prices.
“While there has been some speculation that the high cost of unconventional oil production might
set a new equilibrium for Brent prices in the $80 to $90 range, supply and demand balances
suggest that the price route has yet to run its course,” the IEA said.
It added that lower Chinese economic growth and US shale output could result in prices falling
further in the upcoming year. “A well supplied oil market in the short term should not disguise the
challenges that lie ahead, as the world is set to rely more heavily on a relatively small number of
producing countries,” said the IEA chief economist Fatih Birol.
Meanwhile the US shows no signs of cutting back its shale oil production, which has increased by
3.6 million barrels a day over the past four years. Recently released rig count numbers in the US
show the first gain in three weeks to a total of 1,575, defying predictions of a drilling slowdown,
according to Baker Hughes.
China's Shale Gas Sector To Expand Despite Target Reduction
Natural Gas Asia + NewBase

China’s shale gas sector continues to expand despite reduction in medium-term shale gas
production, Fitch Ratings said Sunday.
“China's revision of its medium-term shale gas production
targets reflects the numerous challenges facing the
business despite the country's large shale gas resources.
The sector, however, continues to expand with more
capital allocated to it and as drilling costs fall, although a
fairer allocation of shale blocks is the key to involving more
private-sector companies,” Fitch said.
China has cut its 2020 shale gas production targets by
more than half to 30 billion cubic metres, reflecting the
difficult geology of its shale basins, higher drilling costs, water scarcity and the limited success
domestic operators have had so far with shale blocks allocated in the two rounds since 2011.
Production has been low despite numerous benefits - including tax incentives and subsidies -
provided to encourage production, Fitch said.
State-owned companies China Petroleum and Chemical Corporation (Sinopec) and Petrochina
Company Limited continue to lead production. Gas producers, including Sinopec, were fined by
the regulator in November 2014 for failing to meet spending pledges on allocated shale gas
blocks, indicating the Chinese government is pushing hard to increase production, said Fitch.
Sinopec has had the most success to-date with its Fuling project. According to Fitch, this project
has relatively good economics, and has benefitted from rapidly falling drilling costs (although they
remain much higher than in the US) driven by the company's experience in this sector and its
employment of different technologies.
The Fuling project's success cannot be easily replicated at nearby basins or other more difficult
shale basins in China, but Fitch expects the two domestic oil majors to commit to higher shale gas
production.
On 3 December 2014, Petrochina announced it
will partner several domestic companies and
spend over $4bn on shale gas development
projects. In general, Fitch expects most Chinese
national oil companies (NOCs) to trim their
overall capex, but increase focus on domestic
upstream activity to boost oil & gas production.
In the two rounds of shale block allocation to-
date, central government-owned operators have
generally been given access to shale blocks that
overlap with their existing conventional oil & gas
acreage.
“It appears that other operators have received more challenging blocks. However, the lack of
production from non-NOC operators cannot be solely attributed to this, as inadequate access to
technology and to an extent, capital have also been an issue for these operators. China is said to
be preparing for a third round of shale block auctions. With greater knowledge of resources and

costs involved, it is likely the state will focus on blocks that have stronger prospects in the next
round,” Fitch said.
Your Guide to Energy events in your area

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For additional free subscription emails please contact Hawk Energy
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 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 09 December 2014 K. Al Awadi

New base 493 special 09 december 2014

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New base 493 special 09 december 2014