New base 676 special 31 august 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 31 August 2015 - Issue No. 676 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Egypt’s LARGEST EVER’ MED GASFIELD FOUND OFF SHORE
Gulf NewsFT + NewBase
Italian energy group Eni has discovered what it says is a “supergiant” gasfield off the coast of
Egypt, the largest ever found in the Mediterranean Sea and which could provide a much-needed
boost for the country’s economy.
Eni, one of Europe’s biggest
oil and gas companies, said
on Sunday that the Zohr
discovery “could become
one of the world’s largest
natural-gas finds” and would
play a “major” role in
meeting Egypt’s natural gas
demand for decades once
fully developed.
The field held a possible
30tn cubic feet of gas, or
5.5bn barrels of oil
equivalent, said the
company, which has
examined well results and
geophysical data from the
Zohr 1X NFW well located in
1,450 metres of water in the
Shorouk exploration block. It
covers an area of 100
square km.
Claudio Descalzi, chief
executive of Eni, has
travelled to Cairo to discuss the results with Egyptian President Abdul Fattah Al Sisi.
“It’s a very important day for Eni and its people,” he said in a statement. “Our exploration strategy
allows us to persist in the mature areas of countries which we have known for decades and has
proved to be winning, reconfirming that Egypt has still great potential.”
“This historic discovery will be able to transform the energy scenario of Egypt in which we have
been welcomed for over 60 years.”

Eni said it would immediately appraise the field “with the aim of
accelerating a fast track development” that would use existing
infrastructure.
Such large oil and gas finds have become rare in recent years as
companies have had to spend bigger sums on new technology to explore
in hard-to-access deepwater areas and other higher cost regions.
US and European majors have had little to show for their efforts, the ‘Big
Five’ of BP, Chevron, ExxonMobil, Royal Dutch Shell and Total shedding more than a billion
barrels of reserves in 2014, according to figures in their annual reports, the sharpest decline in at
least six years.
Figures from IHS, the research company, show discoveries of new oil and gas reserves dropped
to their lower level in at least two decades last year.
Eni, however, said that exploration had been central to its growth strategy and in the last 7 years
that it had found 10bn barrels of resources and 300m in the first half of this year.
“This exploration success acquires an even greater value as it was made in Egypt which is
strategic for Eni, and where important synergies with the existing infrastructures can be exploited
allowing us a fast production start-up,” said Descalzi.
Eni, which has been active in Egypt since 1954 through its IEOC subsidiary, is the main oil and
gas producer in the country, with equity production of 200,000 boe per day.
Zohr 1X NFW was drilled to a total depth of approximately 13,553 feet (4,131 metres) and hit
2,067 feet (630 metres) of hydrocarbon column in a carbonate sequence of Miocene age with
excellent reservoir characteristics (400 metresplus of net pay). Zohr’s structure has also a deeper
Cretaceous upside that will be targeted in the future with adedicated well.
Italian energy group Eni said on Sunday it had discovered potentially one of the
world’s largest natural-gas fields off the Egyptian coast, predicting that the find
could help meet Egypt’s gas needs for decades to come.

Eni’s CEO, Claudio Descalzi, has recently travelled to Cairo to update Egypt’s President, Abdel
Fattah Al-Sisi, on this important success, and discuss this discovery with the Prime Minister,
Ibrahim Mahlab, and the Minister of Petroleum and Mineral Resources, Sherif Ismail.
“It’s a very important day for Eni and its people. This outstanding result confirms our expertise and
our technological innovation capacity with immediate operational application, and above all shows
the strength of the cooperation spirit amongst all the company’s units which are at the foundation
of our great successes.
Our exploration strategy allows us to persist in the mature areas of countries which we have
known for decades and has proved to be winning, reconfirming that Egypt has still great potential.
This historic discovery will be able to transform the energy scenario of Egypt in which we have
been welcomed for over 60 years.
The exploration activities are central to our growth strategy: in the last 7 years we have discovered
10 billion barrels of resources and 300 million in the first half of the year, confirming Eni’s leading
position in the industry. This exploration success acquires an even greater value as it was made in
Egypt which is strategic for Eni, and where important synergies with the existing infrastructures
can be exploited allowing us a fast production startup‘, Claudio Descalzi commented.
Eni, through its subsidiary IEOC Production B.V., holds a 100% of the Contractor’s working
interest in the Shorouk Block and is the operator of the concession. Eni has been present in Egypt
since 1954 through its subsidiary IEOC, a company which has always been a frontrunner in
exploring and exploiting gas resources in Egypt since the discovery of the Abu Maadi Field in 1967.

UAE: DEWA invites residential and building owners to use Shams Dubai
WAM + NewBase
Dubai Electricity and Water Authority (DEWA) has urged home and building owners to take
advantage of its Shams Dubai smart initiative to install photovoltaic (PV) panels on rooftops to
produce solar energy and connect it to DEWA’s grid.
The initiative supports DEWA’s strategy to diversify Dubai’s energy mix and its efforts to promote
the use of renewable energy.
DEWA has confirmed that installing the solar energy system on the roofs of houses and buildings
is easy. The customer contacts one of the consultants or contractors accredited by DEWA to
study the possibility of installing the solar power system and suggest the best solution.
The consultant or contractor then obtains the necessary approvals from DEWA. These include an
NOC for installing solar energy system and connecting it to the power network, and approvals for
the solar system design that meets all the requirements. After obtaining the necessary approvals,
the consultant or contractor undertakes on-site work.
After completing installation, they will submit a notification to DEWA to conduct the technical
inspection of the site and install the meter to complete the connection process.
The electricity produced is used in the premises and the surplus is exported to DEWA’s grid. An
offset between exported and imported electricity units is conducted and the customer account is
settled based on this offset.

Saeed Mohammed Al Tayer, MD & CEO of DEWA, has noted that DEWA has so far received 16
applications to set up solar power panels on the rooftops of homes and buildings, with a total
capacity of 8.5MW. He called upon building owners to take advantage of Shams Dubai, which
implements Council Resolution Number 46 of 2014, issued by HH Sheikh Hamdan bin
Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive
Council, to regulate connecting electricity generated from solar power in buildings to DEWA’s grid.
He added, "DEWA supports the vision of our wise leadership, which outlines the roadmap for our
work and initiatives to enhance the competitiveness of the UAE and Dubai. We are fully-prepared
to effectively and positively contribute to building Smart Dubai and add to the happiness of citizens
and residents."
"DEWA has launched three smart initiatives to support the Smart Dubai initiative, launched by His
Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the
UAE and Ruler of Dubai, to transform Dubai into the smartest city in the world.
These initiatives are Shams Dubai, which encourages households and building owners to install
PV solar panels to generate electricity, Smart Applications and Meters, and the Green Charger to
establish the infrastructure to build electric vehicle charging stations. The strategic objectives of
these initiatives support the Dubai Plan 2021 and the Dubai Integrated Energy Strategy 2030, to
support the development and establishment of sustainable energy projects in Dubai," said Al
Tayer.
DEWA has called upon manufacturers of solar power equipment and tools to register their
products as eligible for DEWA so that customers have a reference to start installing the solar
systems as soon as possible according to the highest design qualification standards. The eligibility
criteria are described in the Standards for Distributed Renewable Resources Generators
Connected to the Distribution Network, which set out the requirements for solar photovoltaic
modules, inverters, and interface protection systems, among other tools. DEWA will continuously
review and update the standards to keep requirements updated on the latest available standards.
DEWA announced the first project under Shams Dubai initiative, in collaboration with Dubai
Airports, to supply Dubai World Central Al Maktoum International Airport in Jebel Ali with solar
energy. The first step in implementing the initiative was installing photovoltaic panels to produce
30kW of electricity there.

South Africa inaugurated 4,800 MW coal-fired power plant
News Agencies + NewBase
President Jacob Zuma inaugurated on Sunday the first unit of a massive new coal-fired power
plant in South Africa, hailing it as a step away from the country’s energy woes. The Medupi power
station, situated north of Johannesburg, is to produce 4,800 megawatts of electricity by 2019,
when it is expected to be operating at full capacity.
South Africa has suffered through rolling blackouts, known as load shedding, as the state-owned
utility Eskom has sought to ease pressure on its stable of ageing and poorly-maintained power
stations.
South Africa last new gas-fired power plant opened in 2013, while a new coal-burning plant has
not come online since 1996. “Today we open an important and exciting chapter in our country’s
energy history,” Zuma said. “Shortage of energy is a serious impediment to economic growth,”
he added.
Construction on Medupi began in 2007 and was supposed to be complete five years later. Yet
delays have meant that the plant, which South African authorities call the country’s largest coal-
fired station, will be fully operational some seven years late.
The new plant’s first unit began operating in March and its 749 megawatts of electricity should
help ease the stress on the country’s troubled electrical grid. Another coal-fired plant is under
construction in Kusile, east of Johannesburg, and it is expected to pump out a flow of electricity
similar to Medupi, but that project has also been hampered by major delays.
“It’s too premature to say that it’s the end of load shedding with this inauguration,” energy
specialist Chris Yelland told AFP. “On Monday, a unit of the Koeberg power plant will be shut
down for maintenance for three months,” he said, referring to the country’s only nuclear station
north of Cape Town.
South Africa’s ongoing electricity woes have undermined economic growth, disrupting the
manufacturing and mining sectors especially hard. In May, Statistics South Africa fingered the
rolling power cuts for slowing the country’s growth to a disappointing 1.3 percent in the first
months of 2015.
http://www.brecorder.com/top-news/109/252881-south-africa-inaugurates-massive-new-power-plant.html

NewBase 31 August - 2015 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices fall on profit taking, rate hike uncertainty
News Agencies + Newbase
Oil prices fell in Asia on Monday as traders took profits, snapping three days of gains last week
that saw the biggest two-day rally in six years. "There is definitely a lot of profit taking going on,"
said Daniel Ang, an analyst at Singapore's Phillip Futures.
"There is some readjustment in the positions taken by traders," he said. That came after Brent
climbed 10 percent last week, while U.S. crude finished the week up 12 percent.
Brent crude futures for October delivery fell 86 cents, or 1.7 percent, to $49.19 per barrel as 0156
GMT after ending up $2.49, or 5 percent, in the previous session. The contract slipped as low as
$49.10 in early trade.
U.S. crude for October delivery fell 70 cents to $44.52 per barrel after settling up $2.66, or 6.3
percent, in the previous session. It fell as low as $44.40 in early trade.
Some Fed policymakers left the door open to a September interest rate hike at an annual central
bankers meeting on Friday in comments that appeared to contradict those by the New York Fed
president earlier in the week who said a rate increase seemed "less compelling".
The comment came after turmoil in global markets in recent weeks following China's currency
devaluation and concerns over its slowing economy. Investors are eyeing a slew of economic
data, including key U.S. non-farm payroll data, later this week that could give direction on a
possible U.S. rate hike when Fed policy makers meet on Sept. 16-17.
Oil price special
coverage

A rate hike is expected to support the U.S. dollar, making commodities including oil more
expensive for users of other currencies. The market is also watching the outcome of planned
United Nations-brokered talks later this week between Libya's warring factions aimed at forming a
unity government.
Libya posted a budget deficit of 4.5 billion dinars ($3.3 billion) in the first seven months of 2015 as
oil production fell and weak oil prices weighed, the Tripoli-based central bank said on Sunday.
Are hopes for an oil bounce short lived?
Alexandra Gibbs NBC.com
On Thursday, oil prices soared over 10 percent, pushed by positive U.S. data and a recovery in
financial markets, but by Friday, oil was keeping investors on their toes. On Friday, both Brent and
WTI crude slumped back into the red during Europe's morning
session then bounced back in afternoon trade.
Analysts are now suggesting this isn't the time to get positive
on oil prices but rather remain cautious, as the volatility in
financial markets continues.
Jasper Lawler, market analyst at CMC Markets, told CNBC
via email that it's no coincidence that within one week, the
Dow had crashed 1,000 points and oil surged 10 percent in a
single day.
"Volatility is way above usual," Lawler said, adding that sentiment toward commodities had
become "very bearish" with speculation of falling Chinese demand.
"The U.S. GDP surprise caught some short sellers with their pants down with the oil price having
just hit 6 1/2-year lows. My base case is oil drops to the 2008 lows but we're almost there already
and yesterday's surge suggests this short-covering rally could have further to go."
Analysts are now suggesting investors are getting nervous again based on uncertainty
surrounding various countries' next moves, especially when it comes to central banks and China's
economic situation.
Even OPEC members are getting nervous this week, with both Iran and Venezuela reportedly
showing signs of wanting an emergency meeting, to prevent a global oil price rout. Consequently,
investors are being told to be cautious and pragmatic, rather than rash in this time of
unpredictability.
It's not just oil that seems to follow this trend, but other sectors are riding the volatility trend.
Following "Black Monday," Thierry Wizman, global interest rates and currencies strategist at
Macquarie Group, told CNBC Tuesday, it's typical for volatility to follow volatility.
"Big down days, are generally followed by big up days, and that impulse lasts for a few days
following a shock. It's not surprising that markets are up today (Tuesday), I wouldn't take that to
believe they'll be up for the next few days consistently," Wizman told CNBC on Tuesday, before all
global markets coincidentally seesawed within following days.

NewBase Special Coverage
News Agencies News Release 31 Aug 2015
Gulf markets advance; but oil-driven rally losing steam
Reuters + NewBase
Most Middle East stock markets rose but closed well off their intra-day highs yesterday and some
edged lower as investors started selling into the region’s rally, indicating sentiment was still shaky
even after oil prices rebounded.
The Qatar Stock Exchange’s benchmark index gained 0.4% to close 11,340 points.
Petrochemicals and steel conglomerate Industries Qatar jumped 2.5% and was the main support
for the Doha benchmark.
Saudi Arabia’s main index, which surged as much as 4.6% early in the day, closed just 1.1%
higher. That left the index up 11% from a 29-month low hit last Monday, but still 15% below its
level at the end of last month.
The petrochemical sector, up 3.2%, was the main support yesterday after Brent oil climbed above
$50 per barrel on Friday. The sector’s margins are directly affected by oil prices and leading
petrochemical producer Saudi Basic Industries surged 4.0%.
But some stocks went into the red late in the session, such as Al Tayyar Travel, which tumbled
5.8%, and Banque Saudi Fransi, down 2.5%.
Shakeel Sarwar, head of asset management at Securities & Investment Co (Sico) in Bahrain, said
markets in the region were likely to remain jittery until oil prices stabilised. “Right now I think the
situation is so fluid, it becomes extremely difficult to build a solid investment case,” he said.
Trading volumes in Riyadh fell for a third session in a row, another indication that the recovery
was fragile. With low oil prices pushing state finances deep into the red, the Saudi government
has not yet released a detailed plan for how the world’s top oil exporter would handle an era of

cheap oil that could last for years. Elsewhere in the region, Dubai’s stock index closed 1.1%
higher after jumping as much as 3.2% in early trade.
Developer Damac was the most traded stock, surging 7.0% after the firm called a shareholder
meeting for September 15 to approve its first cash dividend of 10% since it listed in Dubai in
January.
Most other actively traded stocks were also from the property or related sectors. Heavyweight
developer Emaar Properties jumped 2.8%, Union Properties rose 1.5% and mortgage lender
Amlak Finance added 1.4%.
In addition to oil’s rebound late last week, property stocks may be supported by hopes that the US
Federal Reserve will postpone an interest rate increase which analysts had previously expected in
September.
Those Fed officials who are anxious to raise rates said at an annual global central bankers’
conference on Friday that continued market turmoil might lead the US central bank to delay
tightening monetary policy. Most Gulf states keep their currencies pegged to the dollar and
replicate the Fed’s interest rate adjustments.
Ports operator DP World rose 5.7%, adding to Thursday’s 8.7% gain. It has outperformed the
market since Thursday, when the company said it might launch operations in Iran; it is one of a
handful of listed logistics and transport firms in the Gulf that could benefit from the lifting of
international sanctions against Iran. Abu Dhabi’s index slipped 0.2%,
Egypt’s bourse slipped 0.3% as most blue chips pulled back after rising for three sessions in a
row. But Pioneers Holding surged 6% after soaring 10% on Thursday, when it reported its second-
quarter profit had more than tripled.
Elsewhere in the Gulf, Kuwait’s index rose 0.5% to 5,904 points; Oman’s index climbed 1.5% to
5,904 points, while Bahrain’s index inched down 0.1% to 1,301 points.

EU prepares way for Turkmen gas supplies
Ashgabat, Turkmenistan, By Huseyn Hasanov – Trend:
As it is known, the EU focuses on imports of natural gas from the Caspian region, particularly, from
Azerbaijan and Turkmenistan, in the medium term. The work over the Trans-Caspian pipeline has
recently intensified, which can be a part of the Southern Gas Corridor.
The matter rests in laying the pipe through the Caspian Sea from the city of Turkmenbashi in
Turkmenistan to the city of Sangachal on the coast of the Absheron Peninsula in Azerbaijan. The EU
is obviously seeking to reduce its dependence on Russia in the energy supplies. Here, Turkmenistan's
Caspian gas supply to Europe will significantly help. Bulgaria has recently stressed Turkmenistan’s
importance for the EU energy security in the context of diversifying the sources and routes of natural
gas supply to Europe.
During his visit to Turkmenistan in late August, Bulgarian Prime Minister Boyko Borisov held talks with
President of Turkmenistan Gurbanguly Berdimuhamedov. The sides highlighted the importance of the
memorandum of understanding on energy cooperation between Turkmenistan and the EU, signed in
Ashgabat on May 26, 2008. The sides confirmed their readiness to continue cooperation to achieve
their goals. President Berdimuhamedov stressed the need of strengthening the economic ties and
trade turnover between the two countries. He said that Turkmenistan highly appreciates Bulgaria and
the country is ready to strengthen cooperation and investments in Bulgaria.
“The Trans-Caspian gas pipeline will make it possible to (implement) supply of gas from Turkmenistan
to Bulgaria using interconnector ties with Turkey and Greece,” Boyko Borisov said, the information
service of the Bulgarian government reported.
In his opinion, “this will be a serious step towards a real diversification of sources of gas supplies to
our country.” Borisov and Berdimuhammadov discussed the possibilities of intensifying cooperation
between Bulgaria and Turkmenistan in the energy sector.
Bulgarian prime minister also expressed his interest in the opportunity for the participation of Bulgarian
companies in the field of exploration and production of oil and natural gas, as well as construction and
maintenance of electricity infrastructure, gas and oil on the territory of Turkmenistan.

Turkmenistan, which has the fourth largest natural gas reserves in the world, is a key player in the
energy market in the Caspian region and Central Asia. Against the backdrop of falling purchases of
this type of fuel by Russia, Ashgabat is interested in finding new markets, particularly in Europe.
And the pipeline route to Europe through the Caspian Sea and Azerbaijan is in this aspect considered
one of the most attractive. To implement this project the RSK Environment Ltd. has already carried
out tentative environmental studies under an order from the World Bank. Its results will be revealed
before late 2015.
Azerbaijan to help Turkmenistan enter European markets
Amid stagnation of the economies of the major global players such as Russia or China, the
diversification of the economic partners becomes acute for their neighbors. Azerbaijan and
Turkmenistan are well aware about this, as has proven another meeting of foreign ministers of the
three countries, namely, Azerbaijan, Turkey and Turkmenistan on August 28.
Just as Azerbaijan,
Turkmenistan wants
to supply its gas
to Europe. This
will allow the
country to
diversify its gas
supplies and
reduce its
dependence on
Russia and
China. Russia has already reduced gas supplies from Turkmenistan.
According to the experts, Turkmenistan may receive some $400 million less this year. Therefore, it is
important for Ashgabat to find new routes for its gas supply. One of them is the Trans-Caspian gas
pipeline project, which will be connected to the Southern Gas Corridor. The pipeline will allow the
country to freely transport its gas via Azerbaijan and Turkey to Europe.
Turkmenistan is not the only country interested in gas supplies to Europe through the Southern Gas
Corridor. Thus, Iran expressed its willingness to cooperate with Azerbaijan in this regard. The
Southern Gas Corridor is a project that will enable Europe to diversify its sources of hydrocarbon
supply and boost energy security and Azerbaijan - to get a new market in the face of Europe.
In general, Azerbaijan has recently been transforming into a key player, without which no major
regional project is possible. For example, the Trans-Caspian international transport route, which runs
through China, Kazakhstan, Azerbaijan, Georgia and Turkey and further to Europe. The route makes it
possible to reduce the delivery time of goods from 40 days to 6-7 days. The route will bring the
participating countries about $1 billion in the first years of operation.
However, the route does not affect Turkmenistan. However, at present, creation of another
Afghanistan-Turkmenistan-Azerbaijan-Georgia-Turkey transport corridor is being considered. This
project will also open an access to major international markets for countries, which don’t have direct
access to sea.
Although transport and energy are likely to remain the main areas of cooperation between Azerbaijan,
Turkey and Turkmenistan in the near future, at the same time, the sides are ready to develop
cooperation in the spheres of tourism, health, agriculture, technology, industry, ICT, petrochemical,
food industry, transport infrastructure, agricultural research, etc.

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 31 August 2015 K. Al Awadi

6th
– 8th
Oct.

New base 676 special 31 august 2015

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to New base 676 special 31 august 2015

Similar to New base 676 special 31 august 2015 (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base 676 special 31 august 2015