New base 696 special 29 september 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,
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NewBase 29 September 2015 - Issue No. 696 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE will lower domestic gasoline prices in Oct – ministry
By Reuters + NewBase
The United Arab Emirates will lower domestic prices for gasoline in October, the ministry of
energy said on Monday. The price of a litre of octane 95 gasoline will fall 8.7 per cent to Dhs 1.79
($0.4874) at the start of October compared with Dhs 1.96 in September, the ministry said on its
Twitter account.
The domestic diesel price will rise to Dhs 1.89 in October
from Dhs 1.86 in September, the ministry said. In July, the
UAE said it would raise domestic prices for gasoline and cut
them for diesel in a politically sensitive reform designed to
save it money and encourage fuel efficiency.
The prices are based on the average global prices for diesel
and petrol, with the addition of operating costs and profit
margins of the distributing companies. In July 2015, the
Ministry of Energy announced that fuel prices would be
deregulated and a new pricing policy linked to global prices
would be adopted.
Following the decision, petrol prices increased by more than
20 per cent and diesel prices reduced by 29 per cent for the
month of August. For September, the fuel prices dropped by
more than 8 per cent as the global oil prices plunged due to
overproduction and weak demand.
The per litre prices for September are Dh2.07 for Super 98; Dh1.96 for Special 95; and Dh1.89 for
E Plus-91. Diesel price was fixed at Dh1.86 per litre.
“It’s a natural thing to do to have an economy
based on actual price levels at the time,” Ole
Sloth Hansen, Head of Commodity Strategy at
Saxo Bank, said speaking to Gulf News over the
phone. Said “Consumers will have a little more
acknowledgement of the value of fuel.
It is helping government finances when prices
rally again but it is also helping to keep the rise in
demand at a steady level instead of consumers
just spending because it has been relatively
cheap. It is a healthy thing to do for long-term prospects.”

Oman: Duqm SEZ industrial master-plan unveiled
Oman Observer - Conrad Prabhu
The Duqm Special Economic Zone Authority (SEZAD) has unveiled a 20-year strategy for
developing vast swathes of land earmarked for industrial and commercial investment on Oman’s
Wusta coast.
According to a key official, development of various industrial zones allocated within the sprawling
SEZ is envisioned in two distinct phases through to the year 2035. By around the end of this
timeframe, a sizable 150 square kilometres of leasable land will have been made available for a
mix of heavy, medium and light industries, said Anwar Kahlan al Battashi, Manager — Urban
Planning.
The ambitious scale of the Duqm SEZ initiative and its implications for Oman’s long-term
economic development were outlined at a construction summit held in the city recently. In a
presentation on the ‘Underlying Business Opportunities’ associated with this mammoth
undertaking, Al Battashi said the SEZ represents a powerful catalyst for economic diversification
and employment generation.
Infrastructure development of this massive economic hub which, at 1,745 sq km is more than
twice the size of Singapore, is initially centred on the northern half of the SEZ, he said.

“Our current focus is on master-planning the development of the northern part,” said Al Battashi.
“We are working on a phasing that is intelligent and focused on the anchor tenants, but also on
the existing infrastructure,” he noted.
Phase 1, covering the 2015-2025 timeframe, envisages a focus on the development of heavy
industries, chiefly a grassroots refinery and petrochemicals complex, as well as an array of
medium industries that will support port activities and the proposed rail network linking Duqm with
the rest of the national rail system.
Also during this period, infrastructure will be suitably developed to support light and medium
industries that will leverage their proximity to the port and airport for imports of raw materials and
exports of finished goods.
Phase 2, covering the 2026-2035 timeframe, will cater to an anticipated upsurge in chemical and
petrochemical related investments operating downstream of the anchor refinery and
petrochemicals complex.
“By then, around 250 sq km of industrial zones will have been completed, yielding around 150 sq
km of leasable land distributed between heavy, medium and light industries,” said Al Battashi.
Significantly, the master-plan envisions clearly demarcated sectors for different types of industries
and investments. It includes a 25 sq km zone dedicated to light industrial investments of the type
that do not generate emissions. Investments suitable for this zone include warehousing, agro-
businesses, fish processing, and light manufacturing, said Al Battashi.
Medium-scale industries are proposed to be housed in a 52 sq km zone suited for car and bus
manufacturing units, transport-related storage activities, metal cutting, and industrial scale food
processing businesses.
Heavy industries are proposed to be clustered in a gigantic 52 sq km zone suitably prepared to
accommodate chemical and petrochemical units, pulp and paper manufacturing plants, iron and
steel fabrication yards, cement manufacturing facilities, and so on.
Given Duqm’s future role as a multimodal logistics gateway, ample space is being set aside for
the establishment of a rail hub that will incorporate a marshalling yard and maintenance depot
within the SEZ. The 11 sq km rail hub will essentially integrate Duqm, with its port and SEZ, with
the national and GCC rail networks.
Importantly, an impressive 6 sq km zone is being established exclusively to host renewable
energy related investments, said Al Battashi. “Like much of the rest of Oman, Duqm is very sunny
and enjoys one of highest solar radiation levels.
Windmills have significant potential too because of Duqm’s proximity to Salalah and its khareef.
While the khareef is seasonal, there are parts of Duqm that sit on a plateau and enjoy windy
conditions during the rest of the year,” he stated. Rural Areas Electricity Company (RAECO) is
also keenly exploring the potential for installing solar capacity in the SEZ, the official noted.
Finally, central utilities, sewage treatment plants and other common-use facilities will be housed in
a dedicated 2 sq km zone within the SEZ, he added.

Oman: BP Oman, Injaz Oman strengthen partnership
Written by Oman Observer
Following the successful implementation of a project that assisted in the entrepreneurship skills
training of 3,000 students last year, BP Oman and Injaz Oman have reinforced its collaborative
efforts towards developing the capabilities of aspiring students in Oman by forging a new
agreement on several educational programmes.
The agreement was signed by Yousuf al Ojaili, BP Oman President, and Shabib bin Mohammed
al Maamari, Executive Director of Injaz Oman. Under the terms of the new agreement, Injaz Oman
is to implement BP Oman’s educational projects, which are part of BP Oman’s Social Investment
Programme — an initiative aimed at contributing to Oman’s In-Country Value through educational
and entrepreneurial initiatives.
On this collaboration, Yousuf al Ojaili commented: “Our commitment towards the achievement of
the goals we’ve set under the educational projects of our Social Investment Programme is
unwavering.” He also added: “Believing in the importance of early education and awareness, we
aspire through our various initiatives at BP, especially on education, to contribute towards the
development and qualification of the Omani youth.”
The programmes covered by the agreement are the ‘Baisa Programme’ that will be delivered by
Youth Vision, the ‘ECO College Chapters Programme’ by Environment Society of Oman (ESO),
the ‘Sharakati Programme’ by Injaz Oman, BP Young Adventurers by North Star, and the ‘Building
Capacity Programme’ by Sas VR.

Egypt: Beach Energy's sale of Abu Sennan interest to Rockhopper pre-
empted… Source: Beach Energy
As announced on 10 August 2015, Beach Energy entered into an agreement with Rockhopper
Exploration in relation to the sale of its wholly-owned subsidiary, Beach Pe troleum (Egypt),
whose core asset is a 22% interest in the Abu Sennan Concession in Egypt.
Completion was subject to satisfaction of certain conditions precedent, including waiver or non-
exercise of pre-emptive rights held by existing joint venture parties in relation to the Abu Sennan
Concession.
Subsequent to announcement, Beach has received notice of the exercise of pre-emptive rights by
one of the existing Abu Sennan Concession joint venture parties. As a result, the conditions
precedent for the sale of Beach Egypt cannot be satisfied and the sale of Beach Egypt to
Rockhopper will not proceed.
The Abu Sennan Concession pre-emption period expires on 16 October 2015. At that time the
ultimate pre-empting party / parties will be confirmed. Completion of the sale of the interest in the
Abu Sennan Concession under the pre-emption arrangements is subject to Egyptian government
approvals. The acquiring party / parties will pay to Beach US$20.4 million in cash for the interest
in the Abu Sennan Concession (subject to adjustments).
A further transaction update will be provided in due course.

Italy: Eni encounters gas at Guendalina sidetrack offshore Italy
Source: Rockhopper Exploration / energy-pedia
JV partner Rockhopper Exploration has announced that the Eni-operated sidetrack well at the
Guendalina gas field (Eni Operator, Rockhopper 20% Working Interest) has successfully
reached it's target depth (TD) at 3,276m measured depth (MD) on schedule and budget.
Wireline logging has confirmed that all the target levels are gas bearing and have been
encountered slightly higher to prognosis in an up-dip position with good reservoir characteristics
and with an additional deeper gas level. The well is now being completed as a producer with gas
production anticipated to commence in late October at which time a further announcement will be
issued.
Guendalina
Operated by Eni, the Guendalina field, located in the Northern Adriatic, has been on production
since 25 October 2011 and since start-up delivered more than 12.5 Bcf gross. Gross production
from the field is currently averaging over 6 mmscf/d. The current side-track is being drilled to
increase and optimise production at the field.

Cameroon: Bowleven to test Moambe exploration well on the
Bomono Permit.. Source: Bowleven
Bowleven, the Africa focused oil and gas exploration group traded on AIM, has announced that
Moambe, the second well in a two exploration well programme, has been drilled to its planned
total depth (TD) of 1,769 metres MD and wireline logging has been completed. Hydrocarbons
were encountered in Paleocene (Tertiary) aged target reservoir intervals and detailed log
evaluation is continuing.
Preparations are underway to test Moambe initially prior to moving back to the first well, Zingana,
where further testing is currently planned. The extended well testing programme is designed to
determine the productivity and connectivity of the shallower reservoir units which it is intended will
provide the basis for the initial supply of gas for power generation. The evaluation of the deeper
reservoir units is therefore expected to follow later.
We are working closely with Actis and Eneo in Cameroon on a plan to deliver gas for a gas-to-
power development scheme in the event of a successful outcome to testing. It is intended that any
associated liquids produced would be trucked for sale at the local refinery at Limbe.
Further update announcements will be made in due course, as appropriate.
Kevin Hart, Chief Executive, said:
'We are pleased with the discoveries made at Zingana and Moambe. In line with our drill-drill:test-
test strategy, preparations are now underway for an extended well test at Moambe. Moreover, the
advanced discussions with Actis and Eneo regarding a gas-to-power scheme to supply the nearby
Cameroon national grid, demonstrates the strengthened commercial environment for the timely
monetisation of success at Bomono.'

Indonesia: Pan Orient Energy preparing to test Akeh-1
exploration, onshore Sumatra .. Source: Pan Orient Energy
Pan Orient Energy reports that the Akeh-1 exploration well in the Batu Gajah PSC, onshore Sumatra
Indonesia (POE 77% & Operator), has been drilled and cased to a depth of 1,850 meters.
On the basis of open hole wireline logs and formation pressure samples, a decision has been made to test
three intervals interpreted as potentially hydrocarbon bearing within the primary target Lower Talang Akar
formation. Testing is anticipated to be completed in approx. 14 to 21 days at which time a further update
will be provided.
Batu Gajah PSC
At the Batu Gajah PSC, Pan Orient commenced the exploration drilling program in late March 2011. The Tuba Obi Utara-1 (NTO-1)
exploration well drilled in the first half of 2011 encountered 10.5 feet of gas pay within good-quality sand near the top of the Lower
Talang Akar formation (“LTAF”).
The follow-up NTO-1ST side track well encountered the same LTAF gas sand formation identified at the NTO-1 well, but of lower reservoir
quality. The SE Tiung-1 exploration well drilled in mid-2011 encountered oil shows and good quality sands within the primary Lower Talang
Akar target horizon but wire line logging indicated the zone to be water bearing.
The secondary objective of the Gumai and Upper Talang Akar formation sands were also present, but interpreted as being water bearing.
On January 16, 2013 1,730 square kilometers (gross) of exploration lands were relinquished at the Batu Gajah PSC which now holds 793
square kilometers (gross).
In the first quarter of 2013 the Company drilled two exploration wells and commenced a 400 square kilometer 3D seismic program at the
Batu Gajah PSC. The Shinta-1 exploration well was spudded in the first quarter of 2013 and encountered sub-commercial oil in the primary
Lower Talangakar sandstone target. The Buana-1 well was also spudded in the first quarter of 2013 as an updip appraisal of the North
Tuba Obi-1 well drilled in 2011, which targeted natural gas in the Lower Talang Akar formation. Open hole wire line logs and pressure data
indicated the sands to be water bearing.
These results suggest the Buana-1 and the North Tuba Obi-1 fault compartments are not in communication and the gas accumulation
encountered in the North Tuba Obi-1 well in 2011 is limited and sub-commercial. For the remainder of 2013 the Company worked to
complete the acquisition and evaluation of the 400 square kilometer 3D seismic program focused on the eastern half of the PSC.

NewBase 29 September - 2015 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices remain weak on Asia economy woes
Reuters + NewBase
Oil prices remained low in early Asian trading on Tuesday following a slide of almost 3 percent the
previous session, dragged down as concerns over Asia's economic health mounted and as
production remained high.
Brent crude futures were at $47.31 per barrel at 0138 GMT, down 3 cents from their last close and
following a more than 2.5-percent drop on Monday. U.S. West Texas Intermediate (WTI) futures
were at $44.44 a barrel, virtually unchanged from their last settlement.
Oil prices, along with most other commodities, have fallen sharply recently, with crude futures
losing almost 60 percent of their value since June 2014.
Oil price special
coverage

China outlook is main cause of volatility in oil markets: Survey
Gulf Times
The outlook for China’s economic growth, which is experiencing its worst performance in decades,
is the trigger of greatest uncertainty in the global energy markets, according to 32% of
respondents in a Gulf Intelligence Survey conducted with 200 industry professionals.
Even at the Chinese government’s targeted growth rate of 7% for this year, China’s economy is
heading for its slowest annual expansion in a quarter of a century. Producer prices slumped 5.4%
in July, credit to the real economy plunged and consumer inflation remains at about half the target
of 3% this year. Though many analysts believe the Chinese government is exaggerating current
growth rates, an independent analysis claims they are closer to 6%.
After years of stability above $100 a barrel, Brent crude oil lost half its value in the second half of
2014, followed by a 50% rally, which ran out of steam over the summer and shed most of its
gains. The uncertain outlook has triggered the cancellation of many projects, jeopardising much-
needed investment in long-term oil production capacity.
“We know that there will be an end point to the uncertainty as oil markets will balance again when
increase in global demand is large enough to offset growth in supply,” Christof Rühl, Global head
(Research), Abu Dhabi Investment Authority, said in reaction to the Survey results.
“It is important to understand the transition of the Chinese economy is what China terms as the
rebalancing of the economy away from industrial sector towards more service sector and more
light economic activity,” he said.
Top energy industry officials and executives from the Gulf’s national oil companies, including
ADNOC, ENOC and KPC, alongside their international peers from Vitol, Gulf Petrochem, Socar
Aurora, the Dubai Mercantile Exchange and Platts participated in the industry survey conducted
by Gulf Intelligence Research recently.
Brent crude oil prices are expected to continue to experience dramatic swings through 2016,
according to 56% of the survey respondents, with Brent crude expected to average in the $50
range according to 42% of the respondents, while 24% were more optimistic in their outlook with
forecast for oil prices to average in the $60 range.

NewBase Special Coverage
News Agencies News Release 29 Sep. 2015
Saudi Arabia withdraws overseas funds
Financial Times Simeon Kerr
Saudi Arabia has withdrawn tens of billions of dollars from global asset managers as the oil-rich
kingdom seeks to cut its widening deficit and reduce exposure to volatile equities markets amid
the sustained slump in oil prices.
The Saudi Arabian Monetary Agency's foreign reserves have slumped by nearly $73 billion since
oil prices started to decline last year as the kingdom keeps spending to sustain the economy and
fund its military campaign in Yemen.
The central bank is also turning to domestic banks to finance a bond programme to offset the
rapid decline in reserves. This month, several managers were hit by a new wave of redemptions,
which came on top of an initial round of withdrawals this year, people aware of the matter said.

"It was our Black Monday," said one fund manager, referring to the large number of assets
withdrawn by Saudi Arabia last week. Institutions benefited from years of rising assets under
management from oil-rich Gulf states, but are now feeling the pinch after oil prices collapsed last
year.
Nigel Sillitoe, chief executive of financial services market intelligence company Insight Discovery,
said fund managers estimate that Sama has pulled out $50 billion-$70 billion over the past six
months.
"The big question is when will they come back, because managers have been really quite reliant
on Sama for business in recent years," he said. Since the third quarter of 2014, Sama's reserves
held in foreign securities have declined by $71bn, accounting for almost all of the $72.8 billion
reduction in overall overseas assets.
Other industry executives estimate that Sama has withdrawn even more than $70 billion from
existing managers. While some of this cash has been used to fund the deficit, these executives
say the central bank is also seeking to reinvest into less risky, more liquid products.
"They are not comfortable with their exposure to global equities," said another manager. Fund
managers with strong ties to Gulf
sovereign wealth funds, such as
BlackRock, Franklin Templeton and
Legal & General, have received
redemption notices, according to
people aware of the matter.
Some fund managers have seen
several billions of dollars of
withdrawals, or the equivalent of a fifth
to a quarter of their Saudi assets
under management, the people aware
of the matter said.
Institutions such as State Street,
Northern Trust and BNY Mellon have
large amount of assets under management and are therefore also likely to have been hit hard by
the Gulf governments' cash grab, the people added.
"We are not that surprised," said another fund manager. "Sama has been on high risk for a while
and we were prepared for this." Sama has over the years built up a broad range of institutions
handling its funds, including other names such as Aberdeen Asset Management, Fidelity, Invesco
and Goldman Sachs.
BlackRock, which bankers describe as the manager handling the largest amount of Gulf funds,
has already reported net outflows from Europe, the Middle East and Africa. Its second-quarter
financial results reported a net outflow of $24.1 billion from Emea, as opposed to an inflow of
$17.7 billion in the first quarter.
Market participants say the outflow is in part explained by redemptions from Saudi Arabia and
other Gulf sovereign funds, such as Abu Dhabi. BlackRock and other funds declined to comment
or did not respond to requests for comment. Sama did not respond to request for comment.

Latest innovations in electric and hybrid vehicle technology in spotlight
Saudi Gazette + NewBase
THE UAE will be the focal point of the latest global advancements in electric vehicle technology
when the Middle East’s first international conference on innovations in electric and hybrid vehicles
makes its November 2015 debut in Dubai.
The International Conference on Future Mobility 2015, organized by Messe Frankfurt Middle East
in partnership with the Emirates Authority for Standardization and Metrology (ESMA), and
supported by the Automobile & Touring Club of the UAE (ATCUAE), will take place from Nov. 8-9
at the Meydan Hotel.
The two-day conference, held under the patronage of Dr. Rashid Ahmad Bin Fahad, UAE minister
of environment and water and chairman of ESMA, will present a unique platform for regulators,
government authorities, key industry players and thought leaders to discuss the future
opportunities, advances and innovations in electric and hybrid vehicles.
Abdulla Abdulqader Al Maeeni, the director general of ESMA, the UAE government’s
standardization body, said ESMA’s official support comes after identifying the growing need to
encourage the use of electric and hybrid vehicles in support of the Dubai
Smart City Initiative and the UAE Vision 2021.
“Electric vehicles have come a long way and are now technically advanced
to effectively compete with their conventional counterparts,” said Al Maeeni.
“With the infrastructure and support system now shaping up, UAE Nationals
and residents can seriously consider owning electric vehicles.
“Through encouraging the use of electric vehicles in the UAE, ESMA supports the Smart City
Initiative launched by Sheikh Mohammed Bin Rashid Al Maktoum, vice president of the UAE and
ruler of Dubai, as well as the goals of the UAE Vision 2021. These initiatives aim to make Dubai a
smart, integrated and connected city, sustainable with its resources and where environmental
components are clean, healthy and sustainable,” Al Maeeni added.
Coinciding with the two-day International Conference on Future Mobility will be an exhibition
showcasing the latest innovations in the field of electric vehicles and their supporting technology.
Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “Recent developments in electric
vehicle technology, including improvements to the driving range of the vehicles, faster charging,
and the ability of key components such as batteries to withstand extreme heat, has created
enormous potential to significantly increase the use of electric vehicles in the UAE.”

“The International Conference on Future Mobility 2015 will draw attention to immense potential
that exists for electric vehicle technology in the Middle East, attracting experts and delegates from
the wider region and across the world.”
Electric cars require their own eco-system to operate at optimum capacity and plans are already in
place in the UAE to achieve this. Dubai Electricity and Water Authority (DEWA) has already
announced the roll out of 100 charging stations by the end of this year.
Al Maeeni also added that ESMA is actively working towards drafting a federal law governing
electric vehicles in the UAE, where it aims to strike the right balance between the expectations of
the government, manufacturers, and ultimately the consumers.
The International Conference on Future Mobility 2015 will feature more than 200 delegates
including government officials, key decision-makers and international experts in the manufacturing
and trading sectors, as well as authorities responsible for developing standards and specifications
of electric and hybrid vehicles.
Following the inauguration by Dr. Rashid, the conference proper will begin with keynote addresses
by Al Maeeni and Dr. Mohammed Bin Sulayem, president of the ATCUAE.
The various sessions will feature a range of presentations and interactive forums on public
policies, strategies and best practices; infrastructure, distribution and delivery of electric vehicles;
market, business and user behaviour; and electric vehicle technology, research and development.

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
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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 29 September 2015 K. Al Awadi

6th
– 8th
Oct.

New base 696 special 29 september 2015

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