New base energy news issue 923 dated 06 september 2016

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 Energy News 06 September 2016 - Issue No. 923 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Qatargas enters into new LNG pact with UK Centrica
Gulf Times
Qatargas, the largest producer of liquefied natural gas (LNG) in the world with an annual
production capacity of 42mn tonnes per annum (MTPA), has entered into a new sale and
purchase agreement (SPA) with Centrica, the largest supplier of gas to households in the UK.
In accordance with the SPA, Qatargas will deliver up to 2MTPA of LNG to Centrica -- a leading
international energy and services company, supplying approximately 28mn customer accounts
mainly in the UK, Ireland and North America -- until 2023.
The LNG will be supplied from Qatargas 4, a joint venture between Qatar Petroleum (QP) (70%)
and Shell (30%), with a production capacity of 7.8MTPA.
Qatargas-chartered Q-Flex and Q-Max LNG vessels will deliver the LNG to the Isle of Grain
Terminal, in the UK.
“We are delighted to extend our strong relationship with Centrica and the UK. This agreement
underscores Qatargas’ reputation as a safe and reliable supplier of LNG," Saad Sherida al-Kaabi,
QP president and chief executive, and chairman of Qatargas, said.
Qatar's LNG ship at Isle of Grain. Inset, al-Kaabi

This agreement, according to him, has the potential to positively contribute to the UK’s energy
security for years to come.
“Qatargas is pleased to
lengthen our existing
partnership with Centrica – a
partnership which dates back to
2011. This new agreement
reinforces Qatargas’
commitment to building a
strong relationship with
customers, and our position as
the leading supplier of LNG to
the UK," Khalid bin Khalifa al-
Thani, chief executive,
Qatargas, said.
Qatargas had initially entered
into a three-year contract with
Centrica to supply LNG from
June 2011. The company then
inked a further four-and-a-half-year contract, with the latest five-year contract extending the
agreement until December 2023.
“Centrica continues to grow its LNG portfolio, further developing its presence in the global LNG
market. I am very pleased that our long-standing supply relationship with the world’s biggest LNG
producer will continue,” according to Iain Conn, Centrica chief executive.

Somaliland: Sterling Energy granted 2 year extension to the
Odewayne PSA, onshore ..Source: Sterling Energy
AIM-listed Sterling Energy has announced that the Government of the Republic of Somaliland has
granted a further 2 year extension to the current period of the Odewayne Production Sharing
Agreement ('PSA').
The expiry dates of the relevant exploration periods under the PSA shall now be:
• Third Period: 2 November 2018;
• Fourth Period (optional): 2 May 2020;
• Fifth Period (optional): 2 May 2021; and
• Sixth Period (optional): 2 May 2022.
The minimum work obligations for
the exploration periods remain
unchanged: (i) the acquisition of
500km of 2D seismic during the
Third Period; and (ii) the
acquisition of 1,000km of 2D
seismic and one exploration well
during the Fourth Period.
Sterling holds a 40% interest in
the PSA and will be carried by
Genel (50% interest and
Operator) for the costs of all
exploration activities during the
Third and Fourth Periods of the
PSA.
Eskil Jersing, the Company’s
Chief Executive Officer said:
'We would like to thank the
Government of the Republic of
Somaliland and Genel for
agreeing to the further 2 year
extension. We look forward to the
commencement of the seismic
campaign.'

Algeria's energy exports rise 8 percent in August
Reuters - Louafi Larbi
Algeria's energy exports increased by 8 percent last month to 71.5 million tonnes of oil equivalent
(TOE) versus 65.4 million TOE in August 2015, a statement from state energy firm Sonatrach
showed.
Over the last year, Algeria has started to reverse a trend of declining production by targeting
better output from more-mature oilfields and planning to bring more gas fields online in its deep
southern Sahara.
Algeria increased gas exports via its three pipelines by 43 percent in August, the statement
quoted by official APS news agency said. "This confirms the good re-positioning targeted by
Sonatrach in the European market," Sonatrach said.
But oil exports decreased by 8 percent as this volume was used to refine gasoline and diesel,
Sonatrach said. "We have reduced our imports (gasoline, diesel) by 43 percent and saved $750
million," the statement said.
The North African OPEC state had struggled until last year with stagnating energy production after
it failed to draw major foreign investment in its last bidding rounds auctioning oil and gas fields.
Some foreign companies see Algeria's contract terms as unattractive or have not been drawn by
the fields on offer. Earlier this year, Algeria said Sonatrach would start bilateral deals directly with
companies to speed up and ease bureaucracy.
At a May summit, European Union officials and energy firms urged Algeria to adapt to more
competitive markets so as to attract the investment needed to pump more gas north.
Algeria is seen as a natural partner for the European Union as it looks to diversify energy supplies
after the Ukraine conflict again exposed the risks of relying on the bloc's top gas supplier, Russia.
Algeria is the EU's third-biggest gas supplier behind Russia and Norway, yet its export capacity
through three pipelines and LNG shipments across the Mediterranean has been underused in
recent years.

Norway: OMV awards Wisting development study to Sevan Marine
Source: Sevan Marine
Sevan Marine has been awarded a study to evaluate its cylindrical hull design for application on
the Wisting field development. The study has been awarded by OMV Norge which is screening
various floating alternatives for developing the Wisting discovery. The study completion is by year
end 2016.
The Wisting discovery is located 310 kms from shore in the northern part of the Barents Sea at the
Norwegian Continental Shelf. OMV Norge is the operator of Wisting (PL 537) with 25% share.
Sevan 1000 FPSO which is being used to develop the Goliat field in the Barents Sea
About ;-
OMV said that the Wisting Central II well is the shallowest horizontal offshore well drilled from a floating
drilling facility and has a depth of 402m. "OMV carried out a well test, with flow rates reaching above
5,000boe/d." The well has a total length of 2,354m and its horizontal section measures 1,402m.
In addition to drilling, the company conducted advanced data collection and geo-steering through the entire
horizontal phase. The well was spudded using the semisubmersible rig Transocean Spitsbergen and will
now be permanently plugged and abandoned. OMV executive board member responsible for upstream
Johann Pleininger said: "OMV is very satisfied with the well test results, which are promising. "This well is
an important milestone towards a future field development on Wisting." OMV (Norge) operates the PL537
licence with a 25% interest. Other joint venture partners are Petoro (20%), Idemitsu (20%), Tullow (20%)
and Statoil (15%).

Bangladesh: KrisEnergy begins Bangora drilling onshore
Source: KrisEnergy
KrisEnergy has announced that the Bapex Bijoy 10 rig has commenced drilling of the Bangora-6
development well in theBlock 9 production sharing contract, onshore Bangladesh.
Bangora-6 is being drilled from the Golpanagar site in the northern section of Block 9 and is
planned to reach total depth at 3,786 metres (12,421 feet) measured depth, or 3,053 metres
(10,016 feet) total vertical depth subsea.
Block 9 covers 1,770 sq. km and is located approx. 50 km east of Dhaka. In 2015, gross
production from the Bangora field averaged 106 million cubic feet of gas per day and 291 barrels
of condensate per day from four development wells.
KrisEnergy is the operator for Block 9 with a 30% working interest. Other partners in Block 9
are Niko Exploration (Block 9) Ltd with a 60% working interest and Bangladesh Petroleum
Exploration and Production Company Limited with 10%.

Thailand: Mubadala spuds Manora appraisal/development well
Tap Oil
JV partner Tap Oil has provided an update on the Mubadala-operated Manora Oil Development in
the Northern Gulf of Thailand (TAP 30% interest).
The Joint Venture has identified an opportunity to add further near facility production at the
Manora Oil Development in 2016 through additional development drilling, and to potentially add
further contingent
resources via an
appraisal well.
Mubadala Petroleum,
Operator of the G1/48
concession, has
advised that at 03:00
hrs WST on 3
September 2016 the
Atwood Orca jackup
drilling unit
commenced drilling the
MNA-17 well at the
Manora Oil
Development. The
MNA-17 well will be
drilled from the Manora
platform and has both
an appraisal and
development
component. The MNA-17 (AP) well path is planned an as appraisal/pilot well, appraising the 500
series sands and assessing a separate untested fault block, the Manora West Structure, which
has the potential to de-risk the Greater Manora West prospective resources.
The MNA-17 (AJ) well will utilise the upper pilot section before being deviated into the Central
Fault Block as a new production well. MNA-17 (AJ) is expected to increase Manora production
performance.
The MNA-17 (AP) well will be drilled to a total depth of 1,859.3 metres total vertical depth subsea
(TVDSS) and drilling is expected to take 5 days on a trouble free basis. The deviation to MNA-17
(AJ) is expected to take 5 days with a total depth of 1,981.2 metres TVDSS.
The well cost is expected to be US$2.5 million (net to Tap).
Tap has 2P reserves of 4 mmbbls (13.2 mmbbls gross) as at 31 December 2015 booked for
Manora (ASX release 26 February 2016). Tap will review these reserves and contingent
resources following development drilling and production performance.
Tap’s next expected announcement is at the completion of the drilling.
Manora Oil Development partners are: Mubadala Petroleum (MP G1 (Thailand) Limited) 60% -
Operator; Northern Gulf Petroleum Pte Ltd 10%; Tap Energy (Thailand) Pty Ltd 30%.

Russia's Rosatom says ready to build 16 Saudi nuclear power stations
Arabian Busuness
Russia's Rosatom State Nuclear Energy Cooperation has announced that it is ready to build 16
nuclear power units in Saudi Arabia in a $100 billion deal.
Yury Ushakov, aide to the President of the Russian Federation outlined the company's plans for
the Gulf kingdom to journalists at a briefing, a statement said. The announcement comes a year
after Russia and Saudi Arabia signed an agreement to work together on “peaceful” nuclear energy
projects.
Ushakov said: "There are prospects for
cooperation in the field of nuclear energy.
The intergovernmental agreement on
cooperation between Rosatom and Science
City of King Abdullah of Saudi Arabia, which
was signed in June of 2015, is under
implementation.
"Our company, which has the most
advanced technologies, is ready to join the
project on construction of 16 nuclear power
reactors in the kingdom of Saudi Arabia.
The project is provided until 2030, its cost is
$100 billion," he said.
In May, the First deputy CEO of Rosatom,
Kirill Komarov, said that
the nuclear programme
of Saudi Arabia is very
ambitious and
envisages the
construction of 16
nuclear power units in
the country.
Rosatom brings
together over 360
nuclear companies and
research and
development
institutions that operate
in the civilian and
defence sectors and
the world's only nuclear
icebreaker fleet.
The company currently
holds projects for the
construction of 30 nuclear power plants, from which 21 are abroad in such countries as India,
China, Turkey, Vietnam, Finland and Hungary.

NewBase 06 September 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Brent steady after rise on Russia-Saudi pact
Reuters + NewBase
Brent crude prices were steady on Tuesday, holding most of their gains from the previous session
when top producers Russia and Saudi Arabia agreed to cooperate on stabilizing the oil market.
London Brent crude for November delivery was down 15 cents at $47.48 a barrel by 0022 GMT,
after settling up 80 cents at $47.63 on Monday. The global benchmark on Monday hit a near one-
week high of $49.40 after the Russia-Saudi news.
NYMEX crude for October delivery did not settle on Monday due to U.S. Labor Day holiday. It was
trading little changed from late Monday, up 64 cents at $45.08 a barrel. It rose as far as $46.53 on
Monday, the highest since Aug. 30.
Russian Energy Minister Alexander Novak said Russia and Saudi Arabia were moving towards a
strategic energy partnership and that a high level of trust would allow them to address global
challenges.
Saudi energy minister Khalid al-Falih told a UAE-based television channel he was optimistic about
cooperation with other producers ahead of a meeting this month in Algiers, adding that freezing
production was not the only solution to a supply glut.
The Organization of the Petroleum Exporting Countries and non-OPEC producers such as Russia
will hold informal talks in Algeria later in September.
Several OPEC producers have called for an output freeze to rein in the glut, which arose as
supplies from high-cost producers such as the United States soared.
Oil price special
coverage

Brent rallied to above $50 a barrel in late August, helped by growing talk of a coordinated
production freeze, but prices have since fallen as few believe OPEC will act.
Russia's Novak said he was open to ideas on what cut-off period to use if producer countries
decided to freeze output. Novak said outright oil production cuts may also be discussed in Algeria.
Saudi-Russia Output Talk Disappoints Oil-Market Bulls: Chart
Share on FacebookShare on Twitter
Brent crude prices surged as much as 5.5 percent as news broke that Saudi Arabia and Russia
would make a joint-statement on the oil market at the G20 summit in China earlier today. But what
began with the promise of a “significant” announcement disappointed the bulls. As the two nations
stopped short of taking any concrete steps to limit output, prices fell back to near $48 a barrel, a
more sedate 2 percent increase on the day.

NewBase Special Coverage
News Agencies News Release 06 September 2016
Oil and gas production to rise as huge new projects come online
Reuters
Despite the drop in crude prices, huge spending cuts and thousands of job losses – the world’s
top oil and gas companies are set to produce more than for some time.
While top oil companies struggle with slumping revenues following a more than halving of prices
since mid-2014 after years of spectacular growth, their production has persistently grown as
projects sanctioned earlier in the decade come on line.
Overall production at the world’s seven biggest oil and gas companies is set to rise by about 9 per
cent between 2015 and 2018, according to analysts’ estimates.
With an expected recovery in prices, the increased production should boost cash flow and secure
generous dividend payouts, which had forced companies to double borrowing throughout the
downturn.
"There are a lot of projects coming on stream over the next three years that will support cash flow
and ultimately dividend," said the Barclays analyst Lydia Rainforth.
And despite a drop in new project approvals, companies have throughout the downturn cleared a
number of mammoth undertakings such as Statoil’s Johan Sverdrup oilfield off Norway and Eni’s
Zohr gas development off the Egyptian coast.
Others opted to acquire new production, such as Royal Dutch Shell, which bought its smaller rival
BG Group for US$54 billion this year, and ExxonMobil through investments in Papua New Guinea
and Mozambique.
Shell is expected to see the strongest growth among its peers over the next two years at 8 per
cent, according to BMO Capital Markets.
Production is unlikely to drop after 2020, and could post modest growth as companies continue to
bring projects onstream, albeit at a slower pace, said the BMO analyst Brendan Warn.

The French oil major Total, for example, plans to clear three major projects by 2018 – the Libra
offshore oilfield in Brazil, the Uganda onshore project and the Papua LNG project – that will begin
production after 2020.
"We won’t see 5 to 10 per cent growth that we’ve seen from companies in recent years. It will be
closer to 1 or 2 per cent," Mr Warn said.
Capital spending, or capex, for the sector is set to drop from a record $220bn in 2013 to around
$140bn in 2017 before modestly recovering, according to Barclays.
But companies have learnt to do more with the money after slashing expenditure and tens of
thousands of jobs, while the cost of services such as rig hiring dropped sharply throughout the
downturn.
"2017 is the sweet spot for integrated companies. It took two to three years to adjust to the drop in
oil prices, and a lot of the efficiencies introduced in recent years will roll into 2017, when projects
kick in and free cash flow will improve," Mr Rainforth said.
The resilience is mostly due to new gas projects coming on stream as companies shift towards the
less polluting hydrocarbon that is expected increasingly to displace oil demand in coming
decades.
The slower pace of project development after a decade of rapid growth that was accompanied by
soaring costs will help companies, Mr Warn said.
"That is much more sustainable for a major that will reduce the number of large capex projects."

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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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 26 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 06 September 2016 K. Al Awadi

New base energy news issue 923 dated 06 september 2016

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New base energy news issue 923 dated 06 september 2016