New base energy news issue 949 dated 15 november 2016

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NewBase Energy News 15 November 2016 - Issue No. 949 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Masdar seeks to develop advanced water desalination technologies
(WAM)--Masdar Institute is keen to strengthen its research efforts in the field of water desalination
in the light of the challenges facing the region, including the scarcity of water resources, Dr. Behjat
Al Yousuf, Interim Provost, Masdar Institute of Science and Technology, has said.
She cited that the per capita consumption of water in the state is around 550 liters per day, the
highest global rate.
In a statement to Emirates News Agency, WAM, Dr. Al Yousuf said, "Masdar Institute supports the
development of new and advanced technologies for water purification and reduction of clean
water production costs as well as provision of innovative solutions that help achieve the strategic
objectives pertaining to the water security."
This came on the sidelines of the start of the 9th International Desalination Workshop organised
by the Masdar Institute at Yas Rotana Hotel Abu Dhabi, in cooperation with the Technology and
Global MVP of the Ministry of Land, Infrastructure and Transport of South Korea, and the Korean
Agency for Infrastructure Technology Advancement.
Dr. Al Yousuf added that Masdar Institute takes great interest in the Institute Center for Water and
Environment (iWater) to
explore innovative solutions
to meet the challenges of
water desalination sector.
It focusses on research and
development activities
conducted by professors,
students, and researchers to
devise a sustainable, and
low-cost desalination
technologies in pursuit of
boosting the food security
and reducing the depletion of
natural freshwater resources,
she added.

Iraq plans to export 3.163 million bpd of Basra crude in December
Reuters + NewBase
Iraq plans to export 3.163 million barrels per day (bpd) of Basra crude from its southern ports in
December, slightly lower than in this month, five sources with knowledge of the matter said on
Monday.
The allocated December volume will be the lowest in four
months, although Iraq exported more than what it had
planned in October, seeking to be exempt from OPEC's
plan to limit supplies.
Basra Light crude exports in December are set to edge up
to 2.437 million bpd, the sources said, citing a preliminary
loading program from Iraq's Oil Marketing Company
(SOMO).
Basra Heavy exports are expected to fall to 726,000 bpd
in December, from 900,000 bpd in November, they said.
Last week, Iraq raised the December prices for both grades to Asia, setting Basra Light at the
narrowest discount to Saudi's Arab Medium crude since October 2012.
The price hikes may cool demand and cap premiums for December-loading Basra Light spot
cargoes, traders said. Some buyers may also choose to buy in January when prices are expected
to fall, they said.
Tighter supplies for Basra Heavy and a reasonable price in December could underpin the grade's
spot premiums, traders said.

Egypt: SDX Energy provides operations update
Source: SDX Energy
SDX Energy, the North Africa focused oil and gas company, is pleased to provide an operational
update on its South Disouq and Meseda concessions in Egypt.
South Disouq
As previously announced on 10 October 2016, SDX's initial assessment of the 3D seismic data
at South Disouq was positive and identified potential for both oil and gas bearing prospects.
Further interpretation of the data has now indicated several Abu Madi and Kafr El Sheikh
prospects displaying strong Class III
amplitude versus offset (AVO)
responses. Testing of similar responses
in offset areas has resulted in numerous
discoveries at these stratigraphic levels.
These responses have allowed SDX to
high grade several prospects for drilling
in the near term. These positive AVO
responses further de-risk the
prospectivity in the area, allowing SDX
and its partners to achieve the intended
goal of the 3D seismic acquisition
program.
SDX, who operate with a 55% equity
interest on the concession, and its
partner, have agreed on the target and location for drilling the carried exploration well, identified
during the interpretation of data. The permitting process has commenced and a team has been
engaged to provide technical assistance on the well, with drilling set to commence by early Q1
2017.
Subsequent to the announcement on 10 October 2016, the Company can confirm that it
has received enquiries from a number of operators regarding farming in to the licence. Although
the Company is fully carried on its remaining obligations in the license and is unlikely to farm down
any additional equity, it has agreed to let selected companies submit proposals to acquire an
interest in the concession. These discussions are ongoing and SDX will update the market as
appropriate.
Meseda
SDX has completed the final design work on the Electrical Submersible Pump ('ESP') program,
which it undertook after conclusion of its field review in May 2016. The Company is now finalising
its technical review of the Meseda facility after which it will procure equipment necessary to double
the treating capacity of the central production facility ('CPF'), enabling it to significantly raise net
production from the concession.
Paul Welch, CEO of SDX Energy, commented:
'Today's announcement demonstrates solid operational progress and momentum for SDX. The
update on South Disouq marks an important step for the Company, as we move out of the
analysis phase of our work programme and into drilling phase. At Meseda, we are excited to have
the majority of the technical work completed and look forward to moving into the implementation
phase in the near term in order to maximise the field's full potential.'

Energy research: Al-Attiyah Foundation, Qatar Shell join hands
The Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable
Development and Qatar Shell signed a three-year agreement to develop independent research
publications focusing on energy sustainability. The vision of the foundation is to become the
leading think tank in the region and one of the leading institutions in the world in the areas of
sustainable energy development.
The signing ceremony took place at the Al-Attiyah Foundation and was attended by its chairman,
HE Abdullah bin Hamad al-Attiyah, and Michiel Kool, managing director and chairman of Qatar
Shell Companies.
Al-Attiyah said, “At the foundation we aim for inclusive and sustainable growth for future
generations in Qatar. That is why we are delighted to collaborate with Qatar Shell to support
Qatar’s quest to become a knowledge-based economy in which research plays a vital role in
resolving emerging issues and furthering development.”
Kool said, “We are extremely proud to once again collaborate with The Abdullah Bin Hamad Al-
Attiyah International Foundation for Energy and Sustainable Development. This agreement builds
on our long-standing partnership with the Foundation and allows us to work jointly on a topic of
mutual interest and an issue of great relevance to society.
“At Qatar Shell we will continue to cooperate with academia, government, non-profit organisations and
private sector partners to provide research and innovative solutions that will help mitigate and resolve
energy challenges faced by Qatar, in turn delivering sustainable impact in support of the Qatar National
Vision 2030.”
Shell is the largest international investor in Qatar having invested $21bn over the past decade. As the
anchor tenant of Qatar Science and Technology Park, Qatar Shell Research and Technology Centre
continues to play a vital role in shaping the future of R&D in Qatar, through ground-breaking research and
thought-leadership into energy and environmental challenges faced by Qatar. Its programme of dynamic
collaborations with both the local and international academic community ensures QSRTC meets its
mandate to add value to Pearl GTL and the State of Qatar, in line with Qatar National Vision 2030.
HE al-Attiyah, Kool among other executives at the agreement signing. The vision of the foundation is
to become the leading think tank in the region and one of the leading institutions in the world in the
areas of sustainable energy development

US: Microchannel gas-to-liquid plants convert stranded natural
gas to marketable products … Source: Republished with permission from Velocys
The first microchannel gas-to-liquid (GTL) plant in the United States was completed in September.
The new plant, built by ENVIA Energy, is located in Oklahoma and is expected to begin converting
landfill gas into liquid petroleum products later this year.
GTL plants convert natural gas to higher-valued petroleum products, including liquid fuels, waxes,
and chemical feedstocks. The most common conversion method is the Fischer-Tropsch (F-T)
process, which involves a series of chemical reactions that transform natural gas (or a gasified
solid fuel, such as coal or biomass) into hydrocarbons and water.
Six large-scale F-T GTL plants operate in the world today: two in South Africa, two in Qatar, and
one each in Malaysia and Nigeria. These plants have output capacities ranging from 5,600 barrels
per day (b/d) to 140,000 b/d. BP operated a smaller, 300 b/d pilot plant in Alaska from 2002 to
2009, but no commercial-scale GTL plants currently operate in the United States.
Once commissioned, ENVIA Energy’s plant will have a capacity of 300 b/d. For comparison, a
petroleum refinery on the U.S. Gulf Coast may have a capacity of tens or hundreds of thousands
of barrels per day.
The project is a joint venture between four companies that plan to build more microchannel GTL
plants at landfill sites. Several other companies are also developing microchannel GTL plants in
the United States, including a 100 b/d plant scheduled to be completed next month in Wharton,
Texas.
Because F-T reactions require high temperature and pressure, building a suitable reaction vessel
can be expensive. High capital costs, coupled with market uncertainty regarding natural gas and
petroleum product prices, has led several companies to develop different techniques.
High temperatures and pressures are less costly to maintain at smaller volumes. Small-scale F-T
GTL plants can use microchannel reactors (diameters of one millimeter or less) to optimize their

operation. The small diameters of the reactor vessels allow for better temperature control and
reduce mass-transfer inefficiencies, but they limit overall flow rate. The smaller plants can also be
sited in areas unable to accommodate large-scale industrial facilities.
Small GTL plants can be built close to isolated sources of excess methane (stranded gas). Landfill
gas—primarily methane and carbon dioxide—is one example of a typical stranded gas; another is
associated natural gas produced in oil fields that have little or no natural gas infrastructure.
GTL plants in such places could potentially obtain feed gas at steep discounts or even for free,
since stranded gas is usually flared (burned off) or vented (allowed to dissipate into the
atmosphere).
Small-scale GTL plants could become a more attractive option than flaring in the future,
depending on the finalized version of rules initially proposed in February 2016 by the Bureau of
Land Management designed to limit the amount of methane flared or vented from oil and natural
gas production activities. If this gas were converted to liquid instead, it could be transported by
vehicle or pipeline and sold.

NewBase 15 November 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices rise on falling shale output, renewed hopes of OPEC cut
Reuters + NewBase
Oil prices rose around 2 percent on Tuesday to move away from multi-month lows struck the day
before, pushed higher by expectations of falling shale output and renewed optimism that OPEC
will deliver on touted production cuts.
U.S. crude futures for December delivery CLc1 had climbed 90 cents, or 2.1 percent, to $44.22 a
barrel by 0340 GMT. They struck their lowest in nearly two months the session before. January
Brent futures LCOc1 were up 81 cents, or 1.9 percent, at $45.24 per barrel.
Prices were buoyed by expectations that U.S. shale oil production will in December fall to its
lowest since April 2014 at 4.5 million barrels per day (bpd). "Crude oil prices stabilized after
several days of continued falls," Australian bank ANZ said in a note on Tuesday.
"Headlines around increasing OPEC production remained prevalent, although the focus switched
to final diplomatic efforts from nations to agree to a production cut."
Saudi Arabia's energy minister said it was imperative for the Organization of the Petroleum
Exporting Countries to reach a consensus on activating a deal made in September to curb
production, according to Algeria's state news agency APS on Sunday. OPEC members are due to
meet later this month.
Also supporting oil markets was news that Harold Hamm, chief executive at U.S. independent oil
producer Continental Resources, could serve as energy secretary when Donald Trump becomes
U.S. president.
Hamm, if nominated, would be the first U.S. energy secretary drawn directly from the industry, a
move that would jolt environmental advocates but bolster Trump's pro-drilling energy platform.
Oil price special
coverage

U.S. crude prices are also likely to be supported by short-covering, said Philips Futures'
investment analyst Jonathan Chan.
"The current active contract (for U.S. crude) is expiring. The last trading day is next Monday, so
some oil traders are already starting to close out their positions to roll over," said Chan, based in
Singapore.
Elsewhere, Iraq will cut exports of Basra crude from its southern ports to 3.16 million bpd in
December, compared with 3.24 million bpd in November. The allocated December volume will be
the lowest in four months.
Meanwhile, returning Libyan crude oil production could cap market gains.
A tanker carrying the first freshly produced cargo of Libyan crude to be exported since the Ras
Lanuf terminal reopened in September left the port on Monday. The reopening of the eastern ports
has helped Libya's national production double to around 600,000 bpd.

Oil Investors Shrug Off U.S. Vote While Focused on OPEC Disarray
Bloomberg - Mark Shenk ShenkMark
Money managers raised bets on falling oil prices by the most in more than four years in the week
leading up to Trump’s surprise win, amid waning belief in OPEC’s ability to meaningfully cut
production. Members of the Organization of Petroleum Exporting Countries are due to meet Nov.
30 to finalize a deal to curb output. Failure to reach one may send oil lower amid “relentless global
supply growth,” the International Energy Agency said Nov. 10.
“The market is focused on the OPEC meeting,” said Mike Wittner, head of oil-market research at
Societe Generale SA in New York. “It’s looking like the obstacles to an agreement are getting
bigger with both Iraq and Iran raising new issues.”
The rally that followed the Organization of Petroleum Exporting Countries’ preliminary deal
reached in Algiers on Sept. 28 has evaporated, sending speculators scrambling. A surge in West
Texas Intermediate short positions, or wagers the U.S. benchmark crude will decline, helped send
the resulting net-long position to the biggest slump since May 2012 in the week ended Nov. 8,
Commodity Futures Trading Commission data show. Brent shorts surged, posting the biggest
increase in more than five years.
WTI dropped 3.6 percent to $44.98 a barrel in the report week. Futures settled at $43.32 on
Monday, the lowest close since Sept. 19.
Futures rose 0.6 percent on Nov. 9 amid speculation Trump and a Republican-controlled
Congress will pursue business-friendly policies. The market dropped the following three days as

the dollar climbed to the highest level in more than nine months against its peers, curbing investor
interest in commodities priced in the U.S. currency.
OPEC Obstacles
“Trump’s win is having no direct effect on oil,” said Stephen Schork, president of the Schork Group
Inc., a consulting company in Villanova, Pennsylvania. “It’s having a tertiary impact because it’s
strengthened the dollar.”
Saudi Arabia, Iraq and Iran, the group’s three biggest producers, are at odds over how to share
output cuts, according to an OPEC delegate, who asked not to be identified because the
discussions are private. Qatar, Algeria and Venezuela are leading a push to overcome the divide,
according to the delegate.
Iraq has sought an exemption from joining any production cuts, arguing that its fight against
Islamic State justifies special treatment. Iran has insisted it won’t accept any limits on its
production until it has returned to the pre-sanctions level of about 4 million barrels a day. The
nation told OPEC that it raised output to 3.92 million in October.
OPEC’s 14 members raised production by 230,000 barrels a day to 33.83 million in October as
Iraqi output reached a record and Nigeria and Libya restored halted supplies, IEA data showed
Nov. 10.
“Last week we had the IEA and OPEC reports which showed that production was significantly
higher October than the previous months,” Wittner said. “The re-balancing of the market continues
to get pushed back.”
Money managers’ short position in WTI climbed by 82,791 to 145,319 futures and options, the
highest in two months, the CFTC said. Longs rose 2.7 percent.

NewBase Special Coverage
News Agencies News Release 15 November 2016
Report: Growing Confidence in North Sea Oil, Gas Industry
by Andreas Exarheas
There is a growing confidence that the industry has seen the worst of the current market
downturn, according to a new report on the North Sea oil and gas sector from PwC.
The report highlighted that the past two years have been a “torrid” time for the industry, but stated
that there now appears to be light at the end of the tunnel, with supply and demand seeking a
gradual equilibrium.
Utilizing interviews with more than 30 senior stakeholders from the UK, the Netherlands and
Norway, across the value chain in the North Sea, PwC’s latest report reveals that the general
consensus is that the North Sea has a future. However, a number of “fundamental issues” will
need to be addressed in the next 24 months if the basin is to avoid a rapid and premature decline.
The report outlined a need for collaboration, leadership and cost efficiency, as well as an uptick in
M&A activity. “The basin has a history of seeing challenges and overcoming them,” said Ben
Taylor, country commercial lead for Shell in the UK and Ireland.
“As before, operators, partners and their supply chain are going to have to work together to
sustainably answer these challenges,” he added. Following the release of the PwC report, Deirdre
Michie, chief executive of Oil & Gas UK, commended the UK oil and gas industry.
"Despite facing unprecedented challenges over the past few years the UK oil and gas industry has
demonstrated drive and determination. Its efforts to make operations more efficient achieved the
first increase in production in 15 years and a 45 percent drop in the cost of doing business this
year,” Michie said in an emailed comment to Rigzone.
Michie admitted however that there is still much work to be done within the sector, which will
require the joint efforts of industry, governments, the Treasury and the Oil and Gas Authority.
"The most important issues facing our sector are the lack of exploration and little new capital
investment,” Michie said.
“In addition, we need certainty in our fiscal regime by a recommitment to the Treasury’s ‘Driving
Investment’ strategy for the sector and as part of the UK’s new industrial strategy, to recognize our
supply chain as a key strength in the economy, with world leading capability – equally valued as
aerospace or the automotive sectors, for example,” she added.
Oil & Gas UK said that it had written to the UK's Chancellor of the Exchequer, asking him to use
his Autumn Statement Nov. 23 to help boost investor confidence in North Sea exploration and
production

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 November 2016 K. Al Awadi

New base energy news issue 949 dated 15 november 2016

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New base energy news issue 949 dated 15 november 2016